Martin Tracey: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeMartin Tracey: Questions for Oral Answer — Questions to Ministers[Sitting date: 18 June 2014. Volume:699;Page:18617. Text is incorporated into the Bound Volume.]9.TRACEY MARTIN (NZ First)to the Minister of Education: How much public money has been spent on land and other physical assets for Partnership schools up to 31 March 2014?Hon NIKKI KAYE (Associate Minister of Education)on behalf of theMinister of Education: The Government provided $6.6 million in establishment funding to five schools for 2013 and approximately $1.9 million in operational funding for the first quarter of 2014. Around a quarter of that funding is provided for property and insurance in accordance with the partnership schools funding formula that was approved by Cabinet. What they have actually spent will vary across schools and is monitored quarterly through their reporting. One of the key aspects of partnership schools is that they have more flexibility in how they spend their total funding.Tracey Martin: To whom do these taxpayer-funded assets now legally belong?Hon NIKKI KAYE: Obviously I am answering on behalf of the Minister of Education but what I can confirm is that there are specific agreements in place with each of the five partnership schools. In some cases I am sure that they will own the specific assets.Tracey Martin: In light of that answer is the Minister able to tell us what ability the taxpayer has to reclaim these assets should a partnership school close or be closed?Hon NIKKI KAYE: That is a very good question. My understanding is that should a partnership school contract cease prior to the expiry date the ministry would work of course to recover any unused funding by any means possible and ideally through a negotiated agreement. In terms of issues around land etc. that would go through a commercial process. Any course of action taken will depend on the circumstances contributing to the ending of the contract.Tracey Martin: Can she assure the public that the funding for partnership schools on a per student basis is at a no more favourable rate than mainstream State schools?Hon NIKKI KAYE: I think this a very good question as well. I think it is very unhelpful—I have seen comparisons of the per student funding basis between State schools and partnership schools. The whole point of these schools is that there is an establishment phase. That means we will be spending more money in that establishment period. But also it is very important to realise that just like any other school that is being established they will not reach their maximum roll necessarily in the first year. What I think is important is that we give these schools a fair go and we realise that actually they are dealing with some of our most disadvantaged students and so in the first instance those comparisons are very unhelpful.Tracey Martin: Can the Minister just clarify that in her answers to the two previous questions she said that there is no set process for the reclaiming of public assets purchased by partnership schools should they close and that at the same time the Government is currently funding them at a higher level because they are establishing schools?Hon NIKKI KAYE: No that is not what I said in terms of both parts of that question. The first thing that I said is that we would seek via the sponsor agreement to work through what had been agreed but we also go through the same process with any other school that closes. We look at what the commercial situation is around those assets. So there is a set process—it is the same process that we go through with other schools; it is just a little bit more complicated because there are sponsorship agreements. In terms of the second issue I said that I think it is very unhelpful to compare on a per student basis because yes they are in the establishment phase and also the whole purpose of partnership schools is that there is flexibility around what those funds can be used for so comparisons are very unhelpful. But what I would say to the member is that I think what you can have confidence in is that they are on track in terms of their establishment roles and when you look at that overall basis when they get to the maximum roll we are very confident of the investment that we are making in these children—some of our most disadvantaged children.Mr SPEAKER: Order! The answer is long enough.Chris Hipkins: Do the sponsorship agreements for partnership schools allow the Crown to recover capital from those schools in the event that they cease operating prior to the end of their contracts; if so which clause allows that?Hon NIKKI KAYE: I do not have all of those contracts on me but what I can say is that the advice I have had is that should a contract cease prior to the expiry date the ministry would look to seek to recover that funding by any means possible—ideally through a negotiated agreement.Tracey Martin: In light of the Minister’s previous answers that partnership schools are not being given priority in terms of education spending how can she explain that at least one of the current partnership schools is funded at a level to allow a 1:9 teacher-student ratio while mainstream State schools have a prescribed ratio of one teacher to 27.5 students?Hon NIKKI KAYE: I do not agree with what the member said in the first part of the question. The second thing that I would say though is we have been really clear actually that the whole benefit of bringing innovation into the system is to enable these schools sometimes to do different things and have more teachers per student for very disadvantaged students if that is what the school thinks is best for those students. We are very proud of the fact that we are helping some of our most disadvantaged students and we need a flexible model to do that.Tracey Martin: I seek leave to table a speech by Hekia Parata on 16 May 2012—Mr SPEAKER: Order! That speech will be on the web and available for all members.