Secondary education results improve using private funding partnership

A report recently released by KPMG shows that schools using private funding partnerships have a 44 per cent faster improvement in educational attainment and show less absenteeism than their conventionally funded counterparts, from research conducted in the UK.

There are strong possible implications for NZ’s education system from the UK Private Finance initiative (PFI) and the research conducted by KPMG.

Troy Newton, advisory partner at KPMG says: “For NZ, this research suggests that leveraging private sector investment and skills should be one funding option given greater consideration when we are contemplating replacing ageing schools infrastructure. We are keen that this subject should be debated further in the public and private sectors.

“With one of the toughest budgets in decades and increasing pressure on government revenue, we believe this type of partnership model should be actively considered by the NZ government when considering funding sources for education infrastructure.

“The main findings are that in English schools rebuilt using PFI educational attainment improves 44 per cent faster when measured against schools rebuilt conventionally. In English schools rebuilt using PFI, unauthorised absence is reducing, whilst unauthorised absence is increasing in conventionally rebuilt schools.

 “PFI is a form of Public Private Partnership (PPP) used in the UK. Under the model, the private sector finances, constructs and maintains serviced education accommodation for a finite period (typically 25-30 years). Teaching services, curriculum and staff remain the preserve of the government.

“This report is the second edition of an annual report that aims to provide robust empirical data with which to compare the performance of schools rebuilt using private finance against the performance of schools rebuilt conventionally.”