Questions are being asked about an Exclusive Brethren high school at Kerikeri getting Government funding when its teachers are forbidden to encourage students to go to university.
The tertiary education bar has been disclosed by teacher Suzette Martin, who was sacked from the private Westmount School last year for providing a year-13 class with a contemporary translation of the Shakespearian play King Lear .  The school ruled it was "embarrassing, corrupting, and morally defiling".
Ms Martin, a 40-year-old  single parent who lives in Whangarei, had worked at the school since 2006.
She unsuccessfully challenged her dismissal before the Employment Relations Authority and is  reportedly intending to appeal the authority's decision.
During a two-day hearing at Auckland in March, the authority heard how Ms Martin had used a modern version of King Lear she had found on the internet to fulfil NCEA requirements.
But the school committee decided she had "breached the ethos of the school" by not clearing the text with school trustees.
Her contract says "only literature approved by the trustees may be brought onto school premises".
Authority member Rosemary Monaghan said it was a very unfortunate dismissal.
While not condoning the restrictions in place at the school, she accepted the school's right to impose them.
While the King Lear translation is at the centre of the dismissal row, it is Ms Martin's claim that she had to sign a clause which prevented her from encouraging students to pursue further education which has alarm bells ringing.
The 15 Westmount schools in New Zealand receive $2.59 million in government funding to teach their 1619 students.
Government funding for private schools received a $35 million boost in last year's budget, taking annual funding to more than $42 million.
Tai Tokerau Principals' Association president Pat Newman said while teachers had to be careful about what they signed, he would be concerned if any school was deliberately trying to hamper advice to go to university.
He was concerned Westmount School didn't appear to be following the Ministry of Education national guideline that all schools were expected to provide appropriate career education and guidance to students from year 7 and above.
The government was spending  money on schools which didn't encourage tertiary education, Mr Newman said.
Northland Secondary School Principals' Association past chairman Peter Garelja said Ms Martin had accepted the job knowing the conditions.
Parents who sent their children to Westmount School had an expectation that university would not be promoted, he said.
"Private schools have a right to determine their curriculum, but does that override national education priorities?" he said.
"It's about choice, but how much of that choice should be funded by the taxpayer?"
Ms Martin could not be reached for comment yesterday.