ENG-1949 — Page 85

A system of Grants in Aid was first introduced in 1873 and has been modified and revised several times. Up to 1941 the grant had been paid first on examination results and finally on a per capita basis. In that year a new Code was introduced and approved by the Secretary of State for the Colonies. The aid given covered the difference between the approved expenditure and the income from tuition fees in the grant-aided schools. Approved expenditure included all salaries, incidentals, other charges, passages and leave pay for teachers entitled to them, and the rent of school premises. In the case of a grant-aided school which owned its own building the approved expenditure could include a percentage, not exceeding 3% of the capital value of the building, to be used solely for the purpose of a rebuilding fund. Grants were also made up to 50% of the cost of new buildings and of major repairs. Local teachers in grant-aided schools, however, did not receive the same salaries as those in equivalent grades in Government schools.

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In 1945 the Code was revised. This revision raised the salaries of local teachers in Grant Schools to the same level as for Government Schools while those with approved British or American qualifications received the Burnham scale of salaries, irrespective of race or nationality. It also introduced a Provident Fund Scheme whereby the teachers contributed five per cent of their salaries and Government added a similar amount. This was introduced because teachers in Grant Schools do not come under any pension scheme. Certain of the revised clauses in the Code came in for much discussion both in London and in Hong Kong but agreement has now been reached on all outstanding points of difference.

The Subsidy Code has also been revised during the year and the new provisions make for simplicity of operation and have improved the salaries of the teachers by 400%, making them four-fifths of the salaries paid in Government and Grant- aided schools. The objects of the Code under which sub- sidised schools operate are three-fold: (a) to enable properly qualified teachers to open schools without running into debt; (b) to keep fees at a reasonable level; and (c) to ensure proper salaries for teachers. Were it not for the subsidy many of these schools would be compelled either to charge high school fees in order to pay their teachers or to balance their budget by paying unreasonably low salaries and con- sequently lowering the standard of their tuition. The number of schools receiving subsidy varies from year to year; the amount of each subsidy is determined by the school's deficit and is in any case not less than half the difference between expenditure and income. The amount spent on subsidies is steadily rising and indicating that schools welcome this form of assistance while ensuring a greater measure of control.

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