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November 19, 1998
(Education)


The following statement was issued today by Roger Grimes, Minister of Education. It was also read in the House of Assembly:

As a result of the rapid growth in private training institutions and the financial difficulties being experienced by some of them, government committed last April to a complete review of the current act and regulations which have been in effect since 1988 and 1989, respectively. Subsequently, in July Dr. Phil Warren was appointed to conduct an independent study of the industry and to provide a series of recommendations to government on how to improve the legislation for the benefit and further protection of the students and to provide stability for the private training institutions.

Government's objectives are to provide greater protection for the students, establish more rigorous operating control measures and create a fair and healthy environment for the private training industry.

Dr. Warren has concluded a thorough and detailed review of private training in Newfoundland and Labrador. He has received numerous submissions from private citizens, interest groups, the industry itself, and the other political parties represented in this Legislature. Dr. Warren presented an interim report to my office on November 12 with several recommendations for legislative changes including:

1. Increase the bond to a minimum of $50,000 and a maximum of $150,000 from the current levels of $10,000 and $75,000.

2. Provide authority to establish a train-out fund with revenues to support it derived from a percentage of student tuition to be paid by   all training institutions.

3. Reduce the two-year period after forfeiture of a bond, in which the minister can pay monies recovered under the bond to a judgement creditor, to a 30-day period. The bond proceeds would then be paid directly into the train-out fund.

4. Establish a board to oversee the operations of the private training industry, including the administration of the train-out fund.

5. Provide authority to require audited financial statements annually.

6. Require that schools be in continuous operation as a registered private training institution for one year and have at least one graduating class before receiving designation for student aid purposes.

7. A requirement that in order to obtain approval for program registration, information must be provided with respect to a needs assessment, curriculum content, program durations and graduate certification. In addition, information on tuition levels and admission standards must be provided.

8. Reduce the 90 consecutive days that must pass following the closure of a school before the licence can be revoked, to 10 working days.

Over the next few weeks we intend to introduce a bill which will propose major changes along the lines recommended in Dr. Warren's report. With an industry that has grown significantly with 57 resident institutions delivering approximately 370 programs, it is absolutely essential that we create an environment to provide greater consumer protection and a fair and equitable playing field for the industry.

This will be the first major adjustment to legislation regarding private training in a decade and we will deal with matters in a manner that reflects this government's policy rather than continue on with legislation drafted by the previous provincial government of the late 1980s.

Government's objective is to effect changes in the current Legislation for the next period of registration in January 1999.

The Review of Private Training and Institutions Act and Regulations - Interim Report

1998 11 17              2:25 p.m.


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