Ontario Regulating Flight Training?

[Phil Croucher]

I heard the ON government were tryin to stick their collective beaks into a federal responsibility - anybody else heard anything?

 

phil

[Skids Up]

Please elaborate a bit ...

[Blackmac]

I believe it had something to do with the "Flight Schools" and of course something about an additional tax or whatrever, so it would cost more for the students. Never stops.

 

Don

[Invisible]

:down: I believe they are trying to tax 2% of annual gross of commercial training :down:

 

I would expect this will be enough for some of the smaller schools to close the doors.

[HeliFly]

Some people (government) are just beyond pathetic. Like $50,000-$70,000 isn't already enough!!

[snowedin]

This is apparently being done to address the problem of schools accepting deposits, or in some cases full tuitions and then closing the doors...leaving students high and dry. I imagine it is more of a problem in fixed wing than rotary but they seem to want to push the rotary schools into it as well. Not sure of the amount, but a % of tuition received must go into a fund set up to cover students who get burned. Non recoverable for the flight schools from what I understand....despite the fact it could grow to be quite large??!!

 

I would imagine schools would have no choice but to download this on students....so I guess they pay either way.

 

Interested to hear from others on this

[Phil Croucher]

Thanks snowedin - I heard the rumour but didn't know what it was about. I can understand the motive for protecting students who pay up front, but getting it lost in government coffers doesn't seem the best way to go about it!

 

Phil

[sirlandsalot]

pay-as-you-go is a simple answer..."keep it simple stupid" hehe

[rotorheadrob]

We have been dealing with this in BC for years. PCTIA!!!!!

 

1% of training revenue goes into a fund to protect student tuition.

 

Last time I looked $1.6 million in BC's fund to date.

 

Education is non taxable, so you call it a student completion fund instead.

 

The hard part is having to deal with another regulatory body.

 

 

 

 

 

Rob

[Blackmac]

pay-as-you-go is a simple answer..."keep it simple stupid" hehe

 

The concept of using the KISS principal is not bad. Have the student sign a binding contract, with say 10K down and the rest payed after the 10K is used up, on a weekly basis.

 

This way the student has enough invested to complete his training and should the company go belly up, he is not losing everything.

 

Paying for something up front that you have not received, in my book, is nuts.

 

As for BC, I would have somebody look into the legality of the tax and where it is going. It would be cheaper for the student to be covered by insurance issued by the flight school, similar to errors and omission insurance or something along that line. Just remember any monies given to any government, usually gets lost or takes an act of parliament to get a hold of it.

 

Get organized, look further.

 

Don