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.

Speaker's Ruling

[The Acting Speaker, Royal Galipeau]

I am now prepared to rule on the point of order raised by the hon. Parliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform concerning the need for a royal recommendation for Bill C-362, An Act to amend the Old Age Security Act (residency requirement), standing in the name of the hon. member for Brampton West.

On October 18, the hon. Parliamentary Secretary to the Government House Leader and Minister for Democratic Reform drew attention to the fact that Bill C-362 would increase old age pension security and guaranteed income supplement benefits by lowering the threshold for residency requirement from the current 10 years to three years, thus resulting in significant new expenditures for the government.

The hon. parliamentary secretary argued that precedents clearly establish that bills which create new expenditures for benefits by modifying eligibility criteria or changing the terms of a program require a royal recommendation.

In support of this view, he cited rulings on Bills C-265, C-278, C-284 and C-269 from the previous session.

I would like to thank the hon. Parliamentary Secretary to the Government House Leader and Minister for Democratic Reform for having raised this issue.

The Chair has examined Bill C-362, An Act to amend the Old Age Security Act (residency requirement), to determine whether its provisions would require a royal recommendation and thus prevent the Chair from putting the question at third reading.

As has been pointed out, Bill C-362 amends the Old Age Security Act to reduce from 10 years to three years the residency requirement for entitlements to a monthly pension.

The parallel made by the hon. Parliamentary Secretary to the Government House Leader and Minister for Democratic Reform between Bills C-362 and Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), is a pertinent one.

Although Bill C-269 contains several elements that involve new expenditures, one particular element sought, much like the provisions of Bill C-362, to reduce the qualifying period for benefits.

As the Chair pointed out on November 6, 2006, in a ruling on Bill C-269, “...all of these elements [contained in the bill] would indeed require expenditures from the EI Account which are not currently authorized”.

It went on to say, “Such increased spending is not covered by the terms of any existing appropriation”.

By reducing from 10 years to three years the residency requirement for entitlements to a monthly pension under the old age security act, Bill C-362 would reduce the requirements currently authorized for payment of benefits. In doing so, the bill would authorize an inevitable increase in the amount of expenditure of public funds and therefore requires a royal recommendation.

Consequently, I will decline to put the question on third reading of this bill in its present form unless a royal recommendation is received; however, the debate is currently on the motion for second reading, and this motion shall be put to a vote at the close of the second reading debate.

Resuming debate, the hon. member for Laval.

Bill C-357--Employment Insurance Act and Bill C-362--Old Age Security Act

[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 with regard to two private members' bills, Bill C-357 and Bill C-362. Without commenting on their merits, I submit that these two bills require royal recommendations.

First, I want to explain why Bill C-357, An Act to amend the Employment Insurance Act (Employment Insurance Account and premium rate setting), requires a royal recommendation.

As the Chair ruled on May 9, 2005:

--bills which involve new or additional spending for a distinct purpose must be recommended by the Crown. The royal recommendation is also required where a bill alters the appropriation of public revenue “under the circumstances, in the manner and for the purposes set out” in the bill. What this means is that a royal recommendation is required not only in the case where more money is being appropriated, but also in the case where the authorization to spend for a specific purpose is being significantly altered.

I would note that Bill C-357 is nearly identical to Bill C-280 in the 38th Parliament which the Speaker ruled required a royal recommendation.

On June 13, 2005, the Speaker stated:

--Bill C-280 infringes on the financial initiative of the Crown for three reasons: first, clause 2 effects an appropriation of public funds by its transfer of these funds from the consolidated revenue fund to an independent employment insurance account established outside the consolidated revenue fund.

Second, clause 2 significantly alters the duties of the EI Commission to enable new or different spending of public funds by the commission for a new purpose namely, the investment of public funds.

Third, as indicated in my ruling of February 8, clause 5 increases the number of commissioners from four to seventeen.

All three of these conditions apply to Bill C-357.

Clause 2 would create an employment insurance account that is outside the consolidated revenue fund. The bill would transfer money out of the consolidated revenue fund to the employment insurance account and that money would no longer be available for any appropriations Parliament may make. This would be an appropriation of funds and, therefore, requires a royal recommendation.

However, worthy some aspects of the bill may be, and some aspects of it are, this does not alter the need for the royal recommendation.

Clause 2 would also change the duties of the Employment Insurance Commission, including new requirements for the commission to deposit assets with a financial institution and to invest assets to achieve a maximum rate of return.

These are new and distinct purposes which have not been authorized and are additional reasons why clause 2 requires a royal recommendation.

Clause 5 of Bill C-357 would increase the number of commissioners on the Employment Insurance Commission from its current four to seventeen.

On February 8, 2005, the Speaker ruled that the appointment of 13 new commissioners to the Employment Insurance Commission in Bill C-280 required a royal recommendation. This is consistent with other rulings where the Speaker found that adding remunerated members to commissions requires a royal recommendation. Given these precedents, I submit that clause 5 requires a royal recommendation.

To sum up, Bill C-357 would require an appropriation, it would alter the purpose of funds covered by the act, and it would require new spending for an expanded commission; therefore, it must accompanied by a royal recommendation.

The second bill I want to draw to your attention is Bill C-362, An Act to amend the Old Age Security Act.

This bill would increase old age security and guaranteed income supplement benefits by lowering the threshold for eligibility from the current 10 years to 3. This change would result in significant new expenditures.

Under the Old Age Security Act, applicants must have at least 10 years of residence in Canada after age 18 in order to qualify for benefits.

I would further note that partial benefits are paid to applicants who have less than 10 years of residence if the applicant has credits from a country with which Canada has a pension agreement. Residence has been an eligibility criteria since this program's inception in 1952. Reducing the residence requirement from 10 years to 3 years would have significant costs.

Since eligibility for old age security pensions also qualifies for low income recipients to receive the guaranteed income supplement, the Department of Human Resources and Skills Development estimates that the total cost of reducing the qualifying period would be over $700 million annually.

Precedents clearly establish that bills which create new expenditures for benefits by modifying eligibility criteria or changing the terms of a program require a royal recommendation.

On December 8, 2004, the Speaker ruled in the case of Bill C-278, which extended employment insurance benefits, that:

Inasmuch as section 54 of the Constitution, 1867, and Standing Order 79 prohibit the adoption of any bill appropriating public revenues without a royal recommendation, the same must apply to bills authorizing increased spending of public revenues. Bills mandating new or additional public spending must be seen as the equivalent of bills effecting an appropriation.

On November 6, 2006, the Speaker ruled with regard to Bill C-269, which extended employment insurance benefits, that:

Funds may only be appropriated by Parliament for purposes covered by a royal recommendation...New purposes must be accompanied by a new royal recommendation.

On November 9, 2006, the Speaker ruled in the case of Bill C-284, the bill that enlarged the scope of the student grants program beyond that originally authorized by Parliament, that:

Any extension of the terms of an existing program must be accompanied by a new royal recommendation.

On November 10, 2006, the Speaker ruled in the case of Bill C-278, dealing with employment insurance benefits, that:

--by amending the Employment Insurance Act to extend sickness benefits from 15 weeks to 50 weeks, the bill would require the expenditure of additional funds in a manner and for a purpose not currently authorized.

On March 23, 2007, the Speaker ruled in the case of Bill C-265, dealing with employment insurance benefits, that it was abundantly clear:

--those provisions of the bill which relate to increasing employment insurance benefits and easing the qualifications required to obtain them would require a royal recommendation.

I would also note that when Parliament adopted amendments to benefit criteria in the Old Age Security Act in Bill C-36 earlier this year, this legislation was accompanied by a royal recommendation.

In conclusion, Bill C-362 would increase expenditures for old age security and guaranteed income supplements in ways not already authorized and, therefore, should be accompanied by a royal recommendation.

Business of the House

[The Deputy Speaker, Bill Blaikie]

Before we begin private members' business today, I would like to remind the House that yesterday the Speaker made a statement in which he reminded the House that all items of private members' business originating in the House of Commons that were listed on the order paper during the previous session are reinstated to the order paper and shall be deemed to have been considered and approved at all stages completed at the time of prorogation of the first session. This also means that those items on the order of precedence remain on the order of precedence or, as the case may be, are referred to committee or sent to the Senate.

Just as individual items of private members' business continue their legislative progress from session to session, the Chair's rulings on these same items likewise survive prorogation. Specifically, there are six bills on which the Chair either ruled or commented with regard to the issue of the royal recommendation. The purpose of this statement is to remind the House of those rulings or statements.

Members will recall that on May 4 the Speaker made a statement expressing concern regarding the spending provisions contemplated by two bills, namely: Bill C-357, An Act to amend the Employment Insurance Act (Employment Insurance Account and premium rate setting) and another Act in consequence, standing in the name of the member for Gaspésie—Îles-de-la-Madeleine and Bill C-362, An Act to amend the Old Age Security Act (residency requirement), standing in the name of the member for Brampton West.

Just as was done last May, the Chair invites members who would like to make arguments regarding the need for a royal recommendation for these two bills or any of the other bills on the order of precedence to do so at an early opportunity.

Members will also recall that during the last session some private members' bills were found by the Speaker to require a royal recommendation. At the time of prorogation, there were four such bills on the order of precedence or in committee. Let us review briefly the situation in each of these four cases.

Bill C-265, An Act to amend the Employment Insurance Act (qualification for and entitlement to benefits),standing in the name of the member for Acadie—Bathurst, was before the Standing Committee on Human Resources, Social Development and the Status of persons with disabilities. The Chair ruled, on March 23, 2007, that the bill, in its present form, needed to be accompanied by a royal recommendation.

Bill C-284, An Act to amend the Canada Student Financial Assistance Act (Canada access grants), standing in the name of the member for Halifax West, was awaiting debate at report stage. On November 9, 2006, the Chair had ruled that the bill, in its form at second reading, needed to be accompanied by a royal recommendation. In committee all clauses of the bill were deleted. In its present eviscerated form, Bill C-284 need no longer be accompanied by a royal recommendation.

Bill C-303, an act for early learning and child care, standing in the name of the member for Victoria, was awaiting debate at report stage in the House. The Chair ruled on November 6, 2006, that the bill, in its form at second reading, needed to be accompanied by a royal recommendation. The Chair finds that the amendments reported back from committee do not remove the requirement that the bill be accompanied by a royal recommendation.

Finally, Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), standing in the name of the member for Laurentides—Labelle, was at third reading in the House. The Chair ruled, also on November 6, 2006, that the bill, in its form at second reading, needed to be accompanied by a royal recommendation and reminded members, on April 18, 2007, that the amendments reported back from committee did not remove this requirement.

Consistent with past practice, although today's debate on Bill C-269 may proceed, the Chair wishes to remind members that the question on third reading of the bill in its present form will not be put unless a royal recommendation is received.

I thank hon. members for their attention.

The House resumed from November 20 consideration of the motion 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.

Canada Student Financial Assistance Act

[Gord Brown, Conservative, Leeds—Grenville, ON]

Mr. Speaker, I am pleased to have this opportunity to join in the debate on Bill C-284, introduced by the hon. member for Halifax West.

As we have heard during the debate, Bill C-284 asks us to endorse the extension of the Canada access grant for students from low income families from one year, as it is currently, to all years of a student's first program of study. In addition, it proposes we vote to repeal the Canadian student financial assistance regulations that apply to this grant and incorporate them into the Canada Student Financial Assistance Act.

I want to reassure Canadians that the government is determined to find ways to support students from low income families in realizing their dreams of a post-secondary education. We want to enable these young people to obtain the skills and knowledge that post-secondary education can provide. We want all young Canadians, regardless of the incomes of their families, to have the opportunity to compete for the challenging and fulfilling careers of tomorrow. Access to post-secondary education will help them contribute their skills and knowledge and will make our national workforce stronger, more flexible and better positioned to compete in the global economy.

However, as other members have pointed out in the debate, to extend the Canada access grant for students from low income families to cover all years of a student's first program of post-secondary study, while perhaps noble in intent, may be premature at this time. It should be noted that this has been only operating for little more than a year.

The government is doing many things to help post-secondary education and to help access to it across our country. However, before extending this grant to all years of a student's post-secondary education, I believe it is essential that we consider Bill C-284's proposals in the larger context of the support of Canada's new government for post-secondary education, which does include various forms of assistance.

In total, we are providing $1.8 billion in grants and loans to help students access college or university. This is in addition to $15.5 billion that the government will provide this year through the Canada social transfer for provinces and territories to allocate for post-secondary education. We also have a wide range of tax measures, including the tuition tax credit and a tax credit for textbooks.

The government is doing many things to help access to post-secondary education, but at this time we believe the proposal is a bit premature. Fundamentally, not only are Bill C-284's proposals not informed by hard evidence, but they would impose an unnecessary obstacle to the provision of effective and efficient support for Canada's students.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, I am pleased to participate in the debate on Bill C-284, sponsored by the member for Halifax West. He has been a real champion on behalf of those in most need in our society. Who could be in more need than low income and disabled Canadians looking for an opportunity to improve themselves by getting post-secondary education so they can fully realize their aspirations and their abilities.

I am surprised that the government simply does not seem to get it. In fact, one of the Conservative speakers has said that having the lowest debt to GDP level in 24 years is bound to help all aspects of our economy, including children looking to obtain post-secondary education.

I know the government is paying down debt, et cetera, but the rubber does not hit the road. The federal government needs to have programs that target them. We cannot only say that the economy is improving and, therefore, low income Canadians will have more income to pay for important activities of their children, such as post-secondary education.

I am also very disappointed with the government's attitude toward what it has done and how that supposedly will take care of the situation raised by the hon. member. I have looked at some of the issues members have raised. They talk about a text book tax credit, which is about an $80 value. The rest of the things, whether it has to do with an infrastructure trust or some of the other aspects, are global issues that will not target those who need the help the most. In fact, Bill C-284 raises the fact that the Canada access grant is only available for the first year of study.

What happens after the first year? How do low income Canadian families and families with disabled children carry on? How do they finish what they have started? Nothing will change dramatically in the one year. This is the beauty of the bill. This good idea has been started, but we need to finish the job to make absolutely sure that those who embark on the challenge of post-secondary education have every opportunity to fully complete the program and to take their place as a contributing member of our workforce.

The last Conservative speaker tended to suggest that it would somehow be a real burden for the government to change legislation. All of a sudden, instead of being a regulation, it now has to make changes to legislation. I do not think Canadians will accept the fact that somehow it is a burden to government to make some modest changes in order to implement important programs, where the changes will translate into assisting people who need our help.

In the newspaper today I read a piece about Preston Manning and Mike Harris. They have put out their next missile targeting Canadians yet again. They have said that government has to get out of funding provincial responsibilities. In other words, this is the Conservative brain trust saying to Canadians that the government should get out of this. This is the ideological difference here. The Conservatives want to get out of anything that has to do with provincial jurisdiction. It means not supporting the bill and getting rid of things.

Wait until there are more attacks on the whole aspect of how we support Canadians in areas which have principally been provincial jurisdiction. It is like saying that health care delivery is the responsibility of the provinces so the federal government should not support it when it involves the delivery. However, federal governments have supported it because it is important. Many times prior governments have looked to providing capital funding for MRIs, CT scanners and special programs for wait times.

We have the $42 billion deal with the provinces to provide the necessary funding so our health care system can establish wait times for critical areas. This was done because the federal government was playing a role in an area particularly to do with provincial jurisdiction.

However, when it comes down to it, the measure of success of a country is not an economic measure. It is a measure of the health and well-being of its people. That means the federal government has a role to play, regardless of jurisdiction. There are ways to collaborate and to work with the provinces to ensure the objectives of all Canadians are met.

I was very disappointed to see that the Conservative brain trust decided that we had to get out of funding provincial responsibilities. The government itself has said that one of the big things it has done is transfer $15.5 billion to the provinces for post-secondary education. It did that because it was part of its ongoing responsibility. It was not a decision of the current government. In fact, this is under the transfer arrangements that the federal government has with the provinces with regard to health care, post-secondary education and established program financing. Those are ongoing responsibilities of the government.

Members will know that the provinces continue to put pressure on the federal government to continue to provide additional funding up to certain levels so they can deal with the growing demands on our health care system, post-secondary education and established program funding.

I also thought it was interesting that Mr. Harris and Mr. Manning said that the government should get out of funding welfare, that it had nothing to do with welfare. They want to get out of child care. Does this not paint a picture by two prominent Conservative persons, one a former premier and one a former leader of the official opposition for the then Reform Party or the Canadian Alliance Party?

It says that the federal government is getting out of supporting people. It is basically saying that they should fend for themselves, that it will not provide those programs. The line I heard was something to the effect that Canadians should no longer be dependent upon their government for things, that they should not be reliant on the government for anything, that they should take care of themselves, that they have to do their own thing. I cannot believe this is the case.

We are a knowledge based economy. We are an economy where the degree of education of a Canadian will be extremely important in terms of the success rate. I remember doing work some years ago on the economics and implications of a post-secondary education. In fact, in terms of unemployment rates, people with no post-secondary education had a 15% unemployment rate. Those who had some education had an unemployment rate of something like 10%. However, those who had a post-secondary education, whether it be university, community college, apprenticeship or skills training, had an unemployment rate of only 3%, much below the national average. In fact, a post-secondary education was the key determinant of whether someone would have a job.

Bill C-284 says to Canadians that a bit more needs to be done on behalf of low income families and families with disabled children who want to obtain a post-secondary education. They are important to Canada. They are important for our future economic strength and well-being.

Some have said that they cannot afford post-secondary education. We want to eliminate that as an excuse. People should never say they cannot afford it. As a matter of fact, we have to say to people that they cannot afford not to get a post-secondary education. It is because of the unemployment rate, which I mentioned. It is also because of the spread in the income that persons can earn.

I thank the member for Halifax West for bringing forward a very thoughtful bill. The previous speaker said that we should wait for a little while to see what the reaction was to the first year of the proposal and then we could think about it and make a decision. It is a no-brainer. We should expand the bill to cover all four years of a post-secondary education.

[Joy Smith, Conservative, Kildonan—St. Paul, MB]

Mr. Speaker, I am pleased to participate in the debate on Bill C-284 proposed by the hon. member for Halifax West.

Bill C-284 proposes to extend the Canada access grant for students from low income families to all years of a student's first program of study, such as an undergraduate degree. Additionally, Bill C-284 would repeal the Canada access grant provisions in the Canada student financial assistance regulations and incorporate them in the Canada Student Financial Assistance Act.

Before discussing the substance of this proposed legislation, I would like to reassure the member opposite that Canada's new government is committed to supporting access to post-secondary education. Moreover, I believe our government shares with the parties opposite a common recognition that education is the key to prosperity and advancement. As the philosopher, Jean-Jacques Rousseau, so eloquently pronounced:

We are born weak, we need strength; we are born lacking everything, we need aid; we are born stupid, we need judgment. All that we lack at birth and that we need when we are grown is given by education.

The natural resources of Canada will be shaped by cultivation but our human capital, the future generations of leaders and visionaries, will be shaped by education. Through education, we will create the vibrant and dynamic workforce Canada requires to compete and, more important, succeed in a global economy.

Lamentably, during the course of its 13 year tenure, the previous Liberal government's commitment to post-secondary education was questionable at best, negligent at worst. In the words of the member from Kings—Hants, currently a Liberal leadership aspirant, the former Liberal government systematically “slashed transfers to the provinces to such an extent that it created a tremendous vacuum in funding for universities throughout the country.The provinces were simply not able to maintain adequate funding to our post-secondary universities and community colleges across the country. As a result of the deficit that existed in the funding of post-secondary education, we saw, for instance, the doubling of the average amount of student debt after a four year program in Canada. We saw tuition doubling, not just in one province but all across the country”.

Canada's new government, on the other hand, has recognized the need to support the future well-being of Canadians through investments in post-secondary education along with increased individual support for apprenticeships and students. With respect to supporting apprenticeships, our new government has introduced new measures that provide both strong incentives for employers to hire new apprentices and to encourage many young Canadians to pursue apprenticeship training.

These incentives include: first, a new apprenticeship incentive grant which will provide grants to apprentices in the first two years; second, an apprenticeship job creation tax credit to encourage employers to hire new apprentices; and third, a new tools tax deduction to help tradespeople with cost of tools. These new measures will encourage new registrations in apprenticeship programs and support the successful completion of this training.

Furthermore, in budget 2006 we have demonstrated our commitment to assist students acquire an education. We have done so by offering substantial measures, such as the new textbook tax credit, expanded eligibility criteria for students seeking Canada student loans and exempting scholarship and bursary income from taxation.

Budget 2006 also allocated $1 billion to the provinces and territories to support pressing investments in post-secondary education and infrastructure, such as libraries and laboratories. These measures were well received. As Claire Morris, president of the Association of Universities and Colleges of Canada stated, they underline Canada's new government's “commitment to promote a more competitive, more productive Canadian economy”.

In addition to the measures announced in budget 2006, the Government of Canada provides nearly $15.5 billion to the Canada social transfer fund which provinces can allocate toward post-secondary education and social services. These include $1.7 billion to support post-secondary education research and $1.8 billion in grants and loans to enable students to access post-secondary education.

Moreover, our government also provides a wide range of tax measures and savings incentives to assist Canadians with their post-secondary education. These measures include the tuition tax credit and the education tax credit to help cover non-tuition costs of post-secondary education and the student loan interest credit. Also, the Canada learning bond and the Canada education savings program help hard-working families save for their children's post-secondary education.

However, I would like to stress that in cooperation with the provinces and territories we continually examine ways to improve supports for post-secondary students. In this context the Minister of Human Resources and Social Development has been given a specific mandate to undertake discussions with the provincial and territorial governments to discuss the overall objectives for post-secondary education and training, appropriate roles, and ensuring appropriate accountability measures.

Having provided the appropriate context for the balance of my remarks, I will now address the substance of Bill C-284. Each year the Government of Canada makes significant investments in non-repayable assistance for students in need. This assistance includes, for example, grants specifically designed to help students with permanent disabilities, high need students with dependants, and students from low income families.

Currently, the Canada access grants for students from low income families are available to students enrolled in the first year of their first post-secondary program of study, provided this occurs within four years of their graduation from high school.

Bill C-284 proposes to enable students to receive the grants in any year of their first program of study, again providing they started that program within four years of completing high school.

It is important to note that these grants were just recently introduced in August 2005. Accordingly, the Canada access grants for students from low income families have been in effect for only one single year. As a result some observers have noted that there is insufficient data available to confidently conclude what degree of impact this grant has had. Prior to extending this grant it would be beneficial to wait for more data to become available. This additional data would enable us to better analyze and predict the potential impacts of extending the grant to additional years.

Another important consideration in the Bill C-284 debate is the reality that such a proposed change would necessitate extensive intergovernmental consultation with participating provinces and territories. Moreover, further analysis would also be required to determine the extent to which non-participating provinces might be eligible for increased alternative payments.

I would like to further point out that the second component of Bill C-284, which proposes the repeal of the Canada access grants provisions in the Canada student financial assistance regulations and their incorporation in the Canada Student Financial Assistance Act, would have significant consequences.

It should be noted that incorporating the Canada access grants directly into legislation would make it burdensome to adjust both the criteria and the amount of the grants should changes become necessary. The inclusion of the Canada access grants in the Canada Student Financial Assistance Act would mean that Parliament's approval would be required for any future enhancement of the Canada access grants for students from low income families and the Canada access grants for students with permanent disabilities.

Adjusting these grants through the regulations in which they are now included is a far more efficient and effective way to make required changes. Moreover, placing the Canada access grants in legislation would also create a discord of governing authorities over the various grants available through the Canada student loans program. While the Canada access grants would be governed by legislation, the grants available under the Canada student loans program would remain subject to change through regulatory amendments.

For the aforementioned reasons the House should objectively consider the manner in which Bill C-284 proposes to modify the Canada access grants.

Finally, before I conclude, I would like to again assure the member for Halifax West that we share a common commitment to support access to post-secondary education.

[Gary Merasty, Liberal, Desnethé—Missinippi—Churchill River, SK]

Mr. Speaker, it is a pleasure to speak in support of the bill introduced by the hon. member for Halifax West and it is a pleasure for two reasons.

The first reason is that the hon. member has family roots in Meadow Lake, a town in my riding celebrating its 70th anniversary this year and a town that is well-known for its community spirit and hospitality. The second reason is that the bill would create real opportunity and respond to challenges in Saskatchewan.

Expanding the Canada access grants gives students from low income families and students with disabilities tremendous aid to meet Saskatchewan's emerging labour force gap.

Saskatchewan is at an unique place right now. Many of our baby boomers are starting to retire. As a result, many jobs, ranging from teachers to nurses, to welders, need new people to come in and fill these positions. To respond to this gap, there is an emerging youthful population in northern Saskatchewan where much of the wealth-generating natural resources are. Thus, northern Saskatchewan represents, in many ways, an emerging new Saskatchewan.

Meeting Saskatchewan's labour gap and building this new Saskatchewan will require many strategies but, most important, we need to enable all young people, regardless of background, to have access to the best skills training and education Canada provides.

Currently, Canada access grants provide financial assistance to students from low income families and students with disabilities for their first year of study. Bill C-284 would extend the availability of this grant to all four years of study. The bill would also give Canada access grants a statutory base that would make it difficult to end or change without parliamentary scrutiny, giving the grants program long term stability. The bill meets a need I saw time and again when I was a student, a teacher and now as a parent.

My wife and I have watched, with immense pride, our oldest children go on to post-secondary education at the University of Saskatchewan. Their accomplishments were as a result of many years of dedication and hard work. Added to that pride is knowing that they are attending a school with the best college football team in Canada, the U of S Huskies.

The biggest challenge for all students is trying to meet numerous costs, like housing and food, while paying for tuition. I know people who simply could not make ends meet and had to drop out regardless of merit and ability.

When I graduated from the U of S, I became a teacher back home in Pelican Narrows. I had the opportunity to meet with some of the greatest emerging minds of Canada, my students, and to help them explore their potentials. However, I was far too often faced with the terrible sight of youth, regardless of obvious merit and tremendous ability, being denied the opportunity to go on to post-secondary only because of a lack of funds.

Over this last week I saw many of the new future leaders of Saskatchewan as I spoke and met with students across my riding. At Meadow Lakes Carpenter High School and Creighton Community School, I spoke with grade 12 students who asked tough questions and had insightful opinions that showed sharp, inquisitive minds and remarkable potential.

I also met and spoke with NORTEP and SIIT students in La Ronge, students who are further along in their journey of learning. They will soon be assuming the leadership role they have worked so hard to achieve. I am very proud of all of them.

All of these students are on the cutting edge of Saskatchewan. They represent the new Saskatchewan. However, many challenges still must be addressed. Many communities face poverty, need improved roads or basic infrastructure. There also needs to be more investment into education at all levels.

The bill would help so many to contribute by taking away much of the burden of tuition and unmanageable debt. Students would l get the opportunity they need and I know many will take this opportunity and run with it for the rest of their lives.

I also had the opportunity to meet with students from the northern adult education class in Green Lake. These students are making education a priority for their lives and their children's lives. This commitment and dedication is an inspiration. However, there is also a deep disappointment with the impact of the Conservative government cuts to literacy. There are feelings of deep betrayal and of being targeted for no good reason.

I have heard of the disappointment from other groups as well. Community access programs and youth employment opportunities are threatened without the commitment of the Conservative government. Industry Canada officials also admit that there are no plans to continue first nations SchoolNet, a huge blow to learning at schools on many first nations reserves. The cuts and lack of commitment to educational tools have hurt northern Saskatchewan. We need to take advantage of all learning opportunities and build more of them.

The bill would help students gain financial stability and encourage them to fulfill their potential. I ask the Conservatives to take a lesson from the bill and fully commit to building opportunities for our future leaders and the new Saskatchewan.

[Peggy Nash, NDP, Parkdale—High Park, ON]

Mr. Speaker, I am pleased to speak in support of Bill C-284, which would extend Canada access grants for students from low income families from the first year of study to each year of a student's first program of study.

While this bill does not address all of the problems in post-secondary education and is itself imperfect, I do support this bill. I believe it represents a more progressive and efficient approach to increasing access to post-secondary education by providing direct funds to students in need at the time when tuition is due.

In my community in Toronto I have spoken with young people who have completely written off the possibility of attending post-secondary education. They believe it is only for the wealthy. Increasingly, I think, these young people are losing hope that they can better themselves and make a constructive contribution to society. That is a terrible tragedy.

I also speak to many other young people who have gone through post-secondary education but who are now living under an incredible, crushing debt. Some of them live with a debt of tens of thousands of dollars, which is the size of a mortgage for some people in some parts of this country.

For young people trying to get a foothold in the workforce, starting out with that kind of debt is ridiculous, especially if they are living in a city like Toronto, with our housing prices. They simply cannot do it. I have young people coming to my office in tears because they are not able to meet the requirements for paying back their student debt.

This is a pressing need not only for these young people, but for our society. Post-secondary education is a public good. It is a social good. If Canada is to remain a wealthy developed country in a 21st century economy, we need to attract the best and the brightest, not only the wealthiest, to proceed with their education.

We have seen huge cuts to education over the last several years. The Liberals, when they were in power, cut over $2 billion to post-secondary education in the 1990s and slowly added a convoluted patchwork of so-called student assistance programs, tax credits and savings schemes that disproportionately benefited high income families. The Conservatives have perpetuated this system with the textbook tax credit and by raising the student debt ceiling in the budget of 2006.

I believe that all Canadians have a lifelong right to learn. While post-secondary education is important for young people, it is also a public good, and it should be accessible and of high quality for all Canadians. As we see our economy changing and evolving, people no longer expect to be in the same job over a lifetime. As a society, our best adjustment programs recognize this. They help people to keep learning throughout their lives and therefore better equip themselves for different jobs down the road.

Yet we have seen our education system, which had been relatively affordable, become one that is relatively unaffordable. It is interesting to speak to this right after my colleague from the Bloc, who described the system in Quebec. Not only does Quebec have the lowest tuition rates, it offers a universal assistance program for students. Over 70% of students identify financial barriers as the greatest reason not to pursue post-secondary education. Education has become less affordable and less accessible, more so than at any time in our history during this century, which I find astounding.

While I support the bill, I do have concerns. While assistance for the lowest income students is important, assistance for middle class students is also important. The amount being offered to low income students is insufficient when we take into account the true costs of post-secondary education. They still incur enormous debt.

Eligibility for the program is based on income instead of need. Regardless of what kind of program a student is taking, the amount is not increased. As I mentioned earlier, it is important for Canadians to have access to lifelong learning and mature students are excluded.

The program also excludes financially independent students. Even though they live on their own and are financially independent, their eligibility is linked to parental income. As the previous speaker indicated, they do not target students from rural and aboriginal backgrounds where there are particular challenges.

Nevertheless, the bill is a step in the right direction and deserves support.

However, this one bill cannot solve the problem. Canada's post-secondary education system needs an overhaul. An NDP government's first priority for post-secondary education would be to dramatically reduce student debt. We would ensure that tuition is no longer out of reach of even middle income Canadians and that debt levels are reduced. We would shift the focus of student aid to more non-repayable grants and ensure the grants are available when tuition is due.

The NDP would ultimately enact a Canada post-secondary education act that would legislate stable, core funding from the federal government for post-secondary education and enshrine the principles of accessibility, quality, academic freedom and accountability of a public, not for profit post-secondary education system.

In conclusion, while I support the bill as a long overdue first step toward helping students and their families cope with high debt and rising tuition fees, the overall national need for a comprehensive approach to post-secondary education is greater now than ever. This is fundamentally what our country needs to address in the coming months.

The House resumed from October 2 consideration of the motion that Bill C-284, An Act to amend the Canada Student Financial Assistance Act (Canada access grants), be now read the second time and referred to a committee.

Bill C-284--Canada Student Financial Assistance Act--Speaker's Ruling

[The Speaker, Peter Milliken]

I am now prepared to rule on the point of order raised by the hon. Parliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform concerning the need for a royal recommendation for Bill C-284, An Act to amend the Canada Student Financial Assistance Act (Canada access grants), standing in the name of the hon. member for Halifax West.

I would like to thank the hon. Parliamentary Secretary for having raised this issue as well as the hon. member for Halifax West for his comments.

In his presentation, the hon. parliamentary secretary argued that Bill C-284 seeks to create a new category of assistance for students with permanent disabilities and students from low income families, claiming that such a program does not currently exist in the Canada Student Financial Assistance Act.

The hon. member for Halifax West countered that this grant program already does exist and that the purpose of his bill is simply to extend the program over the course of four years.

After examining Bill C-284, the Chair has concluded that it has two objectives. First, it takes the existing Canada access grants program, established by regulation, and transfers its provisions out of the regulations into the Canada Student Financial Assistance Act.

I remind hon. members that a regulation cannot impose a charge on the public revenue without express authority having been provided in the enabling legislation. The government cannot expend funds pursuant to a regulation unless the legislation on which that regulation is based was accompanied by a royal recommendation.

In this case, then, the Canada access grants program, established by authority granted to the minister by the Canada Student Assistance Act is covered by the royal recommendation which accompanied that act. Accordingly, the Chair is satisfied that moving the program out of the regulations into the act does not violate the royal recommendation.

However, the second objective of Bill C-284 is more problematic for the Chair. As the sponsor of the bill, the hon. member for Halifax West himself pointed out, the bill seeks to expand the grants program, so that students will be eligible for grants in every year of a program rather than only during their first year of post-secondary studies. In enlarging the program in this way, the bill extends the program's scope beyond that originally envisaged.

Such an extension is not covered by the terms of any existing appropriation. Funds may only be appropriated by Parliament for purposes authorized by a royal recommendation. Any extension of the terms of an existing program must be accompanied by a new royal recommendation. Through the royal recommendation accompanying the original act, the minister was able to authorize the funding of a one-year program. The royal recommendation did not cover a program of four years, as proposed in the hon. member's bill.

Therefore, the Chair must conclude that those provisions in clause 1 of the bill, which relate to increasing the availability of Canada access grants, would require a royal recommendation.

In its present form, I will therefore decline to put the question on third reading of this bill in its present form unless a royal recommendation is received. However, the debate is currently on the motion for second reading and the motion shall be put to a vote at the close of the second reading debate.

Canada Student Financial Assistance Act

[The Acting Speaker, Royal Galipeau]

Order. The time provided for the consideration of private members' business has now expired and the order is dropped to the bottom of the order of precedence on the order paper. The hon. member for Westlock—St. Paul will have six minutes left in debate when Bill C-284 is taken up again.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Mr. Speaker, I am pleased to speak on behalf of the government to this private member's bill.

I thank the member for Halifax West for bringing forward this important topic for discussion. I also congratulate the member opposite whose daughter is now going to Acadia University. Acadia is an excellent university; however, if he is looking for second options I would suggest the University of Alberta is a top university in this country.

The bill seeks to amend the Canada Student Financial Assistance Act in order to extend the provisions of the Canada access grants. This bill raises two important questions. The first is whether or not this is the appropriate time to be making changes to this relatively new student support measure. The second is whether or not amending the act is the right way to proceed. Let me address each of these in turn.

On the question of extending the financial support now provided by the Canada access grants, the member opposite has identified a concern which Canada's new government definitely shares. We want to make sure students from low income families and students with disabilities have access to post-secondary education and can receive the financial support that they need.

Indeed, this government wants to look at the whole issue of how post-secondary education is financed in this country. The Minister of Human Resources and Social Development has indicated that she will be initiating discussions with the provinces and territories to discuss the overall objectives for post-secondary education and training appropriate roles, while at the same time working toward developing a framework for ensuring measurable results and accountability in respect of funding support. Issues like those raised in Bill C-284 may very well be considered during the course of those discussions.

Expanding access to post-secondary education to students from low income families and those with disabilities is a concern Canada's new government recognizes and is sensitive to. However, it is important to keep in mind that the Canada access grant is not the only way the Government of Canada helps finance post-secondary education in this country.

A brief overview of the current measures in place clearly demonstrates the Government of Canada has a broad commitment to investment in education and training on behalf of all students. Budget 2006 is a demonstration of this commitment as it included concrete measures in support of post-secondary education.

Having the lowest debt to GDP level in 24 years is bound to help all aspects of our economy, including children looking to obtain post-secondary education, but this government did far more. There are investments such as $15.5 billion annually to the provinces and territories for post-secondary education and social services through the Canada social transfer; $1.7 billion to fund research in post-secondary institutions; $1.8 billion in loans and grants for post-secondary education; $1.5 billion in tax credits and education savings incentives; and another $1 billion in federal funds to help provinces and territories make urgent investments in post-secondary infrastructure.

Additionally, we also introduced a new textbook tax credit, a measure expected to benefit millions of students over the next two years. We expanded eligibility for the Canada student loans program, meaning an additional 30,000 students will now be able to access this program. That is right, I said an additional 30,000 students.

Clearly, when it comes to supporting post-secondary education and helping Canadian students and their families with its costs, Canada's new government has demonstrated its willingness to make the necessary--

[Mario Silva, Liberal, Davenport, ON]

Mr. Speaker, I am pleased to speak today in support of Bill C-284, introduced by my hon. colleague, the member for Halifax West.

For centuries now, the importance of a sound education has been one of the hallmarks of public policy, not just in Canada but across the nations of the world. A sound and fulfilling education not only serves the interests of the students who benefit from their studies, but the society in which they choose to practice the skills they have learned.

By ensuring that our young people receive the best possible education, we are also ensuring that our society thrives, grows and prospers. It was the Irish poet, W.B. Yeats, who stated: “Education is not the filling of a pail, but the lighting of a fire”. In providing young Canadians with the opportunity to obtain a thorough and balanced education, we are, as a society, lighting the fire of wonder in their hearts and minds, a fire that will illuminate our country for generations to come.

It is in this vein that I support my colleague's bill, which would amend the Canada Student Financial Assistance Act.

The bill would provide for Canada access grants to eligible Canadians who have permanent disabilities. It recognizes, implicitly, the unique challenges faced by persons with disabilities in their efforts to obtain a post-secondary education.

No one in the House will be unfamiliar with the very real challenges that face students in contemporary Canadian society. It is truly heart-rending to hear the stories of so many young Canadians who simply cannot afford to pursue their education to the extent that they would like, simply as a result of financial barriers.

This challenge is particularly real for persons with disabilities, who may not have the same opportunities to supplement their incomes while attending school as other students might find available to them. Furthermore, I believe we, as Canadians, have an obligation to assist those with disabilities to ensure that they have the same opportunities as their fellow citizens to choose whatever career path they wish to pursue.

I join with my colleagues in wishing to see this bill pass, but fear that it might not succeed. This is because the government seems to have decided to abandon the important role of the federal government with respect to education. The delivery of education may be a provincial responsibility, but as the last government demonstrated, there is much that the national government can do as well.

When the members of the New Democratic Party decided to bring down the previous Liberal government, they chose political expediency over the best interests of Canadians. As a result, much was lost for students.

Members might recall the financial statements of the then Liberal finance minister, the member for Wascana, as he outlined an enormous progressive plan to assist young Canadians to realize their full potential in terms of educational opportunities. This plan committed $2.2 billion over five years to improve financial assistance by making post-secondary education more affordable for lower and middle income Canadians. This was an incredible commitment to help ensure that all Canadians, regardless of their means, had the opportunity to obtain a sound education.

The Liberal fiscal plan also called for $550 million over five years to extend Canada access grants, the subject of our discussion here today. This would have covered 55,000 students from lower income families in all years of undergraduate education. We would also have seen $265 million over five years for Canadians with disabilities to assist them in participating in the workforce.

These commitments were real and they would have gone a long way toward assisting young Canadians with their educational objectives. Members of this caucus have and continue to hold a solid and real commitment to Canadian students.

In keeping with the Liberal commitment to education, I was myself pleased to introduce in the House Bill C-316, an act to establish a national literacy policy. It is truly disheartening that upwards of 38% of Canadians have difficulties reading and writing.

We all know that the most fundamental requirement for education and career advancement is the ability to read and write at a reasonable level of proficiency. The reality is that illiteracy in this country costs the economy approximately $10 billion annually, not to mention the ongoing daily struggles of those who have to contend with limited skills when it comes to reading and writing.

Similarly, it is also true that there is a serious lack of funding for literacy programs in Canada and an even more pressing need for a coordination of services. We need to implement a national literacy strategy with long term programs designed to assist all Canadians who need this kind of help in realizing their full potential both in their academic and professional careers.

Members of this House have acknowledged that without proper educational training the future of many young Canadians is less than bright. There are fewer and fewer jobs available to those who do not possess the kind of skills now required in the workplace. The quandary many young Canadians find themselves in is that they cannot access those jobs without the needed education, yet they cannot afford to obtain the skills that are needed.

It is important that we act on this issue of the need for literacy programs and financial assistance for students, particularly those with disabilities. We must also ensure that we recognize the need to make a real commitment to adequate funding of education in this country.

Education is the foundation upon which the future of this country will be built. There is no benefit to shortchanging our future by failing to adequately invest in the education of young Canadians. The reality is simply that in creating the kinds of programs that will encourage support and sustain our young people in their educational journey, we will be ensuring that the workforce of the future will be able to meet the needs of our economy.

Bill C-284 recognizes the need to assist those who need the help the most in realizing their full potential as students and future employees. In providing this kind of support, we are truly inviting all Canadians to the table. We need to expand programs such as those proposed in this bill, as well as those put forward in Bill C-316 which would promote literacy across Canada.

These programs are investments in the future of our young people, the future of our country and in reality, the future of our planet. There is a role for Canada in the world. When encouraging our young people to strive to reach their maximum potential, we by implication do the same for our country itself.

[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)