The Secretary for Education & Manpower Professor Arthur Li and University Grants Committee Chairwoman Dr Alice Lam have welcomed the Legislative Council's finance committee's decision to approve a sum of $10.66 billion for the UGC-funded institutions for the 2004-05 academic year.

Speaking to the media after the finance committee meeting this morning, Professor Li said the approval helps stabilise the development of tertiary education.

Dr Lam said that the decision had removed the uncertainty the sector faced in planning its activities for the upcoming academic year.

While the allocation represents about a 10% efficiency savings demanded from the UGC-funded sector, the committee is confident that, through the institutions' hard work, this can be achieved without harming education quality.

Dr Lam said that she was glad to see the Administration had continued to invest heavily in the higher education sector, which was of paramount importance to Hong Kong's long-term development.

She said the committee would take a strategic approach to Hong Kong's higher education system so that it could serve as the region's education hub.

Inter-school collaboration necessary

She emphasised the need for each institution to perform its specified role and capitalise on its unique areas of strengths, as well as to collaborate with other institutions here and abroad.

The finance committee has also approved a sum of $203.1 million for 2004-05 for the committee, to support the schools' restructuring and collaboration activities and initiatives that will help achieve greater value and quality for money.