137.
The latest position is that the background and history of miscellaneous subventions policy has been researched and action is being taken to document the existing practice and to examine the policies and practices with a view to producing guidelines. The notes for guidance on subvented medical organizations have been updated in draft but I am informed that they will need to be examined further in the light of the recommendations in the report to be submitted by the consultants engaged to review the delivery of medical services. Action has still to be taken to revise and update the notes on subvented social welfare organizations but I am informed that action will be taken once the review of the standard cost subvention system introduced in 1982 has been completed. Action has also still to be taken to prepare guidance notes for accountants and auditors of all subvented organizations. The working party on the administration of subventions has not yet been reconvened.
138.
Slow progress and delays in taking action on formulating a detailed policy on the subventing of insurance premiums and in devising a system by which the various risks can be covered at minimum cost.
In my previous report I also noted that deferment of action was also a feature of a specific aspect of subventions policy which had caused unnecessary expenditure of public money. I had drawn attention in my report for the year ended 31 March 1980 to the substantial savings that could be achieved if the Government, instead of paying subventions to aided schools to cover their individual employees' compensation insurance premiums, either took out a consolidated policy to cover the risks or accepted liability itself. The Government's thinking at that time was to consider the suggestion in a broader context and in response to the Public Accounts Committee's recommendation that an early decision should be taken on the matters involved, the Government Minute of 20 March 1981 stated that the Government was actively considering the possibility of removing the payment of various insurance premiums from the list of items eligible for Government subsidy and for the Government either to carry the risk or to cover the liability with a consolidated policy. Consideration within the Government proved to be slow however, and in my report for the year ended 31 March 1984 I stated that I had reminded the Deputy Financial Secretary of the financial consequences of the failure to take more intensive action to deal with the matter.