Good afternoon.
The Canadian Federation of Students unites over 80 student unions in all provinces, and in all we bring together more than one-half million students at public institutions, big and small institutions, urban and rural.
Thank you, of course, for the opportunity to be here today to present some feedback on the 2006 federal budget.
Despite a healthy surplus, Budget 2006 made no headway on restoring transfers to the provinces for post-secondary education. By most estimates, these transfers fall short of 1993 levels by at least 20% on a per capita basis. Other federal initiatives such as the funding for indirect costs of research and the new infrastructure fund are not a substitute for core funding through transfers to the provinces. A budget amendment from one year ago was a promising step in the right direction. Bill C-48 was an important acknowledgment of the role of the federal government in improving access to post-secondary education.
However, the finance minister's answer to a question posed by Michael Savage during yesterday's hearings gives students and their families some cause for concern about the future of the Bill C-48 moneys. I think the minister is under the mistaken impression that a fund for infrastructure meets the objectives originally laid out for Bill C-48--it does not. The physical condition of our campuses is a distinct and pressing issue but should not be pitted as a priority against access to post-secondary education.
Budget 2006 also introduced a tax credit for textbook purchases. Let me be as clear as possible: this measure will not improve access to post-secondary education; in fact, it's unclear whether or not this public expenditure will achieve anything whatsoever. Tax credits are not available at the time when students and their families need money to pay for textbooks, or tuition fees for that matter, and tax credits' net benefit to students in real dollars is, quite frankly, insignificant.
Most importantly, tax credits are the worst way to allocate student financial assistance. They're blind to need and are useless to the vast majority of students, who aren't even on the income tax rolls.
The Canadian Federation of Students recommends that the federal government redirect moneys allocated to textbook, education, and tuition fee-related tax credits towards a national system of needs-based grants.
Thank you again for the opportunity to be here to express our opinions, and we look forward to your questions.