Portland'S prison ship should be closed unless millions are spent on improvements, a damning report said today.

Her Majesty's chief inspector of prisons, Anne Owers, claims HMP Weare at Castletown is entirely unsuitable for its current use and needs substantial and sustained investment to bring it up to scratch.

She said it was a 'container' ship with no access to fresh air and had living accommodation with little natural light.

Her comments, contained in an inspection report, have heightened job fears among the prison's 250 staff, many who live on Portland.

Ms Owers said: "Weare is, literally and metaphorically, a container.

"Though notionally a training prison, it has no space for workshops and insufficient space for exercise or education.

"Despite the best efforts of staff it is entirely unsuitable for its present function as a 21st century training prison."

Ms Owers said even to keep the ship, a former Falklands War troop carrier, seaworthy and safe would require significant resour-ces. Planning permission to keep the vessel at Castletown expires in 2006.

She said: "For the sake of both prisoners and staff, a clear decision should be made about the future of Weare, rather than a series of ad hoc extensions of contract.

"If it is to continue in any capacity, substantial and sustained investment will be needed to bring it to an acceptable standard.

"If this is not forthcoming it should be closed."

Both Weare governor Denise Calvert and the Prison Service south west area manager Jerry Petherick said the report was fair.

Ms Calvert, who has run the prison since April, said: "I think it is a fair reflection of the prison. There were no surprises in it, and the criticisms were quite justified.

"An appraisal process will take place as a result, but I do not know what is going to happen."

HMP Weare was opened in July 1997 as a temporary over-crowding measure.

It is a 'class C' establishment, for prisoners who cannot be trusted in open conditions but do not have the will or resources to escape.

Prison Service director general Phil Wheatley said: "We agree the Weare is totally unsuitable in the long term as permanent accommodation.

"A decision concerning its future will be made as soon as possible."

Prison Officer Association national executive committee member Don Wood, who covers Portland and the South West, said he did not want to see staff lose their jobs at the Weare.

He said: "There are concerns over job security and staff are worried they will be forced to move away from Portland.

"The prison is of major economic impact to the island and the surrounding area, and a lot of staff are part of the community.

"I do not want the Weare closed, I believe it should be upgraded."