The city government should set up a special department to regulate training schools to ensure they are well run and financially sound, so that students aren't left in a financial lurch by school bankruptcies, a member of the Shanghai People's Congress proposed yesterday.

The proposal was put forward by Luo Youhua, assistant dean of Shanghai Sanda University and a SPC member, at the ongoing fourth session of the 12th SPC meeting.

"It is very easy for individuals to open a private training school nowadays as the government encourages private education institutes. But that has led to a disordered market without enough government coordination and regulation," Luo said.

A law to promote private education allows anyone with enough capital, office sites and faculty support to open a training school by simply registering with local education authorities and the industrial and commercial administration bureau.

More than 6 million people in the city take non-degree training courses each year, and the market is worth 15 billion yuan (US$1.85 billion) annually.

The low entrance threshold and lack of government regulation increase risks and will easily leave students in a lurch, Luo said.

For instance, three outlets of the franchised Canilx Modern Training Center suddenly closed due to a lack of capital last June.

The school still owes nearly 2,000 students about 4.5 million yuan.

Several students have threatened to sue the school, but even if they win, they might never get their money back, according to You Wei, vice director of the Shanghai No. 1 People's Intermediate Court.

You, who is also a member at Shanghai Committee of the Chinese People's Political Consultative Conference, suggested that the government charge schools a deposit when they open, and use the money to cover students' losses in the event the school shuts down.