INDEPENDENT schools have pleaded with the Government’s competition regulator not to fine them for an alleged “fee-fixing” cartel.

They have asked the Office of Fair Trading (OFT) to end a two-year investigation by accepting “binding commitments” from schools to abide by competition law.

The OFT has been investigating allegations of fee fixing involving more than 60 private schools. The Times disclosed in 2003 that bursars at scores of schools routinely exchanged details of planned fee increases and other sensitive price information.

The information included spreadsheets showing school-by-school forecasts of fee increases that allowed each bursar to see whether his proposal to the governing body was in line with those of competitors. The OFT can fine schools up to 10 per cent of three years’ turnover if it concludes that they did breach the Competition Act 1998.

The Times also revealed that Eton College and Winchester College had sought a plea bargain to reduce any fines in return for co-operating. Eton faces possible fines of up to £9 million and Winchester more than £4 million.

The Independent Schools Council (ISC) has now sent a letter, obtained by The Times, to Vincent Smith, the OFT’s director of competition enforcement, saying that the inquiry is causing financial and administrative hardship to schools.

Jonathan Shephard, the ISC’s general secretary, told Mr Smith: “Obviously you are bound to conduct a careful and objective investigation. There is, though, considerable surprise at the length and weight of this investigation.”

All the schools under investigation were charities and “the charitable ethos, unlike the commercial ethos, is to exchange information.

“There is no possibility of personal gain or profiteering even if there has been a breach of competition law, because all surpluses remain within the charity and must be used in pursuance of the charity’s purposes.”

The independent sector had not been consulted on changes to the law, which abolished the exemption of educational bodies from competition rules. When it was brought to the attention of schools, he said, they changed their procedures.

Mr Shephard said that any breaches of competition law by schools would have been inadvertent as a result of “what can justifiably be called a monumental failure to consult”.

The Headmasters’ and Headmistresses’ Conference of leading public schools is due to hold its annual conference next week.

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