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Grants from charity cash 'unethical'

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OPPOSITION is growing towards a government plan to make grants from the Lotteries Fund to profit-making private homes for the elderly.

Legislators and welfare groups say the plan to pay $50 million of 'charity money' to profit-making homes is unethical.

The Governor, Chris Patten, proposed in October to provide funds to help private homes pay for safety improvements required by new laws.

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The Working Group on Care for the Elderly later recommended $50 million be allocated from the Lotteries Fund, and the proposal was approved by the Government.

Legislators and welfare groups say it violates the basic principles of the Lotteries Fund and that the administration should not use the charity money to subsidise private profit-making organisations.

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A Social Welfare Department source said the Government planned to divide the money into small requests to avoid opposition from the Subventions and Lotteries Fund Advisory Committee (SLFAC).

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