TNAG-1074-FCO40-1324-Policy-of-the-Government-of-Hong-Kong-on-education-1981 — Page 2

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It is not possible to link, in any precise way, the level of provision of tertiary education with the performance of the economy. The development of tertiary education, especially vocational tertiary education, is an investment in the future. The rate of growth of prosperity depends, to a very large extent, on the rate of growth of productivity of the economy's labour force, which is related to its level of education and training.

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With the expansion of and higher standards in the provision of secondary education, a growing number of students are entering secondary school sixth-forms, and are subsequently qualifying for higher education, resulting in an increase in social pressures for the provision of more such higher education places. These internal pressures are likely to be aggravated by what is happening overseas. So far the availability of d overseas places at tertiary institutions has been a significant factor in keeping the growth rate at the Universities relatively low. The situation is snow changing. Places at tertiary institutions abroad are becoming more

difficult to secure and in many cases much more expensive. The recently announced increases in fees for overseas students in tertiary institutions in the United Kingdom is a notable case in point. For the first seven months of year 112 visas were granted to Hong Kong students for the purpose of studying in United Kingdom tertiary education institutions, compared with the figure of 208 for the same period last year, which 219d represents a drop of about 46%

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In the light of the above, it is felt that a systematic review of Government policies in respect of higher education, including a re- examination of the assumptions behind the proposals contained in the 1978 White Paper, should be undertaken. However, pending completion of such a review, it is considered desirable to provide for a little more flexibility in student growth targets at the Universities in the 1981-84 triennium by allowing for an annual increase of 4% rather than 3% in overall student numbers.

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Apart from the observations above a further reason why it is felt an immediate decision should be taken on increasing student growth targets is that a significant proportion of the 3% annual expansion at both Universities has been pre-empted by the requirements of the new medical and dental schools. At the Universities, for example, a growth rate of 3% in 1981/82 over the approved student target number of 10, 330 in 1980/81 would yield an additional 310 places, of which 140 have been earmarked for the new medical and dental schools. The Government has also asked specifically for the development of new courses on increased intakes relating to the needs arising from its social services programme plans. This will mean a very small growth rate for the other disciplines which could inhibit their balanced development.

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