TNAG-0178-FCO40-214-Education-policy-1969 — Page 60

PA

Reference..

Mr Exhart from Sinment Secretary's

1/4

Speech in

in Legislative Council

26-2-69

The sce na proposal I have to put before honourable mcmbers docs not involve a tax, but a charge. The time sccms opportune for a further reduction in primary school fees. The proposal is, in general terms, that standard school fucs should be reduced from their present level of 40 a year in ordinary urban schools and $30 in Resettlement schools (other than in the New Territories) to 20 in both cases.

New Territories Resettlement schools, which are all in urban areas of the Now Territorios, are already $20, while village schools are $10. It is not proposed to change those,

although some recluselfiention schools between rur: 1 and urban may be donirable.

There is a further category of school churging high extra contributions or "tung fui", standard focs at which remaince at 50 when fees wel generally reduced to $40, in 1967. The application of the present proposal to these schouls is still uner consideration.

I have spoken of standard feus bucause there are quite a wide variety of non-standard foes in the aided sector, at levels higher than standard. These higher fees are charged for a variety of reasons end go to reduce subsidies, not, like high "tong fai", to provide extre facilities. It is proposed to offer thuse schools an optional reduction of 20, subject to the reduction not bringing the new fee below the level of the appropriate new standard fee.

M

Because of the position of the last category of school, and because of the 20% provision for free or reduced fce places in all aided schools, it is not possible to say cxactly how many children will benefit from the reduced feus proposca, but the number at the schools affccted is approximate- ly 400,000.

The new fees, if approved, would come into effect for the now school year starting in September this year. The cost of the proposal is estimated at a maximum of $5 million next year, but this cost will, of course, rise as the aided primary school population rises. The reduction

will reduce the revenue stimates in the case of Government

schools and involve increased subventions for aided schools.

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