Financial Secretary Henry Tang's university funding proposal for 2005-08 is not the final option.

Secretary for Education & Manpower Arthur Li said yesterday he has not yet accepted this proposal because he has to await discussion between the University Grants Committee and the tertiary institutions.

Last Friday, Tang announced the proposal, which suggests nil decreases of university funding for 2005-07 and a 5 per cent cut in 2007-08, on top of a 10 per cent cut for 2004-05.

Three days earlier, Tang told a public forum that the level of fund cuts for the next five years would be far below 11 per cent as applicable to other policy areas.

"This is not the final option but only a working figure for discussion purpose,"Li told the Legislative Council Education Panel.

"Since I have not yet received the 2005-06 financial envelope, I cannot say now if the option is workable."

Last week, LegCo vetoed a government-proposed package which represented a 10 per cent cut of university funding for 2004-2005 despite the consensus of the heads of the eight universities.

The deduction funding cut is part of the government's efforts to reduce its deficit which could reach HK$70 billion (US$9 billion) at the end of this fiscal year.

Yeung Sum of the Democratic Party said the aggregate decrease in Tang's proposal is 15 per cent on the basis of a 10 per cut for 2004-05. He said his party will oppose to this proposal.

Democratic Alliance for Betterment of Hong Kong ex-chairman Tsang Yok-shing asked the government to clarify the meaning of "far below 11 per cent"

"The government must give a specific figure and explain why it should be far below than other policy areas""

(HK Edition 01/15/2004 page1)