above 10% of the recurrent costs of higher education from tuition fee income is both attainable and desirable. Since Hong Kong's education system is most akin to that of the UK, it is recommended that our targets should initially be similar to theirs, though it might be noted that in the UK home students attending university and polytechnic courses have their fees paid by the Local
by the Local Education Authority by means of mandatory minimum grants. The higher levels prevailing in some other countries might
might eventually be achievable, but to move to such high levels quickly would be highly controversial and would provoke strong opposition with consequent risks of serious student unrest. Members will note that 12% also happens to be the initial target rate believed to be being adopted by the Singapore Government, whose current rate is close to that of Hong Kong.
16
It is therefore proposed that at this stage the targets for cost recovery by means of fee income of fee income as follows :-
should be
(a) degree courses
total recurrent
not less than 12% of
of the costs of degree courses at the five higher This level was reasonable by the former
education institutions.
of
the
two
considered Vice-Chancellors universities and by the then UGC. This level is also comparable to that for home students at universities in the UK.
(b) non-degree courses
costs
not less than 16% of the total recurrent
for non-degree courses at HKP, CPHK and HKBC. This percentage is similar to the UK level for polytechnics.
In proposing the same percentages across the board,
the board, account has been taken of the argument that this might be unfair since different institutions and different faculties have different unit costs. The arguments against applying differential fees are given in paragraphs 18 to 20 below.
17
If the above target percentages are accepted, it is proposed that the two targets should be achieved before the Third University has its first intake so that it will apply at the new university. It is recognised, however,
that