If evidence is needed of people's growing intolerance for the rich and famous being given unfair advantages, the recent deal between the government and a prestigious British boarding school in Hong Kong is a clear example. Taxpayers have to provide a HK$273 million interest-free loan for the construction of the Harrow International School Hong Kong. This is on top of a bargain HK$1,000 land premium for a waterfront site in Tuen Mun, which could have fetched billions of dollars. Questions have to be asked about why such deals have been entertained when privileges and collusion are frowned upon in our society these days.
There is no doubt a shortage of international school places is driving expatriates elsewhere in the region and therefore threatens the city's competitiveness. This is why our government thinks it is necessary to provide some incentives to build more schools to help attract talent. Harrow is one of four schools that have recently been granted government land for a nominal premium and with an interest-free loan for construction. Officials have argued that the land grants and loans are standard arrangements for non-profit-making schools. But they certainly look too generous at a time when the community is increasingly sensitive to perceived unfairness and favouritism towards the rich and powerful. The Harrow school stands out as the target of criticism for valid reasons. Not only has it received the biggest loan - with an estimated HK$84 million in foregone interest over the next decade - it is also one of the most expensive schools to attend. Parents and companies face annual fees of HK$150,000 in addition to debentures and capital certificates ranging from HK$600,000 to HK$3 million. Despite its non-profit-making status, the school has to pay 3 per cent of its revenue to the Harrow school in Britain.
Its elitist image also raises serious doubts whether taxpayers' money should be used to finance an institute that appears to be exclusive to a small number of rich families in and outside Hong Kong. That the school prides itself on being the cradle for royalty and prime ministers such as Winston Churchill over the past four centuries does not win public sympathy for government funding. Although other international schools in the city enjoy similar concessions, it does not dilute the impression of favouritism and unfairness. Some critics went further, challenging the deal as business collusion and a transfer of advantages.
Hong Kong's competitiveness hinges on its ability to attract overseas talent and their families to work and live in the city. Although the Harrow school, the third in Asia after Beijing and Bangkok, is set to help ease the shortage of international school places and raises the city's profile, the concessions given are far too generous. The government should review the policy on non-profit-making schools to ensure assistance will only be given to those in genuine need.