The federal government has been forced to stall $500 million worth of school building projects slated for the financial year 2010-11.
The funding will be pushed back by one year, affecting projects in the Primary Schools for the 21st Century element of the BER.
The government has blamed labour and material shortages for pushing up costs. However, the change comes amid criticism that the programme’s tight schedules were responsible for both inflating prices and leading state governments to impose unsuitable buildings on schools.
Schools will be able to request a project extension if the extra time allows them to glean better value for money, further consultation, stronger environmental benefits or better programme outcomes. Extensions will be granted on a case-by-case basis.
The changes would ensure “value for money”, federal minister for education, Julia Gillard, said.
The Opposition is claiming that this delay is a sign that the school stimulus package has led to waste and profiteering.
Gillard also announced yesterday that the federal government would be cutting $200 million from the third round pay out from the Education Investment Fund, which has been reduced from $550 million to $350 milllion. The $200 million will be returned to the Education Investment Fund for disbursement in the future.
Universities Australia has decried the funding pull, condemning it as misplaced. The body representing universities said that the funding would have helped ease economic pressure by providing the infrastructure to boost skills and productivity in the future.
While the EIF Round 3 application process has closed, the successful projects are yet to be determined. The final allocation to each round depends on the quality of proposals received and on the advice of the independent advisory board. Successful projects will be announced in 2010.
