Replies to Initial Written Questions Raised by Finance Committee Members Inexamining

Replies to initial written questions raised by Finance Committee Members inexamining

the Estimates of Expenditure 2010-11

Director of Bureau: Secretary for Education

Session No. 15

Examination of Estimates of Expenditure 2010-11 / Reply Serial No.
CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION / EDB229
Question Serial No.
2694
Head: / 156 Government Secretariat: Education Bureau / Subhead (No. & title):
Programme: / (7) Policy and Support
Controlling Officer: / Permanent Secretary for Education
Director of Bureau: / Secretary for Education

Question:

The Bureau will continue to implement measures to enhance the development of Hong Kong as a regional education hub. In this connection, please specify the measures to be taken and provide a breakdown of their expenditures and manpower requirements.

Asked by: Hon. LAU Sau-shing, Patrick

Reply :

As set out in the 2009 Policy Address, it is our policy objective to enhance Hong Kong’s status as a regional education hub, boosting Hong Kong’s competitiveness and complementing the future development of the Mainland. We aim to achieve this by stepping up our efforts to further internationalise and diversify the higher education sector for the benefit of local students and Hong Kong as a whole.

Regarding internationalisation, we implemented in 2008 a basket of measures, including doubling the non-local student quotas of the publicly-funded programmes to 20%, establishing the $1 billion HKSAR Government Scholarship Fund to provide government scholarships to outstanding local and non-local students, allowing non-local students to take on summer jobs and on-campus part-time jobs and enabling non-local students to stay in Hong Kong without limitations for 12 months after graduation.

We will build on these measures and continue to encourage more quality non-local students to come to Hong Kong to study. We will work with our higher education institutions to step up exchange and promotion efforts overseas, particularly in Asia, to encourage more students to regard Hong Kong as a destination for education. We will also explore the possibility of allowing senior secondary students from the Mainland to take short-term courses such as summer courses offered by our degree-awarding higher education institutions and pursue senior secondary education at non-public schools in Hong Kong.

As regards diversification, we consider that the self-financing higher education sector has room for further expansion. In recent years, we have introduced a number of measures to facilitate the development of self-financing post-secondary institutions. These measures include −

(a)Land Grant Scheme – This Scheme provides land at nominal premium to self-financing non-profit-making post-secondary institutions for the construction of purpose-built premises. Since the launch of the Scheme in 2002, six sites have been granted. We have reserved another six sites for interested operators to provide self-financing degree programmes, including the Queen’s Hill site in the New Territories as announced in the 2010-11 Budget;

(b)Start-up Loan Scheme – This Scheme provides loans to support self-financing post-secondary institutions to develop new college premises and reprovision existing premises operating in sub-optimal environment, such as refurbishing vacant school premises. The Scheme was launched in 2001 with an initial commitment of $5 billion. We have recently sought the Finance Committee’s approval to increase the total commitment of the Scheme by $2 billion; and

(c)Quality Enhancement Grant Scheme – This Scheme supports projects/initiatives that can improve students’ learning, teaching methods, course quality and career guidance. The Scheme was launched in 2008 with a one-off injection of $100 million.

The increase in non-local student quota for publicly-funded programmes to 20% will not result in additional recurrent costs for the Government, as the recurrent expenditure incurred in providing the additional student places will be met by institutions from tuition fees received and other income sources. The Immigration Department will continue to deal with the increase in applications for student entry, extension of stay and dependant entry that is likely to result from some of the above measures. The estimated staff cost involved in 2010-11 is about $2.93 million. As regards the scholarships, the HKSAR Government Scholarship Fund was established with a one-off injection of $1 billion in 2007-08. The Director of Accounting Services will continue to oversee the investment and accounting matters relating to the Fund in 2010-11. The estimated staff cost involved in 2010-11 is about $1.52 million.

Signature
Name in block letters / Raymond H C Wong
Post Title / Permanent Secretary for Education
Date / 15 March 2010
Examination of Estimates of Expenditure 2010-11 / Reply Serial No.
CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION / EDB311
Question Serial No.
2698
Head: / 190 University Grants Committee / Subhead (No. & title):
Programme: / University Grants Committee
Controlling Officer: / Secretary-General, University Grants Committee
Director of Bureau: / Secretary for Education

Question:

The Estimate of the UGC for 2010-11 is $10,982.2 million, which is lower than the revised estimate for 2009-10 by 4.9%. In this connection, please list out:

(a)the reduction in research grants allocation from the Government to the RGC after the set up of the REF in 2009 and its details,

(b)the effect of the 2009 pay adjustment and its details,

(c)the higher recurrent grants to UGC-funded institutions as a result of price adjustments and its details,

(d)the increased funding for additional research postgraduate places and its details,

(e)the increased funding for knowledge transfer activities and its details,

(f)the rank, duties and remuneration of the two posts to be created in 2010–11.

Asked by: Hon. LAU Sau-shing, Patrick

Reply :

(a)The 2010-11 academic year is the first full year in which the bulk of funding for research projects under the Research Grants Council (RGC) will come from the investment income of the Research Endowment Fund. In the 2009/10 academic year, the research grants allocation from the recurrent subvention to the RGC is $606 million. In the 2010/11 academic year, we have initially earmarked $775 million for research, $675 million from the investment income of the Fund and $100 million from the recurrent subvention. This translates into a corresponding reduction in funding in terms of the 2010-11 Government financial year.

(b)The effect of the 2009 civil service pay adjustment on the recurrent grants of 2010-11 is a reduction of approximately $250 million.

(c)The increase in recurrent grants for 2010-11, as a result of price level adjustment, is approximately $50 million.

(d)Following the Government’s initiative to increase progressively the number of research postgraduate places, there will be 369 additional places in 2009/10, 540 additional places in 2010/11 and up to 800 additional places in 2011/12. The increase in funding for the progressive increase in research postgraduate places in 2010-11 is approximately $80 million.

(e)The increased funding of approximately $13 million for knowledge transfer activities in 2010-11 represents the full year impact of the new funding as compared against the 9-month provision in 2009-10.

(f)The UGC Secretariat has planned to replace two non-civil service contract staff by two civil service posts in 2010-11 to provide general administrative support to the department. Details are as below:–

Civil Service Post / Duties / Master Pay Scale
Executive Officer II / To assist in organizing meetings, visits, publicity programmes and events of the University Grants Committee, Research Grants Council, Quality Assurance Council, their Sub-committees, Groups and Panels etc. / Pt. 17 – 27
($22,985 - $36,740)
Assistant Clerical
Officer / To assist our Research Section in processing applications under different funding schemes related to research grants, e.g. Areas of Excellence, Collaborative Research Fund, Joint Research Scheme, etc. / Pt. 3 – 15
($10,190 - $20,835)
Signature
Name in block letters / Michael V Stone
Post Title / Secretary-General, University Grants Committee
Date / 12 March 2010
Examination of Estimates of Expenditure 2010-11 / Reply Serial No.
CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION / EDB332
Question Serial No.
2699
Head: / 190 University Grants Committee / Subhead (No. & title):
Programme: / University Grants Committee
Controlling Officer: / Secretary-General, University Grants Committee
Director of Bureau: / Secretary for Education

Question:

In 2010-11, the UGC will consider with the UGC-funded institutions gradual and sustainable ways to increase the number of non-local students up to the 20 per cent target. Please provide the details, the timetable, the manpower and the funding required for such work.

Asked by: Hon. LAU Sau-shing, Patrick

Reply :

The University Grants Committee (UGC) has long been an advocate for a more internationalised campus and we provided a one-off matching grant of $5 million to each of the eight UGC-funded institutions in 2005 to help them build up institutional capacity in internationalisation. This coincided with previous decisions of the Government to raise the ceiling quota for non-local students from 2% to 4% and then 10%. Starting in the 2008/09 academic year, the non-local student quota ceiling for UGC-funded sub-degree, degree and taught post-graduate courses was increased from 10% to 20% of the respective approved student number targets. (No quota restriction is imposed on the admission of research post-graduate students in publicly-funded programmes.) The percentage of non-local undergraduate students across the whole UGC-funded sector rose from 4% in the 2005/06 academic year to 9% in the 2009/10 academic year (provisional).

The 20% quota represents the upper limit of the number of non-local students that may be admitted by institutions. Institutions consider their own circumstances and capacity in deciding the timetable and phasing for increasing the admission of non-local students. We are aware from discussions with institutions about their plans to increase non-local student numbers that the availability of hostel places is a major factor constraining their capacity to do so. Since 2008, we have secured the Legislative Council’s approval for about $2,100 million to construct some 6 600 hostel places, and these will certainly help ease the pressure on hostel places for both local and non-local students. We will continue to work with institutions on new hostel projects.

Apart from hostels, the Government has introduced various initiatives which are conducive to institutions’ efforts in attracting quality non-local students. The Government has established a HKSAR Government Scholarship Fund of $1 billion which caters for both local and non-local students in publicly-funded full-time programmes at degree or above level. Since 2003, the Government has also launched four rounds of the Matching Grant Scheme (MGS), and the 2010-11 Budget has proposed that another $1 billion be allocated to launch the fifth round. We have encouraged UGC-funded institutions to make use of the funds available from the MGS for, among others, promoting internationalisation, exchange programmes, and providing scholarships for non-local students.

The UGC’s work in considering with the UGC-funded institutions gradual and sustainable ways to increase the number of non-local students up to the 20% target is on-going, and is absorbed by the existing manpower in the UGC Secretariat.

Signature
Name in block letters / Michael V Stone
Post Title / Secretary-General, University Grants Committee
Date / 15 March 2010
Examination of Estimates of Expenditure 2010-11 / Reply Serial No.
CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION / EDB338
Question Serial No.
3147
Head: / 708 / Subhead (No. & title): / 8053EF The Chinese University of Hong Kong –
1 500-place student hostel
Programme: / Capital Subventions
Controlling Officer: / Secretary-General, University Grants Committee
Director of Bureau: / Secretary for Education

Question:

The Administration indicates that the approved estimate for the “1500-place student hostel” is $466.4 million, but the estimated expenditure for 2010-11 is only $50 million. What is the reason for that? What is the timetable for using the remaining allocation of $416.4 million? How can the progress of the works be expedited to keep in line with the Government’s policy of developing Hong Kong as a regional education hub?

Asked by: Hon. LAU Sau-shing, Patrick

Reply :

In addition to the public funding of $466.4 million, The Chinese University of Hong Kong (CUHK) will contribute some $628.1 million to the project from its private sources of funding which will be expended before the public funding is drawn. According to CUHK’s latest projection, some $50 million public funding will be expended in 2010-11 after their private funding has been fully deployed. The remaining public funding will be expended in 2011-12 and 2012-13. In order to provide additional hostel places as early as possible, the project will be completed in two phases, providing 900 and 600 hostel places in the first and fourth quarter of 2011 respectively. CUHK will closely monitor the progress of the project. According to CUHK’s latest projection, the whole project can be completed in late 2011 as scheduled.

Signature
Name in block letters / Michael V Stone
Post Title / Secretary-General, University Grants Committee
Date / 15 March 2010
Examination of Estimates of Expenditure 2010-11 / Reply Serial No.
CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION / EDB339
Question Serial No.
3148
Head: / 708 / Subhead (No. & title): / 8053EG The University of Hong Kong – 1800-place student residences at Lung Wah Street, Kennedy Town
Programme: / Capital Subventions
Controlling Officer: / Secretary-General, University Grants Committee
Director of Bureau: / Secretary for Education

Question:

The Administration indicates that the approved estimate for the “1800-place student residences at Lung Wah Street, Kennedy Town” is $643.6 million, but the estimated expenditure for 2010-11 is only $55 million. What is the reason for that? What is the timetable for using the remaining allocation of $588.6 million? How can the progress of the works be expedited to keep in line with the Government’s policy of developing Hong Kong as a regional education hub?

Asked by: Hon. LAU Sau-shing, Patrick

Reply :

In addition to the public funding of $643.6 million, The University of Hong Kong (HKU) will contribute some $300.8 million to the project from its private sources of funding which will be expended before the public funding is drawn. According to HKU’s latest projection, some $55 million public funding will be expended in 2010-11 after their private funding has been fully deployed. The remaining public funding will be expended in 2011-12 to 2013-14. Commencement of construction works for the project was delayed from late 2008 to April 2009 as HKU made post-tender negotiation/addendum with the contractors in order to save project cost. To ensure that the project will be completed by the third quarter of 2012 (i.e. before the start of the 2012/13 academic year), HKU will closely monitor progress and explore with the contractor possible means to expedite the project without incurring additional money.

Signature
Name in block letters / Michael V Stone
Post Title / Secretary-General, University Grants Committee
Date / 15 March 2010
Examination of Estimates of Expenditure 2010-11 / Reply Serial No.
CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION / EDB340
Question Serial No.
3149
Head: / 708 / Subhead (No. & title): / 8023EJ City University of Hong Kong – Student hostel, phase 4 (700 places)
Programme: / Capital Subventions
Controlling Officer: / Secretary-General, University Grants Committee
Director of Bureau: / Secretary for Education

Question:

The Administration indicates that the approved estimate for the “Student hostel, phase 4 (700 places)” is $182 million, but the estimated expenditure for 2010-11 is only $70 million. What is the reason for that? What is the timetable for using the remaining allocation of $112 million? How can the progress of the works be expedited to keep in line with the Government’s policy of developing Hong Kong as a regional education hub?

Asked by: Hon. LAU Sau-shing, Patrick

Reply :

In addition to the public funding of $182 million, City University of Hong Kong (CityU) will contribute some $60.6 million to the project from its private sources of funding which will be expended before the public funding is drawn. According to CityU’s latest projection, some $70 million public funding will be expended in 2010-11 after their private funding has been fully deployed. The remaining public funding will be expended in 2011-12 and 2012-13. CityU will closely monitor progress with a view to completing the project as scheduled i.e. fourth quarter of 2011.

Signature
Name in block letters / Michael V Stone
Post Title / Secretary-General, University Grants Committee
Date / 15 March 2010
Examination of Estimates of Expenditure 2010-11 / Reply Serial No.
CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION / EDB341
Question Serial No.
3150
Head: / 708 / Subhead (No. & title): / 8013EL The Hong Kong University of Science and Technology – 701-place student residences
Programme: / Capital Subventions
Controlling Officer: / Secretary-General, University Grants Committee
Director of Bureau: / Secretary for Education

Question:

The Administration indicates that the approved estimate for the “701-place student residences” is $201.3 million, but the estimated expenditure for 2010-11 is only $50 million. What is the reason for that? What is the timetable for using the remaining allocation of $151.3 million? How can the progress of the works be expedited to keep in line with the Government’s policy of developing Hong Kong as a regional education hub?

Asked by: Hon. LAU Sau-shing, Patrick

Reply :

In addition to the public funding of $201.3 million, The Hong Kong University of Science and Technology (HKUST) will contribute some $67.1 million to the project from its private sources of funding which will be expended before the public funding is drawn. According to HKUST’s latest projection, some $50 million public funding will be expended in 2010-11 after their private funding has been fully deployed. The remaining public funding will be expended in 2011-12 and 2012-13. Commencement of construction works for the project has been delayed from the third quarter of 2009 to the second quarter of 2010 as the scope of slope hazard mitigation and stabilization works is larger than expected. HKUST will take measures to expedite the project by, for example, advancing site preparation works such as tree pruning and transplanting with a view to completing the project by mid 2012 (i.e. before the start of the 2012/13 academic year).

Signature
Name in block letters / Michael V Stone
Post Title / Secretary-General, University Grants Committee
Date / 15 March 2010

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