The Regional Secretary for Social Solidarity reiterated on Wednesday that the Government of the Azores "has never been against institutions" and "it was never its intention to reduce" their funding. In this context, the government official reminded that the Government will reinforce the amount available for cooperation agreements by one million Euros.

"We will not reduce the total amount allocated to cooperation agreements. With this funding model, we do not put jobs in jeopardy and we do not increase the financial burden of families, who have nothing to with this funding model," Piedade Lalanda said, adding that institutions "should not fear for their future."

The Regional Secretary spoke to journalists after the end of a meeting with the officials of the Regional Union of "Santas Casas da Misericórdia" of the Azores and Regional Union of Private Social Solidarity Institutions of the Azores on the new funding model.

With this model, the Government intends to "improve the response provided" by these institutions in order to render them "more effective" and "boost the existing resources," said Piedade Lalanda.

Moreover, the Government also aims to "redistribute the amount available for cooperation agreements, based on the so-called default-value or costumer-value."

"Institutions are also aware that this funding model is fairer, which will surely have a positive impact on its efficiency and effectiveness," the Regional Secretary said, adding that this new model assures the number of vacancies in institutions in accordance with the needs of people."

According to Piedade Lalanda, the main focus of this amendment to the funding model is to "benefit people," more specifically "the services provided to people." The government official stressed that "this is the reason of being of the Regional Government and of the institutions created to respond to the needs of people."

For the Regional Secretary, institutions "play a vital role in local development."

"It is not our intention to harm or undermine local development, hindering the social responses provided by these partners, who are the true partners of the Government," stressed the government official.

During the process of adaptation to the new funding model, Piedade Lalanda emphasised that "IDSA (Institute for the Social Development of the Azores) will monitor each of these institutions, whether in terms of energy efficiency and the management of human resources and stocks or even in terms of the installed capacity in institutions, which might not be in full use."

The transition from the current agreements to "costumer-value" cooperation contracts will be done progressively for a period of two year. In a first phase, it is expected to cover institutions providing care to children and the elderly.

The model was created under the Welfare Code and its legal framework has been in force since 2012. The article 108 of this Code has been recently amended regarding the implementation of cooperation agreements and adopted by the Azorean Parliament.

Under this transition process, regional social institutions will be funded based on the services provided to citizens and the definition of a default-value, according to the type of social response.

With the implementation of the new funding model, 75 percent of institutions will maintain or increase the levels of public subsidisation.