XN000022-1977-03-11 — Page 5

FRIDAY, MARCH 11, 1977

GOVERNMENT SUBVENTION FOR VOLUNTARY WELFARE SERVICES

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SOCIAL WELFARE SUBVENTION HAS INCREASED FROM $17 MILLION IN 1971 TO $68 MILLION IN 1977 AT AN AVERAGE COMPOUND RATE OF 26 PER CENT ANNUALLY, THE DIRECTOR OF SOCIAL WELFARE, MR. THOMAS LEE, SAID TODAY.

SPEAKING AT THE WORKSHOP ON SUBVENTION POLICY ORGANISED BY THE HONG KONG COUNCIL OF SOCIAL SERVICE, HE SAID THAT AT PRESENT, THERE WERE 87 VOLUNTARY ORGANISATIONS RECEIVING SUBVENTIONS AND FOUR OTHER AGENCIES WERE BEING CONSIDERED FOR NEW SUBVENTION.

MR. LEE NOTED THAT SOCIAL WELFARE SUBVENTION ALLOCATED TO VOLUNTARY ORGANISATIONS WERE IN THE FORM OF 'DISCRETIONARY GRANTS' FOR THE FOLLOWING REASONS: GREATER FREEDOM FOR INITIATIVES AND PIONEERING THAN WOULD BE THE CASE WHEN OPERATING UNDER A DEFICIENCY GRANTS THE RETENTION OF INCENTIVE TO RAISE FUNDS FROM THE PUBLIC AND TO PROVIDE AN INCENTIVE FOR ECONOMY.

HOWEVER, HE CONTINUED, THE ONLY STRINGS ATTACHED TO DISCRETIONARY GRANTS WERE THAT THEY MUST BE FOR SERVICES SUPPORTED UNDER THE FIVE YEAR SOCIAL WELFARE DEVELOPMENT PLAN AND THAT AGENCIES MUST NOT PAY THEIR STAFF MORE THAN GOVERNMENT OFFICERS FOR SIMILAR WORK.

TURNING TO HOW THE ONE-LINE VOTE OF SUBVENTION IS DETERMINED, MR. LEE SAID: +EVERY YEAR THE SOCIAL WELFARE FIVE YEAR PLAN IS REVIEWED AND BEARING IN MIND THE NEEDS OF THE FOLLOWING YEAR UNDER THE PLAN, THE DIRECTOR OF SOCIAL WELFARE DETERMINES A WORKING FIGURE AS TENTATIVE PROVISION FOR THE RECURRENT EXPENDITURE REQUIRED IN THE FOLLOWING FINANCIAL YEAR.

+THIS FIGURE IS BASED ON THE TOTAL SUBVENTIONS APPROVED FOR THE CURRENT YEAR, ADJUSTED TO ALLOW FOR KNOWN INCREASES IN COSTS, FOR EXAMPLE, SALARY REVISIONS, IF ANY, BASED ON A RECENT CIVIL SERVICE PAY INCREASE, ANNUAL SALARY INCREMENTS, INCREASE IN RENT AND RATES AND FOR THE ESTIMATED COST OF ADDITIONAL FACILITIES AND SERVICES TO BE PROVIDED IN THE FOLLOWING YEAR.

HE EXPLAINED THAT SINCE THE ONE-LINE VOTE HAD TO BE ASSESSED AND AGREED ON BY THE SOCIAL WELFARE ADVISORY COMMITTEE, THE FINANCE BRANCH AS WELL AS THE FINANCE COMMITTEE, IT INVOLVED A LENGTHY PROCESS.

+MOREOVER, BECAUSE THE FUNDS HAD TO BE APPROVED IN CONNECTION WITH THE BUDGET, THE ACTUAL PROVISION FOR THE ONE-LINE VOTE CAN ONLY BE AVAILABLE IN MARCH, AND ALTHOUGH WE ATTEMPT TO GIVE AGENCIES AN ACCURATE FORECAST AS EARLY AS POSSIBLE ON WHAT THEY ARE LIKELY TO GET, WE CANNOT GO FIRM UNTIL FUNDS ARE ACTUALLY VOTED IN THE LEGISLATIVE COUNCIL, HE ADDED.

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