Legislators yesterday opposed plans for a five per cent cut in spending by non-governmental organisations (NGOs) by 2003. Welfare panel members said it would be difficult for the NGOs to meet the across-the-board target.
NGOs have been ordered to cut spending by one per cent in the current financial year and by another four per cent between 2001 and 2003. In the past financial year, the Government's fund allocation to NGOs was $6.2 billion and the planned savings will be about $300 million.
Deputy Secretary for Treasury, Carrie Lam Cheng Yuet-ngor, insisted that the NGOs should be able to meet the target, pointing out that government spending on the welfare sector had increased by 9.6 per cent in the current financial year compared with last. 'There should be room to meet the target,' she said.
Deputy Secretary for Health and Welfare, Robin Gill, said there had been regular consultations with NGOs to see if agreement could be reached on service rationalisation.
'But I have to say the experience so far tells us it's very difficult to really achieve much progress,' he said.
Democrat Law Chi-kwong, representing the social welfare sector, said the Government should not implement the policy strictly, as cost-cutting could affect the quality of services.
