This paper will trace the adoption of a policy of Social Inclusion in schools in one Australian state in terms of the way in which the policy direction, its discourses and adoption reflect a rhetoric of what Ball has labelled a "paradigm of convergence". The analysis will show that the policy discourse, especially in its focus on school retention, appears to endorse the vision of a neo-liberal entrepreneurial competitor as the educated product despite being initiated and implemented by a Labor state government within a rhetoric of community concern for social justice. The second part of the paper reports on the ways in which primary school leaders have responded to this policy which reflects some older educational discourses and is more in line with a prior version of a well-run school and an inclusive society.