Secretary for Education & Manpower Prof Arthur Li said his Bureau would adopt two initiatives in the coming financial year. It will seek to improve language education and language proficiency of students and the public. It also plans to rationalise and simplify public schools' teaching grade structure.

He said improving people's language ability was crucial to enhancing quality education. It was also key to enhancing Hong Kong's competitiveness in the international arena.

Professor Li added that the aim of streamlining the teaching grade was to encourage professionalism among teachers, not reducing staff or salaries.

"We are reviewing the complex issue and will make recommendations for consultation among various education bodies in the second half of 2003," he said.

Speaking at a press conference, he said the two new initiatives reflected the core problems of the education sector in the territory.

The Education & Manpower Bureau is also reviewing every expenditure item to help tackle the Government's deficit problem. One of the considerations is to raise fees for students from Form 4 to university level, Professor Li said.

He stressed that all students would continue to enjoy nine years of free education from Primary 1 to Form 3.

Reponding to questions on whether to cut funds to English Foundation Schools, he said a decision has not been made but noted that other international schools in Hong Kong do not receive subsidies from the Government.

Despite the lack of subsidies, these international schools - from Canada, Japan, Germany, China, and the United States, among others - are all doing well, he added.