Funding for the University Grants Committee sector will be further reduced by 10% in the 2004/05 academic year to reflect efficiency savings, Secretary for Education & Manpower Arthur Li says.

Speaking in the Legislative Council today, Professor Li said the administration is working with the committee on the funding requirements for the sector in the 2004/05 academic year, and has yet to finalise detailed calculations.

He also said that with effect from July 1, institutions can freely decide the remuneration package and housing benefits to be offered to their staff, and an appropriate amount of their block grant to meet these requirements will be set aside.

He said institutions have been informed of the timeframe for withdrawing subvention for publicly funded sub-degree and taught post-graduate programmes.

As the academic plans for the 2004/05 and the 2005/06 to 2007/08 triennium are yet to be finalised, the amount of grants involved is yet to be determined, he added.