Private Eye: So Many Academies Are Going Bust They Need a Special Insolvency Service

Here’s another interesting piece from this fortnight’s Private Eye for 29th October to 11th November 2012. It seems it’s not just the failing private railway companies that the government is desperate to prop up against the threat of nationalisation. They also need to do it for the academy chains and further education colleges. Here’s the article

Chains Reaction

In a worrying indication of the Department for Education’s level of confidence in the financial health of school chains and further education colleges, the department has made a deal with seven big law firms to provide insolvency services to “a broad range of financially distressed education providers”.

The scheme will put the firms, based in London, Leeds and Bristol, on a rota to provide advice on restructuring and insolvency to institutions facing either normal insolvency or “education administration”, the new process created in 2019 which allows an administrator to prioritise the needs for existing students to finish courses or find new placements, before paying creditors. Although the billing rates for insolvency work are not revealed in the contract award notice, the tender is listed with an estimated value of £3m.

The DfE has borne the brunt of winding up costs for a number of large academy trusts and has had to write off large sums where the department itself was one of a trust’s creditors.

Thus far two colleges, Hadlow College and West Kent and Ashford College, have been through the education administration process. Recently Brooklands College in Weybridge also faced the threat of insolvency as the Education and Skills Funding Agency attempts to claw back £20m after an investigation into the subcontracting of apprenticeships.

Academies are another failed Thatcherite idea that was taken over by Starmer’s molten idol, Blair, and then kicked into high gear. Thatcher and her education secretary, Norman Fowler, had founded a series of schools outside the Local Education Authorities as City Academies. They were an abject failure and were actually being wound up. Then Tory Tony fished ’em out of the dustbin along with a whole slew of other grotty ideas, and lo! the academies were established These were supposed to introduce private investment and management in the school system. Great things were predicted, like schools specialising in the STEM subjects, or music or whatever. And standards were definitely going to get better. In fact, the academies are only able to maintain their high standards through a rigorous policy of exclusion and selection to keep out the poor, the less able and those with behavioural problems, which state schools are bound to take. They have also benefited from far greater levels of funding. Some of the academies received up to £40 million, compared to LEAs which may have a budget for all the schools in their area of £250,000. Despite these advantages, numerous academies have had to be taken into receivership and into state management.

There is no use keeping up the pretence that they’re some kind of glowing Thatcherite, private industry success. This is just throwing good money after bad, and using the taxpayer to bail out failing private investors as the with PFI in the Health Service. It has to be ended now, and schools renationalised. Mussolini also set up a government department to bail out failing private industry. Fascist manifestos and ideology praised private industry and declared it to be the foundation of society and a proper, healthy economic system. But they had to recognise that some industries could not be supported privately and had to be taken into state ownership. And if Mussolini’s viciously anti-socialist dictatorship could realise that private industry is not the panacea for all industries, it’s high time our supposedly liberal, democratic politicos also had the guts to do so.

Academy schools are failing children, and it is just grotty Tory and Blairite Labour ideology that’s keeping them going. Renationalise now!

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One Response to “Private Eye: So Many Academies Are Going Bust They Need a Special Insolvency Service”

  1. A6er Says:

    Reblogged this on Tory Britain! .

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