XN000022-1995-10-10 — Page 4

3.

"In addition, a professional fee of 16 per cent should be payable in line with the practice in the aided sector. The 55 per cent interest free loan (IFL) for above standard provision should be removed to make the basis of ESF capital funding the same as that for aided schools," Mr Mak said.

To minimise any impact on ESF and considering the need of ESF for more up- front cash to fund their above-standard requirements, the Government has decided to allow ESF to convert up to 50 per cent of the capital grant into a loan from the Government.

This option will enable ESF to increase its cash flow at no additional cost to the Government.

Mr Mak pointed out that after the implementation of the new subsidy arrangement, total subsidies to ESF schools would be reduced by $12.6 million a year.

ESF school fees to be paid by parents will increase by 3.43 per cent or $1,066 a year for primary and $1,756 a year for secondary schools at 1993-94 prices.

"In order to reduce the impact of the fee increase on parents, it has been decided to phase in the changes in recurrent subsidy over a period of two years starting in September 1996, that is from the next school year.

"As to the capital subsidy, the changes will apply to new ESF school projects," Mr Mak said.

End/Tuesday, October 10, 1995

Review on international school places

The Government fully recognises the importance of international schools to the continued development of Hong Kong's economy and will continue its policy of support to non-profit making international schools to ensure an adequate supply of these school places to meet increasing demands.

This was stated today (Tuesday) by the Deputy Secretary for Education and Manpower, Mr Kevin Mak, following approval by the Governor-in-Council of the recommendations by a government working group (WG) set up last year to conduct an in-depth review on the provision of international school places and the Government's financial assistance to them.