August 14, 1998
(Education)

Minister reacts to the closure of The Career Academy

Education Minister Roger Grimes says government did everything possible to work with The Career Academy to address the financial difficulties the Academy was facing and now the students must be the number one priority in this matter.

On August 3, 1998, government accountants reviewed the financial records of The Career Academy. After the review was completed, the records indicated a potential problem with the viability of the Academy. Officials from the Department of Education then met with the Academy's representatives to hear their plan for putting the institution in a financially sound position.

"We were working with The Career Academy to do everything possible to address their financial difficulties. We wanted to receive assurance from the Academy's major creditors that they would continue to be committed to the Academy's operation," said Mr. Grimes. "The creditors could not give us this reassurance."

Mr. Grimes said the recent change to student aid disbursement was a decision recommended and unanimously accepted by the members of the Newfoundland and Labrador Career Colleges Association (NLACC).

"No other concerns have been expressed by other institutions with regard to the policy change," said Mr. Grimes. "We have been meeting with representatives of the NLACC and the Department of Education will make an announcement early next week with regards to student placements."

Contact: Carl Cooper, (709) 729-0048.

1998 08 14               5:15 p.m.