Ogilvy Bernie: Questions for Oral Answer — Questions to Ministers 
Ogilvy Bernie: Questions for Oral Answer — Questions to Ministers 
[Volume:619;Page:15018] 
5.  
BERNIE OGILVY (United Future) 
 to the  
Minister of Education 
: Can he confirm that the total combined deficit incurred by schools doubled from $14 million in 1995 to $29 million last year with the average secondary school deficit increasing by 70 percent from $55624 to $94631 in that time; if so why? 
Hon STEVE MAHAREY (Acting Minister of Education) 
: 
 Yes but I can also confirm that the overall financial position of schools has been improving under the Labour-led Government. The collective surplus generated by primary schools has increased from 1.1 percent in 2001 to 1.8 percent in 2003. The surplus generated by secondary schools in the same period increased from 0.8 percent to 1.2 percent. Over the past 3 years the total number of schools operating a deficit in excess of $60000 has actually decreased from 153 in 2001 to 137 in 2003. The percentage of schools in deficit went down from 43 percent in 2002 to 39 percent in 2003. 
Bernie Ogilvy 
: Were some of those deficits incurred to pay for the 3797 teachers employed directly by schools without Government funding or does he think that additional teaching staff are a luxury that is most appropriately funded by schools raising half a billion dollars themselves through foreign students selling chocolate or even buying and selling cattle as reported in this morning’s Christchurch  
Press 
? 
Hon STEVE MAHAREY 
: The answer to the first question is no. The answer to the second question is no I do not think that it is a luxury. The answer to the third series of questions around schools and fund-raising is that of course fund-raising has always been part of what schools do but the people in Canterbury who say that they are raising money to employ teachers through selling cattle for schools of course are not being accurate in saying that. Schools are supplied right throughout Canterbury with a large number of new teachers as part of this Government’s policy. 
Lynne Pillay 
: Why may schools record a deficit? 
Hon STEVE MAHAREY 
: Schools may have money in the bank but still record a deficit for the year. It may be planned. For example a board of trustees may decide that it has more money in the bank than it needs so it will spend it on something like new equipment. It may also be the result of major unforeseen problems like an employment dispute or an equipment failure. Those sorts of deficits are obviously concerning to a school but in general schools can cover any unplanned costs out of their savings and they will return to a surplus in the following year. 
Simon Power 
: Does the Minister agree with Chris France the head of the School Trustees Association and Don McLeod chairman of the Principals Council that an array of hidden costs imposed on schools by this Government including health and safety requirements holiday entitlements collective agreement provisions and support staff costs have pushed more than a third of schools into a position where they simply cannot balance their budgets? 
Hon STEVE MAHAREY 
: No I do not. What I would agree with is that school operations grant funding has increased by over 26 percent since 1999. When adjusted for inflation and roll growth that amounts to an increase per pupil in real terms of 10 percent. The Government has also greatly increased the amount of “in kind” support it provides to schools such as free software licences and laptops for principals and teachers. That “in kind” support amounts to $346 million per year—equivalent to 34 percent of additional operational funding—which is more than the National Government did in the 9 years when it had a chance to do something. 
Hon Brian Donnelly 
: Is it not true that since the current Minister has been the Minister of Education schools’ operational funding with the exception of the redistributed bulk-funding moneys has increased by no more than the rate of inflation meaning that purchasing power has remained static and deficits have continued? 
Hon STEVE MAHAREY 
: The figures that I have here show that when adjusted for inflation and roll growth the increase amounts per pupil in real terms to just over 10 percent. That is in the operations grant alone. It does not count the $346 million per year that comes in kind in various ways. 
Bernie Ogilvy 
: Does the Minister accept that if schools did not take on foreign fee-paying students many more schools would be reporting funding deficits; if not why not? 
Hon STEVE MAHAREY 
: Many schools choose to take on a small number of overseas pupils but I remind the member that since this Government has been in power we have had an increase of over 26 percent in the operations grant alone. 
Bernie Ogilvy 
: Why has the number of secondary schools with deficits of over $100000 doubled from 21 to 42 since 1995 and does the fact that those schools range from deciles 1 to 10 indicate that the current equity funding system is not working? 
Hon STEVE MAHAREY 
: That is of course a small number of schools amongst a large number we have in the country and what happens whenever a school is in that kind of deficit is that it receives individual treatment from the ministry until it is in the position of being back in the black. 
Bernie Ogilvy 
: Does the Minister accept that the need for schools to hire teaching staff out of their own pockets is a problem of the Government’s own making since it has guaranteed non-contact hours in its agreement with the teachers’ unions but clearly has not stumped up with the money to cover them; if not why not? 
Hon STEVE MAHAREY 
: No I do not. I want to give one example of how many teachers are being put into the system. If I take for example Simon Power’s Rangitikei electorate more than 52 extra teachers and an extra 42 management units have been provided by this Government. That gives the schools there the flexibility to pay teachers more for recruitment and retention purposes and to recognise extra responsibilities. That is what this Government has done.