LCQ16: Travel subsidy for students
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     Following is a question by the Hon Lau Kong-wah and a written reply by the Secretary for Education, Mr Michael Suen, in the Legislative Council today (May 9):

Question:

     At present, approximately 900 000 students studying full-time from primary up to first degree levels in Hong Kong have to pay full fare for taking various modes of transport other than the MTR.  Further, the Student Travel Subsidy Scheme (STSS) is unable to provide subsidy to all students and cater for their travelling needs when participating in extra-curricular activities.  In this connection, will the Government inform this Council:

(a) given that the information provided by the authorities earlier shows that since the Government relaxed the income ceiling for the full level of student financial assistance under the means test mechanism in the 2011-2012 academic year, the percentage of the number of full assistance beneficiaries in the total number of recipients increased significantly from around 30% in previous school years to around 57% in the current school year, of the amount of additional funding the authorities have to allocate for granting the full level of assistance to the remaining 43% of students; of the amount of administrative costs incurred by the Government at present in processing applications for STSS;

(b) given that the Secretary for Education indicated in his reply to a question from a Member of this Council on February 29 this year that public transport operators were mainly commercial operators, and if the introduction of public transport concessions would lead to any adverse effect in their costs, these operators would often demand that the Government should compensate their losses, and therefore the authorities would not consider for the time being the proposal of providing to all students "student half-fare one-card passes" applicable to all modes of public transport, but a similar approach has been adopted under the public transport fare concessions scheme for the elderly and persons with disabilities, whether the Government will reconsider adopting such an approach in providing transport concessions for students; if it will not, of the reasons for that;

(c) in addition to the School-based After-school Learning and Support Programmes and Hong Kong Jockey Club Life-wide Learning Fund, whether the Government has put in place any other measure to subsidise and encourage students to participate in extra-curricular activities which require travelling in modes of public transport; if it has, set out in a list the information on such schemes such as contents, eligibility criteria, annual number of students who benefited from these schemes at present and the amounts of subsidies, etc.; and

(d) whether the authorities will provide more subsidy schemes to encourage students to participate in extra-curricular activities; if they will not, of the reasons for that?

ReplyˇG

President,

     Government's student financial assistance policy aims to ensure that no student is deprived of education due to lack of means.  At present, a number of student financial assistance schemes, including the Student Travel Subsidy Scheme (STSS), are means-tested to ensure that public money is focused on needy students, and that those with genuine financial hardship receive appropriate support.  

     Our reply to questions (a) to (d) is as follows:

(a) We now provide full level of financial assistance or assistance below the full level to needy students, depending on the financial situation of their families.  In the 2011/12 school year (as at end March 2012), against a total student population of around 900 000, STSS provides full-rate or half-rate travel subsidy to over 221 000 students studying at primary and secondary level, or attending a full-time day course up to first degree level.  To provide enhanced support for needy students, we have relaxed the income ceiling for full level of assistance under the means-test mechanism in the 2011/12 school year.  As a result, the percentage of students eligible for full rate of travel subsidy has increased from around 30% in previous school years to around 57% in 2011/12.  The total disbursement under STSS in 2011/12 is estimated to increase by $75.35 million (i.e. around +21%) to $427.35 million as compared with 2010/11.  We consider that the existing level of assistance under STSS can provide appropriate support to needy students.  If all students eligible for STSS are provided with the full rate of subsidy, it is estimated that government expenditure will increase by $112 million per year, representing an increase of nearly 26% of the total estimated disbursement for 2011/12.  This proposal will not only deviate from government's policy on the prudent and proper use of public money, but will also lead to knock-on effects.  Students who are now eligible for assistance below the full rate under other means-tested financial assistance schemes (including School Textbook Assistance Scheme and Subsidy Scheme for Internet Access Charges etc) will demand full level assistance as well.  The impact on public finances cannot be underestimated.  In addition, the proposal is a departure from the principle of disbursing assistance from public funds to needy applicants at different levels having regard to their actual needs, and is unfair to taxpayers.   As such, we consider it appropriate to provide assistance according to the actual situation of the student-applicant's family.  Separately, the annual administrative cost involved in processing STSS applications is about $10 million.

(b) If the Public Transport Concessions Scheme for the elderly and persons with disabilities is extended to all students receiving primary and secondary education or attending a full-time day course up to first degree level, those from families without any financial difficulties will also benefit.  Under the principle of prudent and proper use of public money, we consider it appropriate to continue with the existing arrangement to provide student travel subsidy to eligible needy students only.

(c) When computing the student travel subsidy under STSS for needy students, we have already set aside additional assistance to support them to travel to schools for extra-curricular activities.  For students at primary and secondary levels, the subsidy is for a total of 12 trips per week, including two trips for extra-curricular activities.  As regards post-secondary students, the subsidy is for a total of 14 trips per week, including four trips for extra-curricular activities.  Apart from STSS, the "School-based After-School Learning and Support Programmes" and the "Hong Kong Jockey Club Life-wide Learning Fund" also provide assistance to needy students to participate in after-school activities, including assistance for related travelling expenses.  The above schemes have already provided needy students with additional support for taking part in extra-curricular activities.   Therefore, we have no plan to introduce other schemes to subsidise students to use public transport for participating in extra-curricular activities.

(d) The prevailing STSS has already provided needy students studying at primary and secondary level, or attending a full-time day course up to first degree level with appropriate assistance to meet their home-school travelling expenses.  In addition, the Government has been encouraging and supporting needy students to participate in extra-curricular activities through the "School-based After-School Learning and Support Programmes" and the "Hong Kong Jockey Club Life-wide Learning Fund".  Hence, there is no plan at this stage to expand STSS or introduce more financial assistance schemes related to extra-curricular activities.

Ends/Wednesday, May 9, 2012
Issued at HKT 12:19

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