The Government welcomes suggestions from the welfare sector on ways to improve the Lump Sum Grant Subvention System, particularly from the resource angle, Director of Social Welfare Stephen Fisher says. He hoped upgrading plans will be ready by this year's end.

Speaking on radio shows this morning, Mr Fisher said under the existing spending cap, it would be impossible for the department to pay back to welfare organisations the 9.3% funding that had been cut in recent years.

Noting the sector's workload has been increasing and its cases becoming more complex since the subvention system's launch seven years ago, the director said the Lump Sum Grant Steering Committee will explore ways to help welfare organisations.

Mr Fisher stressed the Government strives to provide quality service to the public, adding the subvention system has been under close watch to ensure welfare organisations can meet standards in both their service quantity and quality.

He pointed out the subvention system has been working well as it offers welfare bodies flexibility in handling resources and enables them to be more responsive to demand.

The director also expressed concern over the brain drain problem in the welfare sector, saying economic and social changes in recent years have caused the problem, not the subvention system. A total of $330 million will be allocated to welfare bodies in view of the civil-service pay rise, he added.