********************************************************

Following is the speech by the Permanent Secretary for Education and Manpower, Mrs Fanny Law, at the forum on the Development and Quality Assurance of Associate Degrees in Hong Kong organized by the Hong Kong Council for Academic Accreditation today (December 7) (English only):

Professor Leong, distinguished guests, ladies and gentlemen,

I am grateful to the Hong Kong Council for Academic Accreditation for organizing this forum on the Development and Quality Assurance of Associate Degrees. Today's event provides an excellent opportunity for us to take stock of progress since the Chief Executive announced in the Year 2000 an ambitious plan on the expansion of post-secondary education, to share experience both local and from overseas, and to reflect on what we have done right, where we can improve, and how we should proceed from now.

In this academic year, 16 institutions together provide a total of 9,000 self-financing sub-degree places for Secondary 5 and Secondary 7 graduates. The overall participation rate in post-secondary education is now about 42%, up from 32%, two years ago. This is by no means a small achievement and is made possible because of the strong commitment of the Government, the enthusiastic response of continuing education providers and the unfailing support of the Hong Kong Council of Academic Accreditation against the backdrop of a huge demand for post-secondary education as Hong Kong evolves into a knowledge economy.

On the part of the Government, so far,

* we have secured $5 billion to set up a loan scheme for training providers. Nine campuses rented or purchased with over $1 billion of loan are already up and running;

* we have offered nearly $200 million grants and loans for over 2,500 students attending self-financing sub-degree programmes;

* we have granted about $9 million to subsidise training providers for the cost of accreditation;

* we have put up five prime sites adjacent to MTR/KCR stations for application by interested providers to develop post-secondary colleges;

* we have published a set of common descriptors on associate degree;

* we have set up a new web site to disseminate information on post-secondary education opportunities in Hong Kong (www.postsec.edu.hk); and

* we have taken the lead to recognize associate degrees in civil service recruitment.

This report card is not bad at all given the limited amount of time we have and the resource constraints we face. We cannot afford to be complacent though, as there is still a long way to go to achieve the Chief Executive's target of 60% participation rate by the Year 2010.

One of the biggest challenges we face is to gain acceptance in the community of the "associate degree" as an independent qualification for the purpose of employment or further education. With a newly branded qualification, there are bound to be questions among students, parents, teachers and employers about the learning outcome, quality assurance, community recognition and progression pathway of "associate degree". It is also understandable that people will continue to see the "associate degree" as an inferior alternative to the traditional education pathway until they see more success stories among associate degree graduates.

Be that as it may, it is noteworthy that the associate degree is the preferred credential to many of the fastest growing occupations in the United States. Associate degree programmes equip students better for employment or advancement in a specific career. Every year, more than 400,000 students obtain an associate degree in the States, and associate degree graduates are highly employable.

In Hong Kong, associate degree programmes provide a more flexible mode of learning, a wider variety of subjects and modules, with emphasis on classroom participation, and hands-on projects. Many students who may not do well in an examination-oriented education system regain confidence and interest in learning in an associate degree programme. I have seen some very smart and intelligent students reinvigorated through a different approach to learning that unleashed their potentials. I have no intention to hard sell associate degree programmes but it is clear that they have offered an additional quality choice for students.

Cost is a concern, in particular in the present economic climate. While we have delivered on the incentive schemes that we promised to provide, we will need to constantly review, and hopefully improve, our support measures for students and providers, particularly the non-university institutions. Last week, the Government announced a blueprint on the further development of higher education in Hong Kong. One of the recommendations is to provide a level playing field for all by rationalising the government subvention for sub-degree programmes. We expect most of the savings that may be achieved through rationalizing the allocation of resources in the sub-degree sector would be used to enhance the financial assistance for students. Faced with a growing fiscal deficit, we must ensure that resources are allocated where they are most needed to benefit more students and for the common good. We are also discussing with institutions on ways to better coordinate our publicity efforts and to provide "one-stop" services for students who are interested in pursuing a sub-degree programme during the peak enrolment season after the HKCEE and JUPAS results are released.

Articulation is another area that we are working on. In last week's announcement, we outlined our plan to fund additional second year places of undergraduate programmes and to introduce the Credit Accumulation and Transfer System in the next university triennium beginning in Year 2005. This is to provide more articulation opportunities for associate degree students and improve mobility between the sub-degree and university sectors. We recognize that not all associate degree students will be able to continue their studies in local universities - only the outstanding graduates will compete successfully for the limited places. But these additional degree places will be a catalyst to loosen up the present progression pathways. Already, we are seeing universities more willing to recruit students from multiple sources. We estimate that about 200 first year associate degree students have transferred to year one of undergraduate programmes in this academic year through the non-JUPAS or other routes. For those who may not go to university immediately on graduation, they have acquired a valuable qualification with local and international currency. Their generic skills and language proficiency are sharpened. They possess more specialized knowledge in their chosen fields. And they are better equipped for employment and lifelong learning. We will have a better idea of the progression paths that this year's associate degree graduates have chosen when the institutions' exit surveys are available at the end of this year.

A common question in people's mind is whether the Government would compromise quality in meeting a self-imposed quantitative target. I have no hesitation to give a categoric "no" as the answer. My three priorities in education are quality, quality and quality. The HKCAA being an independent, statutory accreditation body plays an important "gate-keeping" role whereby non-university providers will have to go through institutional reviews and programmes validations before their programmes are recognized by the Government and their students eligible to apply for grants and loans.

The quality assurance process adopted by the HKCAA is vigorous covering all aspects of the courses and the institutions But some providers, in particular new entrants to the sub-degree sector, have expressed concern about the level of fees charged by the Council, the heavy administrative burden of meeting the Council's requirements, the way panelists are selected, and insufficient transitional provision for new start-ups to grow and mature. These views are not unique in Hong Kong. There are bound to be criticisms that standards are either too tight or too loose. But I would be even more worried if the relationship between the quality assurance agency and the institutions being inspected is too warm and cosy. A certain degree of constructive tension is only natural and healthy. There is no doubt room for the Council to be more transparent and user friendly without downgrading standards. Today's event gives the Council a good opportunity to publicise the steps they take in conducting accreditation, how they do it, why they do it this way, and to listen to feedback from existing and potential providers.

There are significant parallel developments with the establishment of the Manpower Development Committee which advises the Government on the provision of vocational education, manpower training, retraining, and continuing education. The MDC will eventually take over the responsibility of overseeing and coordinating the development and funding of sub-degree programmes. The Education and Manpower Bureau issued a consultation document last month proposing to set up a qualifications framework with seven levels of qualification and an entry level. The associate degree occupies a prominent position in this framework, providing a bridge between secondary and university education.

The integrity and credibility of the qualifications framework will depend on quality assurance. We look to the HKCAA to provide the leadership and play the central role of a quality assurance and accreditation agency covering all levels of qualifications below the degree. This proposal, if implemented, would usher in a new phase in the development of the Council since its establishment in 1990 with a vastly expanded mandate. I envisage major changes to the HKCAA in terms of its processes, approaches, governance and culture. With an illustrious track record, and a team of dedicated and professional members, the HKCAA is well positioned to take up the challenge and I wish it continued success in the years ahead.

Today's forum has brought together the key stakeholders whose participation and commitment are instrumental in the further development and quality assurance of associate degrees in Hong Kong. I wish you a fruitful discussion and promise that we will follow up diligently all your good ideas.

Thank you.

End/Saturday, December 7, 2002

NNNN