Chapter 5
Financing
The Role of the Government and the Voluntary Sector
5.1
The Government has ultimate responsibility for ensuring a satisfactory standard and range of social welfare services. Its role in this field is three-fold: to direct and co-ordinate the development of social welfare services including overseeing and monitoring the implementation of services according to set priorities; to provide an adequate social security system and certain social welfare services direct, particularly those required by law; and to ensure that funds are available for the social welfare services which the community needs.
5.2
The voluntary sector has long been involved in providing social welfare services in Hong Kong, to a greater extent than is perhaps the case in other communities. It operates many essential basic services, particularly for the disabled and the elderly. By their very nature, voluntary agencies enjoy a degree of flexibility which the Government does not have. They are therefore better placed to carry out certain functions, such as new and experimental projects. Moreover, they have greater freedom in recruiting volunteers. The Government attaches great importance to the involvement of large numbers of public-spirited people in community work. There is scope for expanding the work of volunteers in the social welfare field with the growing awareness of the need for social welfare services and the availability of more leisure time. Services provided by voluntary agencies are complementary to the efforts of the Government and they provide a basis for compa- rison and improvement.
5.3
In Hong Kong's circumstances, there remains an important role for a vigorous, progressive and responsible voluntary sector, working in mutual understanding and close co- operation with the Government. There should, however be a clearer delineation of the division of responsibility between the Government and the voluntary sector. The present division is largely a historical one but with the planned expansion in various programmes, it is necessary to re-examine this division against the relative capabilities of the Government and the voluntary sector, firstly to avoid overlaps, secondly to ensure that planned targets are met, and thirdly to ensure that resources are used in the most effective manner in achieving stated objectives. An examination is now underway and recommendations are expected during 1979 for discussion with the voluntary sector.
Financing of Social Welfare Services
5.4
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Apart from the services provided by the Social Welfare Department, the Government helps to finance social welfare services provided by the voluntary sector through subventions. Social welfare subventions have increased by about 300% from $25.2 million in 1973/74 to $100 million in 1978/79. Many voluntary agencies are now dependent on the Government for most of their financial resources since overseas assistance has declined substantially. Indeed, one of the main changes in the past decade has been the extent to which resources from within Hong Kong have replaced overseas financial aid. Voluntary agencies also rely on the Community Chest, the Jockey Club and private donations and charitable trust funds to sustain their activities. The Lotteries Fund makes a significant contribution towards their capital expenditure, as well as supporting pioneering projects. Allocations from this Fund have risen from $7.8 million in 1973 to about $20 million in 1978.
5.5
With this fundamental change in the basic financing of social welfare services operated by the voluntary sector, and the scale of developments envisaged in the coming decade, the Government accepts that the present method of subventing social welfare services through
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