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Patsy Moy

Welfare groups are to be given help to adjust to a new system of funding, according to Secretary for Health and Welfare Dr Yeoh Eng-kiong.

Government consultants will offer their services free to subsidised groups that accept the lump-sum scheme.

So far, more than 10 non-governmental organisations (NGOs) out of 186 have expressed interest in joining the system.

'I'm optimistic about the progress of the welfare reform,' Dr Yeoh said. 'I believe all 186 NGOs will be able to join the new funding system in the end. We're talking about public money; we have to ensure it will be used in the most cost-effective manner.'

What Dr Yeoh called 'tailor-made consultancy services' would help organisations with their financial and resource management.

Under the new scheme, NGOs are paid in a lump sum instead of being given funding for individual items. The scheme, announced in October last year, triggered widespread concern among social workers who warned the financial constraints could compromise quality.

Dr Yeoh said an in-house consultancy team had started designing general management programmes for NGOs of different sizes. He said he had received no signals from Beijing to cut welfare spending.

The total budget for welfare NGOs doubled from $2.7 billion in the 1994-95 financial year to $5.4 billion last financial year.

But the assistant director (development) of the Hong Kong Council of Social Service, Ku Yin-kay, said providing consultants or special management programmes would be useless without extra resources for organisations to hire staff with the skills to meet the new financial reality. The council is an umbrella group representing 130 private welfare groups.

'We are happy to have consultants and tailor-made programmes. But the problem is, we don't have people with special skills to put the new system in place,' Ms Ku said.

Last month, the Government announced slight changes to the controversial funding policy after criticism during the two-month public consultation. Changes include extending a three-year tide-over grant to five years for NGOs unable to stay within budget.

Dr Yeoh said controversial reforms for health-care remained despite speculation the Government had decided to shelve them. Public consultation on the medical reforms, based on a report by Harvard University consultants, was planned for late last year but has been postponed without a deadline.



Free consultancy service for all who accept lump-sum scheme