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NGOs Call For More Money To Cover Costs

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By Naomi Lee

South China Morning Post
June 27, 2000

More money is needed for non-governmental organisations to meet new administrative costs under the lump-sum financing scheme, the Hong Kong Council of Social Service said yesterday.

The umbrella group for NGOs said half its 180 member organisations had not received financial support for administration. It said those that did received it at the 1994 level, which amounted to $ 219 million. The council said this needed to be raised to 2000 levels, for which the Government has yet to make an estimate.

The new system allows NGOs flexibility on how to spend their lump sum grants, but this means they need a new administrative set-up and costs to assess staffing, finance and services.

The council's assistant director, Virginia Chan Choi-ying, said the present support was insufficient, especially when the NGOs switched to the lump sum scheme. She said the council asked the Government for more support at a meeting with health and welfare officials yesterday. "The new scheme will still save money in the long run, but the NGOs need more support at the beginning," Ms Chan said.

The lump sum grant scheme was unveiled last week after consultation and lobbying. Many social workers are unhappy with the scheme, saying it will jeopardise their jobs as NGOs strive to save costs. The Government has agreed to provide management training and consultation to the NGOs, but Ms Chan said external and ad hoc support was not enough. "We have to honour our contracts with the existing staff and maintain service quality at the same time," she said. "There is no extra money to spare on strengthening the administration. At the moment, even large organisations are (struggling)."

A Health and Welfare Bureau spokesman said officials were considering their request.

Yesterday the council accepted that a tide-over grant to be given to the NGOs for the transition period would be reviewed after five years, but the Government would still provide funds to honour staff contracts if needed.

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