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The deserving rich

By Jane Caro - posted Tuesday, 22 March 2005

Mutual obligation is the latest buzzword in Federal Government circles. If, as I understand it, mutual obligation means that if we give something to you, you must give something back to us, then it is hard to argue with the concept.

But if mutual obligation is such a good idea, why isn't it being applied to the public money being handed out to all sections of the Australian community?

We have become obsessed with making sure those with the least resources cannot rort the system. The latest moves in this direction include compelling a single parent to return to work when a child reaches school age, ever more rigid parameters for those who get a disability allowance, and the insistence that Indigenous communities keep their kids nice in return for a petrol bowser.


Fair enough, perhaps, no one likes people who cheat, or who get something for nothing. But what about the often unacknowledged cheating that goes on at the other end of society?

Some people may remember the howls of outrage that greeted Mark Latham's rather mild attempt to reform the current Federal Government's school funding system. Contrary to some recent re-writing of history, the ALP's policy did not recommend cutting funding to private schools. Total Federal funding to non-government schools would have remained the same if Labor had won the last election. All that would have changed is that some of the money would have been redistributed away from demonstrably highly resourced, high-fee private schools, to less well-resourced, low fee schools.

The buzzwords used to knock this eminently reasonable idea on the head were that it was a symptom of “the politics of envy”. A few defenders of élite private schools (spokespeople for lower fee private schools were strangely silent) claimed that, far from educating only the well off, some of the parents at their schools earned as little as $30,000 a year. With such schools charging a minimum of $10,000 per year - and in many cases twice that much - pardon my scepticism, but how can that possibly be? Unless, of course, some of these struggling parents were seriously understating their incomes.

Worse, the public money handed out to these schools is not controlled anything like as vigorously as the money we hand out to the medical or welfare system. Unlike the de-regulated arena of schools, we sensibly only subsidise private hospital beds when we need them. We don't pit subsidised private hospital beds against subsidised public hospital beds in a wasteful head to head competition.

The way the Federal Government subsidy to a private school is currently assessed is via census codes. If a private school draws students from a low socio economic census area, often rural, they receive a higher rating, and more money. This may seem fair at first glance, but, as any public school teacher or principal could tell you (if they were allowed) the really disadvantaged kids in a disadvantaged area go to the local state school. How could it be otherwise, when private schools charge up front fees and public schools don't? The Federal Government money attracted to private schools with students who merely live in low socio economic areas can be as much as a couple of million dollars per annum, whereas the most a disadvantaged state school in the same area can get is State Government PSFP funding (something like $100,000 over four years for a school with 600 students, plus extra staff). In essence, our current education funding system actually operates like Robin Hood in reverse.

Worse, if the state school does not spend all the money, it must repay it, whereas there is no obligation on the private school to do the same.


Where is the mutual obligation here?

Indeed, we place virtually no obligations on private schools in return for their generous public subsidies (perhaps we should call them gifts). As we saw in the recent case of Tara Anglican Girls School, we do not require they have publicly accessible procedures for ensuring their students safety. The ructions between the parents and school board at Ascham reveal we require no particular constitution or corporate governance procedures in return for our money. SCEGGS Redlands and Trinity Grammar have demonstrated that we politely make no enquiries into anti-bullying programs at such schools. Publicly subsidised private schools may teach creationism as science, and propagandise for their beliefs and biases in ways that we may or may not, as a community, approve. For public school supporters, it is deeply ironic that Foreign Minister Downer wants to give more money to Indonesian public schools to counteract the impact of the madrassahs.

Some private schools are currently receiving as much as 80 per cent of their funding from the public purse, yet we do not oblige them to accept any student they do not want.

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First published in New Matilda on March 16, 2005.

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About the Author

Jane Caro is a Sydney writer with particular interests in women, families and education. She is the convenor of Priority Public. Jane Caro is the co author with Chris Bonnor of The Stupid Country: How Australia is Dismantling Public Education, published in August 2007 by UNSW Press.

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Australian Education Union
NSW Teachers Federation

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