Press Releases

Dialogue to address hardship faced by welfare sector maintained

The Government will maintain dialogue with the welfare sector to help address the concerns over the level of efficiency savings in the coming few years, the Secretary for Health, Welfare and Food, Dr Yeoh Eng-kiong, said today (February 6).

After a meeting with representatives from the welfare sector, Dr Yeoh said he recognised that the past few years had not been particularly easy for the welfare sector as they need to deliver savings as well as to adapt to the changes brought about by the implementation of lump sum grants.

Dr Yeoh said that Government has a responsibility to ensure that limited public resources are used in the most optimal manner to meet the needs of the community.

The Government would examine what flexibility it had in tackling the deficit. It promised to work with the sector to see how the savings for the welfare sector can be achieved by the whole sector and the Government.

He was encouraged to hear that the sector appreciated the need to face the fiscal challenge, and that they were adopting a rational approach and working closely with the Government to overcome the current difficult times.

Dr Yeoh assured representatives that the Government and the welfare sector were partners: the services provided by the sector implement Government's policy objectives.

As a result of the Government's efficiency saving exercise, welfare expenditure other than social security payments is subject to a three per cent efficiency savings requirement in 2004-05.

Dr Yeoh said: "Instead of some three per cent cut, we are offering 2.5 per cent reduction in subvention allocations to Non-government organisations (NGOs). The balance of the required savings already has to be sourced from other areas, for example, met by the Social Welfare Department (SWD)."

"We will continue our ongoing dialogue with NGOs. The Social Welfare Department stands ready to render assistance to individual NGOs that may have genuine difficulties in meeting the saving targets," he said.

At the request of legislator Dr Law Chi-kwong, Dr Yeoh today met with some 16 representatives from three social welfare organisations to discuss the Government's funding cuts in the coming years.

The three organisations are the Hong Kong Council of Social Service, Hong Kong Social Workers' General Union and Hong Kong Social Workers Association.

Ends/Friday, February 6, 2004
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