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Dear Colleagues, At the end of my letter to you on 23 February on the funding scenarios for the higher education sector in 2005-08, I pledged: "Together with my senior colleagues, I'll strive to manage the process of budget reduction with priority on upholding the quality of the education we offer and maintaining the stability of our staff." I recently met with the newly elected officers of the Staff Association and reiterated to them our dual priorities.