CO129-586-3 Grant of subsidies to vernacular schools 4-6-1940 - 7-8-1941 — Page 12

12

existing procedure by stipulating that the amount of subsidy shall be not less than half the

difference between fee income and approved expenditure (salaries and rent). Concurrently, regulations have been framed which lay down salary scales for teachers (Sections 11-18).

Provision is made - evidently for the first time - for capital subsidies in aid of buildings and equipment.

As in the case of Grant Schools, it is estimated that these proposals will mean an immediate increase of approximately 60% in the amount of recurrent subsidies to existing subsidized schools.

Though the vernacular schools will receive generous treatment under the proposed Subsidy Code they will not benefit to such a marked extent as will aided schools under the Grant Code. It is probable that this decision has been reached on the principle that" it is reasonable that a larger proportion of the expenditure should be met by Government in the case of large and costly undertakings than in the case of less costly undertakings" (Paragraph 6 of the A.C.E.C's Memorandum).

Armees Jandon.

30.4.41