Treasury reviews school public private partnerships
By Sally Edsall
NSW Treasury is conducting a review of the nine schools built and maintained under its public private partnership (private financing) scheme.
Federation has made a submission to the review.
In preparing the submission, Federation contacted members at public private partnership (PPP) schools. None reported any major problems outside the normal issues of settling into a new school.
Financing and maintenance, cleaning and security contracts aside, the schools operate in the same way as all other schools in the public education system. Federation fought to ensure that all staff -- both teaching and non teaching -- remain public employees under existing employment arrangements.
The schools have been built to the same specifications as all new schools.
Building, cleaning, maintenance and security aspects of school operations have all been previously privatised. There is no longer a department such as the old 'Public Works Department' which built and maintained public infrastructure including schools. Notwithstanding this, Federation remains opposed to PPP because in the long term, public facilities acquisition costs more to the public of NSW than under traditional financial arrangements. This view was shared by the recent NSW State ALP Conference, which voted that an independent investigation of 'value for money' be undertaken.
Maintenance and cleaning
Generally, people are very happy with arrangements. All principals and most staff are very experienced, having worked previously in a hugely diverse range of public schools throughout NSW. They are conscious of having, for the first time, the resources and personnel they actually need to ensure these functions are carried out properly.
The main advantages are seen to be:
- presence of a site manager employed by the facilities management company as well as a general assistant.
- not having to deal with the Department of Commerce or endless layers of bureaucracy in getting jobs done in a timely and effective way. As a result, principals feel they can focus on education and not get caught up with maintenance issues.
The contrast between the maintenance and cleaning of the nine schools compared to the other approximately 2190 public schools is stark.
This maintenance and cleaning standard must be seen as a standard which should be attained in all schools.
Under no circumstances should standards diminish under any subsequent contracts, and maintenance and cleaning of all schools should be lifted to the same level.
Redirection of savings
The Government and Department of Education and Training assert that there are savings of about seven per cent in the building and contractual arrangements via PPP.
If this is the case, those savings should be directed back into the public education system to help lift the quality of the asset stock which is, after all, publicly owned, and the maintenance of that stock. Both the NSW Auditor-General and the Vinson Inquiry noted there is a serious backlog in maintenance of public schools. Any savings or gains made should be directed back to schools to make real increases in the maintenance budget and real improvements in the conditions in public schools, which at the moment are a disgrace.
Public education has borne the brunt of capital and maintenance funding cuts, which was further compounded in the recent State Budget. The state of repair and cleanliness of NSW public schools has become the shame of the present government, and it must be rectified.
Air conditioning
All except one special school has been built without air-conditioning. Federation argues that there should be a policy to progressively air condition all schools, and that new schools should be built with air conditioning.
Contracts should be varied to enable this to be part of the initial fabric of the schools, as well as the maintenance on on-going cost to be part of the facilities management contract. This is essential because experience shows that schools which are retro-fitted with air conditioning, or which raise funds to install it themselves subsequently struggle with on-going utilities and maintenance costs.
Water conservation
New schools should be fitted with rainwater tanks and other water conservation measures for use in cleaning, gardens and grounds maintenance, toilets and so on. New schools should progressively reflect the best of available technology to help overcome water shortages.
Demountables
Federation is extremely concerned that new schools, including those built through the PPP program, are built such that there is subsequently a need for demountables.
We understand that new schools are provided with permanent buildings to accommodate only 70 per cent of anticipated student enrolment.
If this is the case, it is unacceptable.
What starts off as an attractive new community asset very rapidly becomes devalued and demeaned by having 'temporary' demountable buildings taking up space which should be playground or other open space. It adds to the image of public schools as being makeshift and shoddy, even well-built and attractive new ones.
Federation has been pleased to see that it is possible to build, maintain, keep clean, and provide effective security for nine new schools. The challenge now is to ensure that the standard across the system is lifted to reflect what is possible rather than continue the demeaning and impoverished fabric of what should be an enormously valuable public asset.
Sally Edsall is the relieving Editor.
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