ONE-OFF GRANT TO SUBSIDISE OPERATING EXPENSES OF VOLUNTARY WELFARE ORGANISATIONS

Dr Teo Ho Pin asked the Minister for Community Development whether he will consider providing a one-off grant to subsidise the operating expenses of voluntary welfare organisations which are presently facing difficulty in raising funds for their operations.

Mr Abdullah Tarmugi: I appreciate the hon. Member's concern on VWOs ability to raise funds during the current economic downturn.

However, as mentioned in my previous response in Parliament, the various Ministries dealing with VWOs (i.e. MCD, MOE and MOH) are working very closely with the National Council of Social Service (NCSS) to monitor the impact of the current economic slowdown on social services and the ability of VWOs to raise funds for their programmes and services.

Most VWOs are still able to raise funds although in smaller amounts. It is important that they are clear in their aims, focused in their programmes, and are seen by potential donors to use funds effectively and efficiently. Donors are then more ready to give, knowing that their dollars will be well used. The success of recent fund-raising efforts by National Kidney Foundation, Metta Welfare Services, Thye Hwa Kuan Moral Society and TOUCH Community Services bear this out.

I know some VWOs are reviewing their services and re-prioritising their needs and expenditures just as the Government and the private sector are doing. I urge all VWOs to do the same. The current economic situation poses a challenge to the VWOs to manage their resources more efficiently.

If VWOs still find themselves short of funds even after tightening up on expenditures, the respective Ministries and the NCSS will work with them and assist them appropriately. The Government has not cut back on its budget for approved programmes run by VWOs and which receive Government funding. They will receive the same support from Government. The Government is also not cutting back on its development programme for needed community-based social services (such as family service centres, child care centres, before and after care school care programme and others). For FY 98, there is in fact an increase of 15.9% (or $9.37 million) over the FY 97 provision for both development and operating expenses for programmes run by VWOs.

The Ministry is monitoring the situation together with the NCSS and will certainly assist VWOs to fund their programmes and services where necessary.