[Greens-Media] Iemma government fails to stop private for-profit schools cashing in on public funds

[John Kaye]

Iemma government fails to stop private  for-profit schools cashing in 
on public funds

Media Release: 26 September 2006

Legislation passed this evening by the NSW Government has left open a 
massive loophole that will allow private for-profit schools to milk 
the public purse, according to Greens NSW Education Spokesperson John Kaye.

Dr Kaye said: "This legislation fails to stop private schools making 
a profit while still receiving their share of $730 million in state 
government grants.

"In 2005 Independent Colleges Australia (ICA), which is closely 
associated with corporate childcare giant ABC Learning, caused public 
outcry over a proposed private school development in the Hunter 
Valley. Education Minister Carmel Tebbutt responded by promising to 
change the law to stop corporations making a massive profit out of 
public funding of private schools.

"However the legislation passed today allows unrestricted payments to 
members of the school's governing body without affecting its public funding.

"All ABC Learning needs to do is put themselves or a shelf company on 
the school's governing body and pay themselves a huge fee. Public 
money will inevitably end up as corporate profits.

"The NSW Government rejected Greens amendments that would have closed 
this gaping loophole.

"The Queensland government bit the bullet last year and effectively 
stopped this rip off, while the Iemma government has squibbed.

"The Chief Executive of ICA, Tom Mould, let the cat out of the bag. 
In June he said that under NSW legislation his Hunter school would 
still get funding from the government, but the Queensland legislation 
is a different kettle of fish.

"The Iemma government has failed to stand up to ABC Learning and 
restrict payments to governing body members. NSW will become a honey 
pot to the corporate private schools seeking a slice of the action," 
Dr Kaye said.


For more information: John Kaye 0407 195 455


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John Kaye
email: john at nsw.greens.org.au
mob: 0407 195 455
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