Non-governmental organisations providing government-subsidised services for the elderly must accept greater competition from the private sector, according to the Director of Social Welfare.
Carrie Lam Cheng Yuet-ngor said NGOs dominated the field and were too 'secure, comfortable and staid' under the present system, which has been criticised as inflexible and overly complicated. She said more homes for the elderly, as pledged in the Chief Executive's policy speech, must be set up.
She said the reservations of NGOs and legislators would be noted but competition had to be increased. 'I am determined to break this monopoly, because this is what we meant by the betterment of the community.'
In a recent interview with the South China Morning Post, Mrs Lam said NGOs needed a more entrepreneurial spirit and should be brave enough to face competition. Her attack comes as the Government plans to tender out contracts for the running of six homes for the elderly, with about 1,000 beds, for bidding between NGOs and private firms.
She said the scheme was important to help improve the quality of privately run homes and cut the number of elderly waiting for beds. At present, 29,000 people are on the waiting list.
But the plan has angered legislators, social workers, welfare groups and academics, who fear service quality will be sacrificed.