It is my great pleasure to present this Foreword for our 2005-2006 Annual Report. With all the changes that emerged in the previous eventful year, 2005-06 was a year of consolidation and long-range planning for the Institute.

On the issue of governance, the Council has been focusing on pursuing excellence in staffing related practices. This year saw significant progress in salary administration as well as performance management systems.

The salary de-linking proposal, which was reported in my last Foreword, was successfully implemented from 1 July 2006. The Council is appreciative of the management's efforts. In the process of finalising the proposal, they carefully thrashed out the details, benchmarking the Institute's staff salary structure against the external market and other tertiary institutions, while also communicating fully with staff through consultations and briefings. This meticulous planning enabled the Institute to carve out a reward strategy and create a remuneration structure that will attract and retain staff of the highest calibre.

In line with the introduction of this de-linked salary structure, work to formalise a new Performance Appraisal Scheme for academic and administrative staff is also underway at the time of preparing this Report. I trust that through the many staff forums and training sessions, the Institute staff have acquired a full understanding of the performance-based reward system. With the high levels of transparency, equity and objectivity in drawing up the performance measures, the new Performance Appraisal Scheme will help the Institute to reward and develop talent.

On the academic front, the Institute has made notable progress in several areas. The joint degree programme on English Studies and Education between the Institute and the Chinese University of Hong Kong was successfully launched in December 2005. The programme made an excellent start with very encouraging application numbers. We also saw the successful introduction of the self-financed Master of Education programme, which attracted applications far exceeding the number of places available. During the period, the Institute also took steps to prepare for the launch of a Doctor of Education programme. All these moves serve to position the Institute strategically as the stronghold of teacher education in Hong Kong.

To substantiate our work in building the Institute as a leader in teacher education, a significant development during the year was the launch of the Strategic Plan 2006-2012. This directional document, based on input from a wide array of internal and external stakeholders, spells out the strategic areas upon which the Institute will focus in the six years ahead.

During the year, the Government twice launched the Matching Grant Scheme. I am gratified that with the concerted efforts of the Institute community, substantial donations were raised and matched by the Government. At the time of preparing this Report, the Institute has been working tirelessly on fund-raising activities in connection with the Third Matching Grant Scheme. It is my belief that working on a united front, the Institute community will surpass its past donation records.

Concluding this Foreword, I would like to extend my vote of thanks to Mr Victor Cha Mou-zing, Mr Simon Hung Ling-fai and Dr Kenneth Scott Volk, who retired or resigned from the Council. I would also like to extend my warm welcome to new Council Members Miss Bella Lo Sung-yi and Mr Lee Chien. Given the expertise, knowledge and devotion of all Council Members, the professionalism of the Institute management and staff, as well as the great sense of belonging shared by our students and alumni, I look forward to a successful year ahead.