SEVERAL St George and Sutherland Shire schools that cater for students who have disabilities, were left in the lurch this week because of "contract issues" between the education department and transport providers.
About 500 students, including some from St George School at Kogarah, Carinya Special School at Mortdale, Cairnsfoot at Arncliffe, Minerva at Sutherland and Bates Drive School at Kareela, were affected.
Their travel arrangements were disrupted on Tuesday morning which was the first day back at school for many NSW students.
It meant staff had to organise emergency transport or parents had to drive students themselves.
Education Minister Adrian Piccoli said the disturbance to the Assisted School Travel Program, which provides door-to-door transport assistance for eligible students between their home and school at no cost to families where parents and carers are unable to provide or arrange transport, was being resolved.
"The distress caused to many students with disability covered by the program and their families is unacceptable, and I apologise to them for that," Mr Piccoli said.
He said the department offered higher pay rates to transport providers on runs of less than 30 kilometres.
"It was clear to the government the new contracts, which began this year, were flawed," he said.
"The NSW government has listened to the providers on this, which is why I authorised the department's director-general to offer the higher rate immediately.
"The department advises me that acceptance of this rate has been high and it is likely all transport runs will soon be filled."
He said that subject to the normal checks, providers should be driving students to school before the end of this week.
"As the government is determined such a disruption doesn't again affect some of the most vulnerable students in our schools, the Premier has announced that former director-general of the NSW Department of Education, Ken Boston, will head an inquiry to determine how this happened," Mr Piccoli said.
A report into the findings is due by February 10.
New rates will stay in place for the rest of this school term, with the arrangement reviewed before the start of term two.
The higher rate for transport providers until the end of term one will cost about $1 million.
Principal of St George School Diana Murphy said the school had to arrange alternative transport.
The school provides education for students who have severe physical and multiple disabilities.
"There were a number of students affected but none of the families felt a great impact," Ms Murphy said.
"We were able to get vehicles thanks to generous contract drivers, which was nice of them.
"Someone also volunteered to give students a lift.
"It was a very busy morning trying to get everything organised, but we did.
"The community has been so supportive in response to it."
Staff at Minerva School and Bates Drive School said they were also inconvenienced, but managed to cope.
Principal of Woniora Road School at Hurstville, Craig Smith, said the school was not affected because they "were lucky" to have extra taxis.
The program was expected to be back to normal by early next week.
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