The New Westminster school district's controversial business company faces an uncertain future since the provincial government introduced sweeping changes meant to tighten regulations for running offshore schools.
The cash-strapped school district isn't budgeting for any revenue from the business company next year because of questions related to the new rules.
"There comes a time when you have to decide how much energy you want to put into it, in terms of diminishing returns," said trustee James Janzen, who sits on the business company. board of directors. "That's what we have to take a look at."
The business company runs a school and English program in Wenzhou, China.
"It's really just the school in Wenzhou that is really problematic," Janzen said. "The way it reads, as a school district business company, we are not allowed to be in that business. It all has to go through these agents. They've (provincial government) authorized 15 or 16 agents to operate offshore schools, and we're not one of them. So we can't operate an offshore school."
They are currently trying to figure out a way to work within the rules to keep the business company "flying," he said.
The district's agent was not on the list of government-approved agents, which means he can no longer serve as the liaison between the offshore school, the district and government, according to a post by Vancouver Sun Janet Steffenhagen on her blog. Another change and concern for business company chief executive officer Brent Atkinson (who couldn't be reached at press time) was a new annual fee of $350 per student, Steffenhagen reported.
The changes hit the Abbotsford's school district's business company so hard that it closed its offshore schools.
While the new rules might weed out shady operators, it hurts reputable business, Janzen said.
"I think Brent would be supportive of rules and regulations to keep those people out, because we want programs in China and elsewhere in the world to have a good reputation."
Another concern is that the provincial government wants the Wenzhou school district to sign an agreement, Janzen said.
"Which they are reluctant to sign," he noted. "It's 60 pages long. It's not been translated ... It's nonsensical. It was poorly written. They are just not willing to sign it."
The school district's business company has been a controversial endeavour since the district started selling the B.C. curriculum abroad, under legislation introduced by the B.C. Liberals in 2002. For years, the enterprise - which required a $1-million investment that took years to earn back - was a drain on the district's coffers, but it has managed to turn a profit in recent years. It is estimated to bring in a net profit of about $300,000 this year.
Janzen said they hope to know more soon about the company's future.
"It's going to be really challenging," he said. "It'll be a shame after we've put all of that effort into it, but, on the other hand, it is what it is. In terms of the overall revenue to the district, it's not a huge amount of money, but it's good to have."
