WEDNESDAY, JUNE 24, 1981

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GOVERNMENT URGED TO DISCOUNT PUBLIC DONATIONS

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THE GOVERNMENT WAS TOLD TO DISCOUNT ALL UNDES IGNATED COMMUNITY CHEST ALLOCATIONS AND PUBLIC DONATIONS IN THEIR CALCULATION OF SUBVENTIONS TO VOLUNTARY WELFARE AGENCIES.

AND IT WAS ALSO URGED TO IMPLEMENT WITHOUT FURTHER DELAY THE RECOMMENDATIONS PROPOSED IN A GOVERNMENT WORKING PARTY REPORT, PUBLISHED IN JUNE LAST YEAR, TO IMPROVE THE SUBVENTION SYSTEM.

THESE SUGGESTIONS WERE MADE BY DR HARRY FANG, THE REV JOYCE BENNETT, DR HO KAM-FA! AND MR F.K. HU AT THE ADJOURNMENT DEBATE ON SOCIAL WELFARE SUBVENTIONS POLICY IN THE LEGISLATIVE COUNCIL TODAY.

DR FANG DESCRIBED THE CURRENT SUBVENTION SYSTEM AS +OUTDATED+ AND CALLED FOR ITS REPLACEMENT AS SOON AS POSSIBLE BY A MORE EFFICIENT SYSTEM +WHICH WILL ENSURE THAT THE SERVICES REQUIRED BY THE COMMUNITY ARE PROVIDED AND ADEQUATELY FUNDED+.

HE SAID: THE MAIN DEFECTS OF THE EXISTING SYSTEM ARE THAT THERE ARE NO CLEAR-CUT GUIDELINES TO FOLLOW, THE ASSESSMENT OF

INDIVIDUAL AGENCIES' COSTS IS SUBJECTIVE, AND VOLUNTARY AGENCIES CANNOT BE CERTAIN FROM YEAR TO YEAR AS TO HOW MUCH THEY WILL GET FROM THE GOVERNMENT AND THIS MAKES PLANNING OF THE IR BUDGET DIFFICULT. CERTAINTY IS OF PARAMOUNT IMPORTANCE.

+AN ADDED CONTROVERSY IS WHETHER GENERAL DONATIONS RECEIVED FROM THE PUBLIC, UNDESIGNATED COMMUNITY CHEST ALLOCATIONS AND FUNDS RAISED BY VOLUNTARY AGENCIES THEMSELVES SHOULD BE CONSIDERED AS INCOME LEADING TO A CORRESPONDING REDUCTION IN GOVERNMENT SUBVENTION - THE SO-CALLED 'SEE-SAW EFFECT'.+

COMMENTING ON THE WORKING PARTY'S PROPOSAL TO CLASSIFY SOCIAL WELFARE SERVICES INTO THREE CATEGORIES, NAMELY +ESSENTIAL+, +NECESSARY+ AND +DESIRABLE+, DR FANG FELT IT WOULD IN PRACTICE CREATE DIFFICULTIES AND BE SUBJECT TO VALUE JUDGEMENTS.

HE SUGGESTED THAT THE CLASSIFICATION BE CONFINED TO TWO NEUTRAL CATEGORIES PRIORITIES 1 AND 2 - BOTH OF WHICH SHOULD BE ELIGIBLE FOR SUBVENTIONS.

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+THE FIRST CATEGORY SHOULD BE SUBVENTED FULLY, CALCULATED ON ACTUAL BASIC COST, PREFERABLY WITH AGREED SETS OF CODES OF AIDS FOR DIFFERENT SERVICES, IN ORDER TO ENABLE INDIVIDUAL AGENCIES, EVEN WITHOUT ADDITIONAL INCOME, TO RUN A BASIC APPROVED SERVICE, HE SAID.

/+FOR THE

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