5.7
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There are, however, two ways in which the development o
social security may have a direct effect on social welfare services.,
Firstly, it may affect the demand for a particular service, either by
reducing demand (for example better cash benefits would encourage more
elderly people to stay with their families and so reduce the need for
institutional care) or by enabling some people to buy the service
privately rather than rely on government-run or publicly financed
services. Secondly, improved cash benefits enable the recipient to
make a contribution towards the particular service he requires and should
logically lead to a review of the existing policy and practice on
fee charging.
5.8
Most social welfare services are government financed and to
a large extent, cater for those with limited financial means. The
better off tend to buy them, if they are available for purchase.
There
The Government does not propose that there should be any general change
to reliance on private welfare services (that is non-government
financed services), paid for by the user of the service who would be
helped through Social Security or other individual subsidies.
are objections, both in principle and in practice, to such a change.
Private services respond to demand and profitability but would not
necessarily be spread evenly throughout Hong Kong, nor is it likely
that a full range of services would be provided, or that the charges
made will be within the means of all who require such services. Moreover
there would be difficulties in ensuring an acceptable standard of
service without an elaborate and expensive supervisory machinery.
5.9
The existing social security system already provides forms
of individual cash subsidy enabling the recipient to purchase some
social welfare services. In general, however, only limited financial
The per capita costs of some services, such as
aid is available.
CONFIDENTIAL
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