Evidence of meeting #82 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was program.
A video is available from Parliament.
4:45 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
How much is actually funded...? The institutional costs. We'll say that a degree is x dollars. They're paying only $7,000 in tuition and really the cost is $15,000. Is it 50%? What percentage do they pay?
4:45 p.m.
National Director, Canadian Alliance of Student Associations
From the loans perspective, that's arrived at 60-40, but as to what a student pays—
4:45 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
What a student pays of the actual cost of the education.
4:45 p.m.
National Director, Canadian Alliance of Student Associations
That can vary from institution to institution, once you add in the fees. Across this country you're looking at an average year for a student—when you calculate fees, living, and books—costing $18,000 to $27,000.
4:45 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
So you don't have that number, the tuition compared with the education cost?
4:45 p.m.
National Director, Canadian Alliance of Student Associations
I can find that for you.
4:45 p.m.
Conservative
Cathy McLeod Conservative Kamloops—Thompson—Cariboo, BC
That would be great.
Certainly, I have every sympathy. I have three children who went through university. But I do see significant changes to the grant program, both for low- and middle-income support for people with permanent disabilities, student grants for equipment for disabilities, support for dependants. I look at the RESP and the Canada student grant that goes along with it.
Has anyone added all those costs together in terms of what the actual support is?
4:45 p.m.
National Director, Canadian Alliance of Student Associations
I couldn't give you the total number for support right now.
There are absolutely a number of programs that are there to support students. As we mentioned, the Canada student grants program is a fantastic way to put dollars that don't have to be repaid by students. When you look at changes to the copyright legislation, modernizing that and including fair dealing, those are savings and investments in students. Everything helps.
If you look at polling, education is among the top four issues. Really, more investment is required to make it a number one priority for this country.
4:45 p.m.
NDP
Robert Chisholm NDP Dartmouth—Cole Harbour, NS
Thanks very much.
Thank you very much to all the presenters. It has been very interesting listening to your thoughts and ideas about things that need to be done.
It's interesting to note that whether it's as a result of the favourable corporate tax rates or an unwillingness to invest, the Governor of the Bank of Canada has also recognized that there is upwards of half a trillion dollars sitting in cash in bank accounts that corporations are sitting on. The government, to date, appears unable to get that money out, to get it invested, as it was intended, for capital, for hiring, or for whatever.
I'm wondering if you have some suggestions on what can be done. What incentives could government use to try to get some of that money out and working in the economy?
I think you all have a perspective on this issue, different points of view. Why don't we start with Steven and then head down the list.
4:45 p.m.
President, Rideau Institute
I don't pretend to be an expert in this area, but one would think, with the Canadian dollar high as it is, that, as has always been explained to me, this is an advantageous time to recommit to capital expenditures, to procure new equipment, and to upgrade facilities in manufacturing. Perhaps the government has some way, in terms of leveraging new technology, of getting this money going so that we have the investments—in auto or other manufacturing, aerospace, or other areas—through which this dead money can become lively.
4:50 p.m.
President, Portfolio Management Association of Canada
That's a tricky question, because I think the answer would vary by industry. If there were specific industries in which the government saw that there were more cash reserves and that investment wasn't happening, there might be some industry-specific opportunities to look at.
A lot of the holding on to cash that's happening at the corporate and individual levels is beyond our borders. The post-U.S. election period, a little more stability in Europe, and a little more confidence globally in the economy are going to help.
Locally, Mr. Carney's or the Bank of Canada's policy on maintaining interest rates has certainly helped in keeping the rate low to stimulate investment. There is a limited amount we can do within Canada until the global economy situation is in a better position.
4:50 p.m.
Director, Investment Industry Association of Canada
I have a small order and a big one. I'll start with the small one.
There was a tax change made in 2008 that inadvertently hurt small western investment dealers. It was a tax change that made a great deal of sense, which was to tax traditional warrants as income, even though it hadn't actually materialized.
There is something called “broker warrants” out west, which are usually used instead of cash for some of our smaller western members to invest in new opportunities. Instead of paying 100% cash for underwriting fees, you would take broker warrants and join in or participate in the potential growth.
We don't think this costs a lot. It was inadvertent—we know that from having talked with Finance—but it takes a lot of time to reverse something.
The other one, which I mentioned before, was flow-through shares. We think that directing them at new types of industries, biotech and so on, is a great area, both for driving jobs but also for potentially getting our industries out of energy and financial institutions only and into new areas that could help growth more generally.
There are a number of other areas—
4:50 p.m.
Director, Investment Industry Association of Canada
I'll give you the hard copy version later.
4:50 p.m.
NDP
Robert Chisholm NDP Dartmouth—Cole Harbour, NS
That would be good.
You'll agree—I'll go to Mr. Scholz next—that this is a problem. The governor said that this is just not good enough.
4:50 p.m.
President, Canadian Association of Oilwell Drilling Contractors
I'm not an expert on that question. I'll pass on answering.
4:50 p.m.
NDP
Robert Chisholm NDP Dartmouth—Cole Harbour, NS
It's one thing to say that we have a competitive tax rate, but if our tax rate is not having the kind of effect it's supposed to have, which is to get corporations to use those savings to invest in capital and labour, then it's not working, is it?
4:50 p.m.
President, Canadian Association of Oilwell Drilling Contractors
You'd be best to talk to Barbara on that question.
4:50 p.m.
NDP
Robert Chisholm NDP Dartmouth—Cole Harbour, NS
I'm sorry, Mr. Dayler, that we weren't able to get to you.
4:50 p.m.
Conservative
