Schools take 'sweeteners' for uniform sales

A Dunedin secondary school principal has defended the practice of taking "sweeteners" from school uniform suppliers in return for business.

Kavanagh College principal Tracy O'Brien says it is common for schools to have a rebate scheme where suppliers provide a percentage of sales income to schools which buy their uniforms.

He was aware of a large Canterbury school which recently received about $8000 under such a scheme.

"It wouldn't surprise me if there were other schools in Otago with similar arrangements," he said.

"It's not a back-door arrangement. It's all above board.

"We [Kavanagh College] get sports uniforms - track pants and tops as part of an agreement with SchoolTex.

"It's enough to make you look at them seriously as a supplier.

"If we were looking to change our supplier in the future, we would factor incentives into our decision.

"In tight financial times, we are trying to make our dollars go further," he said.

A spokesman for SchoolTex - one of the larger school uniform providers in New Zealand - was unavailable for comment yesterday.

An Auckland school uniform supplier recently raised concerns about her company being asked to supply two vans to a South Auckland college in order to get their business.

The case is the latest to highlight parent concern at the high costs of school uniforms and stationery., Some schools had entered into exclusive supplier deals with retailers and reaped financial benefits for doing so.

Otago Secondary Principals' Association president and Dunstan High School principal Brent Russell said he had no knowledge of any Otago schools taking incentives from uniform suppliers.

The Commerce Commission has voiced concern over such arrangements, but Education Minister Hekia Parata said it was the responsibility of each board of trustees to intervene.

A Herald on Sunday investigation last week showed sweeteners provided to some schools ranged from scholarships and sports uniforms to cash incentives and even $30,000 worth of sports equipment.

A spokeswoman for the Ministry of Education said it did not have a policy on school uniforms or stationery, and said concerned parents needed to go to their board to express concerns.

Diane O'Sullivan, from the Parent Teacher Association, said schools that forced parents to buy from just one supplier could be breaking the law.

The Commerce Commission has issued guidelines to schools over deals, but said none involved in the 26 complaints received had broken the law.

"We have assessed these complaints against the legislation and none have met the criteria for enforcement action," the Ministry of Education spokeswoman said.


What is illegal
Co-ordinated conduct includes:
• Agreements that substantially lessen competition in a market.
• Agreements that exclude or limit dealings with a rival.
• Agreements that fix, maintain or control prices (also known as cartels).
Source: Commerce Commission


- Additional reporting Herald on Sunday

 

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