Chapter 1
Introduction
Terms of reference
1.1
The Senate referred the following matters to the Senate Education,
Employment and Workplace Relations References Committee on 9 September 2009 for
inquiry and report:
(a) consideration of the Federal Government's Primary Schools for the 21st Century program, with particular
reference to:
(i) the
conditions and criteria for project funding,
(ii) the use of
local and non-local contractors,
(iii) the role of
state governments,
(iv) timing and
budget issues, including duplication,
(v) requirements
for school signs and plaques,
(vi) the
management of the program; and
(b) other related matters.[1]
1.2
The Senate did not set a final reporting date for this inquiry.
Conduct of the inquiry to date
1.3
The inquiry was advertised on the committee's website and in The
Australian. The committee also contacted a number of relevant
organisations, notifying them of the inquiry and inviting them to lodge
submissions.
1.4
The committee initially called for submissions by 30 October 2009. This
timeline was subsequently extended to 23 April 2010. A total of 73 submissions
were received, from individual schools (both government and non-government),
unions, professional organisations, peak organisations and concerned members of
the public. Submissions are listed at Appendix 1 and also appear on the
committee's website, which can be accessed at:
https://www.aph.gov.au/Senate/committee/eet_ctte/primary_schools/submissions.htm
1.5
Public hearings to date have been held in Canberra on 30 November 2009,
Melbourne on 17 May 2010, Sydney on 18 May 2010 and Canberra
on 19 May 2010.
1.6
Witnesses who appeared before the committee are listed at Appendix 2.
Transcripts of the public hearings can be viewed at: https://www.aph.gov.au/Senate/committee/eet_ctte/primary_schools/hearings/index.htm
1.7
In addition to conducting public hearings, the committee undertook a
site visit to Sutton Public School, Sutton, NSW on 20 May 2010.
1.8
The committee is grateful to those who lodged submissions and appeared
before the committee at the public hearings. The committee also appreciates the
assistance it was given during the site visit.
1.9
The committee intends to hold additional public hearings to pursue in
further detail a number of the issues and concerns raised in this interim
report. Future hearings will be reported on to the Senate at a later date.
Note on references
1.10
References in this report to the Hansard for the public hearings held on
17, 18 and 19 May 2010 and to budget estimates hearings are to the
proof Hansard. Please note that page numbers may vary between the proof and the
official transcripts.
Background: the Primary Schools for the 21st Century program
1.11
The Building the Eduction Revolution (BER) program is the largest
component of the Council of Australian Government's (COAG) $42 billion Nation
Building and Jobs Plan announced by the government in February 2009.[2]
1.12
The Primary
Schools for the 21st Century (P21 program) is one of three elements
of the BER, providing $14.1 billion for Australian primary schools, special
schools and primary components of K‐12 schools to build new
facilities such as libraries, multipurpose halls or classrooms or to upgrade
existing facilities.[3]
1.13
Detailed information about the policy objectives and the
administration of P21 and the BER can be found on the following web page: http://www.deewr.gov.au/schooling/buildingtheeducationrevolution/Pages/default.aspx
The need for an interim report
1.14
Since the Senate referred this inquiry to the committee, it has received
considerable evidence from a range of interested parties. Some of the evidence
received raises serious concerns regarding the discrepancy between the largely
positive outcomes achieved under the P21 program in the independent and
Catholic sector and the poor value for money obtained in the government school
sector.
1.15
In November 2009, whilst undertaking the inquiry, the committee received
evidence that maintenance of the states’ spending efforts under the P21 program
is being monitored through quarterly reports by the states and territories to
Heads of Treasury.
1.16
The committee sought access to these quarterly spending reports.[4]
These quarterly reports would assist the committee in determining whether the
states and territories are meeting their obligations to maintain planned
spending efforts in addition to the funds they have received under the P21
program. The committee has been refused access to these documents. [5]
This is discussed further in chapter 2.
1.17
Since the inception of the P21 program, there have been complaints from
some government schools about overcharging, waste and mismanagement. The
committee majority is not satisfied with the information available to it
regarding the true costs of buildings and works carried out under P21 program.
This has raised concerns as to whether value for money is being achieved by the
P21 program, particularly in government schools.
1.18
The committee majority believes that the evidence provided to it
demonstrates that the rapid roll-out of the P21 program, combined with
construction delays, inflexible bureaucracy and inadequate monitoring
arrangements, and failure to properly identify the needs of individual schools
and ensure that the buildings constructed are fit for purpose, has resulted in
significant waste and mismanagement of taxpayers’ money.
1.19
The committee majority has therefore provided this interim report to the
Senate to highlight the serious concerns it has about the P21 program.
1.20
The report contains a number of recommendations that the committee
majority believes require urgent consideration and action by government before
the final tranche of funding is committed under the P21 program.
1.21
The committee will continue its inquiry into the P21 program. It has
important work ahead in determining the actual costs of P21 program works, in
particular in government schools, and in further scrutinising the P21 program
review mechanisms, particularly the reports of the BER Implementation
Taskforce.[6]
1.22
The committee will provide a further report to the Senate in due course.
Outline of report structure
1.23
The committee majority's interim report covers the following matters:
- Chapter 1 (this chapter) provides an overview of the inquiry
process to date.
- Chapter 2 sets out the aims of the BER and then considers a range
of issues that were highlighted during the inquiry including:
- how the P21 program was costed;
- how the funding was delivered through the federal financial
relations framework; and
- how the implementation guidelines for the program were designed.
- Chapter 3 sets out a number of case studies to illustrate
problems in the P21 program implementation, including differential outcomes
between government and non-government schools; inadequate consultation and
communication with school communities; and lack of evidence that value for
money has been achieved under the program.
- Chapter 4 considers the limitations of the P21 program review
mechanisms that have been put in place to date. In particular, it questions the
effectiveness of the BER Implementation Taskforce and suggests an alternative
mechanism for scrutiny of the P21 program. It concludes by summarising future
directions for the committee's inquiry.
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