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LCQ6: Student Travel Subsidy Scheme
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    Following is a question by the Hon Lau Kong-wah and a reply by the Secretary for Education, Mr Michael Suen, in the Legislative Council today (March 12):

Question:

    At present, students pursuing full-time studies from primary education up to first degree are, subject to passing a means test, provided with travel subsidy under the Student Travel Subsidy Scheme ("STSS"), if they live beyond 10 minutes' walking distance from their schools and need to travel to school by public transport. In this connection, will the Government inform this Council:

(a) whether it has compared the cost-effectiveness of STSS with that of the pre-1988 Student Travel Card Scheme;

(b) given that the current STSS subsidy is calculated on the basis of the average public transport fare for home-school travel, whether it will review if STSS should also cover the public transport expenses of students during Sundays and public holidays; and

(c) given that the major public transport operators currently offer half-fare concessions to children aged below 12 only, whether it plans to provide half-rate travel subsidy for full-time students aged 12 or above; if not, of the reasons for that?


Reply:

Madam President,

(a) It is the Government's student finance policy that no student is deprived of education for lack of means. At present, a number of student financial assistance schemes administered by the Student Financial Assistance Agency (SFAA) are means-tested to safeguard the proper use of public money and to ensure that financial assistance is provided to students with genuine financial hardship.

    STSS provides financial assistance to needy local students pursuing full-time studies at primary, secondary and degree levels to subsidise their expenses on home-school travels. An applicant who passes the means test, resides beyond 10 minutes' walking distance from school and travels to school by public transport may receive a full or half rate travel subsidy for home-school travels, depending on his/her family's actual financial situation. The full rate subsidy is equivalent to the average fare on public transport for home-school travels during school term time, while the half rate subsidy is half of the average fare. The Scheme allows students to flexibly choose the mode of public transport and is able to render appropriate assistance to families with genuine financial hardship, effectively alleviating their burden in paying for home-school travels.

    The Student Travel Scheme (commonly known as the Student Travel Card Scheme), which was replaced by the STSS in 1988, provided half-fare concessions to all full-time students aged between 12 and 25 travelling on prescribed modes of transport.

    In its report issued in 1985, the then Audit Department pointed out certain shortcomings of the Student Travel Card Scheme, including the considerable administrative work involved, tendency on the part of students to travel on public transport for purposes not related to their studies by design of the scheme, possibly leading directly to overpayment by the Government to transport operators, etc. In addition, we consider that the scheme could not provide full rate assistance to the most needy students, but diverted part of the public money for subsidising home-school travel of students without any financial difficulty.

    The current STSS is means-tested. It provides half or full rate subsidies to students with regard to their family financial situations, and is simpler to administer. It is therefore more targeted at meeting the needs of students with financial hardship, and is more cost-effective.

(b) As regards the scope of assistance, STSS aims at subsidising home-school travels of students. We have no plan to cover the expenses on public transport incurred by students during Sundays and public holidays.

(c) The current STSS has been operating smoothly since 1988. Over the years, various improvements have been made, for example, by providing full rate subsidy to the most needy students, and removing the age ceiling for subsidy, to ensure that students with financial hardship would receive appropriate assistance and public money be put to proper use. We have no intention to change the current mode of subsidy premised on a means test, and have no plan to restore the less cost-effective Student Travel Card Scheme.

Ends/Wednesday, March 12, 2008
Issued at HKT 18:52

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