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26

The rates of the grant are kept under regular review to ensure that the relevant schools, by and large, have sufficient funds to meet the necessary electricity and maintenance expenses. However, despite periodic adjustments of electricity charges, our record shows that the average utilization rates of the grant have been consistently below 100% by a significant margin. For example, the average utilization rates for primary schools from 1990/91 to the 1995/96 school years were as follows:

Average Utilization Rate(%)

90-91

64.3

91-92

81.3

92-93

93-94

94-95

95-96

91.8

86.7

79.6

80.4'

(b)

As regards the minority of primary schools whose actual expenditure exceeded the grants2, the deficits were covered by their General Funds3. We are not aware of schools encountering financial problems in this respect.

The Government will continue to review the rates of the grant annually and will make necessary adjustments where justified.

From past experience, we do not expect schools to have financial difficulties in meeting the electricity and maintenance expenses relating to the use of air-conditioners. Where necessary, expenses in excess of the Noise Abatement Grant can be met from the schools' General Funds. In exceptional cases, the schools can also apply for special approval to charge the expenses to their School and Class Grant. Pending the findings of the next review which is expected to be completed before this summer, we do not see the need to revise the rates of the grant on a temporary basis.

Not all of the schools have submitted their accounts. The average utilization rate is based on the accounts submitted by 77 out of 132 schools.

2

To illustrate, in 1994/95 where the average utilization rate was about 80%, the actual expenditure of 25 schools (or 26%) exceeded the grant.

3 General Funds are income of aided primary schools derived from non-government sources, e.g. rental income from the operation of a tuckshop, donation from sponsoring/outside bodies, etc. Schools have full discretion in the use of the General Funds for educational purposes.

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