POLYTECHNICS AND INSTITUTE OF TECHNICAL EDUCATION (Fee increases)

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POLYTECHNICS AND INSTITUTE OF TECHNICAL EDUCATION:

(Fee increases): 8.

Dr Amy Khor Lean Suan asked the Minister for Education (a) what is the basis for the recent polytechnic and Institute of Technical Education (ITE) fee increases; and (b) how will polytechnics and ITEs ensure that all students who have genuine difficulties paying their tuition fees are assisted.

The Minister of State for Education (Mr Gan Kim Yong) (for the Minister for: Column: 2285

Education): Mr Speaker, Sir, for the new academic year 2006, the polytechnics and ITE will increase their tuition fees by $50 and $10 respectively. The fee increases will help cover cost increases arising from higher manpower and other operating costs.

The Government continues to subsidise polytechnic and ITE education substantially. For the polytechnics, fees account for about 13% of costs on average. For the ITE, they account for about 3% of costs. The fee increases this year will preserve these cost recovery ratios.

To assist students who have difficulties paying their tuition fees, there is a range of financial assistance schemes offered by the Government, polytechnics and ITE, community groups and private organisations. These include the CDC-CCC Bursary (Community Development Councils-Citizens' Consultative Committee) Awards and the bursaries offered by the individual polytechnics and ITE.

For polytechnic students, the Government also provides the Tuition Fee Loan Scheme which can cover up to 75% of the tuition fee. Those in financial need can apply for the Study Loan Scheme which provides a loan of up to the other 25% of the tuition fee and a living allowance of $1,000 per year.

One-quarter of polytechnic students and one-third of ITE students receive some form of financial assistance.

I would like to reassure Dr Amy Khor that MOE, together with the polytechnics and ITE, will continue to ensure that no student admitted to these post-secondary institutions is denied the opportunity to study at these institutions because of financial difficulties.

Dr Amy Khor Lean Suan: I would like to ask the Minister of State when was the

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last time the fees were increased for the polytechnics and ITE. Sir, I would also like to ask the Minister of State, for low-income families especially, every dollar increase in fees poses difficulties for them, whether the range of schemes available to help needy students in the polytechnics and ITE are actually adequate to cover all who need help, whether they are actually people who, say, in ITE did not get assistance when they applied for it. Because I understand that, for ITE, there are no loans available for the students.

Mr Gan Kim Yong: Mr Speaker, with regard to the first question, for the polytechnics, the fees had remained the same from 2001 to 2004. The fees were only increased last year, and this year was the second increase. For ITE, the fees had remained more or less the same from 1994 to 2004. So the fees had not been adjusted, and we are adjusting now to catch up with the increases in operating costs.

With regard to the financial help, we believe that there is adequate help made available to the students. As I have given in my earlier answer,

we would like to assure Dr Khor that, if students are genuinely in need of financial assistance, we will provide them. If Dr Khor or any other hon. Members do come across students who need genuine help from us, we welcome them to forward such cases to us and we will process them accordingly.

Dr Amy Khor Lean Suan: Sir, I would like to ask the Minister of State why were there two concurrent fee increases for the polytechnics, ie, one the year before and one last year. Why is that so?

The other question relates particularly to students in ITE. If the financial schemes available are actually clearly made known to the students or if the teachers actually help to identify students

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who are in need of financial help, why is it that often, at my MPS, there are students from ITE who say that they drop out of school because they are unable to pay for the fees?

Mr Gan Kim Yong: Mr Speaker, between 2001 and 2004, for polytechnics, we have kept the fees the same, mainly because of the economic recession during that period. Last year, we revised the fees and, this year, we revised it again, just to keep up with the cost increases. I think it is better for us to make small incremental increases rather than to accumulate a huge sum of adjustments and we have to make those adjustments sooner or later.

With regard to the second question, ITE does offer some assistance, such as the CDC-CCC Bursary Awards, the ITE fee remission scheme, etc. ITE also administers certain awards for students. As I have said, the ITE administration is aware of these schemes, and if MPs do come across residents who need help, do let us know and we will investigate each case.

Mr Steve Chia Kiah Hong: Sir, does it mean that the students are supposed to expect that there will be more such small increases in the next few years?

Mr Gan Kim Yong: As we go along, both the polytechnics and ITEs will have to continue to keep up their facilities, equipment and buildings, to make sure that the programmes they offer are relevant to the development in industry. Therefore, it is important for us to continue to develop our capability within the polytechnics as well as the ITEs. As a result of this continuous development, the operating costs will continue to increase wherever they are justified. I would also like to assure the House that we do take a very serious view on cost increases, and

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there are processes in place to ensure that these increases are justified and they are money well spent to deliver quality education to our children. Therefore, it is better for us to adjust the fees as the cost increases are incurred rather than to accumulate them to be introduced at one go.