School interest grab may plunder funds

Australian Education Union state president Leanne Wright said yesterday that each school operated differently but in some cases money raised through the parents and friends groups would be kept in the one school bank account.

It was revealed yesterday that the Education Department would be taking all interest accrued in school accounts.

The total of all school bank accounts is about $40 million and the government is expected to collect about $2 million in interest.

Queenstown's Mountain Heights School has said it expects to lose about $10,000 and Hagley Farm Primary School about $7000 - money they say could help pay for incidentals.

Ms Wright said the amount held in accounts varied across schools.

"In some cases they've been saving up for a special project, maybe through their parents and friends, so they kept saving money up over time and hoped that interest would contribute to it."

Tasmanian Principals Association president Robert Banfield said in the scheme of things, the loss of interest to accounts was not a major concern.

He said as schools managed their own accounts as essentially a separate enterprise from the government, each would accrue savings for big ticket items such as for new furniture but this was usually spent pretty quickly.

Opposition education spokesman Michael Ferguson said taking the interest off schools was just one of a number of measures it was doing to undermine education in Tasmania.

"A cash grab of around $2 million in interest is expected to be ruthlessly raided from school piggy banks to help plug the government's black hole," Mr Ferguson said.

Education Minister Nick McKim said it was a difficult budget decision that had to be made and it was not touching the school's bank balance, only the interest.

"School bank balances are there for schools to spend on current students," Mr McKim said.

[LOGO a467] HAVE YOUR SAY: Should the Education Department take the interest from school bank accounts?

examiner.com.au