The Government will keep a close watch on the atypical pneumonia outbreak and see if there is a need to further extend the class-suspension period, Secretary for Education & Manpower Professor Arthur Li says.

Speaking on a Metro Radio programme this morning, Professor Li pointed out that a number of reasons have to be considered before making the decision, including school environment, parents' concern, and the impact of class-suspension on kids' study progress.

He called on parents to help kids learn from home with the of resources available during the class-suspension period and not to let children leave home unless necessary.

In particular, parents should avoid bringing children to areas affected by atypical pneumonia.

Turning to the proposed 10% funding-cut for University Grants Committee-funded tertiary institutions in 2004-05, Professor Li believed this would save $1.1 billion.

Tertiary institutions should have enough time to review and streamline their curriculum so as to make the best use of limited resources, he added.

Regarding the proposal to delink salaries, Professor Li said it will give tertiary institutions more flexibility in the use of resources.

Institutions may decide to adopt the proposal or not.