Canberra plan 'will block' new private schools

THE government is using new financial regulations to block the growth of independent schools, senior figures in the sector have charged.

THE government is using new financial regulations to block the growth of independent schools, senior figures in the sector have charged.

The proposed Harmonisation of Funding Regulatory Frameworks for Non-Government Schools has been designed in part as a response to revelations in The Australian of financial irregularities in three Sydney Islamic schools.

The independent schools sector and the opposition warn that the main issues under discussion -- not-for-profit requirements, minimum viability standards and new funding and regulatory guidelines -- represent a back-door attempt to reintroduce Keating-era policies that slowed the expansion of independent schools to appease public sector education unions.

Under the New Schools Policy that existed before the change of government in 1996, plans for proposed independent schools had to be submitted to state and federal joint planning committees to ensure they would be economically viable.

This significantly slowed the growth of non-government institutions, the independent schools sector says. It fears the new conditions surrounding the use and carry-over of federal funding would, if enacted, have a similar impact on the development of non-government schools.

The independent schools sector warns that the proposals fail to recognise that many non-government schools have small enrolment numbers in their early years before they become fully established. The proposals also failed to appreciate that non-government schools worked hard to build up savings over the first few years of operation that were not regarded as profits but used to fund future operating expenses.

They caution that setting minimum enrolment and strict financial viability tests could block non-government schools from opening; the impact could be particularly profound in areas with high population growth if only government schools were allowed to open.

The independent education sector says the paper also ignores the role of the forthcoming Australian Charities and Not-for-Profit Commission in regulating their schools.

Opposition schools spokesman Christopher Pyne said the government wanted to stymie the growth of independent schools.

He said the guidelines were a disproportionate response to The Australian's reports.

"It's quite possible to ensure against fraud and misappropriation of funds without limiting the growth of non-government schools as a policy," he said.

Comment was being sought from Schools Minister Peter Garrett.