Govt spending cap and charter schools mark ACT coalition deal
Dec. 5 (BusinessDesk) – The National-led government will legislate within the current parliamentary term to cap core
government spending as part of the coalition agreement signed today with the one Member of Parliament for the Act Party,
John Banks.
The agreement will also see the establishment of a radical new “charter schools” programme, which will allow alternative
education providers to compete with existing schools for pupils and funding “where educational underachievement is most
entrenched.”
The agreement was announced shortly after a confidence and supply agreement was also unveiled with Peter Dunne, the only
MP for the United Future party. Dunne sought various commitments, including continued pursuit of his Income Sharing
Bill, and no sale of Kiwibank.
Dunne and Banks represent the government’s majority in Parliament and are essential to Prime Minister John Key’s efforts
to form a government after the Nov. 26 election, which the National Party won less convincingly than it had hoped after
the New Zealand First party gained eight seats.
Key said an agreement was likely with the Maori Party by the weekend, and would not bind the party as strongly to
support the government as the Act and United Future arrangements.
The spending cap legislation will “within the next two years provide that core Crown operating spending … will be
subject to a spending limit”, which will allow spending growth “no faster than the annual increase in the rate of
population growth multiplied by the rate of inflation.”
The new regime will exclude spending on unemployment benefits, asset impairments and natural disasters.
“We’re confident we can meet that rule,” said Key, who negotiated mostly with outgoing Act MP John Boscawen and the
party’s president, Catherine Isaac, rather than Banks.
The charter school proposal will enable parties, under existing clauses of the Education Act, to establish schools that
“would compete to operate a local school or start up a new one.”
South Auckland and central/eastern Christchurch would be targeted first for the policy, which could see iwi, private and
community organisations seek funding.
“It is designed to provide greater flexibility in governance and management, including the ability to attract top
quality teachers, prepare and inspire children to achieve their potential and be accountable for doing so.”
An implementation group will be established, along with a task force to report on governance in state, integrated, and
independent schools.
Key confirmed this meant performance-based pay for teachers could be on the table.
(BusinessDesk)