FEE INCREASES AT POLYTECHNICS

FEE INCREASES AT POLYTECHNICS: 3.

Mrs Josephine Teo asked the Minister for Education what are the reasons for the consecutive fee increases in 2010 and 2011 for local students studying in polytechnics.

The Senior Minister of State for Education (Mr S Iswaran) (for the Minister for Education): Mr Speaker, Sir, polytechnic fees were unchanged for three consecutive years from 2007 to 2009, due to the GST increase in 2007, and the economic downturn in 2008 and 2009. Subsequently, fees were increased by $50 in each of the Academic Years, 2010 and 2011.

The increases were necessary to meet rising costs and, more importantly, because polytechnics continue to invest in capability-building initiatives in order to deliver high-quality education to Singaporeans. Where justified, it is preferable to have regular but small fee increases rather than a significant hike in any one year. Even after the current increase, the Government continues to heavily subsidise the cost of polytechnic education. The Government subsidy amounts to about 86%. MOE and the polytechnics will also ensure that various modes of financial assistance are available to students and that no eligible or deserving student is denied a polytechnic education due to financial difficulties.

Mrs Josephine Teo (Bishan-Toa Payoh): Mr Speaker, Sir, I have three supplementary questions. Firstly, given the concerns over rising inflation, could the increases have been further delayed, perhaps for a year? Secondly, could the fee increases have been applied to new cohorts only, in other words, for students who are enrolled from this year onwards? And, thirdly, will financial assistance be expanded in connection with this round of fee increases?

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Mr Iswaran: Mr Speaker, Sir, I thank the Member for her questions. Could the fee increases have been delayed? Of course, in principle, yes. But I think it is a balance between what is happening on the ground, in terms of the needs of the polytechnics operationally and the costs that they are dealing with, and the plans they have to enhance their capabilities versus upping the burden on students. In this case, if Members look at the order of the magnitude of the increase, it is about 2%. It has gone up from about $2,100 to $2,150, so it is a $50 increase, or about 2%. In the case of most students, it should be within their means to meet that increase.

Secondly, would it be preferable to apply the increase only to new cohorts versus the entire enrolment? The answer is what the past practice has been and maintaining the equity and the treatment. The treatment is always being that the entire enrolment is affected by the fee increase. If we now change the policy, there will be questions of inequitable treatment.

Thirdly, the Member asked for assurances on whether we are expanding the financial assistance scheme. As Members are well aware, we have a whole slew of financial assistance measures, ranging from loans to bursaries and other community-based support measures. At this stage, about half the students in the polytechnics avail themselves of this range of facilities. We will continue to be ready to make them available as required. There is no resource constraint on that score.

Mrs Josephine Teo: Thank you, Senior Minister of State. I recall that when I was in university and there was a round of fee increases, it applied only to new cohorts. I am making this appeal to the MOE to consider such a practice for the polytechnics. I do not know whether the universities still do that, but I am making

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a case for such a practice, if it has not been in practice, then to be in place. It gives assurances to parents whose children are already enrolled. Sir, I would like MOE to consider that.

Mr Iswaran: Mr Speaker, Sir, I fully understand where the Member is coming from and I empathise with her motivations. I just want to draw a distinction between the university fees and polytechnic fees. A key consideration is the order of the magnitude of difference. The typical university fees are at least three times what the polytechnic students pay. When we are talking in terms of financial planning, there is a significant difference. In university fees, we look for about 25% cost recovery and we are not quite there yet. In the case of our polytechnic students, it is a far lower target level. We are talking about very different orders of magnitude. But the point is well-taken. In the first instance, our objective is to ensure, and it is a central tenet of our education system, that any deserving student that is admitted to the polytechnics will not be deprived of that education because of financial issues. If it is because of the marginal fee increase, then that will be rectified.