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Following is the speech by the Secretary for Health, Welfare and Food, Dr York Chow, on welfare policy area at the special meeting of Finance Committee in the Legislative Council today (April 13):

Chairman and Honourable Members,

Despite the financial constraints of the Government and that public spending in most policy areas has to be adjusted downwards, social welfare is an exception.  The total provision for social welfare in 2005-06 amounts to $34.3 billion, representing an increase of 6.4% in real terms over 2004-05.

About $240 million new money has been earmarked in 2005-06 for the implementation of a wide range of welfare measures to help the poor and the needy as outlined in the Chief Executive's Policy Address.  The new initiatives cover a wide range of areas including family and children welfare, youth, elderly and rehabilitation services.  I will not repeat the details here.

Together with a projected increase of 5% or $1,141 million of the Comprehensive Social Security Assistance (CSSA) and Social Security Allowance expenditure in 2005-06 and the $200 million earmarked last year for the launch of the Partnership Fund for the Disadvantaged, the new resources for the welfare portfolio for the coming financial year is substantive and reflects the Government's commitment towards the disadvantaged groups.

Public resources are finite.  Sustainability of our welfare system is a live issue that we have to face.  Resources devoted to the welfare side have doubled in the past 10 years, with its share in recurrent Government expenditure increased from 10% to 17%.  Even excluding the spending on social security, new resources have been injected to expand our social services every year.

On the other hand, the demand side has also been increasing.  The number of CSSA recipients has, in the past 10 years, increased threefold.  Faced with an ageing population, the number of subsidised residential care places for the elderly has been increased by about 60% between 1997-98 and 2004-05.  We expect that in 30 years, the payment for social security for the aged will increase from $12 billion to $30 billion and three times as much expenditure will be required just to maintain the current waiting time for subvented elderly residential places.  Public resources cannot be increased indefinitely.

With the upturn in economy, I hope that more people can support themselves to avoid falling into the safety net.  All along, we promote the spirit of empowerment and mutual help so that individuals and families are equipped to overcome adversities, rather than resorting to welfare dependency.  Cross-sectoral co-operation, particularly tripartite partnership between the business sector, government and the welfare sector, is also promoted as a shared responsibility to our social issues.

Chairman, this concludes my opening remarks.  My colleagues and I will be happy to answer questions from Members.

Ends/Wednesday, April 13, 2005

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