The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Friday, July 15, 1994                  TAG: 9407150536
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY DAVID M. POOLE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Short :   39 lines

ALLEN SAYS STATE SHOULD EXPLORE USING PRISON LABOR INMATES COULD WORK IN INDUSTRIES HURT BY CHEAP FOREIGN LABOR.

Gov. George F. Allen suggested Thursday that Virginia should compete with China's controversial use of prison labor by allowing companies seeking low-wage workers to operate inside state prisons.

In an off-hand comment at a meeting of his government reform panel, Allen said the state could open prisons to industries that no longer can afford to manufacture or assemble products in the United States because of cheap labor available in developing countries.

``We complain about prison labor from China,'' Allen said. ``Well, let's have our own prisoners doing something.''

Later, Allen told reporters that he would not consider forcing prisoners to work, but would provide incentives for them to become productive, earn money and make restitution to their victims.

``We're obviously not going to do anything unconstitutional,'' he said.

Allen listed electronic equipment assemblers and toymakers as candidates for a prison labor program. The suggestion was one of the few concrete recommendations presented at a meeting of Allen's ``Blue Ribbon Strike Force'' for government reform.

The panel issued an interim report that was light on specific proposals for eliminating waste, improving inefficiency and removing burdensome regulations. Preliminary ideas included privatizing the management of state fish hatcheries, giving local governments the option of handling road maintenance and turning over some Department of Motor Vehicles functions to private businesses.

The strike force is scheduled to issue its final recommendations this fall. by CNB