Finance Committee on Oct. 20th, 2009

[The Chair, Conservative, James Rajotte]

Thank you very much for your presentation.

We'll now go to the Canadian Federation of Students.

[Alana Makinson, Women's Commissioner, University of Manitoba Student's Union, Canadian Federation of Students (Manitoba)]

Good morning, Mr. Chair.

We'd like to thank the Standing Committee on Finance for hearing our presentations today.

The Canadian Federation of Students represents nearly half a million students across Canada, including over 42,000 students here in Manitoba.

Today, due to limited time, we would like to touch on two key issues affecting students in Manitoba: the funding and access of aboriginal students. More specifically, we would like to touch on dedicated federal funding transfers to provinces and changes to the post-secondary student support program of the Department of Indian and Northern Affairs.

[David Jacks, Resource Coordinator, Canadian Federation of Students (Manitoba)]

As many of you know, in the midst of a global economic recession, affordable and high-quality post-secondary education and training is key to ensuring that Canada remains a sustainable, liberal, just, and competitive society. With an aging and retiring workforce and growing young immigrant and aboriginal populations, access to post-secondary education will be key to maintaining Canada’s success in weathering the economic crisis.

With the implementation of the Canada student grants program this year—Canada's first broad-based national system of means-tested grants—and the infusion of campus infrastructure funding from the federal stimulus package, the federal government has shown leadership in post-secondary education.

The growing consensus in Manitoba and around the country is that the federal government must take a leadership role in establishing and funding national standards for post-secondary education in Canada. To do this, the government must create a dedicated post-secondary education cash transfer guided by federal legislation.

In 2007, the federal budget included the largest funding increase to core transfer payments for post-secondary education in 15 years, but it still left universities and colleges close to $1 billion short of 1992 levels, when accounting for inflation and population growth. These funding increases lack binding agreements or legislated guidelines, leaving no accountability measures to ensure that the provincial governments are actually spending the money as intended.

Manitoba has set a precedent throughout a decade-long tuition fee freeze, with universities and colleges in Manitoba experiencing enrolment increases of over 31% and an aboriginal enrolment increase of 44%. During that same period from 1999 to 2008, our post-secondary institutions saw consistent increases in provincial operating grants, funded in part by these federal transfer payments. Overall funding for post-secondary institutions in Manitoba rose by over 60%. However, to use the University of Manitoba as an example—and Dr. Barnard from the University of Manitoba may have touched on this—the loss of endowment funding and the continued accumulated federal funding shortfall inherited from years of federal funding cuts in the 1980s and the 1990s mean that the pressure on the system is not something the Manitoba provincial government can address alone. This is where you come in.

Therefore, the Canadian Federation of Students recommends that the federal government, in cooperation with the provinces, create a post-secondary education cash transfer payment for the purpose of fostering operating budgets; reducing tuition fees; and improving teaching, learning, and research infrastructure at universities and colleges. This transfer should be guided by principles set out in a federal post-secondary education act.

[Alana Makinson]

Access to education is integral to breaking the cycle of poverty that plagues Canada's aboriginal communities. Aboriginal people make up over 15% of the population of Manitoba, yet the poverty rate is 29%. Manitoba's aboriginal children under six years of age experience a poverty rate at 56% compared to 19% of non-aboriginal children.

Despite the worsening situation of Canada's aboriginal people, support for first nations education, a federal responsibility and treaty right, has stagnated over the last several decades.

The Assembly of First Nations estimates that over 10,000 eligible status first nations students remain on waiting lists to access federal funding transferred to band councils for the post-secondary student support program. Manitoba is home to 15% of Canada's aboriginal population and the Assembly of Manitoba Chiefs estimates that 10% of first nations students on waiting lists live in Manitoba.

The sixth report of the Standing Committee on Aboriginal Affairs and Northern Development entitled “No Higher Priority: Aboriginal Post-Secondary Education in Canada”, outlined a set of recommendations for aboriginal post-secondary education in Canada. Central among them was eliminating the 2% funding cap on the post-secondary student support program, the federal government's mechanism for funding first nations and Inuit post-secondary education. This funding cap prohibits the allocation of adequate funding for prospective aboriginal students, and it does not meet the needs of the growing student demographic.

Research by the First Nations Education Council suggests that an increase to the post-secondary student support program of 149%, or $481 million, is needed to address the current funding deficit. Only 5% of aboriginal people have post-secondary degrees or diplomas, and the fact that the funding allocated through the Department of Indian and Northern Affairs fails to reach non-status aboriginal students, Métis, or first nations students living off reserve only slows down progress.

Additional federal support must be allocated towards the success of aboriginal students. The federal government should eliminate the 2% funding cap on the post-secondary student support program and ensure that the federal funding for this program rises with the rate of growth in the young aboriginal population, calculated region by region.

Thank you.

[The Chair, Conservative, James Rajotte]

Thank you very much for your presentation.

We'll now go University College of the North, please.

[Dr. Denise Henning, President and Vice-Chancellor, University College of the North]

Good morning. Wado. Tansi. Boujou. Bonjour.

My name is Denise Henning and I'm president and vice-chancellor of the University College of the North.

I first want to speak about the KIP dollars, the knowledge infrastructure program, where $8 million was allocated to University College of the North. I want to point out, however, that 70% of the dollars.... We are the only institution that is advocating for and putting those dollars into first nations communities, thereby expanding our regional centre model of directly impacting the communities of the students, not only meeting them where they are academically, but also meeting them where they are demographically, and therefore keeping them within their communities to get the support from family and community.

In regard to the lack of increase in funding through federal dollars to the provincial governments to provide for infrastructure, maintenance, support, and upgrading, I am concerned about the impact this will have on a deficit for deferred maintenance in terms of the dollars that are being put into building versus the dollars that are there to maintain.

The second point I'd like to make, which was referred to by my previous colleagues, is about the 2% cap of INAC's student success program dollars. This directly impacts University College of the North. In the region we serve, the northern Manitoba area, 72% of our population is aboriginal. Eighty-nine percent of our student population are aboriginal people, and those dollars have a direct impact on them. With the highest birth rate and the fastest growing population being in the aboriginal communities, this particularly impacts Manitoba as a province, but also Canada, in that we are trying to meet the needs of those students directly to provide a healthy, talented, and skilled labour force as well as increasing the capacity for other students like me who are first nations and have met with different impacts from our lived experience.

It's very important that we understand that those wait lists translate to a decreased labour force, as well as impacting the ability for students to go to school, which leads to the third point that I want to talk about, which is the CCL dollars and the Millennium Foundation dollars.

With the Millennium Foundation dollars there was an ability for most post-secondary educational institutions to provide funding for students who were falling through the gaps because of those wait lists that were in regard to the INAC dollars. The funding for community colleges, polytechnicals, and university colleges and the debate between the universities' share of the pie for research dollars has an impact on the University College of the North in relation to providing northern solutions to northern issues.

Many times, as you are probably aware, decisions are made at the table by people who have no understanding or knowledge of what life is like in the north and the expensive living environment that we have. As a result, the decrease in the foundation dollars through these two programs has impacted us in real ways.

UCN is providing solutions through programs like our Kenanow bachelor of education program, where we are the only institution that I'm aware of.... We had 200 applications in the first week of advertising our program, and we've had 100% retention from the first year to the second year, thus subsequently providing for the needs of education in the north, the Northwest Territories, and far northern areas of Canada.

Secondly, the research dollars impact on our ability to deliver in the crisis in health care and the health care needs in northern Manitoba, where 84% of our graduates in our health studies area are staying in the north and providing for the deficit in doctors.

Our law enforcement programs understand how they're impacting on and reducing the gang intervention, the gang violence that's going on amongst the aboriginal population.

Also, 39% of the applied research that is going on in colleges comes directly from industry, and that allows us to have a greater impact on the economic development of smaller communities.

I thank you very much for allowing us to come to speak with you today.

[The Chair, Conservative, James Rajotte]

Thank you very much for your presentation.

I thank all of you for presenting to us here today.

We're going to start with Mr. McKay for questions from members, for seven minutes.

[John McKay, Liberal, Scarborough—Guildwood, ON]

I'd like to start with Mr. Stewart from the meteorological group.

Your third recommendation is on renewed financial support for research. It seems to me that the government is trying to assert sovereignty in the north, which I think is a good thing. But your observation that funding will cease for some if not all research programs in the north seems to be inconsistent with the notion of asserting sovereignty. I wonder if you could comment on that.

[William Crawford]

Are you directing that question to me?

[John McKay, Liberal, Scarborough—Guildwood, ON]

I'm not sure. It's to whomever made the presentation.

[William Crawford]

Our society believes that a wonderful way to assert sovereignty is through scientific studies. We note that almost a century ago there was concern about whether Canada or Norway owned the north, because the mapping was done by Norwegians. It wasn't based on military presence. Through these research efforts Canadian scientists have gone into the north. The International Polar Year put scientists in northern communities, and both groups were rewarded greatly by that.

A colleague of mine has written a paper on how traditional native knowledge in the north has helped their research and provided insight into climate change. So the collaboration of scientists with native communities and the presence of scientists in the north is a great bonus.

I remember years ago we had a special research program specifically to put scientists on Ellesmere Island for much of the year. It was actually aimed at sovereignty in that area.

[John McKay, Liberal, Scarborough—Guildwood, ON]

So what is actually expiring, with no replacement program?

[William Crawford]

The International Polar Year was a one-time fund. It was an international program, and Canada's contribution was considerable. We are not asking for a renewal of that.

The continuing effort is the Canadian Foundation for Climate and Atmospheric Sciences. It has been in existence since the early part of this century. It has received two endowments from the government and is asking for an additional one to continue its operations. It has awarded all its money to more than 150 research programs.

It's the only Canadian funding agency that has supported a network for drought research on the prairies. There's no other way to fund this. The funding for this agency has run out. In its final year of funding it is cleaning up a few administrative programs, making sure the research is completed. It is also sponsoring public information.

[John McKay, Liberal, Scarborough—Guildwood, ON]

What will happen to the researchers?

[William Crawford]

They'll find other fields. They'll go somewhere else. They'll be unemployed. We don't know.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Thank you.

My second question is to Ms. Henderson.

This committee recommended at one point that the government, in conjunction with the provincial-territorial governments, fund a national, accessible, affordable, high-quality, publicly regulated child care system. Mr. Mulroney apparently recommended it back in 1984. The Liberal Party made it part of its platform and actually funded it, but the government was defeated.

The government's position is: “Here's $100. Parents know better than anybody else, so do whatever you want with it.”

What's your reaction to the government's position on this?

[Michele Henderson]

When fees for child care in a non-profit centre here in Manitoba go from $560 for infant care to $376 every four weeks for care of a preschooler, then $100 hardly covers any of the child care fees. It's so important for the parents to be able to go to work and have a place for their children to go that is safe.

There's also an educational component to it. It's very important for children. I've listened to all our colleagues at the table here, and it's lifelong learning. It's learning to help our aboriginal community, and learning for poverty. If we can instill in children at a very young age the love of learning and provide that foundation for them, then all the other pieces will fall into place.

[Pat Wege, Executive Director, Manitoba Child Care Association]

I just want to add that it doesn't happen with a hundred bucks a month that can be spent on anything. You need to leave Manitoba knowing that wait lists for child care are about two to three years across all age groups right now, and it's not being accessible is a barrier to parents who want to enter the workforce or go into job training programs.

I've been involved in child care for 30 years—Michele probably for about the same time—and no parent in all that time ever called me when I was the operator of a child care program and said, “What I really need is a hundred bucks a month.” Not one parent in all those 30 years ever called me and said that. However, on a daily basis, in all of the almost 600 child care programs and 500 family child care homes in Manitoba, those operators are getting calls from parents looking for child care services. So that's the biggest gap here in Manitoba.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Can I assume that child care spaces are down, flat, or up in Manitoba?

[Pat Wege]

The development of new services has been increasing by a few hundred every year. However, there are enough services for less than 20% of the kids who may potentially need it. So the growth is pitifully slow, and what we're sure the data really emphasizes is that the Government of Manitoba could do far better if it had the participation of the Government of Canada contributing to the cost.

[John McKay, Liberal, Scarborough—Guildwood, ON]

My final quick question is to Mr. Bell.

You recommend the restoration of recently expired federal transit investments and develop a fully funded.... What transit investments have expired?

[David Bell]

Our understanding is that they're set to expire in the year 2009. I have to defer to my colleague here, because he wrote the report.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Luellman.

[Chris Luellman, Chief Administrative Officer, City of Selkirk]

Basically, from my understanding of the FCM papers that I've been investigating, the federally funded transit plan is expiring in 2009, and we believe it's being offset with the gas tax allotments for us to be using—

[John McKay, Liberal, Scarborough—Guildwood, ON]

Is this the transit passes?