For discussion FCR(96-97)52
on 19 July 1996

ITEM FOR FINANCE COMMITTEE

LOTTERIES FUND
HEAD 341 - NON-RECURRENT GRANTS
Subhead 896 Tung Wah Group of Hospitals

Members are invited to approve a grant of $67,977,000 to the Tung Wah Group of Hospitals for constructing, furnishing and equipping the Fong Shu Chuen Social Service Building at Po Man Street, Shaukeiwan.

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PROBLEM
PROPOSAL
JUSTIFICATION
FINANCIAL IMPLICATIONS

Feasibility study
Land acquisition

ENVIRONMENTAL IMPLICATIONS

Public consultation

BACKGROUND INFORMATION
Brief description of subvented services to be provided in TWGHs' Fong Shu Chuen Social Service Building

Day care centre for the elderly
Multi-service centre for the elderly
Home help team
Care-and-attention home for the elderly
Day activity centre
Hostel for the severely mentally handicapped
Girls' hostel

Progress of achievements against targets for provision of welfare and rehabilitation services

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PROBLEM

There is a need for additional welfare services including day and residential welfare services for the elderly and people with a disability.

PROPOSAL

2. The Director of Social Welfare (DSW) proposes a grant of $67,977,000 from the Lotteries Fund to the Tung Wah Group of Hospitals (TWGHs) for constructing, furnishing and equipping the Fong Shu Chuen Social Service Building at Po Man Street, Shaukeiwan.

JUSTIFICATION

3. The proposed Fong Shu Chuen Social Service Building will have ten storeys with a gross floor area of 8 900 square metres. The building will provide the following subvented services -

A brief description of these services is at Enclosure 1.

4. In his policy addresses in 1992, 1993 and 1994, the Governor set a target of providing 5 888 additional places in care-and-attention homes and 14 additional multi-service centres for the elderly by 1997 and 60 additional home help teams by 1998-99 to meet the demand for these services. The proposal would help meet these targets by 1997. A breakdown on the progress of provision of welfare and rehabilitation services as against the targets pledged by the Governor since his 1992 Policy Address in relation to services included in this submission is at Enclosure 2.

5. To better meet the need of people with a disability in addition to the targets set out in Governor's 1992 policy address and updated in the White Paper on Rehabilitation in 1995, the proposed day activity centre will be paired with a hostel for the severely mentally handicapped (HSMH) to provide a comprehensive service centre for people with a disability. The HSMH places will also help to relieve the anticipated shortfall of 486 places in 1997-98. A breakdown of the progress of provision of these services against our targets is at Enclosure 2.

6. As recommended by the Working Group on Care for the Elderly, a day care centre for the elderly (D/E) should be provided for every 17 000 elderly people aged 65 or above. We estimate that in 1997-98, the Eastern District will have an elderly population of 63 300. According to the planning ratio, the Eastern District would require four D/Es in 1997-98. Taking into account the number of existing and new centres to be provided in the next two years, the proposed social service building will provide an additional D/E to fully meet the shortfall.

7. There is a considerable number of girls who can neither return to their families nor lead an independent living because of weak family support, inadequate parenting, or their own personal, behavioral and emotional problems, and are in need of continual professional assistance in a residential setting. They are now accommodated in two girls' homes and three girls' hostels providing a total of 213 places. The new subvented service in the proposed Fong Shu Chuen Building will help to meet the growing need for girls' hostel/home services as reflected in the level of service utilisation and the number of wait-listed cases, with the highest number of wait-listed case at 44 during the 12-month period from May 1995 to April 1996.

8. The TWGHs is one of the major welfare organisations catering to the needs of infants, children, youth, the elderly and mentally handicapped. With the rapid growth and development of its Community Services Division, the Agency faces an accommodation problem for the team of staff now all stationed in its head office. A sub-office is therefore required.

FINANCIAL IMPLICATIONS

9. The estimated capital cost of TWGHs' Fong Shu Chuen Social Service Building is $84,971,000 at third quarter 1995 prices, made up as follows -

10. TWGHs has undertaken to contribute 20% of the recognized capital cost of the project in return for naming the project as Fong Shu Chuen Social Service Building. We therefore propose a grant of $67,977,000 calculated as follows -

11. DSW, in consultation with the Director of Architectural Services, has vetted TWGHs' plans and project estimates and consider them acceptable.

12. The estimated cashflow for the project is as follows -

13. The estimated total annual recurrent subvention (excluding reimbursement of rates) to the TWGHs for operating the proposed facilities is about $32.5 million. For the Sub-office of TWGHs Community Services Division, there will be no additional recurrent cost as the staff posted to this office are currently receiving subvention. As the Rating and Valuation Department has yet to assess the exact amount of rates of the proposed Fong Shu Chuen Social Service Building, it is not possible at this stage to estimate accurately the amount of rates to be reimbursed to TWGHs.

Feasibility study

14. TWGHs has conducted a feasibility study on the project. The outcome of the feasibility study demonstrates that the project is viable and detailed planning could proceed.

Land acquisition

15. No land acquisition is required since the site at Po Man Street is owned by TWGHs.

ENVIRONMENTAL IMPLICATIONS

16. The Director of Environmental Protection vetted and agreed with the Environmental Review conducted by TWGHs in December 1995. TWGHs will mitigate the noise impact arising from road traffic in the vincinity by providing air

conditioners and appropriate window insulation to the noise sensitive rooms facing Po Man Street. For short term impacts during construction, TWGHs will control noise, dust and site run-off to within established standards and guidelines through the implementation of mitigation measures in relevant contracts.

Public consultation

17. The project has the support of the Community Building Committee of the Eastern District Board and the Subventions and Lotteries Fund Advisory Committee.

BACKGROUND INFORMATION

18. Under section 6(4) of the Government Lotteries Ordinance, the Financial Secretary has the authority to appropriate money from the Lotteries Fund to finance the development of welfare services. However, as a matter of practice, he would seek Members' approval for any proposal that has recurrent financial implications exceeding $8 million a year. The proposal under consideration falls into this category.

19. The piling works for the proposed Fong Shu Chuen Social Service Building will commence in July 1996 and the Building is planned for completion in December 1997.

Health and Welfare Branch
July 1996

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Enclosure 1 to FCR(96-97)52

Brief description of subvented services to be provided in TWGHs' Fong Shu Chuen Social Service Building

Day care centre for the elderly

To provide day care for old people who require personal care during the day but whom their family members can look after at home during the night. Services provided at the centres include bathing and hair cutting, meals, simple nursing care, physical exercise, physiotherapy, and social and recreational activities.

Multi-service centre for the elderly

To provide community support services for the elderly including social and recreational activities, laundry, bathing and canteen facilities, counseling and home help service.

Home help team

To provide home help services to individuals or families in need, including preparation or delivery of meals, personal hygiene care, laundry, physical exercise, house cleaning and escort service.

Care-and-attention home for the elderly

To provide accommodation with general personal care and some nursing care to elderly people who suffer from poor health or physical or mental disabilities.

Day activity centre

To provide day care for severely physically or mentally handicapped adults who lack basic self-care skills, require intensive care and training, and whom their family members cannot adequately take care of at home.

To provide basic training in self-care, daily living and social skills to clients so that they can live as normal and independent a life as possible.

To provide occupational and simple work training to mentally handicapped trainees so that they may proceed to more formal vocational training, sheltered, supported or open employment.

Hostel for the severely mentally handicapped

To provide accommodation, personal and nursing care and training to severely mentally handicapped persons who lack basic self-care skills and require intensive care and training.

Girls' hostel

To provide accommodation for young female persons aged between 12 and 21 who are either studying or working and who may have mild behavioral or emotional problems or broken relationship with their families.

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Enclosure 2 to FCR(96-97)52

Progress of achievements against targets for provision of welfare and rehabilitation services

Note : These targets were to be met by 1998-99.

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Last Updated on 2 December 1998