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In any case where large sums of public money are concerned the Government has a duty to the public to see that adequate control exists to ensure the best and most economic spending of that money. Government has professional educational and financial officers who can surely satisfy the public that its money is being well used better than any voluntary Board of Managers, who, though having the best intentions, are handicapped through lack of knowledge which the professional is constantly accumulating through daily contact with problems. This does not mean that members of School Councils are deprived of the opportunity of being of service and reduced to figureheads. services still remain manifold and of great value as the attached list (7) shows.

The ir

If Government grant is to be reduced in any Block Grant scheme the same teachers salaries and educational standards can only be maintained by proportionate increase in school fees. It is not considered desirable that large Government grants should be given to schools charging high fees and thus only catering for the wealthy section of the community.

If a saving to Government by reduction of grant was essential it could be achieved by raising the school fees under the present Code. This is not, however, considered desirable at the present time when legislation has just been introduced prohibiting private schools from raising fees without Government permission, and when such permission is given only when school accounts prove a real need.

The present Code gives financial security to the Grant Schools and guarantees the teachers salaries at their present levels. Any removal of this security by a Block Grant which made salaries partly dependent on fee receipts might cause serious repercussions among the teaching staff.

Indications are

Experience has shown that the financial control exercised by Government is necessary. that were it removed, salaries, leave passages, and general expenditure would be on a more liberal scale than allowed for Goverment teachers and Government Schools. Particularly are these indications true of the 5 Anglican Schools asking for freedom from financial control. These schools also are the only ones collecting 'subscriptions' retained by the school in excess of 50% of tuition fees. During last year these 5 Anglican Schools collected a total of approximately $250,000 in compulsory pupils' subscrip- tions beyond what is considered adequate to meet legitimate school needs, and much of this money the schools still retain unspent. The levying and retention of such large sums which in fact seems contrary to the provisions of the present Code, hardly seems to argue in favour of these Schools being absolved from financial control, and if the true desire was to save Government expenditure on grant it could be done by crediting these receipts against expenditure as is done with the ordinary tuition fees collected.

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There seems to be no other satisfactory principle on which the amount of grant needed can be calculated other than the difference between approved expenditure and income from fees. As the main expenditure, that for teachers' salaries, may vary quite considerably

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