CO129-603-3 Education Department- revised grant code 24-1-1949 - 28-12-1949 — Page 31

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EDUCATION DEPARTMENT,

HONG KONG.

7th Sept.1949.

8

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The Rt. Rev.Bishop R.0.Hall, Bishop's House,

Hongkong.

sir,

I have for acknowledgement your letter of 15th August, 1949 on the matter of changes in the Grant Code. I am afraid that there is somem misunderstanding as to the form of agreement reached in London where you stressed that the main objections were to Clauses 3 and 37 of the revised Code. Clause 3 we are already agreed upon. With regard to Clause 37 it was (a) the close scrutiny of items of expenditure on minor repairs which. your Council found irritating already and (b) the limiation of subscrip- tions which took away even further the sense of responsibility which your Council desired the Managing Committees to retain.

2.

I then agreed to find measures within the Grant Code to reduce to a minimum the necessity of obtaining prior approval for items of minor repairs, provided Government retained the right to scrutinize accounts annually. In addition you agreed that if Government thought the school subscriptions were unduly high it would be open to it to consider re- duction of grant.

3.

I am, therefore, unable to agree that my proposals do not, in fact, cover the agreement reached in London.

4.

I have to stress the fact that under my proposals the Management Committees will have very considerable financial freedom. They will exer- cise complete control in the spending of Block Grants for Other Charges for the five Anglican Schools amounting to $77,455 per annum, and also in the spending of subscriptions totalling $132,111 per annum. The half cost of Major Repairs can be reasonably met from the subscriptions allow- ed and there should still be a considerable margin. I think we are agreed that the Code unfortunately removes the incentive for school managers to make efforts to raise funds which are outside fees or extra subscriptions and I am sure that additional funds could be raised in this way.

5.

The fees and subscriptions charged in the Anglican Schools are, to my mind, such as to debar many children from the poorer sections of the community from entry. When very large grants from public funds are being made to these schools this is a serious matter, and likely to jstify claims from the poorer workers that the major portion of public funds for education is being given to the children of the wealthy classes.

6.

I deliberately mentioned that the Block Grant was very generous since it is based on the average of requirements when much war damage was being made good and consequently is higher than would normally have been the case and higher than similar 'Block Grants' in other Colonies. 7. There is no intention of exact balancing of accounts; when the Blook Grant and approved subscriptions are paid to the Council or Managers the money remains in their hands and, as far as I can see, there can be added to it any moneys donated or collected in any way whatsoever. The only stipulations are that items of expenditure are scrutinized and extra fees above a certain amount are used to reduce government grant.

8.

The proposals contained in my letter of August 3rd will therefore be put before the Board of Education at its next meeting and will then come into force.

I have the honour to be

Sir,

your obedient servant, s/a. -F.R.Rowell

Director of Education.