''They didn't really discuss the principle of 18 per cent cost recovery. They just mentioned that some countries had a similar cost recovery rate. But in other countries, 18 per cent is not acceptable.'' Before the meeting, the federation submitted 2,000 letters protesting at the government policy to the Deputy Secretary for Education and Manpower, Lam Woon-kwong.

The students also staged an overnight vigil in front of the Legco building last Thursday.

The federation maintains that student tuition should not be pegged to government spending on tertiary institutions.

''Students cannot control how much the Government decides to invest in developing tertiary institutions. So why should students be made to shoulder the cost?'' Mr Fong said.

Cost recovery was introduced in some sectors of society to safeguard against public abuse of services.

''But we do not see students abusing the university system because they have to compete to get in,'' Mr Fong said.

The federation agreed with the Legco members who say that students contribute to society.

''If the Government believes graduates can contribute to society, why not give students a better opportunity to pursue tertiary education?'' According to second-year Hong Kong Polytechnic student William Wu Kong, 40 per cent of students at his polytechnic are working part-time.

Victor Lee Wai-bun, the internal vice-president of the students' union at Hong Kong University, said: ''If the grant and loan system cannot be adjusted for those who can't afford it, then a lot of students will suffer.'' Currently the Government sets a ceiling of $280,000 on family assets for a tertiary student to qualify for a government subsidy.

''We will try to get more statistics from the Government and hope to get a concrete proposal to them soon,'' Mr Fong said.

The Government will provide further justification for the policy at a Legco meeting on June 8.