Wealthy private schools hoarding public funds

Commenting on the story on page 1 of today's Sydney Morning Herald, ('Wealthy schools win cash bonanza from grants', 20 June 2009), Dr Kaye said: "At a time when public schools are struggling to find resources for students with special needs, wealthy private institutions are showing very healthy financial surpluses.

"The figures are a direct challenge to NSW Education Minister Verity Firth and her federal colleague Julia Gillard and their private school handouts.

"With schools like Cranbrook showing a surplus of $1.2 million, it is impossible to justify continued generous state and federal subsidies for the wealthiest private institutions.

"The NSW government continues to ignore the ability of schools like Cranbrook to raise massive donations.

"Section 21 A of the NSW Education Act is supposed to stop state subsidies being paid to schools that are operating for a profit.

"However, the narrow definition of 'profit' leaves open a massive loophole.

"Schools such as Queenwood and Cranbrook can hoard government subsidies while public schools are operating hand to mouth.

"The legislation must be fixed to ensure that public money is spent where it will do the greatest good, not on bloating the treasure chests of the already wealthy institutions.

"The NSW government hands over more than $830 million a year to private schools without any controls on whether the money is spent or not.

"Funds that are swelling massive private surpluses would be better used at public schools on special needs education," Dr Kaye said.

The Sydney Morning Herald story is available at:
http://www.smh.com.au/national/wealthy-schools-win-cash-bonanza-from-grants-20090619-cr7r.html

For more information:    John Kaye 0407 195 455