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Following is a question by Dr Hon Fernando Cheung and a reply by the Secretary for the Civil Service, Miss Denise Yue (in the absence of the Secretary for Education), in the Legislative Council today (June 18):
Question:
Will the Government inform this Council:
(a) apart from the review of the income ceiling for full grant assistance under the various financial assistance schemes provided by the Government for secondary, primary and kindergarten students conducted in 2006, when the Government last conducted other reviews on such schemes; whether it has revised the schemes following the reviews; if it has, of the details of the revisions, with a breakdown by scheme;
(b) of the mechanism for adjusting the amounts of assistance provided under such schemes, and how the amounts of assistance are determined; and
(c) whether currently the authorities have plans to review the above financial assistance scheme again, including adjusting upwards the household income ceiling of the applicants; if they have, when they will conduct the reviews and when the relevant revisions will take effect; if not, of the reasons for that?
Reply :
Madam President,
It is the Government's student finance policy to ensure that no student is deprived of education due to lack of means. At present, the Student Financial Assistance Agency (SFAA) provides various kinds of assistance to needy students through a number of financial assistance schemes. In the 2006/07 school year, the actual disbursement of financial assistance applicable to students at pre-primary, primary and secondary levels amounted to over $1.7 billion, benefiting over 380,000 students from around 300,000 families. These financial assistance schemes include the School Textbook Assistance Scheme, the Student Travel Subsidy Scheme, the Senior Secondary Fee Remission Scheme, the Examination Fee Remission Scheme and the Kindergarten and Child Care Centre Fee Remission Scheme.
With regard to part (a) of the question, the Education Bureau and SFAA have reviewed the income ceiling for full grant assistance applicable to the various financial assistance schemes in 2006. In fact, since 2000, we have also conducted separate reviews on the coverage, level of assistance and limits on the total disbursement in respect of individual schemes. Improvement measures have been put in place following the approval of the Finance Committee of the Legislative Council. The major improvement measures are summarised below.
In respect of the School Textbook Assistance Scheme, with effect from the 2000/01 school year, we have removed the limit placed on the total amount of grants provided under the scheme so as to ensure that all eligible students would receive the corresponding assistance. In addition, we have increased the textbook grant for all secondary levels from 80% to 100% of the average textbook costs. We have also introduced a flat rate grant to assist needy students to pay for other school-related expenses other than textbooks.
In respect of the Student Travel Subsidy Scheme, with effect from the 2000/01 school year, we have raised the maximum level of travel subsidy for the most needy students from half-rate grant to full-rate grant to alleviate the financial burden of their families. In addition, with effect from the 2004/05 school year, we have removed the cross-net requirement for primary students to be eligible for travel subsidy so as to enable more needy students to benefit from the scheme.
In respect of the Senior Secondary Fee Remission Scheme and the Examination Fee Remission Scheme, with effect from the 2000/01 school year, we have removed the limits placed on the total amount of grants provided under these schemes. In other words, all eligible students may receive financial assistance in accordance with the established criteria.
In respect of the Kindergarten and Child Care Centre Fee Remission Scheme, with effect from the 2002/03 school year, on top of the 50% and 100% kindergarten fee remission levels, we have introduced a further level of remission at 75% to provide needy children with appropriate assistance. In addition, with effect from the 2005/06 school year, we have expanded the scope of the scheme to cover all eligible children receiving pre-primary education services (including those attending child care centres) to support parents under a unified financial assistance scheme.
With regard to part (b) of the question, we have been determining and adjusting the amounts of grant for individual financial assistance schemes according to established mechanisms.
In respect of the School Textbook Assistance Scheme, the grant comprises a textbook grant for purchasing essential textbooks and a flat rate grant to cover other school-related expenses. Every year, the Consumer Council conducts sample survey before start of the school year on the actual costs of textbooks to be purchased for various levels of studies in various schools. SFAA adopts the Consumer Council's survey results as the basis for determining the textbook grant rate for different levels of studies. Since the survey by the Consumer Council is conducted annually, the results reflect fully the actual costs of textbooks for the year. As regards the flat rate grant, it is revised annually according to the movement of the consumer price index.
In respect of the Student Travel Subsidy Scheme, SFAA determines the full-rate grant having regard to the average fare on public transport payable by eligible students for home-school travels during school term time. The rate will be revised annually in the light of the level of public transport fares provided by the Transport Department.
In respect of the Senior Secondary Fee Remission Scheme, the highest amount of fee remission is the actual amount payable by an eligible student for the year, which has already taken into account the annual adjustment of school fees. Similarly, the amount of fee remission under the Examination Fee Remission Scheme is the actual examination fees payable by the student for sitting the Hong Kong Certificate of Education Examination and the Hong Kong Advanced Level Examination, which has taken into account the annual adjustment of examination fees.
In respect of the Kindergarten and Child Care Centre Fee Remission Scheme, with the introduction of the Pre-primary Education Voucher Scheme in the 2007/08 school year, the fee remission ceiling for half-day kindergarten places is set at a level equivalent to the ultimate value of the voucher dedicated towards fee subsidy during the 5-year transitional period that follow. The fee remission ceiling will be reviewed together with the Pre-primary Education Voucher Scheme in the 2011/12 school year.
With regard to part (c) of the question, SFAA administers a number of student financial assistance schemes on a means-tested basis so as to ensure proper use of public money and appropriate financial assistance for students with genuine financial need. The means test takes the form of an Adjusted Family Income (AFI) mechanism, whereby an applicant's gross annual household income and household size are taken into account in determining whether he is eligible for student financial assistance. The AFI mechanism is subject to annual adjustment in accordance with the movement of the consumer price index. All student financial assistance schemes applicable to pre-primary, primary and secondary students are not subject to any asset test.
In the 2005/06 school year, we conducted a review on the AFI mechanism. With regard to the scope, nature etc. of the student financial assistance schemes, we considered that the mechanism for determining the income eligibility criteria for full grant assistance under the student financial assistance schemes has been operating well and should be maintained. We have reported the findings of the review to the Panel on Education of the Legislative Council in July 2006. As regards the adjustment of the amounts of grant for individual schemes, since there are established adjustment mechanisms for most of the schemes, which have adequately reflected the consumer price movement, we have no specific plan to change the present mode of operation.
Ends/Wednesday, June 18, 2008
Issued at HKT 15:26
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