ENG-1993 — Page 173

EDUCATION

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Funding of Education

Approved public spending on education in the 1993-94 financial year amounted to HK$25,298 million, representing 21 per cent of the government's total recurrent expenditure and five per cent of capital expenditure. Public funds cover about 90 per cent of the capital cost of an aided primary or secondary school, and virtually the full cost of tertiary institution campuses; the entire recurrent cost of providing tuition from Primary 1 to Secondary 3; and about 85 per cent of the recurrent cost from Secondary 4 up to degree level. An unknown, but certainly large, additional sum was spent privately on education.

Non-profit-making kindergartens are eligible for rent and rates reimbursements, and needy parents of kindergarten pupils may apply for fee remission. Private primary schools and pupils receive no public funding, on the grounds that there are sufficient places in the public sector; but some private secondary schools receive public funds under two schemes. Under the Direct Subsidy Scheme, a private secondary school meeting a specified standard may receive a recurrent subsidy related to the cost of an aided school place and the fee charged by the school. A secondary school in the Bought Place Scheme, from which the government buys places to make up shortfalls in government and aided school places, is given financial assistance to raise standards.

The site for an aided school is granted to the sponsor by private treaty at a nominal premium, except when it lies within a Housing Authority estate, in which case the school operates under a tenancy agreement between the sponsor and the authority. International schools meeting specified criteria may also be granted land at a nominal premium.

In January, following three years of development work, consultants delivered a linked series of computer models for the financing of education. These financial models were used by planners to assess the resource implications of different policy scenarios, as an aid to policy formulation.

Student Finance

The Student Financial Assistance Agency administers several financial assistance schemes, which ensure, as far as possible, that students are not denied access to education because of a lack of means. The agency also administers a number of scholarships, which are awarded on the basis of academic merit. These schemes are described below.

Student Travel Subsidy

Students aged between 12 and 25 in full-time study up to first degree level are eligible for a subsidy to cover part of their study-related travel expenses. In the 1992–93 academic year, 168 049 students received assistance totalling $137 million.

Textbook Assistance

Primary and junior secondary students who need help to meet the cost of textbooks and stationery may apply for a grant. In 1992-93, 112 524 students received assistance totalling $36.9 million.

Fee Remission

The Senior Secondary Fee Remission Scheme, which relieves secondary students from Secondary 4 upwards of half or all the standard school fee, helps those in need to continue