Report of the Portfolio Committee on Basic Education concerning the Petition on the Withdrawal of Subsidies to Six Eastern Cape Independent Schools, submitted in terms of Rule 312, dated 8 March 2011

The Portfolio Committee on Basic Education, having considered the Petition on the Withdrawal of Subsidies to Six Eastern Cape Independent Schools, submitted in terms of Rule 312, reports as follows:

On Tuesday, 22 February 2011, the Portfolio Committee on Basic Education convened a meeting to consider the Petition on the Withdrawal of Subsidies to Six Eastern Cape Independent Schools brought by Hon Z Luyenge. The Portfolio Committee also called the Department of Basic Education to form part of the meeting to give the perspective from the Department.

Input by Hon Luyenge:

Hon Luyenge briefed the Portfolio Committee on the aspects of the petition relating to the six affected independent schools i.e.

· Kings Commercial College

· Science College International

· Christ the King International School

· St. Martins Private School

· St. Jude Private School

· Umtata College of Maths & Science

He explained that there was an agreement to fund all private schools in the province. Unfortunately only a select few had received the necessary funding based on their performance and was of the view that the six independent schools referred to had been treated unfairly. According to Hon Luyenge these schools met all necessary conditions and criteria for operating. It seemed the main issue was the disbursement of funds based on performance. The performances of the six schools in the grade 12 examinations were as follows:

· Kings Commercial College - 43.6 percent in 2008

- 26.7 percent in 2009

- 50.5 percent in 2010

· Science College International - 26 percent in 2006

- 43 percent in 2007

- 16 percent in 2008

- 22 percent in 2009

- 31 percent in 2010

· Christ the King International - 23.3 percent in 2005

- 25.1 percent in 2006

- 33.3 percent in 2007

- 10.7 percent in 2008

- 15.6 percent in 2009

- 19.3 percent in 2010

· St. Martins Private School - 26 percent in 2009

- 30.9 percent in 2010

· St. Jude Private School - received funding for 2010/11

· Umtata College of Maths & Science - 43.7 percent in 2008

- 44.4 percent in 2009

- 59.4 percent in 2010

Umtata was in the process of completing the necessary applications for subsidy. Hon Luyenge presented the view that there should be no reason why they would not receive their subsidy if all other criteria were met. It should be considered that the Head of Department had the power to deviate from the criteria.

Hon Luyenge mapped out the sequence of events that had led to the petition to Parliament. He made mention of all the different offices he had communicated with in the province including the Chairperson of the Portfolio Committee on Education in the Eastern Cape Provincial Legislature as well as the offices of the former and current MEC in the Eastern Cape Province. After receiving no satisfactory explanations to the problem, Hon Luyenge was advised to petition Parliament on the matter.

Input by the Department of Basic Education:

The Department of Basic Education (DBE) referred to the investigation into and evaluation of an appeal lodged by the Mthatha Independent Schools Association (MINSA) regarding the withdrawal of the subsidy for the 2010 academic year of the following independent schools:

· Kings Commercial College

· Science College International

· Christ the King International School

· St Martins Private School

· St Jude Private School (Note that this school reportedly did receive a subsidy for 2010/11)

· Umtata College of Maths & Science

The establishment, registration and subsidisation of independent schools were regulated through the prescripts of the South African Schools Act (SASA) as well as the National Norms and Standards for School Funding (NNSSF). Some of the more pertinent and, regarding this matter, more relevant clauses from these legislative and regulatory documents were:

· A Head of Department must register an independent school if he or she is satisfied that the standards to be maintained by such a school will not be inferior to the standards in comparable public schools (SASA, Sect. 46(3)(a)).

· The Member of the Executive Council may, out of funds appropriated by the provincial legislature for that purpose, grant a subsidy to an independent school (SASA, Sect. 48(2)).

· If a condition subject to which a subsidy was granted has not been complied with, the Head of Department may terminate or reduce the subsidy from a date determined by him or her (SASA, Sect. 48(3)).

· The owner of an independent school may appeal to the Member of the Executive Council against the termination or reduction of a subsidy to such an independent school (SASA, Sect. 48(5)).

· A secondary school phase may be considered for subsidy if its final grade 12 pass rate is equal to or higher than the provincial average grade 12 pass rate for public schools in the prior year (NNSSF, Par 177(4)(a) as amended).

The following actions regarding this matter have been initiated by the different affected parties within the Eastern Cape:

· The Eastern Cape Department of Education (ECDE) forwarded a circular dated 14 January 2010 to, inter alia, all independents schools notifying them of their intention to withdraw the subsidies of underperforming independent schools.

· The ECDE notified the affected schools in writing of the withdrawal of their 2010/11 subsidy through individual letters dated 14 January 2010. These letters refer to the performance of the school in prior years up to 2009. It consequently expresses the view in each case that the withdrawal of the subsidy is based on the school not performing in line with the requirements of paragraph 177 (4) of the NNSSF.

· On 2 March 2010 a petition was submitted to the Speaker of the National Assembly containing the letter of appeal from the independent schools association against the withdrawal of subsidies from selected Eastern Cape independent schools.

· A petition appealing against the withdrawal of the subsidies dated 13 July 2010 was communicated to the provincial MEC for Education.

· In a letter dated 10 October 2010, the MEC for Education in the Eastern Cape responded to the petition and appeal by the Mthatha Independent Schools Association. In his response the MEC upheld the decision of the withdrawal of the subsidies to the affected independent schools.

The six schools involved in the petition were part of a total of 16 schools whose subsidies for 2010/11 were withdrawn. Taking into account the legislative and regulatory provisions that guide the subsidisation of independent schools, the consistent inadequate performance levels of the schools concerned as well as the procedures followed by the ECDE, it was the opinion of the DBE that the action taken by the ECDE was in line with departmental policy as well as supportive of the continuing quest to ensure improvement in the quality of the output delivered by the education sector as a whole. Furthermore, within this period where provincial education budgets were extremely constrained, it was essential that expenditure was effective and efficient and provided maximum value for money.

Conclusion and Recommendation

The information and documentation received by the Committee, specifically the performance requirement in the legislative and regulatory provisions that guide the subsidisation of independent schools, confirms that the action of the ECDE was in line with departmental policy. All the six schools performed below the average grade 12 provincial pass rate in 2009 required for independent schools. Umtata College of Maths & Science should be eligible for subsidy in 2011 based on its improved performance in the 2010 matriculation results, provided it meets all the other criteria.

Report to be considered.