June 30, 1999
(Education)

Minister releases Warren Report

The final report of the Review of the Private Training Institutions Act and Regulations (The Warren Report) and government's actions in response to the report's recommendations were released today by the Minister of Education, Judy Foote.

The Warren Report was commissioned by government in July, 1998, and headed by Dr. Phil Warren, a former Minister of Education. Dr. Warren held extensive consultations throughout Newfoundland and Labrador, as well as in other provinces. "We are grateful to Dr. Warren for his invaluable contribution. The enthusiasm with which he undertook this task is indicative of his dedication to the education system in Newfoundland and Labrador. His leadership in this process has helped set the direction for a better private college system for the people of this province," said Minister Foote.

During the months of August to December, 1998, Dr. Warren conducted information and consultation sessions throughout the province. In November, 1998, Dr. Warren submitted an interim report to the Department of Education which was released in the House Assembly. Dr. Warren's final report was released to the department on January 7, 1999. The recommendations of the interim and final reports were used to make changes to the Private Training Institutions Act (approved by the House of Assembly on December 15). In March 1999, new regulations based on the new Act were approved by cabinet. Some of the key changes to legislation include:

• An increase in the minimum and maximum levels of a bond that a school must secure to $50,000 and $150,000 respectively. In order for an institution to obtain these higher bonds, they must demonstrate to an insurance company that they have the necessary financial resources to operate;

• An enhancement of the approval process for each new college program to include:

  -    a needs assessment, including a market analysis;
  -    admission standards;
  -    curriculum content;
  -    program duration; and
  -    graduate certification;

• The creation of a train-out fund to ensure students can complete their training in the event of a college closure or insolvency. The revenues to support the fund will be derived from a percentage of student tuition (to be set at one per cent) to be paid by all training institutions. If an institution became insolvent, and a student had to complete training at another institution, the associated training costs would be covered by the train-out fund; and,

• A new student aid designation whereby an institution must be in operation for one year before it can be designated for student aid.

In addition, as recommended by the Warren Report, government has established the Private Training Corporation whose mandate is to administer the train-out fund and to provide advice to the minister on financial issues related to the viability of private training institutions. The Board of Directors is comprised of representatives from the Newfoundland and Labrador Association of Career Colleges, owners and students of private training institutions, the Departments of Education and Finance, and the community. The members of the Board of Directors are:

Mike Barrett - Newfoundland & Labrador Association of Career Colleges

Judith Cluney - Owner/Operator of a private training institution

Fred Zillman - a student of a private training institution

Jack Thompson - Department of Education

Terry Paddon - Department of Finance

Eric White - Community Representative

Mazie House - Community Representative

"These measures will enhance the regulatory environment in which private schools operate and ensure a more secure setting for those who choose to attend a private training institution," said Minister Foote. "Private post-secondary institutions play an important role in the provision of skills related training."

Copies of the full text of the Warren Report can be obtained by calling Terry Grandy-Sellars at (709) 729-3100.

Media contact: Nancy Healey, Communications, (709) 729-0048.

1999 06 30         3:00 p.m.