61. We show at Appendices VI and VII details of existing fee and tong fai charges in aided schools.
Fees in Private Schools
62. The present fees position in private schools is set out in Appendix VB. Their present level is some 50% higher than that pertaining eight years ago.
63. Under the Education Regulations 1971 all increases in fees require the written approval of the Director of Education.
64. Before fee increases are granted to the private non-profit-making sector accounts can be scrutinized and the financial position of the schools ascertained. In the private profit-making sector the problem is more complicated since such schools are regarded as commercial concerns by the Inland Revenue Department and taxed as such. It is difficult, if not impossible, for the Director of Education to calculate what should be an appropriate level of profit when these schools are subject to various market forces, especially rent increases, from year to year.
65. A formula whereby private schools can increase their fees at a rate commensurate with increases in cost of living has been introduced. This is necessary if individual schools are to avoid bank- ruptcy or closure.
66. At present an annual increase of $6 per month is permitted. If no increase in fees has been made for 4 years a $10 per month rise is granted. Any fee increases in excess of these limits must be justified by the production of audited accounts for the last 3 years.
67. As regards "bought places" in private schools, a notional standard fee of $400 is used to calculate fee supplementation for pupils under the new 3-year bought place scheme. However, under the older 5-year bought place scheme $320 is still retained as the notional fee for purposes of fee supplementation.
Fee Remission
68. The purpose of fee remission is to ensure that no pupil is denied a place in a Government or aided school solely because of the inability of his parents to pay the school fees.
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