No more public money for indebted school

Victorian Premier Ted Baillieu says there’s no more government money for a private college facing closure amid debts of $18 million.

Mowbray College in Melbourne’s outer west is fighting to stay open after its board went into voluntary administration, leaving more than 200 staff and 1000 students with an uncertain future.

Administrator Jim Downey told ABC radio the prep to year 12 school, which has campuses in Melton and Caroline Springs, is likely to close at the end of the term.

“For the period that I operate the school, staff can be assured they will be remunerated for their time,” he said.

He said the school is owed about $2 million in unpaid fees.

Premier Baillieu said the government had already given the school a $400,000 grant to cover teachers’ salaries and pay bills and ruled out a further bailout.

“There isn’t further money available. There’s the $400,000 plus, which is the immediate bill-paying exercise and that’s been advanced and this is now a challenge to get the students accommodated,” Mr Baillieu told Fairfax radio.

“It is a shocking situation.

“This is an independent school, it’s run up a massive debt and that’s obviously left them with a legacy that’s unsustainable and action has to be taken.”

The education department and other agencies are working with the school to accommodate students elsewhere.

“The immediate problem is those VCE students who have mid-year exams. I know the department is seeking to have those VCE students placed and look at the consequences for those mid years,” Mr Baillieu said.

The education department has set up a parent information line on 9291 6500.

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