The Ministry of Education's decision to close Prime Minister John Key's old school was upheld today in the High Court in Christchurch.
Aorangi Primary School will close on January 27 .
Tears were shed by students and their families in the public gallery as Justice Christine French delivered her decision on the judicial review brought against the Ministry of Education by the school's board of trustees.
Justice French extended her sympathy to the school and community, expressing her admiration on the quality of education it had provided, but stated that the ministry had satisfied all legal criteria in the application of their decision.
"While no stone was left unturned by the board's lawyers, their applications are unsustainable, " she said.
"I am acutely conscious that this decision will cause distress but hope it will remove the uncertainty and enable parents, staff and the board to achieve a successful transition of the children into other schools."
Built in 1959, the school building had fallen into disrepair in recent years, leading the Labour government to propose a $2.65 million rebuild in 2007.
However, following the election, new Education Minister Anne Tolley decided to review the decision.
In a letter to the board, the minister said the decision to close was based on "the most efficient use of the education budget available to me."
Savings from the school closure were estimated at between $1.4 million and $2.875 million by accountants representing the ministry. The board's accountants estimated profits to be $380,000.
The board's lawyers had argued the ministry's decision was made without a fair consultation process and had breached natural justice.
They also said that closing the school in January left too little time to find suitable alternative education for the 88 children at the school.
Lead counsel, Paul Cowey, argued that what may have been done in good faith had produced an injustice.
"The decision to close the school on January 27, with the school holidays intervening, is simply unfair or unreasonable."
Counsel for the ministry, Una Jagose, disputed the claims, saying the board had engaged in the process "in a very thorough and educated way".
"The consultation process, with the view of hindsight, could have been handled better but that does not amount to a failure to consult." Aorangi's principal, Stephanie Thompson, described the decision as "exceptionally disappointing".
"This is a community that has difficulties in everday life and now has another hurdle to overcome.
"The priority now is what's best for the children and I have to ensure that we do everything in our power to help with the transition."
Despite the outcome, she pledged to respect the ruling and expressed her pride in the school's achievements.
"We have to trust in the system to do what's right for the kids. While we don't agree with the decision, we have a responsibilty to do the best we can.
"The silver lining is that we have had vindication that we have a good community."
