An expert in kindergarten financing said there had been a widespread problem of preschools exaggerating what they paid teachers so as to get subsidies.
Li Hui, assistant professor of education at the University of Hong Kong, said he knew of cases where kindergartens claimed they had followed the government pay scale but had in fact asked teachers to return a portion of their salaries to support the schools' operations.
'The schools must stick to the rigid pay scale. Otherwise they would not get any subsidy from the government under the Kindergarten Subsidy Scheme and there would be no way they could survive,' Dr Li said.
'Many kindergartens are facing the problem caused by a dramatic fall in birth rates. The schools are struggling and suffering.'
But Dr Li believed that the education voucher scheme would help resolve the financial difficulties faced by non-profit-making kindergartens. A survey he released early this year showed that the scheme was well received by many parents and schools, although for-profit kindergartens found it discriminated against them.
The scheme entitles parents to vouchers worth a total of HK$13,000 a year if their children attend non-profit schools that charge less than HK$24,000 a year for half-day classes, or HK$48,000 for full-day schooling.