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Govt breaking sanctity of contract - ACT

Govt breaking sanctity of contract

Friday 25th Feb 2000 Donna Awatere Huata Media Release -- Education

ACT Education spokesperson Donna Awatere Huata today called on the Minister of Education to confirm or deny rumours that he is intending to introduce legislation into the house that will allow the Government to break 830 contracts with boards of trustees from bulk funded schools.

Mrs Awatere Huata said Ministry officials confirmed yesterday in the Education and Science select committee that no letters had been sent out to boards of trustees of bulk funded schools, and there had been no consultation with any board of trustee about the removal of the bulk funded option from bulk funded schools.

"The contracts that have been signed by each school are on-going contracts, which schools have the option to cancel. Their contracts do not contain any opt-out clause for Government.

"I understand that Government intends to stop a class action from schools through legislation.

"The only way bulk funding can be removed is if the Government breaches this contract. This has major implications for the sanctity of law.

"The Minister of Corrections has decided to proceed with the private management of the Auckland Central Remand Prison in Mount Eden because of liability on the Government if they breached the contract. And proposed changes to ACC by the Government include the continuation of contracts between private accident insurance providers for the duration.

"However, this Government seems determined to break contracts with boards of trustees from bulk funded schools and make sure that there is no redress from schools that are affected."


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