[Greens-Media] Leaked private school funding report shows $2.7 bn about to be squandered

[John Kaye]

Leaked private school funding report shows $2.7 bn about to be squandered

Media Release: 9 February 2008

Details of a review of the Rudd government's funding of private schools revealed in today's Sydney Morning Herald make it impossible for either the federal education minister or her state colleague to continue pretending the current system is either fair or efficient, according to Greens NSW MP John Kaye.

Dr Kaye said: "Education Minister Julia Gillard can no longer hide from the awful truth that Labor's reckless commitment to the Howard government's funding system will overpay almost 50% of private schools by $2.7 billion over the next four years.

"Eight years ago the Howard government introduced its so-called Socio-Economic Status (SES) funding scheme, which delivered massive increases to about half of all private schools.

"In a sweetheart deal with the private education lobby, the remaining schools that would have lost money under the new formula continued to receive subsidies at the old rate.

"The Funding Maintenance arrangement undermined any credibility the SES formula might have had.

"The Greens analysis shows that in the current four year cycle, overpayments have exceeded $2 billion. 

"If the Rudd government fails to change the formula, in the next four year period the cost of this deal will blow out by another 17% after inflation. 

 "Kevin Rudd placated the private school lobby during the last election by promising to perpetuate the unfairness and inefficiencies of the Funding Maintenance system. He now needs to find a way out of this mess.

"While Finance Minister Lindsay Tanner is busy slashing expenditure across the board, it would be a shameful act of bias if this rort were to be protected.

"The NSW Labor government continues to ignore the realities of federal funding of private schools. Education Minister John Della Bosca needs to open up his review to state subsidies if he is to recover any credibility on this issue," Dr Kaye said.

For more information:	John Kaye 0407 195 455