Education Minister Anne Tolley has welcomed the release of the Auditor-General's report, following an inquiry into the Ministry of Education's 2008 school transport tender process.

"I believe this inquiry had to take place, given the concerns in some communities following the allocation of tenders," said Mrs Tolley.

"The report shows the Auditor-General is satisfied the Ministry followed good business practice in tendering for and awarding school bus routes, and that safety was not compromised.

"However, it also identifies some areas for improvement. The report states that in future tenders the Ministry could use a stronger quality assurance process, and ensure it communicates well with the tenderers at all stages.

"I will discuss the recommendations contained in the report with the Secretary for Education."