The secretary of the Department of Education has conceded a senior staffer acted unprofessionally in telling colleagues that Martins Creek Public School would almost certainly shut, at the same time as its future was still being discussed with parents.
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But Dr Michele Bruniges has denied her department sets out to close small schools, despite sale valuations of Martins Creek being sought and Education Minister Adrian Piccoli being briefed on how much money the government could save before he authorised its closure, which is scheduled for the end of this year.
Appearing before a parliamentary inquiry, Dr Bruniges was questioned about an email from Public Schools NSW director Andrew Eastcott to colleagues.
In it, he wrote that "unless a great storm strikes the school will close", and suggested a journalist asking about its future be given "the usual line of investigating education provision for students in the area".
No decision about the school's future had been announced at the time.
"Can you understand why. . . so many people feel that is not professional behaviour from Mr Eastcott?" Greens MP John Kaye asked her.
"I can," Dr Bruniges replied.
Asked what she would do about it, she said: "I make it very clear to public servants that consultation is consultation and until the minister takes a decision, no decision has been made."
Mr Piccoli has authorised the closure of 20 schools in regional and rural areas in the past year amid low enrolments, including Wollombi public school - compared to the total of 83 closures over the past 15 years.
Bureaucrats attributed the increased rate to parents choosing to send their children elsewhere.
But they were accused of letting 35 community complaints fall "on deaf ears", with not one upheld, and of setting "people up to fail" with a sham public consultation process.
Complaints have also been made to the Ombudsman.
"If you are not going to consult, do not call it consultation . . . call a spade a spade," inquiry chairman and Christian Democrat MP Paul Green said.
Dr Kaye said the process leading up to the closure of Martins Creek and Wollombi schools had been compromised by "the lack of professionalism of the public servants in charge".
"[Mr] Piccoli should order a review of the closure decisions which must start with an open book, treat the community with respect and explore options for building enrolment numbers," Dr Kaye said.
But Mr Piccoli said on Monday: "I don't intend to pre-empt the inquiry before its recommendations are handed down".