Institutional integration: University Grants Committee Chairman Alice Lam says institutions will be encourged to restructure and collaborate.

The University Grants Committee will set up a $203 million fund in the 2004-05 academic year to support restructuring and collaboration activities.

Chairman Dr Alice Lam said the committee will take positive measures to facilitate and encourage "deep collaboration" as part of its institutional integration strategy.

Hong Kong aspires to serve as the education hub of the region, she said, adding we will be one step closer in realising our vision in building more productive and closer working relationships amongst our institutions.

Deep collaboration offers best prospects

Committee Working Party on Institutional Integration Convenor Professor John Niland said the Deep Collaboration Model offers the greatest prospects, at the moment, for worthwhile gains through institutional integration.

"Deep collaboration is a good deal more robust than simple co-operation and alliance building, in which partner institutions agree to merge functions in designated areas. It involves a substantial modification of operational arrangements, usually with binding contracts to lock in commitments, and will probably entail each participating party surrendering independence on certain issues," he said.

"Drawing from experience overseas, we are confident deep collaboration will, amongst institutions, help build greater synergy, create greater critical mass, lift academic and research performance, enhance management support and generate cost savings which could in turn be used for enhancing quality."

Merger one option of institutional integration

Responding to enquiries on merging the University of Science & Technology with the Chinese University, Dr Lam said integration embraces a wide array of options or models, including a merger.

"Having studied the case, the committee has reached the conclusion that while a merger between these two institutions might become viable at some point in the future, this should not be further explored for the present," she said.

The report of the Working Party indicates there are transitory barriers for mergers to take place and institutions do not yet have a clear and powerful motivator towards merger.

Noting deep collaboration will require a significant lift in effort amongst the institutions, Dr Lam said the committee will work closely with the institutions to develop and facilitate it wherever it can.

"We believe institutional integration works best when driven by the parties themselves. The main impetus must therefore come from the institutions themselves," Dr Lam said.

Welcoming the recommendations, the Government said the report has provided clear pointers for the higher education sector to pursue institutional integration which aims at enhancing the institutions' academic performance and efficiency, as well as the sector's competitiveness at the international level.