Tighter controls on fee increases for 73 schools
The government has announced tough new controls on fee increases and financial aid programmes for schools under the Direct Subsidy Scheme.
The schools will have to provide parents with financial information on their reserves and spending plans, including details of any capital works, before applying for fee increases.
And they will have to submit details of how they have consulted with parents and the views that parents have expressed to the Education Bureau for consideration along with their applications.
The 73 schools in the scheme have been told to offer fees relief to pupils from low-income backgrounds, who do not already receive such help, by the end of this year - if there is unspent cash.
The direction is one of seven new regulations designed to boost uptake of scholarship and fee remission schemes at the schools, laid down by the Education Bureau in a circular to schools last week.
The bureau is also tightening the audit inspection cycle for the schools from once every seven years to every four years.
The measures are a result of an ongoing review of the schools, prompted by an audit report last year which detailed a catalogue of financial malpractice across all but one of its schools.
Alongside high-profile cases such as the HK$71 million in equities and investments accumulated in the stock market by Good Hope School, auditors found widespread failure in the scheme's financial assistance provisions for needy pupils.
A total of 22 schools did not set aside at least 10 per cent of tuition fee income for financial aid schemes as required, and 35 per cent failed to publicise the schemes on their websites. Take-up rates were below 50 per cent at 14 schools.
Dr Lam Kin-wah, chairman of the Direct Subsidy Scheme Schools Council, said many schools had already boosted their fee remission schemes and scholarships and publicised them on their websites.
Most schools had also made their schemes more flexible, with partial relief for families on limited incomes who do not qualify for a full fee remission, after the council held talks with the bureau on this issue.
Lam said the bureau admitted the rules for the schools were unclear and many schools had not known that it was feasible to offer more financial assistance. 'We welcome more support for schools from the government and I think most schools will follow these new requirements,' he said.
Terence Chang Cheuk-cheung, principal of Diocesan Boys School - which auditors found to have underestimated reserves by more than 100 per cent when applying for fee increases - said it would consult fully with parents about any future fee rise.
But schools like DBS face a heavy financial burden from maintenance costs and the new consultation requirements would make it harder to cover them. 'When it comes to maintenance, actually it will be very difficult to raise school fees,' he said.
The measures will be discussed at today's meeting of the Legislative Council's education panel, which will also debate the English Schools Foundation's future public funding. In a paper submitted to the panel, the bureau has called for a review of the foundation's approach to fee adjustments and its financial assistance scheme, following complaints from parents about fee rises.
