The Social Welfare Advisory Committee has accepted the Government's $862 million special one-off grant proposal to help non-governmental organisations pay the annual increments to their 'snapshot staff'.

At a meeting today, the committee found the proposal reasonable, and it also considered the lump sum grant subvention mode as an appropriate system which should be continued.

Committee chairman Wilfred Wong said the proposal provides greater flexibility and more time for NGOs to honour contractual commitments to staff they have employed since April 1, 2000 - when a "snapshot" of staff was taken.

He said under exceptional circumstances the Government will consider providing additional financial assistance to those NGOs in genuine need.

The Government launched the lump sum grant subventions system in 2001, under which NGOs can keep a surplus of up to 25% of their annual expenditure. In 2005-06, 164 NGOs are operating in this mode.

Since 2001-02, a five-year grant has been provided to tide over NGOs in honouring contractual commitments in paying annual salary increments to "snapshot" staff.

NGOs are expected to conduct organisation restructuring and service re-engineering during the five-year period so they can operate within the lump sum grant provision after the cessation of the tide-over grant in 2006.

Having considered that some NGOs are not ready for the cessation, the Government will address NGOs' difficulties by putting forward the $826 million special one-off grant.

Under the proposal, NGOs must prove the extra amount of funding is required and provide all necessary financial information for the Government's consideration.

Mr Wong said the main purpose of the lump sum grant subvention mode is to provide greater flexibility for NGOs in the deployment of resources.

He said in face of the finite public resources, the welfare sector is not the only affected group and they should not rely on the Government.

Mr Wong called on the social welfare sector to make the best use of resources to meet ever-changing service and community needs, and to enhance communication with the Government to build a good partnership.