Bill C-284 (Historical)

An Act to amend the Canada Student Financial Assistance Act (Canada access grants)

This enactment amends the Canada Student Financial Assistance Act to add provisions respecting the availability of Canada access grants to students with permanent disabilities and students from low-income families, and repeals similar provisions set out in the Canada Student Financial Assistance Regulations. The availability of grants for low-income students is extended from the first year of study to all years.

Canada Student Financial Assistance Act

[Denise Savoie, NDP, Victoria, BC]

Mr. Speaker, I rise to speak to Bill C-284 at a very dark time for post-secondary education in Canada. Last week we saw cuts to student employment programs and literacy. Over the summer we saw a consultation process that was really not a consultation process at all. It seemed to exclude many student groups which are most concerned by the issue of post-secondary education. It seems as if the Conservatives want to leave us a paper country.

In my opinion, there are ways to meet the unique cultural needs of Quebec while providing equitable treatment for all parts of Canada. It is upsetting to see young people mortgaging their lives—the result of many years of cuts to provincial transfer payments by the former Liberal government.

That government had 13 years to implement the type of progressive legislation introduced by a member this morning. The situation could deteriorate with the Conservatives' “every man for himself” policy.The goal in Canada should be for all graduates of secondary schools to have access to post-secondary education or training. Bill C-284 is a first step in that direction. It would ensure that Canada access grants for students from low-income families, presently available for only the first year of education, would be available to eligible students for each year of a program of studies . Low-income families are not benefiting from current programs.

This bill does have significant shortcomings but it represents the most progressive and effective way of putting money directly into the hands of students who do not have the means to pay their tuition fees, that is at the time they most need these monies. This approach would allow us to increase access to post-secondary education in contrast to the number of disparate federal and provincial programs presently labelled as student financial assistance such as tax credits, savings plans, the Millennium Scholarship Foundation and the very unwieldy Canada student loans program.

The NDP will support this bill because, as I stated, it is the first measure—one we have been awaiting for a long time—to help students and their families with rising education costs, which have become prohibitive in many of our provinces.

I want to go back to this grant. In its first year, Canada access grants for students from low income families were for the first year of study only, the lesser of $3,000, assessed need or 50% of tuition. The Canada access grant for students with permanent disabilities was for each year of study, but the lesser of $2,000 or assessed need. This was clearly inadequate.

We have to look at who is benefiting from our existing policies.

In their first year, Canada access grants were awarded to roughly 3% of full time college and university students, 22,000 students from low income families and approximately 9,100 students with permanent disabilities, costing almost $52.6 million.

Let us look at the other programs. During that same period, $462 million was paid as matching Canada education saving grants, CESGs, to 1.8 million children in families who could afford to invest in RESPs many years before their children's studies. In contrast, the new Canada learning bond for low income families to invest in RESPs, helping 7,271 children in families who could not invest in RESPs.

In 2001 individuals with income over $70,000 claimed over $164 million in federal education and tuition tax credits. As Ross Finnie, a research fellow at the School of Policy Studies at Queen's University said, “These huge chunks of money are going where it's not needed. It wouldn't be so bad if there was enough money going into where it's really needed, but there isn't”.

The millennium foundation is set to expire in 2009. There are a number of lessons to be had from its work, in particular: its focus on grants over loans; its needs-based assessment rather than income-based; its experience collaborating with provinces and territories; and its high ratio of direct assistance to operating costs. We should examine these experiences and best practices in developing a national needs-based grants system.

Clearly, the patchwork of student assistance in Canada does not adequately target those students and families in greatest need. This is why we support the bill.

The Canadian Federation of Students, which has sent over 50 student leaders to the Hill this week, will look very closely at the support for the bill as expressed around the House. The Canadian Federation of Students and the Canadian Association of University Teachers have both called for a simpler, central system of needs-based grants to replace this patchwork assistance that we call financial aid.

The NDP vigorously opposed reliance of Liberal and Conservative governments on tax credits instead of real investment in post-secondary education. Research substantiates our concern. Through this debate, I will reiterate our alternate vision of a national needs-based grants system.

Bill C-284 could be the building block of such a national system, with a number of changes to address its flaws. Let us look at some of the amendments that will be necessary. One is a needs-based assessment rather than an income-based one, Others are removing exclusionary clauses against mature students, introducing a mechanism to include financially independent students and including targeted grants to account for the realities of rural and aboriginal students.

The bill is about the role of the federal government in post-secondary education. The Conservatives would have us believe that there is no role for the federal government in social programs and in post-secondary education, and that seems to suit the Bloc Québécois. However, let there be no mistake. Under the Conservatives, we are returning to the pre-1950s, where provincial governments had sole responsibility for post-secondary education, with the horrific inequities that existed between provinces.

By turning post-secondary education back entirely to provinces, as the Conservative government seems to be leaning toward, many Canadians will begin to wonder just what it means to be Canadian.

[Maka Kotto, Bloc, Saint-Lambert, QC]

Mr. Speaker, today I rise to speak about Bill C-284, an Act to amend the Canada Student Financial Assistance Act (Canada access grants). I will begin by giving an overview of the Canada Student Financial Assistance Act.

First, I will remind members that, in keeping with its unconstitutional tendency to intrude into the jurisdictions of Quebec and the provinces, the federal government has already stuck its nose into the field of education by providing Canada access grants.

There are two types of Canada access grants: assistance for students from low-income families and assistance for students with permanent disabilities. These grants are a type of bursary, and the grant amount depends on a number of criteria.

Let us consider, for example, the first form of grant: the Canada access grant for students from low-income families. The Canada Student Financial Assistance Regulations, adopted under the Canada Student Financial Assistance Act, provide that the federal government or its intermediaries can provide initial Canada access grants to students from low-income families who are in their first year of post-secondary education.

The regulations also specify that the Canada access grant paid to a qualifying student can cover up to half of the student's tuition, based on need, but must not exceed $3,000.

The regulations set eligibility conditions that applicants must meet. They are as follows: the applicant must be in the first year of a program of studies and must never previously have been enrolled in a post-secondary program; the applicant must enroll in a post-secondary program of studies within four years after leaving secondary school; the program in which the applicant is enrolled must be offered by a recognized institution, must be at least two years in length and must lead to a certificate or diploma; the program must be full-time; the net income of the student's parents must fall within the range that qualifies them for the national child benefit supplement.

The second type of grant is the Canada access grant for students with permanent disabilities. Just like the Canada access grants for students from low-income families, it is the Canada Student Financial Assistance Regulations, passed under the Canada Student Financial Assistance Act, that defines the list of criteria for being considered a student with a permanent disability. One of the conditions is the requirement to provide proof of the permanent disability by way of a medical certificate, for instance.

The regulations stipulate that the grant to an applicant with a permanent disability corresponds to the student's assessed need, up to a maximum of $2,000 a year, for every year he or she is eligible.

And now comes Bill C-284.

This bill is simple: it extends the availability of grants for low-income students from the first year of post secondary education to all years of post secondary education.

Since the criteria and terms for granting the Canada access grants for students are set out in the regulations, Bill C-284 integrates these criteria and terms directly in the Canada Student Financial Assistance Act and, accordingly, repeals them from the Canada Student Financial Assistance Regulations.

Bill C-284 is almost a carbon copy of sections 40.01, 40.02 and 40.03 of the Canada Student Financial Assistance Regulations. These sections are to be included in the Canada Student Financial Assistance Act and set out the conditions the students must meet to be eligible for a Canada access grant, as well as information on the size of the grants.

When the regulatory provisions were incorporated in the legislation, some words were changed in such a way as to renew the Canada access grants for students from low-income families. Subsection 14.2(2) shows this change. It says:

The amount of a grant made under this section to a qualifying student in a loan year shall not exceed the least of—

Subsection 14.2(1) would also be amended to remove the requirement that students be in the first year of their program of studies.

These two amendments make it possible to renew Canada access grants for qualifying students. These students may receive up to $3,000 for each year of their post-secondary program of studies.

Nevertheless, Bill C-284 has a number of flaws that should be reviewed in committee. I would like to point out some of them.

First, by incorporating regulatory provisions into an act, Bill C-284 would make subsequent amendments more difficult. Although an ideological Conservative government that cuts programs for under-privileged citizens might see this as a good thing, it would make it much more difficult to improve measures. Furthermore, changes to the access grant program for students, especially amendments affecting the indexation of amounts granted, would have to be legislated.

Second, there is no indexation mechanism for the amounts set out in the act. This is significant because $2,000 today will no longer be worth $2,000 in four, five or six years. Students' needs are of vital importance, but the money the federal government gives to education, primarily through the Canada social transfer, is not nearly enough, nor does it not enable Quebec to finance its post-secondary education system as much as it would like. We must ensure that the funds provided are adequate and take into account the rising cost of living. The lack of an indexation mechanism is therefore a serious shortcoming.

Third, Bill C-284 is just a band-aid, not a long-term solution. Until the fiscal imbalance is resolved, and until Quebec can count on additional own-source revenues of $30.9 billion per year, the post-secondary education system will continue to be underfunded.

Our position is simple. The Bloc Québécois will support Bill C-284 in principle so that it can go to committee for further discussion of the amounts to be offered to students and the absence of an indexation mechanism.

The Bloc Québécois is fully aware that Bill C-284 is acceptable only because the Canada Student Financial Assistance Act contains a clause for opting out with compensation. This legislation constitutes an infringement on a jurisdiction of Quebec and the provinces. Yet Bill C-284 does not help Quebec and the other provinces provide quality education, because it does not give them the means to do so. It makes students pay for part of the cost of their post-secondary education, but does not improve the quality of instruction.

The best solution to help students, and the solution recommended by the Bloc Québécois, involves a considerable increase in direct federal transfer payments to Quebec and the provinces until the fiscal imbalance issue is resolved. In Quebec, the government, students and educational institutions issued a joint statement to the effect that transfer payments must be increased to $4.9 billion a year. It is because of the fiscal imbalance, created by the federal government itself, that Ottawa must now help students financially so that they can access post-secondary education, since transfers to the provinces for education have been considerably reduced.

To conclude, I would remind the House that, fortunately, section 14 of the Canada Student Financial Assistance Act gives those provinces that wish to administer their own loans and scholarships program the right to opt out with compensation. This is the case for Quebec, which has its own program.

[Lynne Yelich, Conservative, Parliamentary Secretary to the Minister of Human Resources and Social Development]

Mr. Speaker, I rise today to speak on Bill C-284, a proposal to extend the Canada access grants for students from low income families from one year to all years of students' first program of study. Additionally, Bill C-284 would repeal the Canada access grant provisions in the Canada student financial assistance regulations and incorporate them into the Canada Student Financial Assistance Act.

Before I begin I would like to acknowledge that there is a common consensus in the House, indeed among all Canadians, on the tremendous value of post-secondary education, for a high quality education represents a crucial stage in tapping the potential of future generations of Canadians. Not only will it provide them with the knowledge, skills and experiences to acquire well paid jobs and fulfilling careers, but it will provide Canada with the skills and the imaginative human capital we need to succeed in the increasingly competitive global economy.

As Sir Winston Churchill so accurately forecast over half a century ago, “The empires of the future are the empires of the mind”. In this spirit, I join with the member for Halifax West in recognizing the need to support students from low income families in access to post-secondary education.

However, as we endeavour to pursue these objectives, we must ensure that we do so in a manner that achieves the desired results through the most effective and efficient methods possible. As a result, I welcome the opportunity to engage in today's discussion on Bill C-284.

Before getting into specifics, I believe it is important to frame the discussion in the larger context of the Government of Canada's current support for post-secondary education. It is important to recall the substantial overall investments the Government of Canada makes in post-secondary education in a variety of interrelated ways.

First, it should be noted that we cooperate closely with our provincial and territorial counterparts in this area. For instance, in the last fiscal year the Government of Canada transferred $15.5 billion to the provinces and territories for post-secondary education and social services.

Furthermore, the government provides another $1.8 billion through various grants and loans to help students obtain a post-secondary degree. For instance, through the Canada student loan program, we provide $1.6 billion annually in loans to nearly 340,000 students.

Moreover, in addition to this direct assistance, the Government of Canada also has a range of other incentives to help Canadians finance their post-secondary education. These include tax measures such as the student loan interest credit, the tuition tax credit and the education tax credit, all of which help cover non-tuition costs.

We also have incentives to help Canadians save for post-secondary education, such as the Canada learning bond and the Canada education savings grants.

The ongoing support, in all of its many forms, reflects a broad commitment to post-secondary education, but Canada's new government is not content to stop there. In budget 2006, we brought forward tangible measures and made a substantial investment to help Canadian students and their families meet the rising costs of post-secondary education.

These measures included the introduction of a new textbook tax credit, the expanded eligibility for students seeking Canada student loans by reducing the amounts parents are expected to contribute toward their children's education, and the creation of a tax exemption for all scholarship and bursary income.

What is more, our government is acknowledging the groundbreaking research on Canada's university campuses, and to support further breakthroughs and innovations, budget 2006 provided an additional $100 million on top of the $1 billion the Government of Canada already provides for post-secondary research and technological development, including $40 million per year for the indirect costs of research programs, $20 million per year for the leaders opportunity fund of the Canada Foundation for Innovation, $17 million per year for the Canadian Institutes of Health Research, and $6 million per year for the Social Sciences and Humanities Research Council of Canada.

These measures are concrete examples of our new government's recognition of the importance of research to increasing Canada's productivity and our standard of living. Claire Morris, President of the Association of Universities and Colleges of Canada, stated:

We are pleased with the budget’s support for university research, as well as the government’s recognition of the important role that research plays for Canadians. These increases in research funding underline the government’s commitment to promote a more competitive, more productive Canadian economy.

Even more, budget 2006 strengthened the entire post-secondary sector with an allocation of $1 billion to the provinces and territories for pressing investments in post-secondary education and infrastructure such as libraries and laboratories.

It is important to keep these substantial investments and incentives in mind when assessing the merits of the proposals contained within Bill C-284. It is also critical to remember that any legislation affecting education by definition involves a cooperative approach with the provinces and territories. It is also important to recall the bleak record of the defeated Liberal government after 13 years in power.

Listen to the Canadian Federation of Students which noted it was the Liberal government that was:

--responsible for cutting funding for post-secondary education...and driving up tuition fees...trying to give the impression of responding to students and parents, while delivering no serious commitment to accessible post-secondary education.

Or better yet, listen to Liberals themselves. Listen to their aspiring leader, Bob Rae, bemoan that even after 13 long years of Liberal governments:

Our education system is not nearly what it could be. The cost of post-secondary education has been rising rapidly for years and shows no signs of abating.

Or listen to another aspiring Liberal leader, the member for Kings—Hants, who slammed a Liberal government that:

--slashed transfers to the provinces to such an extent that it created a tremendous vacuum in funding for universities throughout the country. As a result of the deficit that existed in the funding...we saw, for instance, the doubling of the average amount of student debt after a four year program in Canada.

Notwithstanding such realities, today's discussion is about moving beyond the squandered promises of the past 13 years.

Bill C-284 in that spirit merits an objective assessment. To begin with, it has been suggested that due to the fact the grant under discussion is merely one year old, the availability of comprehensive data to inform our decision is somewhat lacking which as a result may hinder our ability to properly determine whether additional measures are needed. We must be mindful that such proposed changes would require consultations with provincial and territorial governments.

An additional issue that merits mention is the fact that Bill C-284 proposes to repeal the Canada access grants provisions in the Canada student financial assistance regulations and integrate them into the Canada Student Financial Assistance Act. This amendment essentially means that Parliament itself would have to make future changes to the program through legislation.

What is more, since other grants under the Canada student loans program would still be governed through regulations, the proposed bill would create a two tiered approach to governance. As a result, the management of the Canada student loans program may not be as efficient as we would consider appropriate.

I believe the issues I have highlighted today should be important considerations in our discussion of Bill C-284.

[Geoff Regan, Liberal, Halifax West, NS]

Mr. Speaker, I am pleased to speak this morning to my bill, Bill C-284, which I hope hon. colleagues will support.

Even though I note there has been an objection from the government in terms of the question of royal recommendation, I still hope that hon. colleagues from all sides of the House will find favour with the bill and will recognize the importance of this issue. I think the bill could have a dramatic impact on the future of not only students across this country, young people, particularly those from low income families and those with disabilities, but also on our country and its future prosperity.

I am well aware these days of the issue of post-secondary education because my oldest daughter has joined the many thousands of young Canadians who go off to university and community colleges across this country every year. This fall she started at Acadia University. I wear what is called an X ring, which indicates that I am a graduate of St. Francis Xavier University. Although I did point out to my daughter the odd time that in fact St. FX was selected over and over, and again this year, as the number one undergraduate university in the country, that did not seem to persuade her. Sometimes we parents do not get our way, but I must acknowledge that Acadia is certainly an outstanding institution as well. I know she will enjoy herself there. She is a good student and I am sure she will do well.

Mount St. Vincent University is located in my riding of Halifax, Nova Scotia, as are many others in my province. We have St. FX, as I mentioned, Cape Breton University, St. Mary's University, Dalhousie University, Acadia University, King's College University, the Nova Scotia College of Art and Design and the Nova Scotia Community College. We do have a large number of universities and post-secondary education institutions in my province where this issue is particularly important.

One of the concerns people in Nova Scotia have had for many years is that funding for education is provided not on a per student basis, but on a per capita basis. When many students immigrate into a province to study then that province incurs the cost of educating those students who from other parts of the country. The real concern is that funding is not provided in relation to the fact that a province has all those additional students. It is a real challenge.

At the national level and in my region there are some disturbing trends at the post-secondary education level. First year enrolment is starting to go down a bit now that the double cohort from Ontario has passed through its first and second year and is moving on. For instance, first year enrolment at St. Mary's University is down 7%. This is expected to continue at many schools and universities across my province and across the country over the next decade. Acadia also reported this year that first year enrolments were sluggish, at least in August, although I think they may have picked up since.

Surveys have found that as many as 36% of high school graduates cite financial reasons as a barrier to going on to university or community college. This bill would help to eliminate some of those barriers. Let me go through some of the highlights of the bill.

Bill C-284 would expand Canada access grants, which is a program that already provides financial assistance to students from low income families or those who are disabled. Currently, the grants under this program are available for the first year of study for those who are from low income families and for those with disabilities. The bill would extend the availability of this grant to all four years of study. This is an important measure for low income students and those students facing the challenge of having disabilities.

The bill would also create a statutory base for the Canada access grants, making it, in my view, much more difficult to cancel or change without Parliament having a say in the process.

Investing in education is not about promoting the individual wealth of those lucky enough to be able to afford to go to higher education. It is about creating a stronger, more prosperous, more personally enriched, in a sense of enriched with knowledge, society. We do that by providing opportunities to all Canadians. As government, as Parliament we have a responsibility to improve our country by improving opportunities for all our citizens, and this bill would help to do that.

Education is a nation-building investment. We have an education deficit in this country that needs to be addressed through measures like those in Bill C-284.

It is important to note that nine million working age people, or 42% of Canadians, have literacy skills that are below the level considered necessary to function in our society today. This relates to the whole question of education and higher education. I was quite alarmed last week, and colleagues on both sides of the House should be alarmed as well, at the government's decision to cut $17.7 million from funding to literacy groups across the country. That funding is very important for those groups to train the teachers, to develop curriculum and to keep the programs going all over the country that helps adults to learn to write and read.

If Canada is to be productive in the future and have a more competitive economy, I believe, and I think most hon. colleagues will agree, we need to invest in those people and in those kinds of programs. I think cutting that program is a huge mistake. I hope my colleagues on the Conservative side of the House will work to persuade the President of the Treasury Board and the Minister of Finance to rescind that cut. It is wrong to write off these adults who are working hard to learn to read and write. It is not the answer at all. I was alarmed by the Treasury Board president's comments in that regard last week

So far we have seen no indication from the government that it intends to help low income students or those with disabilities to obtain higher education and to pay for it. Otherwise, if the government were really interested in these things, it would not have cut, for instance, the summer career placement program, a summer employment program for students. Next year that program will be cut in half. Many employers in the country are already saying that if they do not have that kind of funding to assist them in paying the salaries of these students that they will not be hiring those students.

Many students will be affected by that program being cut because they will not have the income they need next summer to return to school in the fall. This program is being cut in half. I hope my hon. colleagues will be lobbying the ministers and pushing them to rescind that cut as well. I think it is an error. It is not a huge amount of money in terms of the overall budget of the government. I think the government could certainly afford it in the excellent financial condition in which it has been left.

The Canadian Federation of Students estimates that up to 25,000 summer jobs for students are being eliminated by that cut. As the Canadian Federation of Students has pointed out, university and college is already beyond the means of thousands of Canadian families and cutting the funding for that program will mean that many students will not be able to go back to school next year and those who do return will be saddled with even more debt.

We all know that tuition fees have been rising dramatically in recent years. Nationally, the average undergrad tuition is $4,347 for the 2006-07 academic year, which is a big hike from the $1,464 average in 1990-91. This is another reason for us to provide more assistance to students. We should be keeping the pressure on the government to move forward and keep its promise of a dedicated education transfer. We have not seen it. We did not see it in the budget. We have not seen any indication of that promise being kept. It is important that we see some action on this important point.

It is true that the government is holding post-secondary education and training consultations but who is it consulting with? A number of student groups, such as the Canadian Alliance of Student Associations and the College Student Alliance, have written to the Minister of Human Resources and Social Development to express their concern about not being invited to take part in this process. That seems an odd decision. If the minister is going to consult about post-secondary education, surely the students should not be totally ignored. Surely that should be corrected.

The government has also cut or eliminated a series of youth and international internships, such as the Fulbright scholarships, which provided the opportunity to study between the U.S. and Canada, for students to go to another country and have exposure there and learn about that country. Those are very important programs for our students to get exposure to the rest of the world and to develop a network for the future. As a trading nation, a nation that exports so much of its goods and services, it is absolutely important that we continue to develop the contacts we have and the understanding our young people have about other countries. Cutting these kinds of international scholarships is a grave error. Again, I hope that the government will reconsider this approach.

I think we saw a very different approach a year ago when our government was prepared to, for instance, expand the Canada access grants to cover all four years of study and to have the fifty-fifty plan, which would have paid for half the tuition for all Canadian students for both the first and the last year of study. Of course, what we need to see here is a comprehensive review of student assistance in total. That is an important step to take. We should not just look at some small aspect of this, but at the whole picture of how students are paying for their education and what government can do to assist them, because Canadian students need more support if they are to be able to afford their education.

In last fall's fiscal update, we did see additional funding for Canadian students studying abroad and a 50% increase in funding for graduate scholarships. However, forcing students from low income families to shoulder heavier and heavier debt loads to get their education is unconscionable. It is not in the interest of our country. It is not in the interest of our economy. Those people need to be able to get a good start in life as they come out of university. If they have huge debt loads, it is a lot harder for that to happen.

Again, in terms of our future productivity, the imminent retirement of the baby boom generation demands that we train and educate as many Canadians as possible to replenish our workforce. This is an absolute priority. I think we need to see more recognition of that from the government side.

Without a comprehensive grant system, the kind this bill would create, thousands of Canadian students who qualify for post-secondary education and have the marks to get in will not be able to attend. We should be gravely concerned if that occurs, whenever it occurs, and it is occurring now.

Expanding the Canada access grants is the most effective and efficient way, I believe, to provide support to Canadian students who need it most. The average debt for university graduates with a bachelor's degree is $20,000. That is according to the latest information available from Statistics Canada. The average debt for college graduates is almost $13,000. Fourteen per cent of university graduates have $25,000 or more in student debt.

Providing a statutory base for the Canada access grants, as the bill would do, would make it much more difficult to end or change the program without parliamentary scrutiny. I think it is important that this be the case. It should not be the case that the government can simply scrap this willy-nilly. I think this Parliament has supported this idea or concept of support for students with the Canada access grants. I think we need to put this into law and make sure it is a permanent program, because education and training are clearly a fundamental cornerstone for building a sustainable economy.

How are we going to have a competitive nation? How are we going to have a competitive economy and a more productive economy if we are not prepared to invest in these areas?

In fact, the Council of the Federation recently reported that 70% of the jobs created in the coming years will require a post-secondary education. Let us imagine that. It seems to me that one of the challenges we face with high school and pre-high school students is to make more of them aware of what it means to have a university or community college education and what it can mean for future income. There is the fact that one's chance of being unemployed if one goes on to higher education is dramatically lower and one's income will be dramatically higher. We see that in study after study.

It is true that when we see a situation like the boom in the petroleum sector in Alberta, for instance, there are a lot of jobs right now that may not require a higher education, but more and more of them do. When we look at the skilled trades, for example, we see that those trades are becoming more and more complex. Reading the manuals alone is becoming complex. Higher levels of reading, arithmetic and mathematics will be required. Higher levels of education will be essential for for all those things. This bill would help those students who are facing the challenge of being from low income families or the challenge of disabilities to afford to go. I think it is an important measure. I hope my hon. colleagues will support the bill.

[Tom Lukiwski, Conservative, Parliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform]

Mr. Speaker, I rise on a point of order. On May 31, you invited members to comment on whether Bill C-284 would require a royal recommendation. Without commenting on the merits of this private member's bill, it is the government's view that this bill requires a royal recommendation since the bill proposes the creation of an entirely new category of grants, which would modify the purpose of the existing act.

The Speaker has previously ruled that the creation of a new purpose for legislation, which involves costs, requires a royal recommendation.

On February 8, 2005, the Speaker stated:

Where it is clear that the legislative objective of a bill cannot be accomplished without the dedication of public funds to that objective, the bill must be seen as the equivalent of a bill effecting an appropriation.

Bill C-284 would add an entirely new category of financial assistance to the Canada Student Financial Assistance Act by creating a special access grant for students with permanent disabilities and students from low income families.

The requirement for spending is clear in the text of the bill itself, which specifies that grants for disabled students not exceed $2,000 and that those for low income students not exceed $3,000.

Some members might argue that the original act provided students with financial assistance and that the new original royal recommendation covers this new bill. However, the Canada Student Financial Assistance Act was enacted to provide the authority for repayable loans. In creating an entirely new non-repayable grant, this bill changes the purpose of the bill and involves a new and significant appropriation.

Therefore, I believe that the bill, in its entirety, requires a royal recommendation.

[Geoff Regan, Liberal, Halifax West, NS]

moved that Bill C-284, An Act to amend the Canada Student Financial Assistance Act (Canada access grants), be read the second time and referred to a committee.

[Geoff Regan, Liberal, Halifax West, NS]

moved for leave to introduce Bill C-284, An Act to amend the Canada Student Financial Assistance Act (Canada access grants).

Mr. Speaker, I am pleased to rise and present this bill, which is entitled an act amend the Canada Student Financial Assistance Act, Canada access grants.

It is evident the Conservative government has no intention of helping low income students attend universities and colleges. That is why I am pleased today to introduce my bill. I thank my hon. colleague for Dartmouth—Cole Harbour for seconding it.

In 2004 the previous Liberal government created the Canada access grant program to assist students from low income families with their first year's tuition. The bill would expand the Canada access grant program to allow these students to apply for a Canada access grant in all years of post-secondary study, which is something the Conservative government fails to do, and that is stand up for low income Canadians.

(Motions deemed adopted, bill read the first time and printed)