Backlash against NSCP hits the media again

Hi Chaps.
In case this story escaped you (from page 36 Sun Herald) - there has
been a statement released by the National School Principal's Forum.
It's a fairly round criticism of the whole National funding program, on the
grounds of channeling money that 'rightly' belongs elsewhere (according to
these principals & their lobbyists) - NOT in the hands of 'the churches."

If you'd like to read it, here's a link to the article on the SMH website:
http://www.smh.com.au/news/national/parents-principals-turn-down-chaplains/2007/03/24/1174597952873.html

It's kind of what I saw happening at my own School's P & C meeting where
some objection was made to our school making an application; namely
that "churches" and "public school" (i.e. the state) should be kept
completely separate. See my last post too - I think we must expect
SOME anger at the way religious groups (which in NSW mainly means
Protestant Churches) have been given some help, without any
reference to the tradition of "church" being kept apart from "public schools."

Here's a question for you: Are they REALLY completely separate, despite
the tradition being upheld by critics like this national Principal's lobby?

I think it's a little more joined than we think, if you include tax concessions
to churches, The NSW Education Act (guarantees student rights to SRE)
and local schools who invite participation from appropriate local church
people.
What do YOU think?