Recently the Wildrose Alliance Party has released their education plan which is largely based on the concept of open competition, which is not surprising as competition seems to be a cornerstone of many of their policies. They promise to implement "school choice" legislation.
Competition is often considered contrary to the principles of education, however healthy competition is the very foundation of our society.
Competition does make schools more responsive to the concerns of parents and the community. However it also encourages schools to spend precious education dollars on marketing and advertising. It can result in trying to recruitment of students with a "name" that might attract other students.
New Zealand has had school choice legislation since the 1980's and there is no evidence from the New Zealand experience of increase on grades or standardized test scores. It has resulted in aggressive competition between schools resulting in schools having large advertising budgets.
If this policy were ever implemented, they would need to take into consideration how to cap the spending of public dollars on marketing.
This is largely a policy that once again addresses city educational issues as rural students have little choice unless they want to drive great distances. Online education offers some choice in that students can register in any online school.