Government to pay for students' housing

By ALAN PERROTT education reporter

The Government will pay up to $500,000 in accommodation costs for students of the failed Modern Age Institute of Learning language school, says Education Minister Trevor Mallard.

He said the money would save students from being evicted by homestay families who had not been paid for up to six weeks.

"People have got to know that when their kids come to New Zealand they're not going to be tossed out on the streets," he said.

The Modern Age Institute of Learning, one of the largest language schools in the country, last Friday closed the doors at its campuses in Auckland, Tauranga and Wellington after a week of speculation over its financial status.

Enrolments this year plunged from an expected 1500 to 500.

Its cashflow crisis led to two audits by the Qualifications Authority within the past six months and has now left a long line of unpaid staff, creditors and host families.

The homestay fees are supposed to be held in a trust fund which all schools are required to set up to protect their students should they run into financial problems.

The status of the Modern Age trust fund is not known.

Mr Mallard said there was a danger the institute's collapse could jeopardise the international reputation of New Zealand's export education industry.

On Sunday, he leaves for China to reassure its Government over the standard and safety of New Zealand schools - but he may be asked to explain how Chinese students as young as 12 can lose up to $30,240 in tuition fees, homestay fees and guardianship costs which should have been protected.

China is New Zealand's largest source of international students and accounted for half of the $1.7 billion earned by export education last year.

The flow of students has slowed this year because of Chinese concerns over the treatment of their nationals here.

Patrick Ibbertson, head of the Appel private language school association, said the Chinese had "turned off the tap" to force tougher Government regulations in schools.

Mr Mallard will be accompanied by chief executives of the Ministry of Education, Qualifications Authority, Education Review Office and Education New Zealand.

Modern Age representatives will meet its Auckland students and their homestay families this morning to discuss what is happening.

One homestay mother who is owed $720 said she was disgusted with the institute directors' attitude.

"The families of these young people haven't been told anything by the school and that's disgusting. If that was my child in the same situation in another country after I'd paid all that money I'd be damn angry."

She had had to tell her student and her student's mother what was going on.

Maureen Hayes, chairwoman of the Combined Registered English Language Schools, said Modern Age's 161 Auckland students had been allocated to 10 new schools. She had also received many CVs from Modern Age teachers.