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Govt wants answers over ‘unrealistic and unaffordable’ classrooms

Monday, 26 February 2024

Erica Stanford says the inquiry will address problems with the school property system.
Erica Stanford says the inquiry will address problems with the school property system.

School classrooms are in the middle of a political stoush, with the Government asking for answers over billions of dollars for “bespoke” buildings that were unable to be delivered, while Labour is calling it a “desperate attempt” by National to pay for tax cuts.

The Government on Monday launched a Ministerial Inquiry into what it called 'unrealistic and unaffordable' plans for new school buildings, following a halt on more than 100 new classrooms and two teaching blocks earlier this month, due to cost, change of priority or change to roll growth.

Prime Minister Christopher Luxon accused the previous Government of creating a situation 'bordering on a crisis'.

“When you're talking about several billion dollars and you're talking about 350 schools, we've got to find out what's happening.

“This review will address the previous government's failure to sufficiently implement the value for money approach to school property, schools having expectations or building projects that are not able to be delivered on and significant cost blowouts.”

Education Minister Erica Stanford said there had been 'a number of cost escalations and some schools expecting exciting, bespoke building projects that are not able to be delivered on'.

She said the Ministry of Education had paused 20 building projects and told her there could be 'up to 350 projects in various stages, from design through to pre-construction, where expectations far exceeded what could be delivered'.

He said the Ministry of Education had been looking at cost effectiveness since September and it was not related to the expected cost cuts to the public service.

Labour leader Chris Hipkins called it a “desperate attempt to create an excuse to cut much-needed school building projects”.

“National are choosing to prioritise tax cuts over classrooms for children.”

He said Labour upgraded every school in the country, built thousands of classrooms and added urgent temporary teaching spaces to accommodate more students.

“Cost escalations in the building sector have been a fact of life. National were told before the election they hadn’t allowed enough for cost escalations in their fiscal plan and chose to ignore that and claim tax cuts were affordable.

“They aren’t and now it looks like kids will be the latest to pay the price.”

Stanford said the inquiry, which would aim to report back in three months, would 'address problems with the school property system where the scope of property works planned was unrealistic and unaffordable.'

Asked how much the redesign would cost, Stanford said the “pipeline of projects the previous government were unable to deliver on runs into the billions”.

“The cost of redesigning and re-scoping is a lot less than delivering bespoke classrooms that are architecturally designed with fancy entrance ways.

“That is what's causing all of the bloat.“

Senior MOE staff were asked respond to news of the inquiry on Monday as they appeared before the Education and Workforce Select Committee.

Secretary for Education Iona Holsted said while she had not heard comments made by the prime minister this afternoon, she was aware of the review.

She understood at a broad level it would examine how the Ministry came to be where it was and what it should do going forward which was 'not a bad thing to do'. Nor was it 'unusual' for a new Government to look at a piece of work like that.

She said staff would welcome opportunities for improvement.

Earlier this month, Labour education spokesperson and former Education Minister Jan Tinetti said the holds on buildings would have a huge impact on schools and on teaching and learning.

“You've got schools that have been really suffering, and suffering for quite some time,” she said.

High roll growth meant classes were being held in school halls, libraries and administration areas.

“I’ve seen shipping containers that have been used as classrooms,” she said.

Tinetti said when she was the minister she had sat down with officials and told them to go back and have conversations with principals about what were the next steps, “which they did”.

Prime Minister Chris Luxon at a Post Cabinet press conference.
Prime Minister Chris Luxon at a Post Cabinet press conference.

“I had a list of schools where things were being restructured, or timelines might have been restructured at that point. But nowhere was it ever put on hold that schools were not going to get their builds. And that really concerns me.”