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MR BRIDGE SAID THAT BEFORE THE DEVELOPMENT OF THE MODELS, THE COMMITTEE WOULD BE EXAMINING WAYS IN WHICH TO REFINE THE PREDICTION OF THE COST OF CHANGES IN THE TERTIARY SYSTEM.

THUS, BY THE TIME WE RECEIVE A FORMAL PROPOSAL FROM THE UNIVERSITY, WE SHOULD BE IN A BETTER POSITION TO ASSESS THE LIKELY FINANCIAL IMPLICATIONS, HE ADDED.

MR BRIDGE NOTED THAT A WORKING PARTY UNDER THE CHAIRMANSHIP OF THE VICE-CHANCELLOR TO ASSESS THE DETAILED IMPLICATIONS OF THE PROPOSED CHANGE TO A FOUR-YEAR DEGREE COURSE HAD BEEN SET UP,

THE WORKING PARTY IS PLANNING TO TAKE ABOUT A YEAR OVER ITS TASK BEFORE IT PUT THE UNIVERSITY'S PROPOSALS TO THE UNIVERSITY AND POLYTECHNIC GRANTS COMMITTEE (UPGC).

MR BRIDGE SAID THE UPGC WOULD EXAMINE THE CONSEQUENCES FOR FUNDING AND STUDENT NUMBER TARGETS IN THE TERTIARY SYSTEM, BEARING

IN MIND COMPETING DEMANDS FOR LIMITED RESOURCES AND THE GOVERNMENT'S FIRM COMMITMENT TO DOUBLE THE NUMBER OF FIRST DEGREE PLACES, FROM THE PRESENT FIGURE OF 4 200 TO 8 300 BY THE MID 1990'S.

HE SAID THE UPGC WOULD ADVISE THE ADMINISTRATION ON THE ACCEPTABILITY OR OTHERWISE OF THE PROPOSAL, WHILE THE ADMINISTRATION WOULD THEN CONSIDER THE COMMITTEE'S ADVICE, BEARING IN MIND THE POSSIBLE CONSEQUENCES FOR THE WHOLE EDUCATION SYSTEM, BEFORE REACHING

ITS FINAL CONCLUSIONS.

ON FINANCIAL IMPLICATIONS, MR BRIDGE SAID A VERY CRUDE ASSESSMENT COULD BE MADE ON THE BASIS OF EXISTING COSTS AND ASSUMING MINIMAL CHANGES TO THE EXISTING EDUCATION SYSTEM,

THE TOTAL RECURRENT EXPENDITURE FOR HKU IN 1985-86 WAS $609 MILLION.

BASED ON AN ANALYSIS OF THE TOTAL STUDENT POPULATION, IT SUGGESTED THAT ABOUT $500 MILLION OF THIS EXPENDITURE RELATED TO FIRST DEGREE COURSES,

IF THE UNIVERSITY WERE TO INTRODUCE A FOUR-YEAR COURSE SYSTEM WHILE MAINTAINING THE PRESENT ANNUAL STUDENT INTAKE, THE NUMBER OF FIRST DEGREE STUDENTS WOULD ULTIMATELY BE INCREASED BY ONE THIRD,+ MR BRIDGE SAID.

• IF COSTS PER STUDENT WERE TO REMAIN UNCHANGED, RECURRENT EXPENDITURE WOULD RISE BY ABOUT $165 MILLION PER ANNUM AT 1985-86 PRICES.+

HE SAID THAT THERE WOULD ALSO BE ADDITIONAL CAPITAL EXPENDITURE IN ORDER TO ACCOMMODATE THE LARGER STUDENT POPULATION.

IN ADDITION, SINCE THE GOVERNMENT HAD ALREADY COMMITTED TO DOUBLING THE NUMBER OF FIRST YEAR FIRST DEGREE PLACES BY THE MID 1990'S, MR BRIDGE POINTED OUT THAT OTHER TERTIARY INSTITUTIONS WERE OFFERING AN INCREASING NUMBER OF THREE-YEAR DEGREE COURSES.

/+THERE WOULD