School Proprietors are responsible for the funding of new school buildings unless the government agrees to provide funding.
Present government policy only funds new buildings at integrated schools when there is limited capacity in the surrounding network of state schools and the funding of a new building at an integrated school to provide additional student places, will save major expense at a neighbouring state school. When the government agrees to provide funding this is termed “Policy Two” funding.
Mostly, however, Proprietors fund new building work at their schools through the collection of Attendance Dues. The limited capacity of regional groups of Proprietors to obtain loan money and service debt led to the establishment in 2004 of NZCEO Finance Ltd. This body is charged with administering what is known as the National Attendance Dues and Capital Indebtedness Sharing Scheme. Participating Proprietors commit to contributing an agreed percentage of their Attendance Dues and in return the scheme undertakes to debt service all the loans it accepts for upgrading, extending and constructing new buildings.