New funding proposals would force welfare groups to become more cost-conscious, causing them to neglect their duties, an academic warned.
After a two-month consultation on the proposed lump sum grant, the Government is now considering public suggestions before introducing the system this year.
The Government currently approves funds based on the cost of each staff member in a welfare group. However, it also pays for any funding shortfalls.
Under the proposed system, welfare organisations will receive a one-off payment based on the mid-point salary of staff.
Chung Kim-wah, assistant professor at the Hong Kong Polytechnic University, accused the Government of trying to restrict welfare spending, saying the move would force non-government organisations (NGOs) to operate like businesses.
Although he agreed the new scheme would enhance flexibility, Mr Chung said it would make the NGOs too cost-conscious.
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