English Bill: Questions for Oral Answer — Questions to Ministers 
English Bill: Questions for Oral Answer — Questions to Ministers 
[Volume:620;Page:15665] 
9.  
Hon BILL ENGLISH (National—Clutha-Southland) 
 to the  
Minister of Education 
: Does he agree that the standard of education delivered in schools is dependent on the funds each school is able to raise from non-government sources as stated by the New Zealand School Trustees Association President Chris Haines; if not why not? 
Hon TREVOR MALLARD (Minister of Education) 
: 
 Under this Government real per pupil operational funding has increased by 10 percent. Under this Government fewer schools have deficits. They have much bigger total surpluses cash holdings equity and total assets. It is important that we get a consistent story. This member says that schools are awash with cash; his leader says that he is “not at all sure that spending on education should increase”— 
Dr Don Brash 
: I raise a point of order Mr Speaker. This Minister is not even making an attempt to answer a very straightforward question. The House is getting very impatient with him. 
Mr SPEAKER 
: And so am I. The Minister will start by addressing the question. [ 
Interruption 
] That is the end of any more nonsense when I am giving a ruling. Now I will have the answer. 
Hon TREVOR MALLARD 
: As I indicated under this Government real per pupil operational funding has increased by 10 percent. Under this Government fewer schools have deficits; they have much bigger total surpluses. Cash holdings have increased equity has increased and total assets have increased. That is why I disagree with Mr Haines. 
Hon Bill English 
: Is the Minister aware of the fact that parents and schools will raise this year about half a billion dollars over and above their Government funding; and can he advise the House whether it is still Labour Party policy that State education is free? 
Hon TREVOR MALLARD 
: I have read the report to which the member refers—at least its beginning. I got it this morning; I haven’t read right through. I thought the most interesting point in the report to which the member referred is that the proportion of principals who thought that Government funding was inadequate has dropped by 14 percent since I became Minister. 
Hon Bill English 
: I raise a point of order Mr Speaker. The Minister referred to a report in his answer that I did not refer to at all in my question. He did not in any way answer whether it is Labour Party policy that State education is free. 
Mr SPEAKER 
: That particular part of the question can be addressed. 
Hon TREVOR MALLARD 
: Of course it is Government policy and it is the law that State education is free. One of the things I thought interesting is that the vast part of the increase the member is referring to comes from overseas students—which cost schools. The major part of the increase in locally raised funds since I became Minister came from overseas students. If the member does not understand that I will get someone to read the figures to him. 
H V Ross Robertson 
: What does the report commissioned by the School Trustees Association state about the adequacy of school operational funding in the 1990s? 
Hon TREVOR MALLARD 
: The report notes that from 1990 to 1996 real purchasing power decreased by 10 percent. I quote directly from the report: “Funding cutbacks may have had later repercussions for school budgets.” I give credit to Brian Donnelly because between 1996 and 1999 school funding increased in real terms per pupil by 4.4 percent. He did not totally make it up but he made a lot of progress. Since I became Minister the real per pupil operational funding for schools has increased by 10 percent. 
Hon Brian Donnelly 
: Is it true that of the nine schools in the School Trustees Association study being referred to the teacher salaries grant fell between 4 percent and 16 percent short of its assessment of actual staffing requirements and that those schools spent on average 32 percent of operations grants and 80 percent of locally raised funds on teacher salaries and does he believe that is satisfactory? 
Hon TREVOR MALLARD 
: One of the things this Government did in 2000-01 was free up the ability of schools to use operational funding and locally raised funding for employing teachers. It comes as no surprise to me that some schools with their vastly increased operations grants have chosen to employ more teachers. 
Bernie Ogilvy 
: Does the Minister agree that the doubling of teacher numbers funded by that operations grant from 1672 teachers to 3355 between the years 1998 to 2004 will have been matched by a doubling of teaching staff numbers funded by the fund-raising each school obtains from non-Government sources; if not what justification does he have for the doubling of teacher numbers paid from the schools’ operations grant? 
Hon TREVOR MALLARD 
: I heard the question and I did not totally understand it but I think the point should be made that this year this Government is putting over $120 million extra directly into staffing so that would pay for a vast number of extra teachers over and above those required by roll growth. I think the fact that schools have chosen to add to that number is great. 
Hon Bill English 
: How does the Minister reconcile his stated policy that: “State education is free.” with the fact that this year parents and communities will raise half a billion dollars or about one dollar in every three of school operational funding? 
Hon TREVOR MALLARD 
: Because the community the member is referring to which is the one that has made the difference in the fund-raising is a Chinese community based in China. 
Bernie Ogilvy 
: Will the Minister follow Chris Haines’ recommendation for the Government to commit to a significant increase in operations grant funding to ensure that the high standards of education expected by both the Government and the communities can be achieved; if not why not? 
Hon TREVOR MALLARD 
: This Government works really hard on increasing funding for education. Mr Haines has told me recently that he appreciates the extra money the Government is putting into school information and communications technology into the Microsoft licensing arrangements that have been recently announced and into a number of contestable pools. He has suggested that we look at operations grants but he is also very keen on us increasing the number of teachers who go into schools and this will be looked at as part of the next Budget. 
Hon Bill English 
: Why is it that the Government decided to spend only $21 million in the last Budget on an increase in the operations grant when in the same Budget it is wasting millions of dollars on low-value tertiary education courses while parents sell raffle tickets to keep their schools running? 
Hon TREVOR MALLARD 
: As I indicated to the member earlier and as my colleague the Associate Minister of Education has also indicated to him there is a major realignment going on in the spend of tertiary education. There is a lot of work going on there and I am not satisfied with the quality of spend in tertiary education. However having said that the member must realise that overseas students have by and large replaced cake stalls in New Zealand schools. 
Hon Brian Donnelly 
: I seek leave to table page 15 of the report  
How do effective schools manage their finances? 
 which outlines the facts and figures that I had in my question. 
Document by leave laid on the Table of the House.