Learning free enterprise

Press, 5 June 1982, Page 20

Learning free enterprise

School companies had their beginnings in the United States and Australia, and in a concern in the business community to put a case for free enterprise to pupils. They are run under the Young Enterprise scheme of the Chambers of Commerce. One person is employed in Wellington in administration, and volunteers co-ordinate the scheme in the regions. The Canterbury co-ordina-tor is Mr A. W. Jolly of Christchurch. who was national president of the Chambers of Commerce when the campaign to promote the cause of free enterprise began. A successful pilot scheme was run at a Palmerston’ North co-educational school in 1980. and last year Christ's College pioneered the scheme in Canterbury. This year the province has six schemes: Rakau Products at Rangiora; Christchurch Boys' High School, which is being supported by Canterbury Frozen Meat: Mairehau High School by Donaghy’s: Riccarton High School, by Associated British Cable; Hillmorton. by Lane Walker Rudkin: and St Bede’s by Foodstuffs. Mr Jolly tries to match the school with a nearby company. There is no competition for the most profits but. the Chambers are very keen on the production of an annual report, and that all of.the school firm’s senior execu-, fives should play a part in compiling it. says Mr Jolly.

The idea is that trading should be finished in the second term, so that the restricted time in the examination-ridden final term should be devoted to an assessment and a report before the enterprise is liquidated. The school firms are to be kept small and low-key so that boqa fide traders willnot feel they are in competition with enterprises that have certain advantages, says Mr Jolly. A little leeway has been obtained from officialdom for the school firms. An umbrella- company in Wellington liasses with the Inland Revenue Department, each of the school enterprises functioning as a subsidiary. The school firms have an exemption of up to $lOOO. in sales tax. but a levy is made of 45c in the dollar on profits as in the case of normal trading firms, though in the case of the schools, this goes towards the costs of running the scheme, tax being the concern of the parent company. Not all of the Canterbury school's schemes, have been as successful as Rangiora High's says Mr Jolly, but in each case something has been learnt and next year’s projects are likely to be much better. • One of the interesting results has been , the beginning of trading between school firms. Rangiora High's products are nowbeing sold by at least one Christchurch' school enterprise. ' '