October 19, 1999
(Education)

Minister comments on closure of Avalon Professional Driver Training Institute

It is with regret that the Department of Education confirms it has been advised that because of financial difficulty the Avalon Professional Driving Training Institute suspended its operations as of 4:30 p.m., Monday, October 18, 1999.

Mr. Coombs approached the Department of Education for a $200,000 loan guarantee as a solution to continue his operations. The Department advised Mr. Coombs that this request would not be approved.

"The Department of Education had no reason to expect that the Avalon Professional Driving Training Institute was going to suspend operations," said Education Minister Judy Foote. "The Institute has met the higher bonding requirements of the revised regulations under the Private Training Institutions Act. In order to obtain a bond, the institute had to meet the guidelines of the bonding company which insures them."

Owner Albert Coombs has asserted that government's moratorium on the establishment of new private training institutions and the new regulations governing private training institutions contributed to the closure of his campuses. The new more stringent regulations were established to protect students and bring more stability to the private training sector. There is no indication that granting an additional licence to establish yet another campus of the institute in Lewisporte would have prevented this problem. Obviously, not granting an additional licence was in the best interest of potential students.

The Department of Education will continue to work with Mr. Coombs, the Newfoundland and Labrador Association of Career Colleges and the Private Training Corporation, which was established under the Private Training Institutions Act, to ensure that the 37 students who were enroled at Avalon Professional Driving Training Institute are able to complete their training.

If Mr. Coombs is unable to resume operations, the department will ensure that the students affected are provided with the opportunity to continue their program of study by Monday, October 25, 1999.

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

1999 10 19                                             5:30 p.m.