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Inequity in what Hunter schools stimulus money will buy

23 Mar, 2010 04:00 AM
SERIOUS questions have been raised about the management of school stimulus funding after a principal in a rural Hunter school was able to get better value for taxpayers' money than the NSW Education Department.

Black Hill Public School is the only public school in the region self-managing its construction work and has been able to get almost twice as much for its $850,000 federal money as similar schools.

Black Hill is building a double permanent classroom, a single classroom plus a concrete basketball court with lights, solar cells and rainwater tank.

By comparison, Booral Public School, a similar-sized rural school that received the same amount of money, will get one pre-fabricated double classroom under department management and is $42,000 over budget.

The classroom replaces demountables and won't include replacement air-conditioning.

The project is weeks over schedule and one class is held in a nearby public hall.

The NSW Education Department said it was impossible to compare projects, given the many variables. Booral Public Parents and Citizens Association president Debra Elliott said a builder linked to the school calculated that their building should cost closer to $500,000 not $850,000.

"I believe what we got isn't reflected in what we are spending," she said.

"We're working so hard with raffles and fund-raisers just to throw some bucks together while this kind of thing goes on," she said.

Ms Elliott said they wanted to manage the project but it was difficult with a new principal and said it was "so rife with conditions that it was unworkable".

She said the scheme had not benefited the community because they had a Taree builder who was doing 33 other school jobs.

"We had two area builders register and they did not even get a letter of response," Ms Elliott said.

Black Hill Public School principal Brian Adamthwaite said his school was allowed to suggest one of seven potential tenderers to the department and it was the company selected.

Mr Adamthwaite is project manager in addition to being a teaching principal but said it was necessary to save on project management fees and get the first permanent buildings at the school in its 128-year history.

"I could only go down this track if we had enormous community support," he said.

"There wouldn't be a day I'm not in building meetings."

The money concerned is from the Primary Schools for the 21st Century fund.

Paterson MP Bob Baldwin, a former builder, said the scheme required more accountability.

"I can't believe what we are paying per square metre," Mr Baldwin said. "Either it's contractors making a lot of money, or the Government is ripping money out of management fees."

Mr Baldwin said a lot of teachers and parents would not speak out because they were scared of getting nothing.

A NSW Education Department spokesman said every school had the option of self-managing, and that comparing project prices did not reflect value for money.

"Things like the slope of the site, the presence of latent ground conditions, bushfire or flood zoning and heritage listing can impact the cost," he said.

The spokesman said the department wanted information about the scheme to be as transparent as possible and school communities could report concerns at all levels.

"If there are any concerns we encourage them to be raised," he said.

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Date: Newest first | Oldest first
This Federal Labor mob could'nt build and run a brothel let alone a school building programme. And now they want to run the hospitals which is even more scary.
Posted by thinkitthrough, 23/03/2010 5:38:42 AM, on The Herald
Despite the protestations of the NSW Education Department, the anomoly highlighted in this article is quite common. It's like the cost of a car repair you pay for, compared to what the cost is if the insurance company pays for it.
Posted by Steve, 23/03/2010 6:21:53 AM, on The Herald
What's the point of raising concerns when they won't do anything about them anyway? Anyone can see that things like slope affect the cost of construction, obviously if people are comparing then the situation is similar! this is where the governments stimulus schemes are becomming a massive failure, why bother throwing all this money into the economy if your just going to sit back and let a lot of it be wasted, there is always more things needed at schools. So what if every school has the option of self managment of their projects? They shouldn't have to self manage just to get value for money.
Posted by techy, 23/03/2010 8:54:26 AM, on The Herald
The reason the BER is flawed is that Labor's mates got the jobs. Schools would have received far more if each school managed the project using local consultants and tradesmen. Each school would more than likely have parents that are in these trades.
Posted by Mark, 23/03/2010 9:49:40 AM, on The Herald
Was talking about this at the pub the other week and one of the blokes there works at a local shed/carport place and he said his boss emailed every school about covered learning areas but schools aren't managing it it is bigger companies like Bovis who are doing it and they are just looking after their mates. So much for looking after the community and keeping local suppliers and builders in work.
Posted by Daryl Marshall, 23/03/2010 11:29:40 AM, on The Herald
Nothing new here. I worked for a large Commonwealth dept for 30 years including time in finance. Me and my colleagues were forever shaking our heads at the poor value for money we seemed to get from the old Dept of Admin Services contracts. A quick anonymous ring around would often reveal a private customer could get the same product cheaper, sometimes significantly so! When this was pointed out to DAS they would quibble about minutiae like warranties etc, just like the Dept rep in this article. As for projects blowing way out over budget because "administrative costs" had not been included in the quote why aren't these blokes being hauled up to the Dept of Fair Trading or the courts? Or as Bob Baldwin suggests is it the state govt itself ripping out these fees as the "project manager"? It certainly wouldn't be the first example I am aware of of state govts diverting Commonwealth grant monies to their own totally unrelated purposes (like subsidising the running costs of the Education Dept's bureaucratic arm?).
Posted by ColT, 23/03/2010 1:53:42 PM, on The Herald
I find this whole school BEC thing another rip off of the Australian taxpayers, just like the pink bat farce. M/s Gillard needs to get out and take a look at where she is committing out taxes and stop taking advice from her accountants.
Posted by Gary, 23/03/2010 2:48:13 PM, on The Herald
I think this school has done exceptionly well for themselves. By managing the project they have ensured every dollar of the grant was used in the best interest of the school and not lining the pockets of middle men and would be could be's.
Posted by intouch, 23/03/2010 9:08:44 PM, on The Herald
I personally know a local principal who is, against his wishes, building a hall that the school doesn't even want! If you don't use the money, you lose it. As a way of buffering Australia from the global recession, I understand the necessity for the program. It was always going to be rorted though. Jobs for the boys again and again and again ... I wonder if there was a way to make these financial transactions more transparent? Is there a website I can use to see how and where my tax dollars are being spent? Do I own 0.01% of my next door neighbours brand new boat?
Posted by Wake Up Australia, 23/03/2010 11:09:43 PM, on The Herald
Fair go....it is the States that are running the BER - not the Feds. Feds are providing the funds and the framework for the funding. States do the rest....question should be asked were the States capable of appropriately managing and aollocating those funds with the resources they had in place. $Billions to spend in a short time frame is not an easy task....questions must be asked why KRudd announced the GFC Stimulus packages without 1st consulting the States. The States would have told him it was impossible to spend that amount of money. Guess that's why the BER is so poorly run - all the contractors were already busy with the existing programs....if you wanted them to do the extra - you pay extra. Think of it as Overtime :)
Posted by Roger, 24/03/2010 3:50:44 PM, on The Herald
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