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The Government announced today (November 27) a blueprint for the further development of higher education in Hong Kong based on the final recommendations of the University Grants Committee (UGC) following the public consultation on the higher education review.
The Government also accepted the UGC's recommendation to roll-over the current triennium for one year to allow more time for parties to work out the implementation details. Details of the Government's decision is set out at Annex.
"I am most grateful to the UGC for completing a thorough review and public consultation," the Secretary for Education and Manpower, Professor Arthur K C Li said.
"The review provides a solid foundation for the further development of the higher education sector. Our aim is to encourage our tertiary institutions to strategically position themselves, promote quality in teaching and research, and give more choices and articulation opportunities for students," he said.
"It underlines the Government's strong commitment to establishing a sound education system for our young people, to servicing the needs of a knowledge-based society, and to developing Hong Kong into a regional centre of excellence in higher education," he stressed.
Role differentiation
Highlighting the Government's key decisions, Professor Li said role differentiation amongst institutions and the concentration of resources are essential to the achievement of the above objectives.
"Changes to the funding methodology will be introduced so that institutions will focus on their mission and their areas of strength, and compete for resources by performance," he said.
"Over time, there shall be greater diversity in the system and emergence of critical mass in areas of strength, so that local institutions will be more able to compete at the highest international level," he added.
Under the revised funding mechanism, the UGC will pay particular attention to rewarding excellence in research and innovative teaching.
Student places
Subject to the availability of resources, the Government aims at restoring the overall target of providing university education for 18% of young people in the 17 to 20 age cohort by phases during the next triennium through the provisions of additional second and third year places of undergraduate programmes. This will also create additional articulation opportunities for sub-degree graduates and people with other qualifications.
Mobility of students from within and outside the UGC system will be further improved with the introduction of the Credit Accumulation and Transfer System as a basis for funding. However, the proposal of "money following the students" will not be implemented in view of the strong reservations expressed by some institutions.
"I believe the measures will encourage more secondary students and their parents to consider sub-degree programmes as an alternative progression path for their children," Professor Li said.
During the public consultation, there was a lot of support that the base for student intake should be broadened. The Government agrees with the UGC that the existing quota for non-local research postgraduate students should be totally removed and that for non-local students in publicly funded undergraduate and taught postgraduate programmes should be relaxed to four per cent.
"The presence of non-local students and postgraduates on campus will enrich the learning and academic experience of local students and faculty members," Professor Li said. "We will be prepared to discuss with the institutions to give further flexibility and incentives to them in recruiting non-local self-financed undergraduate students", he added.
Programme funding
Turning to the funding of taught postgraduate and sub-degree programmes, Professor Li said they would be put on a self-financing basis gradually subject to specified exceptions.
The following types of sub-degree programmes will continue to be funded by the Government:
*courses that require high start up and maintenance costs or access to expensive laboratories/equipment;
*courses that meet specific manpower needs; and
*courses that lack market appeal to the provider and the average student, such as pure arts or theoretical science.
Professor Li said that students already enrolled in publicly subsidized programmes would not be affected by the change before they graduate.
"The Government undertakes to plough back most of the savings achieved in the sub-degree sector to benefit students in the same sector," he emphasized.
University governance
Another main thrust of the Government's decision is to strengthen governance of the institutions and the higher education sector as a whole. The universities are asked to review their governance and management structures and to enhance external participation and transparency in their grievances procedures.
"The UGC will conduct periodic comprehensive audits on the institutions covering teaching, research, governance, management and community service. Without extending its funding ambit, the UGC will be responsible for co-ordinating the development of the degree sector, covering both the Open University and Hong Kong Shue Yan College," said Professor Li.
On the question of deregulation of university pay, Government agrees to remove the mandatory requirement to link with the civil service salary scale but the universities will be free to decide whether and when to introduce their own remuneration system. The Government provides strong assurance that institutions adopting new pay packages would not be worse off than if they continue to maintain the link in terms of the public funding they receive.
Implementation
"The implementation stage will involve changes to the existing systems and much preparatory work, particularly the revised funding formulas which require careful design and consultation," Professor Li said. "The Government has decided to roll-over the current triennium for one year in 2004/05 and to postpone the commencement of the new triennium to 2005/06," he added.
Background
Since the last major review of higher education conducted by the UGC in 1996, there have been significant changes in the local and international landscape of higher education sector. In May 2001, the then Secretary for Education and Manpower commissioned the UGC to launch the current review.
The UGC published the review report entitled "Higher Education in Hong Kong" in March 2002 for a two-month public consultation. The consultation period was later extended to 31 July 2002. The UGC received a total of 134 written submissions. After considering the views of stakeholders, the UGC submitted its final recommendations to the Secretary for Education and Manpower in September 2002.
End/Wednesday, November 27, 2002
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Annex
Government's Decision on the Way Forward of Hong Kong's Higher Education
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Role Differentiation
(1)Role differentiation among UGC-funded institutions should be strengthened to promote diversity and excellence.
(2)The funding mechanism by which the UGC allocates funding to the UGC-funded institutions should be sharpened to support role differentiation and to reward good performance.
(3)The funding base for higher education should be broadened to include more private sector support, and research projects funded by non-UGC sources should provide for full cost recovery.
Student Places and Mobility
(4)Additional second and third year places of undergraduate programmes should be created by phases in the next triennium to restore the overall target participation rate of 18% of the 17-20 age cohort, and to provide further articulation routes for sub-degree graduates and others.
(5)A Credit Accumulation and Transfer System should be introduced across UGC-funded institutions in which funding for teaching would be allocated by a common system of credits among institutions. The proposal of financial rebalancing (i.e. money following the students) is dropped.
(6) The quotas for non-local students should be increased to 4% of the publicly funded student places at undergraduate and taught postgraduate levels, and that for non-local research postgraduate students should be removed.
(7) Sub-degree programmes should be put on a self-financing basis gradually, subject to specified exceptions (i.e. courses that require high start up and maintenance costs, courses that meet specific manpower needs, and courses that lack market appeal to the provider and the average student).
(8) With the exception of courses that meet specific manpower requirements and those which are required for providing full training of certain professionals, most taught postgraduate programmes should be run on a self-financing basis.
Governance
(9) The universities should carry out a review of the fitness for purpose of their own governance and management structures, enhance external participation and transparency in their grievances procedures, and clarify their relationships with their continuing education arms or community colleges. The proposal of extending the jurisdiction of the Ombudsman to UGC-funded institutions is not pursued.
(10) The UGC should conduct periodic comprehensive audits on institutions covering teaching, research, governance, management and community service.
(11) The UGC should be responsible for co-ordinating the overall development of the degree sector and the Manpower Development Committee should be tasked to oversee the provision of sub-degree programmes.
(12) University remuneration should be deregulated. The mandatory requirement to link with the civil service pay scale is removed but institutions should be given the option to decide whether and when to introduce their own remuneration systems. The Government assures that institutions adopting new pay packages would not be worse off than if they continue to maintain the link in terms of the public funding they receive.
Others
(13) The current 2001/02 to 2003/04 triennium should be rolled over for one year to the 2004/05 academic year.
(14)The Administration should discuss with the UGC sector to achieve efficiency savings in 2004/05 and in the 2005/06 to 2007/08 triennium.
