Transcript No Slide Title

PRIVATE POST-SECONDARY
EDUCATION AND GLOBAL CHANGE
OPPORTUNITY KNOCKS
© Copyright Harris M. Rosen and Alan Wolfish, Q.C., 2010.
All rights reserved.
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PREDICTING THE FUTURE
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“I think there’s a world market for
maybe five computers”
– Thomas Watson (Chairman of IBM, 1943)
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DEVELOPING COUNTRIES
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“Technical and vocational education
and training (TVET) and skills
development pose a serious challenge,
particularly in countries with rapidly
evolving labor markets”
– Asian Development Bank, “Good Practice
for Technical And Education And
Training”, 2009
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ONTARIO LABOUR
MARKET
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Dr. Rick Miner points out in his report
“Jobs without People” (February 2010)
how
– Ontario’s population is aging and the
required skills for the workforce are
increasing, and
– Required skills are for a productive
workforce are increasing
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RE-SKILLING = RESTORING
DIGNITY
4. Loss of Dignity
3. Unskilled
5. No Mobility
2. Unemployed
6. Literacy Issues
1. Poor
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THE G20 SUMMIT IN TORONTO
The burning of police cars, smashing of
store windows, looting of businesses,
throwing of bricks at police and creating
general mayhem by rioters diverted
attention from the presentation of an
excellent 34 page report developed by the
International Labour Organization (ILO)
-A Skilled Workforce for a Strong
Sustainable and Balanced Growth
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AVOIDING IMBALANCE BETWEEN UNSKILLED
JOBS AND JOB SEEKERS
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The ILO report addresses the problem
of simply raising the education level of
the professions without also
maintaining high quality training and
sufficient numbers in non-academic
fields.
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OUR CLIENTS
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We represent private career colleges, and private
degree granting institutions
Private Career Colleges: not publicly funded except
for programs (OSAP, Second Careers Funding etc.)
Our clients provide skills and competencies to
students that graduates can get a job, keep a job,
generate income, turn “job” into “career” and
perhaps turn “career” into “ownership” in the new
economy.
(We also represent private elementary and
secondary schools)
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TWO CLEAR FACTS
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Low-skilled youth will find it
increasingly difficult to obtain any type
of employment;
“Many of the jobs that will be
generated over the next two decades
do not exist today”
– ILO Report
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US BUREAU OF LABOR STATISTICS
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Publish 10 year projections made
every two years
2008 to 2018 projections cover over
700 occupations and 200 industries
Canadians can learn much from these
statistics even though our economies
are different
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PREDICTED GROWTH IN THE U.S.
Among top five growth areas:
 Information Technology Vocations
 Health Care Vocations
 Professional and Business Services
Sector Vocations
– Page 81, (US) Career College Association Annual
Conference Session Handout Booklet, Las Vegas NV, 2010
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LEGALLY SPEAKING: ONTARIO
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Education is a provincial matter,
constitutionally. In Ontario:
– Ministry of Education
– Ministry of Training, Colleges and
Universities
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PRACTICALLY SPEAKING: FEDS
HAVE INFLUENCE
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Action and Inaction of federal government affects
every level of post-secondary education
Immigration is federal matter
Private Education in every province affected by
transfer payments, etc.
Desire to “brand” Canada’s Education “Product”
globally limited by constitution
Should also be a consistent set of rules governing
private career colleges in each province: attracts
higher quality of foreign investor and creates
certainty for business people/college owners
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Proclamation of PCCA, 2005
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Private Career Colleges Act, 2005 governs PCC’s.
Came into force on September 18, 2006
Made private career colleges more accountable and
more responsive
Drum out unregistered training institutions that
should be registered
Creation of Training Completion Assurance Fund to
protect students
Consumer protection legislation arising from
complaints from
– Students
– Foreign governments
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PCCA, 2005: Consumer Protection
Aspect
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All PCC’s must be registered with MTCU;
All PCC’s require program approval by
MTCU;
Standards imposed for programs,
advertising, refund policies, and instructor
qualifications and more;
Protections for international students (trust
account requirement for PCC’s in Ontario in
some circumstances).
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Importance of “Consumer”
Standards
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Students are “consumers” of educational product
Global Shortage of skilled trades people and
hospital workers
PCC’s can help address the shortage locally and
globally
Canadian expertise: health professions, IT, building
trades, mining & resources
Investors (globally) will want to know standards are
in place as opposed to “just build it” philosophy
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Skilled Labour Shortages
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Desperate need to build and repair infrastructure
globally: bridges, buildings, roads…
… And to do so in a responsible way
*Environmental factors have never been so
important
Al Gore says we’ll all be under water otherwise:
many scientists agree
In Canada alone, experts predict more than 1
million new skilled tradespersons will be needed
Shift will be from growth areas (IT, building trades,
allied health professions, current speciality trades)
to vocations with an environmental aspect
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“INVESTMENT OPPORTUNITIES”
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To “export” Canadian know-how/standards.
To provide needed skills to a massive labour
force to facilitate infrastructure growth
For growing companies in India to set up
PCC’s in Canada, or create joint-venture or
“partnership institutions” in India or Canada
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Canadian Interest in India
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Canadians are cautious/conservative in
the extreme. World “ends” at the
shores of Lake Ontario!
Canadians always fascinated with
India
Economies of Scale in India dwarf our
own resource based and service
economy
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Factoring Legal Risk Into Business
Investment Decisions
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Owners/operators of PCC’s are engaged in
two activities
1. The instruction of education at the postsecondary level;
2. The business of education.
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A profitable well run business provides
high quality instruction
Well trained people will create solid
infrastructure, protect investors, and
ultimately save lives
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CERTIFICATE AND DIPLOMA PROGRAMS
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Under the Private Career Colleges Act,
2005, PCC’s offer certificate and
diploma programs.
These programs are directed to
students who want to develop
expertise in the skilled trades
Some students with degrees also
attend PCC’s to develop practical skills
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PRIVATE DEGREE GRANTING
INSTITUTIONS
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Increasing interest from the private
education sector in granting degrees: falls
under other legislation: Post-secondary
Education Choice and Excellence Act, 2000.
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To establish a degree-granting institution,
either written consent of the Minister or an
Act of the Ontario legislature is required
Since an Act of the legislature is highly
unrealistic, how is Ministerial consent
obtained?
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POST-SECONDARY EDUCATION QUALITY
ASSURANCE BOARD (PEQAB)
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When a person applies to the Minister for
consent, the Minister refers the application
to PEQAB.
PEQAB is an arms length advisory agency
that reviews the application and makes a
recommendation to the Minister.
The Minister cannot grant or reject an
application unless he/she has first received
PEQAB’s recommendation.
*PEQAB’s recommendation is not
binding on Minister
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REALITY CHECK FOR FOREIGN
INVESTORS
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Doors are open to make an application for
all or part of a degree granting program.
Requirements are published by government
but generally onerous: should be a need for
program and net trade benefit to Ontario.
Consider alternative solutions such as
Partnership Institution.
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A PARTNERSHIP INSTITUTION
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Foreign investors need to have a credible track
record to have approvals here in Ontario.
First step is to consider multi-disciplinary feasibility
study undertaken by experienced educators, legal
and regulatory, and financial experts.
Study can serve as platform for establishing
partnership with an existing post-secondary
institution in Ontario that confers degrees.
Agreement must comply with Post-secondary
Education Choice and Excellence Act, 2000
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FOGLER RUBINOFF LLP SERVICES
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PCC license issues
Purchase and Sale of
Colleges
IP/Copyright/TM Issues
Negotiations with
government (MTCU or
Ministry of Ed)
International
Transactions
Real Estate/Leasing
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Human Rights/Student
and Employee
“Accomodation” issues
Drafting Student
Contracts
Managing Student
Complaints
Privacy Issues
Litigation
Securities
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EDUCATION RELATED AGREEMENTS WE
DRAFT ROUTINELY
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Enrolment Agreements
Admissions Policies
Privacy and Video Surveillance Policies
Student Complaint Forms
Student Handbook
Academic Discipline Policies
Suspension and Expulsion Policies
Curriculum Licensing/Lease Agreements
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MATCHMAKERS (BUT NOT “BROKERS”)
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A lot of growth potential in the sector for
operators who
– Insist on providing high quality education;
– Understand and comply with the governing
legislation.
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We are pleased to act as counsel to foreign
investors interested in acquiring private
career colleges in Canada
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IF YOU HATED OUR PRESENTATION
REMEMBER THIS!
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