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In the interim, the regular adjustment of rates in line with inflation continues and the special increases for children and single parent families promised last October will be made on April 1 this year.

On subvention arrangements, Mr Patten said consultants would be appointed in early March to decide how to simplify the system; measure the performance of the subvented sector; provide incentives to maintain and improve the service quality, and encourage non-governmental organisations to set priorities and redeploy resources to meet them.

"The consultants will be required to meet the Hong Kong Council of Social Service and a cross section of non-governmental organisations to collect your views." The aim is to complete the consultancy within 18 months.

On the education front, the Education Department introduced a schools management initiative in 1991 to encourage schools to set out their aims, progress towards which can be monitored by the schools and parents.

In December last year, an Education Commission Working Group issued a report for public consultation on "Quality in School Education".

It sets out ideas for improving the quality of the education system, for enhancing its social accountability, and for setting up an independent Quality Assurance Unit.

This unit would provide an external check or audit upon the performance targets that schools have set.

In the tertiary education field, by 1996 the University Grants Committee will have introduced academic audits to review the institutions' own programmes and academic targets.

Turning to housing, the Housing Authority has already begun to address the complex issue of better-off public housing tenants, especially those owning private property.

They are promoting Home Ownership Schemes and requiring better-off tenants to pay extra rent.

"But more is needed. Less than seven per cent of tenants actually pay extra rent. Our priority must be to reduce the waiting time for public rental housing.

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