ITI Students to Complete Education

Department of Education (to March 26, 2013)

August 31, 2001 3:11 PM

Students of the Information Technology Institute (ITI) in Halifax
will be able to complete their education, with ITI curriculum and
facilitators, in the current location. In announcing the plan,
Education Minister Jane Purves said students will also be able to
graduate with an ITI diploma.

"I am pleased to have an agreement that delivers the same
program, in the same place, with qualified facilitators," Ms.
Purves said. "This is what the students wanted -- in fact, it's
what they paid for."

The department has been working with the ITI receiver, Ernst and
Young Inc., since the minister met with students on Aug. 21.
Today, the receiver notified the minister that ITI is insolvent
and the company cannot meet its contractual obligations to
existing students.

As a result, the department is entering into an agreement with
the receiver to assume responsibility for the train-out, using
the ITI program. The receiver is also pursuing an agreement with
a potential purchaser.

"Our goal was to deliver the same quality of education to
students, at the most reasonable cost," Ms. Purves said. "We've
achieved that goal."

The train-out at a maximum cost of $1.2 million will be paid
through the training completion fund, set up in the new Private
Career Colleges Act to help protect students. The amount is based
solely on cost-recovery, without profit.

The minister has also asked department staff to review private
career college regulations to identify ways to add protection for
students and minimize costs to the training completion fund in
future.

"As one example, ITI students were required to pay 100 per cent
of their tuition when they entered the program," the minister
said. "That's hard for the student to manage. It also means that,
if a school closes, there is no tuition to assist with train-out,
so the entire cost must come from the completion fund."

The minister thanked the students and facilitators for their
professionalism and patience.

"Despite a whole lot of uncertainty, these students kept studying
and progressing toward their future," she said. "This speaks to
their professionalism and to a successful future in the work
world."

There are 197 students enrolled at the Halifax ITI, in various
stages of their training.


FOR BROADCAST USE:

     Nova Scotia's Education Department has completed plans to

ensure that students of the Information Technology Institute, or

I-T-I, who are studying in Halifax will be able to complete their

education.

     The company's receiver, Ernst and Young, notified

Education Minister Jane Purves today that ITI is insolvent and

can't meet its obligations to students.

     The department has made arrangements with the receiver to

allow the 197 students now enrolled to complete their full

program.

     The train-out will cost one-point-two-million dollars and

will be paid through a fund was set up under the new Private

Career Colleges Act.

     The minister has also asked her staff to review private

college regulations to identify ways to protect students and

minimize costs to the training completion fund in the future.

     Meanwhile, Ernst and Young is holding discussions with a

potential new buyer for ITI.

- 30 -

Contact: Donna MacDonald
         902-424-8286
         E-mail: macdondc@gov.ns.ca

kjd         August 31, 2001         3:08 P.M.