Page 4377 - Week 15 - Wednesday, 21 November 1990
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closure of schools and that the social and economic costs of such decisions are not beyond the capacity of governments and communities to bear. In other words, the equation, the balance of social and economic considerations against economic ones, indicates that a decision to close schools is a rational decision.
I want to refer to a couple of points in the report. On page 7 Mr Hudson referred to the costs arguments. Mr Wood referred again to Dr Frances Perkins. It was very brave of him to do that, I think, in the circumstances. Mr Hudson's report is unequivocal about Dr Perkins' costings and her figures. It says at one point that she has overestimated particular costs by a factor of 10, and that is not the only fault that he finds in her costings. I think that the work done on her figures has been comprehensive and very careful. Quite frankly, I think anybody who relies on those earlier figures relies on discredited information. This is a very crucial point. He says:
It is too much to believe that the shifting of some 1400 primary students into alternative schools will have "minimal" effects on non-salary costs in the receiving schools.
He also points out cost differences between small and large schools. This has been the subject of intense debate in this place and in the community in the course of the last few months.
It is worth just looking at the figures that he puts forward for the additional costs of a very small school over larger ones. He says that, as opposed to a school of 400 students, a school of 150 costs per annum $899.5 more per student per year than that school of 400 students. That is a very significant cost, a very large cost. At 250 students, it costs $321.1 more per student per year than does a school of 400 students. The point is, of course, that those additional costs are costs which represent sums of money which could be very usefully used elsewhere in the education budget.
The crux, I think, comes in paragraph 2.7 of his report. He says, after looking at the figures very carefully:
It is not unreasonable to conclude that the closure of smaller primary schools will save an average of $210,000 in 1989-90 values.
I do give Mr Wood credit for the fact that, despite having said that there would be no savings over the last few months, he did acknowledge, publicly on the radio or television, that the Hudson report does indicate that there would be some savings from school closures.
Mr Wood: I told you that - about $200,000 - back in March. I have never moved away from that figure.
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