Hon Nikki Kaye
Associate Minister of Education
17 June 2014 Media Statement
Schools to benefit from change to housing sales

Schools are to receive a significant increase in funding courtesy of a new initiative that will see them benefit further from the sale of surplus school houses, Associate Education Minister Nikki Kaye announced today.

“There are about 1,900 school houses on Ministry administered land with a total value of over $300 million,” Ms Kaye says. “This change will enable us to reduce long-term vacancies, sell houses that are no longer required for education purposes, and manage the Ministry land portfolio more effectively.”

From 1 July 2014, schools will be offered 100% of the net proceeds from the sale of surplus school housing, an increase from the current 50%. “They will be able to use this extra money to modernise their classrooms and ensure students have the best possible learning environments,” Ms Kaye says.

“The extra revenue will be added to the lump sum given to each school every five years to maintain and modernise school property and infrastructure, and to bring classrooms up to modern learning environment standards.”

The initiative is part of the Government’s eight-point plan, announced in 2013, to ensure that schools have high-quality infrastructure, and more modern learning environments that are fit for purpose and inspiring to both teachers and students.

Notes to editors:

How many school houses will be offered for disposal under this initiative?

There are approximately 1,900 school houses on school land. Many will be surplus to the needs of modern schools. Historically, between 20 and 30 houses have been put into the disposal process each year.

The new initiative is intended to encourage Boards of Trustees to move surplus housing into disposal more quickly.

When do the new arrangements come into effect?

The changes will take effect from 1 July 2014.

Can a school receive 100% of the net proceeds of the sale of a surplus school house if it is currently in the disposal process?

The Ministry of Education will contact schools with surplus school houses currently in the disposal process. To receive 100% of the net proceeds, the funds must be added to the school’s Five Year Agreement.
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What can Boards of Trustees spend the extra money on?

Cabinet has directed that the net proceeds from the sale of surplus school property must be added to the school’s Five Year Agreement budget. This means that the money will be spent on modernising existing school property and infrastructure.

What do schools get if they are only selling land or surplus buildings and not school houses?

Schools will continue to receive 50% of the net sale proceeds of the land or building. This will be invested back into the school’s infrastructure through the Five Year Agreement.

Where do I find information about the disposal process?

Information on the disposal of surplus school houses can be found at:
http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/PropertyToolBox/StateSchools/DayToDayManagement/TeacherHousingPolicy/DisposingOfHouses.aspx

Information on the disposal of surplus school property more generally can be found at:
http://www.minedu.govt.nz/NZEducation/EducationPolicies/Schools/PropertyToolBox/StateSchools/Funding/DisposingofSurplusSchoolProperty.aspx

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