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December 11, 1998
(Education)


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

Private Training Legislation

Today, I want to introduce the proposed amendments to the Private Training Schools Act and Regulations, the first major changes to the Legislation in a decade.

The amendments being introduced in the bill will establish stringent control measures, further protect students and increase the stability of the private training industry.

The rapid growth in the private training industry, which currently consists of 57 schools with more than 370 programs, has represented a challenge for government. A complete review of the act and regulations was necessary in order to adapt to the changes in this sector to meet the needs of the students, as well as the private training industry. Dr. Phil Warren's report on the private training system provides the basis for changes government is proposing to the legislation.

Dr. Warren has produced a report that has taken into account the opinions and concerns from private citizens, interest groups, the industry itself, and other political parties represented in this legislature. Government is confident that proposed changes to the act and regulations will create the necessary balance for protecting the students of our province, while addressing the needs of an expanding and changing private training industry.

Government is proposing the following major amendments to the Private Training Institutions Act and Regulations:

  1. The establishment of a train-out fund that will be used in the event of a school closure to assist students in the completion of their training. The fund will be credited with funds from mandatory contributions from all private training institutions and the contribution will be one per cent of student tuition annually

  2. The establishment of a private training corporation to administer the train-out fund on behalf of students and to make recommendations to the Minister of Education with respect to financial stability of private training institutions and other aspects of the Private Training Schools Acts and Regulations. The corporation will have a board of directors, with members from the student population, private training industry, general public and government, appointed by the Lieutenant-Governor in Council.

  3. Audited statements of institutions will be required by the Minister of Education on an annual basis.

There are also several regulatory changes being proposed in this

bill that include:

  • Increasing the bond to a minimum of $50,000 and a maximum of $150,000 from the current levels of $10,000 and $75,000, respectively.

  • The period of time, upon forfeiture of the bond, after which monies can be paid out, will be decreased from two years to six months.

  • Schools must be in continuous operation as a registered private training institution for at least one-year and have at least one graduating class before receiving designation for student aid purposes.

  • Regulations will stipulate the provisions that are required in a contract between a student and a private training institution.

  • The requirements for registration of new institutions, the renewal of registration for existing institutions as well as the grounds for which a certificate can be refused, renewed, suspended or revoked, will be prescribed.

  • The period of time for cancelling a licence, when an owner ceases to operate, has been reduced from 90 days to 10 working days.

  • And a mechanism to address and resolve student problems with administrative and academic decisions will be developed.

Government has lived up to its commitment for a complete review of the Private Training Schools Act and Regulations. The implementation of these amendments to the legislation will represent this government's policy. It recognizes the changing environment of the private training industry, and most important, it provides more protection for students attending private training institutions in Newfoundland and Labrador.

It is government's intention to have the new legislation in effect for the next period of registration in January 1999.

1998 12 11                        9:15 a.m.


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