Tracey Martin MP

Spokesperson for Education
20 OCTOBER 2016

Taxpayers Lose $4.9M as Minister Fails to Recover Charter School Assets

Taxpayers appear to have lost $4.9 million after the failure of a Northland charter school, that lasted only two years, says New Zealand First.

“The government has obviously run into difficulty with recovering the assets, including the 81-hectare $1.6m farm at Whangaruru charter school,” says Education Spokesperson Tracey Martin.

“Departing Minister of Education Hekia Parata today told Parliament that negotiations for their return were ‘proceeding’.

“However, given the Minister announced the closing in January and the doors shut in March, why are they still negotiating?

“Had the Minister put the appropriate contract in place for these charter schools, the ‘baby’ of the Act Party, the assets would have been returned to the state immediately upon the school’s failure.

“It appears New Zealand taxpayers have gifted the farm and other assets to a private trust.

“On February 24, 2015 the Minister said: ‘If a partnership school closes before the end of its contract, the ministry would seek to recover any unused funding or available assets through a commercial negotiation process.’

“This has been a botch up by the Minister and the government, and a costly one for the New Zealand taxpayer.

“That money could have been put to much better use in education, instead of supporting the ideology of the Act Party, which few New Zealanders voted for.”

ENDS

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