XN000022-1996-12-10 — Page 4

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As part of its overall review of the development of higher education in Hong Kong, the UGC has advised that hostel life facilitates the achievement of the objectives of university education. They provide an opportunity for students of different disciplines and backgrounds to meet and participate in extra-curricular activities, thus improving their communication and social skills.

"Based on the UGC's advice, we agree that all undergraduate students should be given an opportunity to stay in a hostel for one year. We also see a specific need for hostels for non-local students, students with long travelling time and research postgraduate students who generally work long and irregular hours.

"Implementation of this policy is of course subject to the availability of suitable sites and the competitive bidding for Government resources in the annual resource allocation exercises. The capital cost to Government of the additional student hostels is $1,636 million at June 1996 prices.

"The Government's decision underlines our commitment towards the development of higher education in Hong Kong. It is a clear and strong signal that the Government is willing to spend a huge amount of resources if they are considered worthwhile to improve the quality of our university students," Mr Wong said.

Under the new policy, where institutions have obtained 100% private finance of a student hostel project, only one quarter of the number of places involved will be counted against the provision of publicly-funded hostel places. This is in line with the existing policy of requiring institutions to secure private funding towards 25% of the capital cost of the Government-built hostels.

The new policy will not apply to Lingnan College for which a more generous provision of providing hostel places for 50% of its student population was agreed by Government in 1993 in recognition of the College's mission to develop into a small and fully residential liberal arts college serving Hong Kong and the Asia Pacific Region.

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