Encouraging signs: Secretary for Education & Manpower Professor Arthur Li says funding for the eight universities is unlikely to be cut in the 2007/08 academic year, if Hong Kong's economy continues picking up.

If Hong Kong's economy continues picking up, funding for the eight universities is unlikely to be cut in the 2007/08 academic year, Secretary for Education & Manpower Professor Arthur Li says.

Speaking on a radio talk show this morning, Professor Li said the Government will have a clear picture next year after assessing Hong Kong's economic situation in 2006.

The university funding cut proposal involves a reduction of not more than 5% in the 2007/08 academic year while the funding for the universities will remain unchanged for the years 2005/06, and 2006/07.

5% cut merely a worst case scenario

Professor Li said the 5% cut in 2007/08 was merely a worst-case scenario, adding the proposal was the result of the discussion among the University Grants Committee and the eight universities.

The secretary hoped that the Legislative Council would eventually pass the proposal. Otherwise, the eight universities will face difficulties when they work on their future plan in July.

Speaking on the substantial reduction in the funding for the Hong Kong Institute of Education, Professor Li said there is a drop in the demand for new teachers because of the decrease in the number children enrolling in schools.

Many ways to subsidise Institute of Education

Apart from getting money from the University Grants Committee, the institute can apply for funding in many ways, Professor Li said.

The Education & Manpower Bureau has set up a fund of $550 million to support teacher training and $25 million has been allocated to the institute, he said.

Under the proposed "3+3+4" academic system, more resources will be offered to train teachers to teach liberal studies. Professor Li said the institute can make use of the chance to apply for new resources.

Tuning to the consultation on the new academic system, Professor Li said if the public agree with the idea, the proposal should go ahead as soon as possible.

The new system will be implemented in 2008 at the earliest, he said, adding the Government will have sufficient time to do the preparation.