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The Government announced today (June 14) that the tuition fees for the University Grants Committee (UGC)-funded institutions in 2000-01 would be frozen at their current (i.e. 1997-98 to 1999-2000) levels, and that the proposal to introduce differential fees by broad programme categories would not be pursued at this stage.

The Secretary for Education and Manpower, Mr Joseph W P Wong, said: "As the economy gradually recovers, the Government intends to resume fee revisions. However, as announced by the Financial Secretary in his 2000-01 Budget Speech, the Administration would first consult the Legislative Council on the revision of fees that do not directly affect people's livelihood or general business activities. Livelihood-related fees will be tackled at a later stage.

"In line with this decision, we consider it appropriate to freeze the tuition fees for the UGC-funded institutions for the third consecutive year," he added.

As a result of the tuition fee freeze, the cost recovery rate will be 17.3 per cent of the average student unit cost based on the level of grants to the UGC-funded sector for 2000-01. The UGC-funded institutions are expected to receive some $522 million less in tuition fee income in 2000-01. To meet this income shortfall, the Government will seek the approval of the Finance Committee of the Legislative Council for a supplementary provision to the UGC in the 2000-01 financial year.

"It is Government's policy that no qualified student will be denied access to tertiary education because of a lack of means.

"Needy students will continue to be eligible for grants and low-interest loans under the means-tested Local Student Finance Scheme. At the same time, they can also apply for loans under the Non-means Tested Loan Scheme (NLS)," Mr Wong said.

In the 1999-2000 academic year (up to April 30, 2000), the Government provided a total of about $842.6 million in grants and $664.2 million in loans to some 30,380 students, or 47 per cent of the student population. In addition, it offered NLS loans amounting to $381 million in total to about 11,100 full-time students in publicly-funded tertiary institutions.

In making the decision of not pursuing the proposal to introduce a differential fee system by broad programme categories at this stage, the Government has taken into account the views of UGC and the new developments arising from the comprehensive review of the education system by the Education Commission.

Mr Wong said: "The emergence of more multi-disciplinary programmes and the wider implementation of credit unit system will result in greater administrative difficulties in programme categorisation.

"We are also mindful of possible implications of the proposed differential fee system on students' choice of laboratory-based disciplines, which are at present not very popular among our best students.

"More importantly, we would like to focus our attention on devising strategies in implementing the major education reform proposals. We therefore consider it more prudent not to pursue the proposed introduction of differential fee system at this stage so as to avoid any complication to the implementation process."

End/Wednesday, June 14, 2000

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