Mr Chan said the school had decided not to admit Form One students in September and to close its junior secondary section by 2008. 'We also plan to stop running English classes in our four centres as they have been losing too much money,' he said.

The school had been forced to increase fees by 20 per cent last September when the Education and Manpower Bureau cut funding, he said. This had pushed student numbers down further.

Most students in the junior section earned just $4,000 to $6,000 per month while the students of English earned $6,000 to $8,000, he said. 'We are in a hard place. We need to find a way to continue offering these courses to students.'

The college reached a 'consensus' with the EMB earlier this month allowing it to claim reimbursement for the full rent paid for rooms used for senior secondary classes. Mr Chan said: 'Thanks to that reimbursement, we will not need to raise our senior secondary fees for 2006-7.'

Senior secondary evening school students are entitled to claim back 30 per cent of their fees on completion of each year if they meet attendance and performance requirements. Approved students with financial difficulties may claim back the full amount.

Last September, junior secondary student subsidies for their $7,200 fees were scrapped but a spokesman for the EMB denied this would leave people disadvantaged. 'We have been providing nine years of free, compulsory education for over 30 years. Most people have had the opportunity to benefit from this,' he said.

Modular vocational courses were more flexible while achieving the same educational goals. 'The needs of the society are changing,' the spokesman said. 'Many people feel they would benefit more from job-related courses.'

A survey by the Democratic Alliance for the Betterment of Hong Kong showed overwhelming support for night schools' role. Roughly 95 cent of the 1,200 respondents said they felt evening classes should be maintained and 86 per cent said evening schools should receive government funding.