Press Releases

SWAC discusses Special One-off Grant

The following is issued on behalf of the Social Welfare Advisory Committee:

The Social Welfare Advisory Committee (SWAC) today (July 7) had an in-depth discussion about the Special One-off Grant (SOG) proposal and found the proposal reasonable. It also considered the Lump Sum Grant (LSG) subvention mode as an appropriate system, and to be continued.

Speaking at a media session after a SWAC meeting, the chairman of the SWAC, Mr Wilfred Wong Ying-wai, said the SOG was able to provide greater flexibility and more time for non-governmental organisations (NGOs) to make whatever necessary restructuring to honour their contractual commitments in terms of paying the annual salary increments to the "snapshot staff".

He added that under exceptional circumstances, the Government would consider providing additional financial assistance to those NGOs in genuine need.

Mr Wong noted that with the changes in the welfare sector in the past few years, the management and staff side of NGOs had faced enormous pressure and difficulties in their work. He understood that while many NGOs had made great efforts in carrying out service re-engineering and organisation restructuring, some of them were not yet ready for the cessation of TOG.

"We understand that NGOs have been affected by the enhanced productivity programme and efficiency savings in the past few years. In face of the finite public resources, the welfare sector is not the only affected group and they should not rely on the Government forever. We hope that NGOs can try their best in carrying out the necessary restructuring and re-engineering measures with a view to attaining financial viability.

"I know that the Government is willing to assist the welfare sector in resolving the problems. We feel that the Government and the welfare sector should enhance their communication and build up a good partnership," he added.

Mr Wong pointed out that the main purpose of the LSG subvention mode was to provide greater flexibility for NGOs in the deployment of resources. With the limited resources, the social welfare sector should make the best use of the existing resources to meet the ever-changing service and community needs, as well as to provide cost-effective and better quality services to the general public.

The Administration has put in place the LSG subventions system in 2001. Under the system, NGOs are subvented on a lump sum basis and they are allowed to keep a surplus of up to 25% of their annual expenditure. In 2005/06, 164 NGOs are operating on LSG subvention mode. Since 2001-02, a five-year TOG has been provided to tide over the financial needs of NGOs in honouring their contractual commitments in terms of paying the annual salary increments to their snapshot staff.

NGOs are expected to carry out organisation restructuring and service re-engineering during the five-year period so that they can operate within the LSG provision after the cessation of TOG in 2006.

Having considered that some NGOs are not yet ready for the cessation of TOG, the Government has decided to address the difficulties of NGOs by putting forward the SOG that incurs a one-off expenditure of $826 million.

Under the latest SOG proposal, two schemes are available to NGOs currently receiving TOG. NGOs must prove the extra amount of funding required and provide all the necessary financial information for the Government's consideration.

At today's meeting, the consultancy team from the University of Hong Kong presented the findings of their Study on Child Abuse and Spouse Battering. Members had a thorough discussion on the subject.

In addition, members were also briefed by the Administration on the revised proposals for helping single-parent recipients under the Comprehensive Social Security Assistance (CSSA) Scheme to achieve self-reliance and social integration. Members noted that there was general support in the community on the broad direction and objectives of the arrangements to empower single parents to be self-reliant. The revised proposals of requiring single parents with the youngest child aged 12 to 14 to seek at least part-time employment (eight hours a week) and retaining the single-parent supplement subject to further review represent a balance between different views expressed on the implementation of the arrangements.




Ends/Thursday, July 7, 2005
Issued at HKT 16:15

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