XN000022-1996-06-13 — Page 4

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(2)

The general public will suffer from reduced social welfare service provision due to the averaging effect of the unit grant.

Mr Strachan said such a worry was completely untrue. In fact, he expected the reverse to happen: because the entire sector, including SWD units, would be concentrating on better performance, the services to customers were expected to improve.

(3)

The proposed Unit Grant will commercialise the provision of social welfare services.

To this misapprehension, he said said all subvented services would remain non- profit making and there would be absolutely no change in this respect.

(4)

Unit Grant funding will preclude future service improvements.

The SWD would continue its current process to bid new funding for service improvement, Mr Strachan said.

(5)

Professional standards are denied and ignored thus adversely affecting the interest of the public.

Mr Strachan said the Funding and Service Agreement proposed by the consultants would require service units to deliver the service to the required quality and level and the new approach would have the effect of raising the quality of welfare services.

(6) NGO managers are overpowered.

Mr Strachan said the requirements of the existing system create the misleading impression that SWD carried some of the management responsibility of NGOs.

The new system could clarify the actual position that the Executive Board of a NGO is responsible and accountable for the organisation's functions and services, he said.

(7)

The averaging approach adopted by the Unit Grant subvention would penalise the well established NGOS.

Mr Strachan expected the well established NGOs would be in a better position to respond to the proposed changes because of their greater managerial skills and greater number of subvented service units.