To help cut spending, the Correctional Services Department will reorganise work procedures, restructure its organisation and introduce automation.
Speaking on Commercial Radio this morning, Commissioner Pang Sung-yuen said the department would also consider having inmates themselves teach interest classes in prisons.
Salaries and allowances represent more than 87% of the department's overall spending.
Since the department has no surplus staff, it has not joined the Government's two recent voluntary-retirement schemes. In the next five or six years, though, about 400 posts will be deleted through natural wastage.
Hei Ling Chau facility needed to overcome overcrowding
Despite a shortage of resources, Mr Pang reiterated the need to develop a prison complex on Hei Ling Chau to alleviate overcrowding in existing prisons and enhance rehabilitation facilities.
The overcrowding problem is most serious in women's prisons. In October, there were 3,000 women inmates - almost twice the prescribed quota.
The inmates' rate of recidivism - the number of inmates who return to crime after serving time in prison - has decreased from 55% in 1993 to 50% in past two years. Overseas, the rate is usually 40-60%. Mr Pang stressed that it is the responsibility of the community to help in inmates' rehabilitation and the department will continue to promote this message.
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