Isle of Man private school receives £2.2m 'repayable grant'
The UK government last year announced the standard rate of VAT would be added to private school fees from January, with KWC announcing in September it would absorb the costs for the spring and summer terms.Johnston said that change had presented a "challenge" for the school, which had coincided with it going through "major investment" as part of the consolidation but the money was not "to pay a VAT bill" but to make it a "sustainable business".
'Select few'
But MHK Joney Faragher said it "feels wrong that the government is propping up private schools when state schools are under such pressure" and it could "exacerbate educational inequality".It was public money and "should benefit the whole island's young people rather than just a select few".Lawrie Hooper MHK said the grant was awarded at the same time as the Department of Education, Sports and Culture was trying to find £400,000 in savings for swimming lessons.Johnston told the House of Keys he was "perfectly comfortable" the school was eligible for the support under the scheme and the funds would be paid back within five years, with interest applied from year three.He said with 185 staff KWC was one of the largest employers in the south of the island and brought £1.3m in exchequer benefits as well as £2.8m in local economy spending each year.The minister said he recognised the concerns raised by members, but the application received by his department had satisfied the criteria for the scheme.The loan had received approval from the Council of Ministers and Treasury concurrence so had "gone through the normal processes", he added.In a statement Chairman of Governors for KWC Peter Clucas said the funding enabled the college to move forward with its consolidation project, which "underpins the school's long-term financial sustainability".He said the school was working toward a completion date of later this year for the project.
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