Legislation passed by the NSW Government on Tuesday 26 September 2006 left open a massive loophole that will allow private for-profit schools to milk the public purse.

The legislation fails to stop private schools making a profit while still receiving their share of $730 million in state government grants. It allows unrestricted payments to members of the school's governing body without affecting its public funding.

All a profit-seeking corporation needs to do is put themselves or a shelf company on the school's governing body and pay themselves a huge fee. Public money will inevitably end up as corporate profits.

The NSW Government rejected Greens amendments that would have closed this gaping loophole.

For more information:

• "Education is the government's business", opinion piece by John Kaye published in the Newcastle Herald, 3 October 2006

Media:

• "Greens warn of loophole in school funding laws" ABC News Wednesday, 27 September 2006

• “New laws will limit business in schools” Sydney Morning Herald, 2 Dec 2005
  
• “…and look who has an eye on their schooling” Sydney Morning Herald, 1 DEC 2005
• “$25m Hunter college plan”. Newcastle Herald, 1 DEC 2005

Take Action!

Contact your local MP (click here for contact details) and NSW Education Minister John Della Bosca:

• fax: (02) 9228 5366
• email: minister@det.nsw.edu.au
• mail: Parliament House, Macquarie St, Sydney 2000

and demand that the NSW government reintroduces their legislation, accepts the Greens amendments and closes the loophole so that private schools cannot make a profit for their corporate owners.