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portion of their earnings in the purchase of such articles, and of other minor comforts, as, for example, minties, plain chocolate, toilet soap, &c. (Note. —Departmental supplies of tobacco will continue to be available at cost —at present approximately 3d. an ounce.) It is considered that this increase in earnings, with additional privileges accruing from the setting up of canteens, will have beneficial results, such as — (a) It should tend to increase the morale of the prisoner. (b) It will afford him the assurance that if he works well he will have a reasonable sum of money available on his release. (c) It should be an incentive to better work and improved output. (d) It should bring about a better self-imposed discipline because there will be more and more valuable privileges—privileges of which the prisoner may be deprived for a period in the event of misconduct or for breaches of prison rules and regulations. The inauguration of the scheme involves certain amendments to the regulations and also detailed working arrangements. These are now receiving attention, and it is hoped to effect the change before the end of the present year. Occupational and Recreational 30. It will be observed from the reports of Controlling Officers that much is being done in the Borstal institutions to provide occupation and recreation for non-working hours. It is, however, felt that sufficient is not done in the other institutions adequately to occupy the non-working hours of the prisoners who are still obliged to spend far too much time in the isolation of their cells. This is not conducive to a development of the mind comparable to the physical development brought about by the wholesome fare and regular routine. It is planned to provide fuller occupation of the non-working hours with organized education, entertainments, hobbies, and recreation. It is considered that development on these lines will be a considerable benefit. From the same consideration it is planned to provide for communal feeding wherever this is practicable. This system is already in operation in some institutions. Education 31. Early in the year arrangements were made to have the educational facilities in prisons and Borstal institutions reviewed by Mr. A. F. McMurtrie, who had recently retired from the position of Assistant Director of Education. He has visited the institutions at Auckland, Paparua, Waikeria, Invercargill, and Napier. He has submitted a most useful report, and it is hoped to implement many of the recommendations and suggestions he has made as staff, accommodation, and material become available. Welfare 32. An appointment effective in the current year has been made of a full-time Welfare Officer at His Majesty's Prison, Auckland. This has proved of considerable value, and a great deal of assistance is being afforded to prisoners in resolving their many,and varied personal problems. A similar service is available to inmates of the Borstal institutions at Waikeria and at Invercargill through the medium of a Housemaster. Plans for the extension of this welfare work are under consideration, with the present idea ultimately of linking it up with an expanded probation service. Libraries 33. Assistance of inestimable value is now being provided by the National Library Service. Commencing in 1947 this has been steadily extended until last year a regular coverage of all institutions was in operation.

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