6. KATHERINE RICH (National) Link to this
to the Minister of Education
Have any Promoting Early Childhood Education Participation Project providers been investigated by the Serious Fraud Office; if so, how many?
Hon STEVE MAHAREY (Minister of Education) Link to this
I am advised that one provider has been investigated, or is currently being investigated, in fact, by the Serious Fraud Office, although because the member draws attention to Promoting Early Childhood Education Participation Project, I point out that it is not clear whether this investigation has anything to do with that particular project.
Can he confirm that a Promoting Early Childhood Education Participation Project contractor, the Pan-Chinese Association, which had a contract with the ministry of $75,000 to increase early childhood education participation rates for Waikato’s poorest and most vulnerable preschoolers—as confirmed by documents from his ministry—is now being investigated by the Serious Fraud Office; and can he tell the House why that is the case when the Serious Fraud Office tends to look at projects valued at $500,000 or more?
Hon STEVE MAHAREY Link to this
The last point of the member’s question I think is absolutely right, and it was one of the reasons why I mentioned before that we are not sure whether the organisation is being investigated for this particular contract, because normally the Serious Fraud Office goes out for over $500,000. But I can confirm that the Waikato Pan-Chinese Association is the subject of an investigation by the Serious Fraud Office, which does not disclose why it is investigating, which is why we do not know. But I will give the House a quick history, if I may. The original contract period was from 1 January 2006 to 30 January 2007. The contract was $75,000 for 50 children. The contract was ceased by a letter on 8 December 2006 because of a variety of poor performance in the contract. Of the $75,000 of the contract, $25,000 was paid to the contractor. The last payment was made on 14 July 2006. I am advised that the Serious Fraud Office became involved on 5 December 2006 after a complaint was received from the public. I am advised by the Ministry of Education that the ministry was informed by the Serious Fraud Office on 30 January 2007 that the office was investigating.
Dr Ashraf Choudhary Link to this
What programmes does the Government have in place to increase participation in early childhood education?
Hon Maurice WilliamsonHon STEVE MAHAREY Link to this
A large number, and I am sure the member is asking the question so that Mr Williamson can share in the good news, because there is a great deal of good news. There is a wide range of initiatives to boost participation in the rapidly expanding early childhood area, such as the Promoting Early Childhood Education Participation Project to boost participation in areas of low take-up, discretionary grants schemes, establishment grants, and 20 hours’ free early childhood education to lower costs and boost access for parents and their 3 to 4-year-olds. All of this exciting material is part of a 10-year strategic programme to boost participation and deliver high-quality early childhood education to children throughout the nation.
Is it correct that Te Roopu Awhina Ki Porirua, which received over half a million dollars from the ministry to increase the participation rate of preschoolers in Porirua, had its contract terminated in January because of “poor performance, inaccurate reporting, and organisational mismanagement” and has since “apparently sabotaged the contract and removed some of the files”; if so, what steps did the Minister take?
Hon STEVE MAHAREY Link to this
I am aware of the background of that case but not of the particular part the member has mentioned at the end of her question, and I will investigate.
What steps would he take if it turned out that two other contractors, Taha Fasi Ltd, which received $241,000 last year, and Potahi Enterprises Ltd, which received $115,000 last year from the ministry, have had ongoing concerns with contract performance, the meeting of targets, and requirements of contracts, and that these contract-management issues, along with those of a number of other providers, have been known to the ministry since January 2006?
Hon STEVE MAHAREY Link to this
I would expect that the ministry does what it normally does, and did in the case I have read out in relation to the Waikato Pan-Chinese Association—it regularly monitors these organisations. When they throw up difficulties in performance, it works with them to improve it. Where it is not possible to improve it, the ministry takes the action it took in the case of the Waikato Pan-Chinese Association.
So does he personally know about the contractors I have just mentioned—have his ministry officials told him, and if they have not, why have they not?
Hon STEVE MAHAREY Link to this
There are, of course, literally thousands of these contracts, and they are matters for the department to monitor in the normal operational way. Department officials would bring these things to my attention only if they felt there was some anomaly or that it was necessary to surface it in a way that was unusual. That is why they would bring them to my attention. They report to me weekly on all issues, and if they feel there is something that they need to bring to my attention, they will do exactly that.
How come I have been informed about it through documents received under the Official Information Act through his office but he is not aware of it, and does it concern him that the evaluation of the Promoting Participation in Early Childhood Education Project found that there were serious gaps and inconsistencies in the type of data collected, that there was a 42 percent rate only of achievement of targets and only two instances where targets were actually achieved by contractors; and given this apparent lack of data collection, how does he know that the millions of dollars being spent in this area are actually working?
Hon STEVE MAHAREY Link to this
The member is being a little bit disingenuous. The reason she knows this is that there was an evaluation. Evaluations take place in all policies, including this, so we can find out what goes right and what goes wrong. In this particular case the project is showing that it is doing, in most of the cases we are interested in, a better job than if we were not doing this programme. There are areas to tighten up on. That is why we evaluate and that is how we improve.
Will the Minister go back to his office and seek a report from his ministry officials, who have managed to tell the Opposition about a number of contracts that have gone bad, yet have failed to tell their Minister?
Hon STEVE MAHAREY Link to this
That really is a silly question. The reason the member knows this is that she is being informed by the department, as she appropriately can be, and we will be informed in the same way.