XN000022-1996-10-09 — Page 26

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It has been the Administration's intention to put the HKIEd under the terms of reference of the University Grants Committee (UGC) at a later stage of its development so that the UGC could monitor and fund the activities of the Institute. The UGC has well established monitoring and financial assessment mechanism for tertiary institutions. It channels government funds to the seven tertiary institutions, and monitors their performance. In joining the UGC family, the HKIEd could therefore benefit from the Committee's expertise and advice. It would also further enhance the Institution's image and status.

The Governor already gave his approval on 1 July 1996 to designate the HKIEd as an institution under the terms of reference of the UGC. As a follow-up action, we now propose to amend the HKIEd Ordinance so as to bring it into line with the ordinances governing the seven tertiary institutions.

The main provisions of the HKIEd (Amendment) Bill 1996 include:

amending the definition of "financial year";

deleting the requirement for the HKIEd to obtain the approval of the Financial Secretary for borrowing or fund raising activities;

empowering the HKIEd to invest its funds;

enabling the Governor in Council to delegate certain powers to a public officer;

specifying the term of appointment for a member of the Council of the HKIED;

removing the requirement for the Governor to table the HKIEd's statements and reports in this Council;

removing the requirement for the HKIEd to submit to the Governor for his approval a programme of the HKIEd's proposed activities and estimates of its income and expenditure for the next financial year; and

removing the requirement for the gazettal of rules made by the Council of the HKIEd, etc.

Both the UGC and the HKIEd have been consulted and agreed to the changes proposed in the HKIEd (Amendment) Bill 1996.

Mr President, I beg to move.

End