XN000022-1973-01-25 — Page 7

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Thursday, January 25, 1973

INCREASE IN SUPPORT FOR DAY NURSERIES

Government's Contribution Doubles From $20 to $40 Per Child

With effect from April 1, the Government's contribution for

services in supported day nurseries will, on the average, be doubled from

$20 to $40 a month per child.

Mr. F.K. Li, Director of Social Welfare, says a recommendation

to this effect, recently made to the Government by the Social Welfare

Advisory Committee, has now been approved by the Finance Committee of the

Legislative Council.

Since May 1, 1971, the Government's contribution has been $20 a

month per child. The assumed the average cost per child at a nursery to

be $60 a month, met $20 from the Government, $20 from the voluntary agency

running the nursery, and $20 from fees. In other words, the Government

bore one-third of the cost.

Mr. Li explains that the Social Welfare Advisory Committee, of

which he is chairman ex officio, had for some time "been concerned that

this formula of bearing one-third of the cost per child has not provided

a sufficient, or realistic, measure of Government support."

The Committee had therefore advised the Government that since

approved costs had now risen to an average of $80 per child per month, and this increase "could not, in most cases, be borne either by the agencies

or from fees," the average Government contribution per child per month

should be doubled from $20 to $40 with the present formula for apportioning the total cost revised to $40 for the Government, $20 for the agency,

and

$20 from fees.

"In other