XN000022-1977-04-20 — Page 13

WEDNESDAY, APRIL 20, 1977

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EXPENDITURE ON SOCIAL WELFARE PLAN DEFENDED

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EXPENDITURE ON IMPLEMENTING THE 1973 SOCIAL WELFARE FIVE- YEAR PLAN, AT $192.5 MILLION, HAS BEEN 25 PER CENT MORE THAN WHAT WAS ENVISAGED, THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE TOLD THE LEGISLATIVE COUNCIL IN THE RESUMED BUDGET DEBATE TODAY.

MR. HADDON-CAVE SAID HE WOULD NOT WISH TO OVER-PLAY THE FACT THAT MUCH BETTER WAS DONE THAN INTENDED FOUR YEARS AGO, BUT HE FELT OBLIGED TO POINT OUT THAT CRITICISM OF +STOP- GO+, +UPS-AND-DOWNS+ AND +ABSENCE OF STEADY PROGRESS WAS NOT CONSISTENT WITH ARITHMETIC FACTS.

ANOTHER ALLEGATION THAT THE PRESENT PRACTICE WAS TO LOOK AT ONLY ONE YEAR AT A TIME, IMPLYING A FORM OF STOP-GO, WAS NOT SUPPORTED BY ACTUAL EXPENDITURE FIGURES WHICH REFLECTED A STEADY EXPANSION IN REAL TERMS, HE ADDED.

MR. HADDON-CAVE EXPLAINED THAT ALTHOUGH THE ESTIMATES WERE PREPARED ON AN ANNUAL BASIS, THEY WERE DONE SO IN THE CONTEXT OF THE GOVERNMENT'S VARIOUS PLANS AND THE FIVE-YEAR FORECAST.

+SUBJECT ALWAYS TO THE STATE OF THE ECONOMY, OUR WHOLE APPROACH IS BASED ON THE PREMISE THAT ONCE WE ENTER INTO COMMITMENTS ON RECURRENT OR CAPITAL ACCOUNT WE HAVE EVERY INTENTION OF SEEING THEM THROUGH, HE STRESSED.

BLOCK GRANTS WOULD INJECT AN UNNECESSARY ELEMENT OF RIGIDITY INTO THE FORWARD PLANNING OF SOCIAL WELFARE SERVICES WITHOUT GIVING AGENCIES ANY GREATER SENSE OF SECURITY AS REGARDS EXISTING SERVICES, HE EXPLAINED.

HE POINTED OUT THAT SOCIAL WELFARE VOLUNTARY AGENCIES HAVE ACCESS TO THE LOTTERIES FUND FOR CAPITAL EXPENDITURE AND WERE QUITE INDEPENDENT OF GENERAL REVENUE FOR THIS PURPOSE.

+AND SO, EVEN IF IT WERE NECESSARY TO DELAY SOME CAPITAL EXPENDITURE PROJECTS BECAUSE OF MY GUIDELINE THAT AT LEAST 60 PER CENT OF CAPITAL EXPENDITURE SHOULD BE FINANCED BY THE SURPLUS ON RECURRENT ACCOUNT, THEY WOULD CERTAINLY NOT BE SOCIAL WELFARE PROJECTS+, HE SAID.

THE FINANCIAL SECRETARY ALSO SAID HE WAS NOT AWARE THAT THE PROVISION IN THE DRAFT ESTIMATES WAS INADEQUATE FOR THE MAINTENANCE AND IMPROVEMENT OF EXISTING SERVICES BY VOLUNTARY AGENCIES AND FOR THE NEW SERVICES THEY PROJECTED FOR 1977-78.

HE SAID ADDITIONAL PROVISION WOULD BE MADE AVAILABLE FOR REFUNDS OF RATES IN 1977-78, AND BESIDES, SHOULD THE SOCIAL WELFARE ADVISORY COMMITTEE THINK THAT THE PROVISION WAS

INADEQUATE, HE WOULD BE VERY READY TO LISTEN TO THEM.

/+BUT I AM