Second round of privatisation

Federation has once again opposed the use of public private partnerships (PPP) in public education as the NSW Government embarks on a second round of building school facilities using the method.

Under the PPP arrangements, the private sector build and then maintain the schools on land owned by the State Government for a fixed term. After the contract expires, the school becomes solely government owned.

A press release from Premier Bob Carr said that since 2003 nine schools have been built and are now in operation under PPPs and the State Government has now announced another nine will be built.

The first of the nine schools to be built are Hamlyn Terrace Primary School on the Central Coast and Ashtonfield Primary School at Maitland -- due to be completed in early 2007. Locations of the remaining seven PPP schools will be announced over the next five years.

Federation President Maree O'Halloran said: "The Carr Government is determined to proceed with the use of Public Private Partnerships in public education despite such financial arrangements being discredited in many places in the world."

"The Premier asserts that there have been dramatic improvements in arrangements for maintenance, cleaning and security in the current PPP schools compared to the other 2200 schools in the public education system," Ms O'Halloran said.

"While those improvements are welcome, they are not the result of a public private partnership. The improvements are created by more funding. Governments prepared to borrow do so under better terms than private consortia and still provide that funding.

"All our public schools deserve excellent, well maintained facilities. Federation calls on the Carr Government to increase funding to public schools via traditional budgetary resources.

"The result would be improved facilities in all our schools without placing public finances at risk through schemes which in the long run cost the public money.

"Federation opposes public private partnerships. It has been amply demonstrated in many studies and experiences within Australia and overseas that such arrangements end up costing the public more in the long run, due to the higher cost of borrowing via the private sector.

"Furthermore, the Federation deplores governments, including the NSW Labor Government, privatising public schools while they have no hesitation in continuing generous public funding to private schools," Ms O'Halloran said.

The Government is also looking at new ways to engage the private sector to provide extra facilities such as child care at PPP schools.

Demonstrators oppose water supply privatisation

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