Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


PPPs being considered for new school property

Hon Anne Tolley

Minister of Education

4 December 2009
Media Statement

PPPs being considered for new school property

The Ministry of Education and Treasury are assessing the suitability of public private partnerships (PPPs) for building and maintaining some new school property, the Minister of Education Anne Tolley has announced.

“We would only accept PPPs for school property if they free up schools to focus more on teaching and learning, and deliver better value for taxpayers,”said Mrs Tolley.

Under a PPP the private sector partner would be responsible only for the school property for the term of their contract. The operation of the school would remain the responsibility of its board of trustees, and the land would still be owned by the government.

“PPPs for new school property would use the skills and abilities of the private sector to finance, build and maintain a new school.

“These partnerships have been successful overseas and the Ministry of Education and Treasury are assessing whether they would work in New Zealand.

“However, if the project is not feasible, it will not go ahead.”

The Ministry of Education will bring in external expertise to assist with the preparation of a stage one business case. If a project goes ahead, teachers, communities and boards of trustees will be involved.

“At all times, but particularly when government spending is under constraint, we need to make the best use of our resources. We need to look at the range of options available to deliver school property.”

Frequently asked Questions:

What is a public private partnership?

For a schooling PPP, the private sector would have responsibilities in relation to school property for the life of the contract but the operation of the school would remain the responsibility of the board of trustees. Benefits of PPP may include:

o whole-of-life cost minimisation (as ongoing maintenance is linked to design and construction)

o Greater cost certainty (due to fixed price nature)

o Financing cost optimisation (private sector bears the financing cost during the construction period)

o Improved maintenance of school facilities and grounds

o Greater community use of facilities

o More time for boards of trustees to focus on students and learning (as private sector is responsible for property)

Is public private partnership now government policy?

No. The Government is considering alternative forms of procurement to ensure value for money when procuring new schools. Private sector involvement will only happen where it makes sense and delivers value for taxpayers.

The Ministry of Education spends approximately $500 million per annum on school property. Should the project proceed to a pilot school or schools being procured under a PPP, this would only represent a portion of the Ministry’s new school programme and an even smaller portion of the Government’s overall spend on school property. Subject to a successful pilot project, the Ministry of Education will review the applicability of PPPs for other new school property projects.

How does the Ministry of Education currently procure school property?

Since 2007, the Ministry of Education has procured new school property through a single-line accountability, guaranteed maximum price model. The Ministry’s approach is to tender for a consortium to undertake the design and construction of new schools under a two-stage contract to design, then build. The consortium is responsible for developing a design able to be built within the maximum price. At the completion of construction, the Government owns the asset and is responsible for its maintenance.

Could a PPP include teaching roles?

No. The Ministry of Education is only considering asset related services (such as design, construction and maintenance).

What does this mean for students and teachers?

The proposed project will have no impact on students and teachers. Should the stage one and two business cases confirm a PPP makes sense and delivers value for taxpayers, further engagement will be undertaken with teachers, the community and board of trustees during the planning, design, procurement and tendering process.

When will construction tenders be let and contracts awarded?

At this point the Ministry of Education is only looking to assess the suitability of a PPP to new school property. Construction contracts are not being procured at this point. Formal expressions of interests or requests for proposals are not expected to be issued until later next year and only subject to Government’s decision to proceed beyond the stage one and two business case.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On That $4 Billion Hit To National’s Economic Cred

National released its economic and tax policy last Friday. Weirdly, the plan was announced right at the end of the news week, when whatever impact it managed to generate would be likely to dissipate over the weekend. Well…. that now seems all for the best. The plan is now known to have a $4 billion hole in it. Apparently, National used outdated figures for the amount it stood to save from NOT paying into the Super Fund. Amusingly, the $4 billion mistake was almost exactly the same size as the $4.7 billion that National still promises to give away in tax cuts... More>>


PM: Auckland At Bolstered Level 2, Rest Of Country Provisionally At Level 1

Pandemic alert levels for the whole country have been reviewed by Cabinet and Prime Minister Jacinda Ardern is announcing whether restrictions will be eased. More>>


Labour: Supporting Workers And Valuing Their Contribution

Making sure working New Zealanders are safe, healthy and that their contribution to the economy is valued is at the heart of Labour’s Workplace Relations Policy.
“This is Labour demonstrating its commitment to helping working New Zealanders by increasing sick leave, raising wages, protecting them while they are at work, growing jobs and investing in the economy,”... More>>


PREFU: Economy Doing Better Than Forecast

The Pre-election Economic and Fiscal Update released today shows that the near-term economic recovery has been stronger than the Treasury and many economists predicted at the May Budget, as the economy bounced back strongly out of lockdown... More>>


PM Statement: Cabinet COVID-19 Alert Level Review

Takiri mai te ata, ka ao, ka ao, ka awatea, tihei mauriora! Tātou katoa ngā iwi o Aotearoa, tēnā koutou! Tēnā tātou e whakanuia ana i te wiki nei, te wiki o te reo Māori Greeting to you all from Otepoti, Dunedin. This week is the Māori ... More>>


Electoral Commission: Candidate And Party Lists Released

17 registered political parties and 677 candidates will be contesting the 2020 General Election Nominations have now closed and the Electoral Commission has released the electorate and party list candidates for 2020 online at . Advance voting ... More>>

National: Plan To Restore NZ’s Prosperity

National’s Economic and Fiscal Plan carefully balances the need to invest in infrastructure and core public services while also reducing tax pressure on Kiwi families and businesses. National Leader Judith Collins and Finance spokesperson Paul Goldsmith unveiled National’s ... More>>


NZ First: Party List

New Zealand First has a proven twenty-seven-year history of bringing balance and common sense to our government. Amid the continued setbacks of COVID-19 restrictions, New Zealand First has once again sustained its profile by selecting a strong team ... More>>

Election: Arriving Travellers In Isolation To Be Able To Vote By Telephone

Up to 5,000 people in managed isolation or quarantine will be able to vote by telephone in the general election and referendums after an amendment to electoral regulations last week. Chief Electoral Officer Alicia Wright says the Electoral Commission sought ... More>>

National: Investing In Our Children’s Future

A National Government will prioritise lifting achievement for all New Zealand children, no matter their background or ability, National Party Leader Judith Collins and National’s Education spokesperson Nicola Willis say. “Parents just want what’s best for ... More>>





InfoPages News Channels