[Archive] Direct salaries subsidy for Qualified Kindergarten Teachers

DRAFT LEGCO QUESTION No. 3(ORAL REPLY)

Date of sitting : 30 May 2001

Asked by : Hon YEUNG Yiu-chung

Replied by : Secretary for Education and Manpower

Question :

Under the Kindergarten Subsidy Scheme ("KSS"), non-profit-making kindergartens receive subsidies at a rate of $41,000 for each class per year. In respect of the subsidizing of kindergartens, will the Government inform this Council:

of the total amount of salaries paid every year by non-profit-making kindergartens to the Qualified Kindergarten Teachers ("QKTs");
whether it will consider providing each non-profit-making kindergarten with a subsidy equivalent to the total amount of salaries paid to the QKTs ("salaries subsidy") so as to replace the subsidy under KSS; if it will, of the implementation timetable; if it will not, the reasons for that; and
whether, if it will provide the salaries subsidy, it has assessed the respective percentages of the subsidy in this year's estimated expenditures for early childhood education and for education as a whole, and how the subsidy compares with the estimated expenditure for KSS this year?

Reply:

Madam President,

The Government does not have information on the salaries of teachers employed by non-profit-making kindergartens territory-wide. For the 2000/01 school year, there are 463 local non-profit-making kindergartens employing some 4 000 Qualified Kindergarten Teachers ("QKTs") (including principals). The monthly salary recommended by the Government for QTKs ranges from $12,595 to $23,170. The total annual salaries for these teachers calculated at the mid-point salary of $18,140 amount to about $870m.
The Government's policy on provision of subsidy for early childhood education is basically to ensure that no student will be deprived of kindergarten education for lack of financial means. On the one hand, we help needy parents pay kindergarten fees by providing direct assistance under the Kindergarten Fee Remission Scheme. On the other hand, we provide subsidies to non-profit-making kindergartens to relieve pressure on school fees. This takes the form of rates and rent reimbursement, and direct payment to kindergartens to assist them in attaining the objective of employing at least 60% QKTs. We are now conducting a comprehensive review of the Kindergarten Subsidy Scheme (KSS) with a view to further raising the percentage of QKTs in each kindergarten and ensuring a proper utilization of resources. It is expected that the review will be completed shortly. We will implement any new arrangements in the 2001/02 school year, after consultation with the kindergarten sector.

In the course of the review, we have solicited the views of the kindergarten sector. Some operators urged the Government to provide each non-profit-making kindergarten with a level of subsidy equivalent to the total amount of QKT salaries. In fact, the subsidy under the KSS was calculated on a "per student" basis until the 1998/99 school year when it became a "per class" grant. Although the subsidy is calculated on the basis of a class size of 30, we note that for kindergartens joining the KSS, 20% of classes now have less than 15 students while 9% have even less than 10 students, which is not cost effective. Directly subsidising teachers' salaries involves a lot of administrative work and is not value for money. Accordingly, we have great reservation on the proposal.
If the Government were to provide a salary subsidy, calculated at the mid-point salary of QKTs, to the 463 local non-profit-making kindergartens for employing 4 000 QKTs, a total of $870m would be required. The amount would be 4.8 times higher than the estimated expenditure on the KSS for the 2001/02 school year (about $150m). It would represent some 91% of the estimated total expenditure on early childhood education (about $960m), or 1.6% of the estimated overall expenditure on education (about $55.33 billion). We agree that we should make additional provision to improve early childhood education. We will enhance the quality of kindergarten principals and teachers, and actively review the level of fee remission and KSS subsidy.