ESF Debentures = $500K each

[Editor1]

The ESF announced today it will be introducing a new Nomination Rights Scheme; essentially a class of debentures that run at HK$500,000 per prospective student.

More information can be found here: ESF Nomination Rights Scheme | English Schools Foundation

Debentures may be new to ESF, but they are commonplace at other private international schools in Hong Kong like German Swiss International School (HK$262,500 debenture) and Chinese International School (HK$75,000 debenture).

Unlike the ESF, however, most private international schools are not directly subsidized by the Hong Kong Government to the tune of HK$283,000,000 annually.

There is a segment of Hong Kong’s international business community that needs positions in English-medium schools for children of their employees, and it is well within the rights of the ESF to extract payment from that segment.

But is it fair that Hong Kong tax payers have to then subsidize these obviously well paid and well taken care of professionals?

Allow me to rephrase: Should overseas employees with plentiful financial backing be given preference for admission to a school where student tuition is partially subsidized by Hong Kong tax-payer money?

Recently ESF has been urging parents (parents being the de facto stakeholders in the ESF) to lobby for increased government subvention. Should the ESF be granted an increase in subsidies and be allowed to tender some of the most expensive school debentures in Hong Kong?

The ESF's argument for subsidy eligibility has always been: government subsidies are required to provide a reasonable cost education for English speakers in Hong Kong, many of whom might not be able to afford attending HK’s other English-medium international schools.

What are your opinions?

 

[MommyTo3]

An important issue, also raised in the article, is that many of the schools need (serious) renovations, some very very major ones. However, with the current fee structure and the frozen subvention there isn't enough money to upgrade the buildings. As they don't want to increase the fees, they need a different financial resource. Cost saving won't be sufficient to cover the renovations, a lot of the school buildings are quite old. They try to maintain the reasonable fees, however, how many spots will remain available for those not being able to pay up a debenture, that is an important question and issue that I agree people in Hong Kong should worry about about. I guess to an extent it comes down to getting more subvention but since that seems out of question (nothing much has been happening lately) ... what else is there to do if they don't want to increase fees significantly?

 

[rani]

I understand that they need to renovate their buildings. But its a real shame that 150 kids who can't afford to pay the debenture will get the boot.

 

[MommyTo3]

I understand that they need to renovate their buildings. But its a real shame that 150 kids who can't afford to pay the debenture will get the boot.

Agree, and I am being honest in saying I am so happy mine are in. Also some of these kids might have gotten in without the debenture (we've had many new overseas kids after the summer filling up the spots of the leavers) but they're not risking it, we'd never now exactly how many spots would get affected.

They need the money from somewhere ...

 

[ychia76]

You know who can afford 500K debenture ... the mainlander Chinese. 150 nomination rights can be done. I do not know if my son's chance is slim even though my daughter got in mainstream with learning support? I will have to homeschool him next year if nothing comes up or start my own school =P with 500K!

 

[testuser]

>> I do not know if my son's chance is slim even though my daughter got in mainstream with learning support?

Sibling priority?

 

[GeoDerek]

UPDATE

League of Social Democrats legislator Leung Kwok-hung said the government is making an ESF education a privilege.
"Only the upper class will have enough money and this will definitely further divide the rich and the poor," Leung said.
Tommy Cheung Yu-yan, of the Liberal Party and an ex-ESF board member, said: "The government is fostering inequality among students by using taxpayers' money to subsidize the debenture policy."
Separately, Ng said the territory is short of 4,000 primary places in international schools. Empty school premises and greenfield sites will be used to meet the shortfall, he pledged.
Ng said more than 1,400 places will be available when the Kellett School in Kowloon Bay and the Hong Kong Academy in Kennedy Town open next September.
The Christian Alliance PC Lau Memorial International School is also expected to complete its construction by 2016.
"On top of these new schools, we aim to provide more than 1,000 places, through another four vacant premises, to develop international schools."

Education chief backs decision on ESF debentures - The Standard

ESF is powering their agenda through LegCo, and The Man says he supports ESF's debenture scheme... but will they get their subsidies?