AIDED SCHOOLS AND JUNIOR COLLEGES (Increase in financial support for building projects)

[Mr Speaker in the Chair]

Mr Lim Boon Heng asked the Minister for Education, with the substantial increase in construction costs and the upgrading of standards of school buildings, if his Ministry will consider increasing the financial support given to aided schools for their building projects as many of them are facing difficulties raising their share of 20% of project costs.

The Minister for Education (Dr Tony Tan Keng Yam): Mr Speaker, Sir, the Ministry of Education is aware that the sums of money to be raised by aided schools for their building projects have risen significantly. Today, it costs about $20 million to build and equip a standard single-session secondary school. Aided schools would have to raise at least $4 million or more to meet their share of the cost. This, Sir, is a considerable sum and may be difficult for the schools to raise.

The Ministry of Education together with the Ministry of Finance has therefore reviewed the capital grant scheme for aided schools and junior colleges and I am glad to announce today that the Government has decided to give more financial assistance to aided schools and junior colleges to help them to upgrade their facilities. The amount of capital grant for aided schools and junior colleges will be increased from 80% to 90% of approved building costs.

The quantum of grant will apply to all aided schools, including aided schools that did not previously qualify for the full 80% grant and are presently on the 50% grant. Aided schools which have shown themselves to be viable with good enrolments will be given the 90% grant to help them improve the quality of education provided to their students. Aided schools which are no longer viable because of falling enrolments will not receive the grant and will be encouraged to close down.

Mr Ng Kah Ting (Punggol): Mr Speaker, Sir, before I ask my supplementary question, may I declare, on behalf of the Member for Kebun Baru and myself, that we are both involved in the building of Montfort Secondary School and Montfort Junior School both of which are Government-aided schools.

My question now, Sir, is: when will this take effect?

Dr Tony Tan Keng Yam: The answer, Sir, is immediately.