VOLUNTARY WELFARE ORGANISATIONS (Funding assistance)

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VOLUNTARY WELFARE ORGANISATIONS:

(Funding assistance): 14.

Mr Ong Ah Heng asked the Minister for Community Development and Sports in view of the difficulties faced by Voluntary Welfare Organisations (VWOs) running old age homes in raising funds in the current economic downturn, (a) what schemes are in place to assist VWOs facing shortfalls in funds; (b) what is the amount of disbursements given, if any; and (c) whether there are any plans to increase such disbursements.

Assoc. Prof. Dr Yaacob Ibrahim: Sir, homes for the aged run by Voluntary Welfare Organisations (VWOs) comprise nursing homes and sheltered homes. The latter, ie, sheltered homes, are licensed by MCDS. Of the 19 sheltered homes currently run by VWOs, three are being financially assisted by MCDS. Each resident is funded at 50% or 75% of the norm costs, depending on their household income. My Ministry has set aside over $404,000 grants last year for these homes.

The remaining 16 sheltered homes have for many years chosen to raise their own funds, and I commend and respect their self-reliance. My Ministry stands ready to consider funding these homes, should they need it and apply for assistance. Some of these homes have also been receiving Community Chest funding under the National Council of

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Social Service (NCSS). In addition, my Ministry also facilitates VWOs to source for funds from various private corporations and donors, as well as through fund-raising initiatives, such as the recent President's Challenge.

Apart from funding VWOs for running costs, my Ministry has also set up the VWO Capability Fund (VCF) in July 2002 to help VWOs upgrade the professional standards and capability of their staff, fund pilot programmes and support info-communications technology initiatives. This fund is managed by the NCSS, and it will provide $30 million over five years. As at October 2003, $3.8 million has been committed by the fund.

The annual operating grants given to VWOs are adjusted each year, based on the projected GDP growth. Under this principle, for FY 2003, funding to VWOs would have been reduced by 1.6%. However, my Ministry recognised the difficulties VWOs may face in these uncertain times, and did not reduce funding. This is notwithstanding the reduction of 3% in the CPF contribution.

Sir, VWOs are key partners in delivering social services, and my Ministry is committed to review funding quantums regularly to take into account the changed circumstances facing our VWOs.