TNAG-1448-FCO40-1947-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1986 — Page 10

there should continue to be one uniform tuition

fee for degree courses and one for non-degree

courses;

the advance announcement of fees to be charged in four years' time should continue.

FINANCIAL IMPLICATIONS

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As the effect of these proposals will be to double the proportion of total recurrent costs recovered in tuition fees by 1993-94, it may be assumed that at constant prices the 1986-87 fee income of $135 million will be increased to about $414 million allowing for the increase in the student population by that date which would account for $118 million of the difference. If we further assume that the higher tuition fees result in an increase of the same order in the amount of average grant then,

then, at the 1986-87

the 1986-87 average level of assistance, an additional $83 million in fee assistance will be required in 1993-94. The net effect of these factors will be increased revenue (at 1986-87 prices) of some $196 million in 1993-94 which may be assumed to be the saving in the block grant for that year.

CONSULTATION

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were drawn up,

Before the above

above recommendations informal consultations were held with the Student Affairs Sections of the five concerned institutions and with various student representatives. Their views were as follows :

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i)

ii)

iii)

reasonable fee increases are acceptable;

fee increases would be less a burden to students if grants continued to be offered

under the Local Student Finance Scheme to cover fee expenses;

advance announcement of fees is desirable as it

helps students plan the financing of their

studies.

Opinion was divided over the question of differential fees. While some did not object to this others saw definite disadvantages as some students might be

precluded from preferred courses because of costs.

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Nobody was able to suggest a target level for fees. Most recognised that this has to be arbitrary and is a matter of social policy.