untitled design

Catalan administrations’ non-payments to social entities soar during the coronavirus pandemic

The employers of the entities that watch over the vulnerable population warn that the public administrations now owe them 62% more for work rendered and pending subsidies than at the beginning of the pandemic. The Confederation of the Third Sector calculates that the amounts to be paid to associations and companies that cover public services in Catalua to care for minors, dependents, the elderly and victims of sexist violence, among others, have grown of 158 million euros in May to 256 million half a year later.

According to the organization, the invoices to be settled for orders already made and that have exceeded the legal term of one month to pay them have gone from adding 75 million from euros to 162 million. The entities attribute 63% of the amount to be settled to the Generalitat. In turn, they attribute 75% of the delinquency to the Government in the 94 million euros that the group of institutions has committed in aid. The subsidies to be transferred six months ago were quantified at 83 million euros.

 «In some invoices, we speak of a delay that is not 60, 90 or 120 days, but more. We are stumbling: we can receive some payments, but the debt always comes back. It has been recurring since 2012, ”explains the president of the Confederation of the Third Sector, Joan Segarra, who urges that defaults be settled immediately. At the same time, it warns of the danger of suffocating associations and small companies entrusted with the well-being of groups threatened with exclusion: There will hardly be closings because everything that can be adjusted is done and own funds are used already credit but, if the situation consolidates and becomes chronic, there is a risk that there will be difficulties for the continuity of services and entities.

Financial hardships are mixed with the Covid crisis. The organization predicts that only 6% of the entities will close without losses for the year, marked by a collapse of 593 million euros in income from the suspension of activities due to sanitary restrictions and an unforeseen expense of about 84 million for the measures against the coronavirus. The Generalitat provided aid to alleviate the disbursements, but they do not cover the total volume of the extra costs, indicates Segarra, who demands compensation as long as the epidemic lasts and that the political parties commit to improve financing to protect the sector.

The Government has agreed to pay an average 3% more for social services, while the employer’s association proposed raising rates by 9%.  «They are partial and insufficient increases», says Segarra. The Confederation detects an under-financing that means that charities offer lower salaries than the administration. In turn, he estimates that employment has sunk 10% with the recession.  «ERTE had to be done, especially in the first wave in activities such as school canteens, and more will have to be done depending on how the situation progresses. Direct intervention personnel in essential services have not been laid off, but more have had to be hired due to the pandemic, but entities that experience difficulties closing the year will have to make adjustments to the structure. ” Segarra predicts.

The Department of Social Affairs de la Generalitat responds that it has paid “100% of the bills for services suspended during the pandemic.” It states that it is up to date with the payment of 91% of services related to childhood and 97.5% of residences and day centers for the elderly. The council highlights that it allocates an additional 267.5 million to defray extra costs derived from the health alert. It also specifies that the increase in rates to remunerate the services provided by social entities fluctuates in increases from 1.2% to 6.8% and represents an additional 35 million euros in transfers for the work carried out.

Social Affairs admits delay in the transfer of some seven million euros for extraordinary expenses of arranged services and reserved places in residential services. He estimates that they represent 2.5% of the total billing and he expects to settle them on November 30, together with the payments corresponding to September.

Source link 

 

You may also like

Spain to give Patriot missiles to Ukraine
World
Flora

Spain to give Patriot missiles to Ukraine

Spain will deliver Patriot anti-aircraft defense systems to Ukraine, as announced yesterday by the country’s Defense Minister, Margarita Robles. Earlier,

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular