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18.

Mr. F.K. Hu expressed the hope that controlling

officers would be allowed a degree of flexibility within the

overall policy of stabilizing the size of the public

service to allow specific new services, such as the

Community Services Order Scheme, to go ahead. Controlling

officers do have a considerable degree of discretion in the

actual allocation of resources within the total provision in

their estimates, and it will be up to the Director of

Social Welfare to determine her priorities in the implement-

ation of the various projects after consultation with the

policy branches concerned.

19.

Finally I would like to make some comments on one

of the topics which Dr. Ip offered as 'food for thought'

the subject of standard cost arrangements for subsidising the

various types of social services provided by non-profit

making bodies.

20.

I have considerable sympathy with Dr. Ip's wish

to introduce standardised funding arrangements for these

services, and agree that ideally these arrangements should

be as simple as possible.

21.

Standard cost arrangements are however only

really practicable in areas in which standardised services

are provided. Subventions to aided schools are granted in

accordance with the codes of aid, which set out in considerable

detail the basis of subsidy, and this system could be described

/as...