Lots of good advice presented here. "Potential" issues raised about instructor and how OP can handle, as well as several comments that support instructor's decision. We don't know complete story so none of us can offer a definitive position.
nldiver1984, I'd encourage you to reflect critically (thoughtfully) on the comments raised here about the instructor, your diving/skills, and your timeline for courses. In less than 24 hours since this thread started, lots of useful information presented. It would be a missed opportunity if you interpreted this information as supporting one side or the other. Take what posters are saying, apply it, learn from it, and move forward.
It might be useful to cool down, reflect on the situation, and meet with this shop about their thoughts on how you could move forward (in an open and non-confrontational manner). I'd encourage you to listen to them. Agree to disagree if you feel your concerns are not met.
St John's has a population of a 200,000 and likely only a couple of dive shops. In your limited retail environment, this shop may still be of some use to you. They may have other instructors, dive trips of interest to you, and of course gear. I'd encourage you to get out and dive in cold water, continue to get familiar with buddy system, your weights and buoyancy; add other task, such as deep water, compass work, etc. Consider taking additional courses when you are completely comfortable with the aforementioned points, whether from this shop or others.
P.S. You mention that "I've contacted my instructor but am not agreeing with his perspective on what happened," yet you also want to report the instructor to PADI. Something doesn't add up.