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Lump Sum Grant Independent Review Committee recommendations accepted in principle
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     The Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, said today (February 9) that the Government had accepted in principle all 36 recommendations put forward by the Lump Sum Grant Independent Review Committee to improve the Lump Sum Grant Subvention System.

     Speaking at the Panel on Welfare Services of the Legislative Council, Mr Cheung said, "We shall now take forward the recommendations in concert with the welfare sector and seek funding approval with reference to the Government's overall priorities in resource allocation. We hope to introduce most of the recommendations by the end of this year."

     He noted that the review committee had come to the conclusion that the principles of the Lump Sum Grant Subvention System were sound and that the system was worth retaining. All stakeholders should try their best to improve the system.

     "The Lump Sum Grant Subvention System is aimed at encouraging subvented organisations to respond flexibly to changing service needs and so non-governmental organisations (NGOs) are given greater autonomy in resource management. As the salaries of NGO staff are now independent from those under the civil service pay system, actual staff management must be a matter for individual NGOs," he said.

     The 36 recommendations covered staff arrangements; financial issues and interactions between the Government and NGOs; flexibility, efficiency and cost-effectiveness; accountability and corporate governance of subvented NGOs; quality of welfare service; handling of complaints; and other related issues.

     The recommendations include the setting up of a $1 billion Social Welfare Development Fund for subvented organistations to carry out training and capacity enhancement initiatives; the reconstitution of the Lump Sum Grant Steering Committee to include more independent members and to work with the welfare sector to develop a Best Practice Manual; the setting up of an Independent Complaints Handling Committee to determine on lump sum grant-related complaints that cannot be satisfactorily addressed at the NGO level; and the setting up of a help desk by the Social Welfare Department to assist small NGOs and make available additional resources for them to strengthen their administrative and professional support.

     Mr Cheung said, "I am grateful to the independent review committee for having conducted the review in a comprehensive, open and transparent manner, and  proactively engaging all the stakeholders throughout the process.

     "I hope the NGOs, the staff and the community at large will look forward together in a positive and pragmatic manner to improve the Lump Sum Grant System with a view to enhancing welfare services and fostering staff development."

Ends/Monday, February 9, 2009
Issued at HKT 17:14

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