XN000022-1981-06-24 — Page 7

WEDNESDAY, JUNE 24,

JUNE 24, 1981

AS THE BASIC COST SUBVENTION SYSTEM WOULD PROBABLY TAKE SOME YEARS TO BE FULLY IMPLEMENTED, HE CALLED ON THE GOVERNMENT TO LOOK AT THE IR FINANCIAL PROBLEM WITH PARTICULAR SYMPATHY AND CONSIDER WAYS AND MEANS TO REMEDY IT.

+A SIMPLE SOLUTION IS FOR THE GOVERNMENT TO DISREGARD A CERTAIN PERCENTAGE OF THE AGENCIES' OTHER INCOME IN THE CALCULATION OF SUBVENTIONS.

+THE RATE OF DISCOUNT FOR EACH AGENCY CAN BE DETERMINED IN ACCORDANCE WITH ITS FINANCIAL STATUS,+ DR HO SAID.

MR HU OPINED THAT THE GOVERNMENT AND THE VOLUNTARY SECTOR MUST REMAIN PARTNERS IN THE PROVISION OF SOCIAL WELFARE SERVICES.

IT IS THROUGH THE SPIRIT OF PARTNERSHIP AND SINCERE CO- OPERATION AND WITH THE KEEN SUPPORT AND INVOLVEMENT OF THE COMMUNITY THAT WE CAN HOPE TO ACHIEVE THE BEST RESULTS, HE POINTED OUT.

+ IF THE RIGHT SPIRIT IS LACKING, THERE WILL ALWAYS BE PROBLEMS AND ARGUMENTS WHATEVER SUBVENTION SYSTEM IS TO BE ADOPTED.+

MR HU WAS PARTICULARLY CONCERNED WITH THE DAMAGE WHICH THE RECENT CONTROVERSY OVER THE EXISTING SUBVENTIONS POLICY MIGHT DO TO THE FUND RAISING EFFORTS AND THE ENTHUSIASM OF THE COMMUNITY TO HELP THE UNDER-PRIVILEGED.

HE NOTED THAT HONG KONG IS FAMOUS FOR THE PHILANTHROPY OF ITS CITIZENS.

THIS CAN BE SEEN FROM THE ENTHUSIASM DISPLAYED BY THE LARGE NUMBER OF PARTICIPANTS IN SUCH CAMPAIGNS AS WALK FOR A MILLION+, THE RESPONSE OF TELEVISION VIEWERS TO APPEALS FOR FUNDS BY CHARITABLE ORGANISATIONS OR AFTER A MAJOR NATURAL DISASTER, AS WELL AS THE VERY LARGE AMOUNTS RAISED THROUGH VARIOUS PROGRAMMES, HE SAID.

+NO ONE WILL ARGUE THAT IT WOULD BE A GREAT PITY TO SEE SUCH ENTHUSIASM AND ACTIVE PARTICIPATION DISAPPEAR ONCE IT HAS BECOME POLICY FOR THE GOVERNMENT TO PICK UP THE ENTIRE BILL OF FINANCING VOLUNTARY AGENCIES, IMPLYING THAT IT IS NO LONGER NECESSARY FOR THE COMMUNITY TO RAISE FUNDS.+

HE HOPED THAT WHATEVER NEW POLICY IS TO BE FORMULATED, IT SHOULD NOT HAVE THE SIDE EFFECT OF DISCOURAGING VOLUNTARY AGENCIES FROM RAISING FUNDS NOR THE COMMUNITY FROM GIVING TO CHARITY.

+EVEN IF THE GOVERNMENT HAS COMMITTED ITSELF TO FINANCING 100 PER CENT OF THE BASIC WELFARE SERVICES, WAYS AND MEANS MUST BE FOUND TO MAINTAIN THE INCENTIVE FOR THE VOLUNTARY AGENCIES TO RAISE FUNDS AND THE COMMUNITY TO CONTINUE GIVING TO CHARITY.

+THIS, I THINK, IS A FAR MORE IMPORTANT ISSUE TO BE RESOLVED, + MR HU SAID.