The Government valued the export education sector but was not in the business of bailing out private companies, Education Minister Trevor Mallard said today.
One of the country's biggest English language schools, the Modern Age Institute of Learning, was placed into receivership at the weekend.
The collapse of the school, which had campuses in Auckland, Wellington and Tauranga, has raised concerns the industry had become too reliant on volatile Asian markets, particularly China.
Patrick Ibbertson, chairman of the Association of Private Providers of English Language, today suggested the Government needed to do more for the export education sector.
"When any industry receives such a large scale blow, then it's very difficult for some institutions to carry on indefinitely.
"I hope that our political leaders realise the seriousness of the issue and are going to deal with it at a political level. That will enable schools to quickly recover once the flow of students is able to continue and revive," Mr Ibbertson told National Radio.
Mr Mallard told NZPA that the Government did value the industry and had provided a large amount of advice and assistance to the industry to help it through the downturn in students numbers from Asia.
"We take this situation very seriously," he said.
"But the Government is not in the business of bailing out private companies which must take responsibility for their own financial and business planning.
"It is disappointing that an event like the Modern Age collapse can impact on the whole sector, when some private companies get it badly wrong."
Mr Mallard said that since government agencies had learned of the problems faced by Modern Age they had been in daily contact with it and others in the industry to make sure the students were being looked after in terms of continued education and accommodation.
"The Government on Friday provided emergency money to about six students who had urgent problems with their accommodation and government agencies are currently assessing how many more students may need help.
"Auckland City has offered to split the costs of this 50:50 and we will be accepting this offer," Mr Mallard said.
The Government had been warning since last year that the industry must diversify and not become so reliant on just one region, as it was with Asia, he said.
"Some in the industry have objected to this advice."
The Government was closely monitoring developments with other providers.
Mr Mallard said he had led an education mission to the Middle East to encourage students from that region to come to New Zealand for their education.
Another education mission to eastern Europe was being planned for later in the year and discussions were under way about going to central and South America.
"Government agencies, including trade and foreign affairs, have been helping providers in the market overseas, and a new marketing strategy for export education is being developed.
"But again, I must stress that the Government cannot and should not shoulder all responsibility for the industry's marketing or business efforts.
"It is up to organisations like Appel to also bear some of this responsibility, since it is their members which benefit financially from this business."
Mr Mallard said there had been concerns in China about bad publicity relating to student safety and the Government had been working closely with the Chinese government to overcome these.
He would be leading an education mission to Beijing next Monday when he would meet with the Chinese Minister of Education to provide assurances to the Chinese government about education quality and student safety in New Zealand.
He would ask the Chinese Government what more could be done.
The chief executives of the Ministry of Education, New Zealand Qualifications Authority and the Education Review Office were part of this mission.
They would stay on for another few days to continue to work with the Chinese on these issues as part of a NZ-Chinese education working party.
- NZPA
AdvertisementAdvertise with NZME.
Latest from New Zealand
The places where you’re most likely to pass your driving test
Is it best to travel to a rural area if you want to pass your driver's licence test?