The Alliance has announced an increase to operational grants for schools of $50 million per year, designed to start phasing out school fees.

'Our education system used to be free for primary and secondary students. Now students have to increasingly pay voluntary school fees. The Alliance wants to phase that practice out,' Alliance leader Jim Anderton said.

Jim Anderton made the announcement today while visiting Rutherford primary school in Auckland.

'Over the next three years we want to gradually increase the operational grants over and above the increase in grants already budgeted so that in the third year an extra $50 million will be going to schools.

'At that stage we will look at what needs to be done further to reduce school fees.

'In effect National has been keeping millions of dollars from schools who refuse bulkfunding.

'We want to fund all schools, not just on the basis of the system of paying teachers they have,' Jim Anderton said.

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