As you may know already, I am very concerned about education because competition in the 21st Century is all about human capital. We should develop a pool of talent - young people who "have a foothold in Hong Kong, the whole country in mind and the whole world in view".

They should also have knowledge, integrity, and the right aptitude and attitude for lifelong learning. Education provides the ladder for upward social mobility, offering equal opportunity for everyone to make a better life and to make Hong Kong a cultured metropolis.

Since I assumed the post of Chief Executive, education has been top of my policy agenda.  Six years on, our education landscape has changed a lot.

Whole-day primary schooling, well-equipped "Y2K schools" and application of information technology in education have markedly improved teaching conditions. Enhanced teacher qualifications, refined education systems and adjusted curricula create a more interesting and all-rounded school life, and that means more effective learning.

I would like to take this opportunity to thank members of our education sector and all those who support education. Thank you so much for your efforts. You have indeed done a lot throughout the years. Now the reforms are beginning to bear fruit. But we still have a lot more to do. I look forward to your continuous support for the cause.

In tandem with our economic restructuring, we must improve the average educational level of our people.

We are striving to expand tertiary education with a view to allowing 60% of senior secondary school leavers to receive tertiary education by 2010. Funding will be provided to increase tertiary education places between 2005 and 2008, providing avenues of further study for eligible students.

Universities take a leading role in nurturing talent. An integral part of our education reform involves changing the secondary and university academic structure from a "5+2+3" model to a "3+3+4" one.

After two years of thorough study, the Education Commission has drawn up a detailed implementation plan. The changes to secondary schools' and universities' curricula, assessment and enrolment mechanisms are being considered as part of the proposed seven-year transition.

The Secretary for Education and Manpower and I, as well as quite a number of members of the community, believe the "3+3+4" model will help improve the quality of education.  We are also fully aware that reforms in academic structure will have far-reaching implications.  We must adopt a pragmatic approach to implement the reforms progressively to ensure coherence and co-ordination between secondary schools and universities.  This is of utmost importance.

Universities have recently proposed the early introduction of a four-year undergraduate programme.  I know the Secretary for Education and Manpower is glad to consider their proposals.

The new programme should not cause abrupt changes to the general structure of secondary education, nor should it depart from the reforms in curriculum and assessment mechanisms that are being implemented.

I hope that the three parties, that is, tertiary institutes, secondary schools and the Government will deliberate over the proposals to seek consensus and ensure a smooth transformation from the "5+2+3" to "3+3+4" structure.

Reforms in the two levels of education should support each other and we should allow some students to receive four-year university education before the full implementation of the new academic structure.  Our education experts have recently proposed a number of options, which we will carefully consider to cater for the needs of all parties.

Despite the fact that the Government is facing a serious fiscal deficit, education will always be a long-term investment for the community.

We will continue to invest resources wherever we see urgent need. What matters most is that resources must be used in the best way to yield the best results.

Notwithstanding the tremendous fiscal pressure, public funding on education this year has increased by 11.2 per cent in real terms compared with last year.  Education expenditure has risen from $38 billion six years ago to $61 billion this year, an accumulative increase of 67 per cent and an average annual growth of eight per cent.

The human factor is essential to education.  Throwing in resources alone cannot guarantee quality education.  We need people like you to carry on the arduous task of educating the next generation.

To all of you here, representatives of educational institutions, headmasters, teachers, parents, teachers' training institutions, post-secondary schools, business and social services sectors, I would like to extend my deepest appreciation and gratitude for your contribution during these years.  I call on all of you to continue your support of our education work and to strive for a brighter future for the country and Hong Kong.

(Tung Chee Hwa delivered the speech at the Report Session on the Progress of Education Reform on June 14.)