CO129-586-3 Grant of subsidies to vernacular schools 4-6-1940 - 7-8-1941 — Page 11

understand whether the proviso to Section 11 (ii) has a financial implication or whether it has been framed in deference to local custom.

The employment of untrained teachers is rigidly restricted (Section 15), allowance is

made for the employment of part-time teachers (Section 16) and the proportion of locally trained staff which may be employed has been fixed at not less than 50% (Section 17).

Sections 20-22 prescribe the conditions relating to leave and passages for the teaching staff while Section 23 goes into considerable detail regarding the rent which may be included as an item of expenditure for purposes of grant! contributions to a special depreciation fund are made obligatory.

Expenditure under "other charges" is to be estimated at rates per annum per pupil of the average attendance.

It is interesting, in view of recent discussion regarding school fees, that payment of tuition fees is regarded as an integral part of the Hong Kong educational system.

A contributory Provident Fund is made obligatory for all lay teachers and precise conditions for its operations are laid down (Sections 29-32).

The provisions relating to capital grants (Sections 33-37) conform very closely to those in use in other parts of the Colonial Empire.

I find little of major importance on which to comment except on the apparent fact that, in aided schools, the gap between normal expenditure and fee income is to be met entirely from public funds. Enquiry, therefore, should be made with a view to ascertaining what use is to be made of the funds which, under the existing Code, must be presumed to be disbursed annually by the voluntary agencies in order to equate income and expenditure.

The Subsidy Code is framed on lines very similar to those of the Grant Code. It is intended that its provisions should apply to "vernacular schools", that is, to schools in which Chinese is the principal medium of instruction. By implication, however, it is proposed that Higher Grade Vernacular Schools, e.g. Vernacular Middle Schools, should be brought under the Grant Code.

In 1938 there were 1060 registered vernacular (Chinese) Schools of which 273 received subsidies from Government. Under the existing system the subsidy in each case is meant to cover approximately half the net expenditure on salaries and rent after

deducting any income from fees.

The proposed new Subsidy Code improves

existing