XN000022-1987-06-03 — Page 10

8

1

WEDNESDAY, JUNE 3, 1987

"BUT IN THE IMPROVED FINANCIAL CLIMATE THERE ARE NOW MUCH BETTER PROSPECTS FOR QUALITATIVE IMPROVEMENTS.

"ALREADY,

IT HAS BEEN DECIDED THAT THE SUBVENTION SURPLUSES IN THE PAST YEARS SHOULD BE RE-ALLOCATED FOR IMPROVEMENTS ΤΟ EXISTING SERVICES, HE ADDED.

HE SAID THE OBJECTIVE OF THE WORKING GROUP SET UP ON THE ADVICE OF THE SOCIAL WELFARE ADVISORY COMMITTEE LAST SUMMER WAS ΤΟ REVIEW THE BASIC ISSUE OF THE SOCIAL WELFARE SUBVENTION SYSTEN AS A

MR CHAMBERS SAID THE GROUP DID NOT DEAL WJTH CERTAIN MORE SPECIFIC TOPICS, IN PARTICULAR THE CATEGORISATION OF SOME SERVICES, AND THE CENTRAL ADMINISTRATION OF MULTI-SERVICE AGENCIES.

HE NOTED THAT IN ITS REPORT SUBMITTED RECENTLY, THE WORKING GROUP RECOMMENDED THE STANDARD COST SUBVENTION SYSTEM, IMPLEMENTED SINCE 1983 AND AS ALREADY MODIFIED ON AN INTERIM BASIS ON TIE ADVICE OF THE SOCIAL WELFARE ADVISORY COMMITTEE, SHOULD RE RETAINED, AND EXTENDED TO OTHER SERVICES FOR WHICH STANDARD COSTS COULD BE ESTABLISHED.

EXPLAINING THE CALCULATION OF THE STANDARD COSTS, MR CHAMBERS SAID: "THEY HAVE TWO ELEMENTS-STAFF COSTS BASEN ON THE NUMBER AND LEVEL OF STAFF REQUIRED TO PROVIDE THE SERVICE, CALCULATED BY USING THE MID-POINTS OF THE SALARY SCALES OF THE APPROPRIATE RANKS AND GRADES.

"AND SECONDLY A GRANT ΤΟ COVER OTHER NECESSARY ITEMS OF EXPENDITURE SUCH AS UTILITY CHARGES AND PROGRAMME EXPENSES.

-

HOWEVER, A MAJOR DIFFICULTY HAD ARISEN FROM THE USE OF THE MID- POINTS OF SALARY SCALES TO CALCULATE THE SALARY ELEMENT OF STANDARD COST, HE SAID.

++

OUT

BECAUSE AGENCIES' ACTUAL STAFF COSTS IN MANY CASES TURNED TO BE WELL BELOW THE MID-POINT LEVEL, SUBSTANTIAL SURPLUSES RESULTED, HE ADDED.

11

"THESE SURPLUSES ACCUMULATED IN RESERVE ACCOUNTS, WHICH COULD ONLY BE USED WITH THE AGREEMENT OF THE DIRECTOR OF SOCIAL WELFARE.'

L

TO

MR CHAMBERS NOTED THAT IT WAS UNACCEPTABLE FOR A SYSTEM HAVE LARGE SUMS BEING TIED UP IN AGENCIES' RESERVE ACCOUNTS, PARTICULARLY AT A TIME OF FINANCIAL STRINGENCY WHEN THE FUNDS AVAILABLE FOR WELFARE SERVICES WERE STRICTLY LIMITED.

IN SPITE OF THE INITIAL LIMITATIONS ог THE STANDARD SYSTEM, THE WORKING GROUP ON THE SUBVENTION POLICY CONCLUDED THAT SYSTEN HAD IMPORTANT FEATURES WHICH WERE WORTHY OF RETENTION, THAT A RETURN TO THE DISCRETIONARY GRANT SYSTEM OPERATING BEFORE WOULD BE INAPPROPRIATE.

COST

THE

AND

1982

IN HIS

Page 10Page 11