XN000022-1995-11-02 — Page 42

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On a point also related to social security, I note the Honourable Law Chi- kwong's request that social security and welfare services should be funded from separate accounts. I assume that the objective behind this suggestion is to make it easier for us to increase spending on both simultaneously. But we must be realistic. The size of welfare spending as a part of the overall government spending can only be so large and can only increase so fast. Within the limits of welfare spending, it is important to strike the right balance between spending on social security and direct welfare services. Spending on welfare has been growing rapidly; this year it will have increased by 24% in real terms over last year. Since 1991/92, as a proportion of total recurrent public expenditure, our expenditure on social welfare has grown from 7.8% to 9.2%. This is good news, but we must be careful not to allow the lion's share of this increased expenditure to go on social security funding instead of on the necessary sustained upgrading and expansion of our welfare services. Even a minor upward adjustment in social security payments can lead to a very significant increase in recurrent expenditure. Getting the balance right is a key issue. When we come to examine the full recommendations of the CSSA Review, we must bear in mind that the total funding available for welfare is limited. There is inevitably, therefore, a trade-off, greatly increased expenditure on social security could, indeed, mean relatively less for expanding welfare services.

In the case of the elderly in particular, this balance between financial support and the provision of welfare services merits careful consideration. The Governor's address highlighted the major initiatives in hand to meet the service needs of the elderly. Yes, we have suffered some minor delays in the provision of some services and we are doing all we can to meet our targets. We must remember just how ambitious some of those targets are. For example, by the end of this financial year, we will have provided an additional 4,400 residential places, 35 social centres and six multi-service centres for the elderly. I understand Members' desire to see these programmes completed even more quickly but I would hope that this desire would not blind them to the significance of what has already been achieved.

The Honourable Christine Loh highlighted the need for more outreach and home help services for the elderly. I could not agree more. I should like to see such services expanding more quickly and will be considering how to develop our existing programmes more effectively in this respect, and in particular by building on the Older Volunteers Programme which is still at only its early stages of development. We shall also be assisted in developing new ideas in this regard by a consultancy study on the needs of the elderly which we aim to commission early next year.