4
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Even if their agencies' requirements were above the notional Unit Grant level, experienced NGO managers could still make use of the opportunities of staff turnover and natural wastage to make adjustments so as to cut expenditure, he said.
(8)
Reduction in staff salaries, smaller pay rise, etc.
Mr Strachan said firstly, this kind of fear was unwarranted because the money available to the sector to pay staff salaries under the new system would be the same as the existing system.
Secondly, the salaries of existing staff were guaranteed by the government in the first three years of implementation and NGOs could use the additional flexibility during the period to make any appropriate adjustments required to cope with the new Unit Grant level.
Thirdly, as more vacancies were filled and the service continued to expand, this would increase the benchmark. The need for experienced staff would continue to exist and they would continue to be funded through the Unit Grant.
(9)
If the Unit Grant is so favourable, why is this not applied to SWD units?
Mr Strachan explained that it was because SWD was not funded in the same ways as NGOs. Funded mainly by the government, NGOs also received funding from donations, the Community Chest and fee income.
Concluding, Mr Strachan said the consultants had worked out a detailed blue print for the future administration of the subvention system which, he believed, would make a major contribution to improving the way the department delivered its welfare services.
End