Legco Rejects Bid For HK$1.4bn Loan To Four Schools

Lawmakers voted on Friday against a proposal by the government to provide interest-free loans totalling HK$1.4 billion to four international schools to "ease their cash flow" amid the coronavirus pandemic.

The money had been earmarked for Christian Alliance International School, Malvern College, Shrewsbury International School and French International School for the construction of new buildings.

In a paper submitted to Legco’s education panel, the government said there was an “imminent need for provision of capital assistance” in view of a drop in students numbers and “the uncertainty in receipts of school fees” at international schools caused by the class suspension during the pandemic.

The government said the interest lost would amount to HK$300 million.

However, some pan-democratic lawmakers questioned whether it was necessary to use public money to help international schools which are charging high fees and selling debentures.

Labour Party lawmaker Fernando Cheung said while he is not against the international schools, he thinks the government’s priority should be helping local schools or special schools with dilapidated premises.

“We see the gap… that is something that is difficult for us to face because we see that special schools… there’s no reasonable condition being given to them. For these international schools, they are aristocratic schools… so to speak. But we have been very generous to them,” he said.

Democratic Party lawmaker Ted Hui said while he agreed there should be more international schools in Hong Kong, he questioned if the government was being fair.

“I want to share with you the public sentiment. The feeling towards international schools is that they have abundant resources, charge exorbitant school fees, with vast campuses, with lots of extra-curricular activities. Many people questioned whether the government is biased towards international schools,” he said.

In response, the Under Secretary for Education, Christine Choi, said the government has to ensure there are adequate international school places for expatriate families who come to the city for work or investment.

“Hong Kong is an international financial centre. We should be competitive so that we can attract talents from all over the world and international schools constitute one important factor,” she said.

At the end of the meeting, seven lawmakers voted against the proposal to provide interest-free loans to the schools, with just five supporting such a move, meaning the funding request cannot be tabled before Legco’s Finance Committee.

Meanwhile, the panel voted in support of a HK$60 million extension project at a special school in Tuen Mun.