XN000022-1996-04-03 — Page 2

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Improved subsidy rate for kindergartens

Up to 90 per cent of all kindergartens in Hong Kong will be eligible for subsidy under revisions to the Education Department's Kindergarten Subsidy Scheme which were approved by the Governor-in-Council on Tuesday (April 2).

The revisions, which applied to the annual adjustments of the subsidy rate and the cut-off point for eligibility, will take effect from this September subject to approval by the Legislative Council's Finance Committee.

According to the revisions, the 1996/97 school year will see a 14 per cent increase in the annual subsidy rate to $790 per pupil per annum while the eligibility cut-off point for kindergartens will be raised to $11,700 per pupil per year. These compare with a subsidy rate of $695 and a cut-off point at $8,300 in the present Scheme.

Acting Assistant Director of Education, Mr Wai Kwok-bong, said the basis of subsidy had been revised to take account of both inflation and the annual increment of teachers.

He said that enhancement of the eligibility cut-off point would enable up to 90 per cent of kindergartens to join the Scheme.

"While a 90 per cent coverage is considered reasonable, the remaining 10 per cent of kindergartens are charging comparatively higher school fees, and they should be able to absorb through their school fee income the additional expenses arising from Government's new regulatory requirements for kindergartens." he said.

"Therefore, it was considered that our available resources should not be directed to this group."

The revisions were proposed by an Education Department working group set up in October 1995 following an undertaking in the 1995 Policy Address to review the Scheme. The review was conducted in the light of operational experience of the Scheme and feedback from kindergarten operators and other concerned parties.

The revisions mean that kindergartens charging school fees not exceeding the cut-off point of $11.700 per pupil per year in the 1995/96 school year will be eligible to apply for a subsidy based on a rate of $790 per pupil per year in 1996/97, Mr Wai explained.