Thank you, Mr. Chair, honourable members, and distinguished participants of this pre-budgetary consultation.
Before I begin, I would like to introduce Lysiane Boucher, federal and international affairs coordinator for the Fédération étudiante universitaire du Québec. My name is Jean Grégoire, and I am the president of the FEUQ.
The FEUQ represents 16 member associations and over 125,000 university students in Quebec. For over 20 years now, it has been defending the rights and interests of students before, during and after their studies.
One thing that all political parties can agree on is the fact that Canada must work hard to get through the economic crisis. Several scenarios come to mind, but one aspect that often comes up has to do with the knowledge economy.
The knowledge economy is developing in several ways, but primarily through education and research. Of course education falls under provincial jurisdiction. That said, the federal government can help Canada as a whole actively develop by stimulating economic recovery through knowledge-based investments, for the well being of all Canadians. Specifically, this could be done by restoring the Canada social transfer, by providing adequate funding to granting agencies and by funding indirect research costs.
Regarding the Canada social transfer, in 1994, the Liberal government drastically cut provincial funding by eliminating much of those transfers, in order to achieve a zero deficit.
At this time, taking inflation into account, along with the increased number of beneficiaries, $3.5 billion is missing from Canada's social programs, including the post-secondary education system. Some $820 million is owed to Quebec. We are not asking for a funding increase; rather, we are simply asking that the funding provided to the provinces in the past be restored. In concrete terms, the under-funding of our university system is a direct result of this shortfall, as is the trend of researchers going abroad, allowing others to benefit from their knowledge and talents.
As for the funding provided to granting agencies, this relates to another crucial aspect of the Canadian economy: the development of knowledge and innovation. Quebec and Canadian universities provide the framework for the development of ideas and technology. Granting agencies were created to fund such research projects. At present, this major funding shortfall is crushing granting agencies, which means that many grant applications cannot be funded. As we know, the university selection process is already extremely rigorous regarding students who can apply for grants from these granting agencies. So, by limiting their funding, Canada is depriving itself of the best students and the best research opportunities that could help this country become really competitive on the international stage in terms of knowledge.
Regarding indirect research costs, not only are research projects underfunded, but all research activities are suffering from a lack of resources. Indirect costs—such as service costs and the cost of maintaining research space—total approximately 65% of all research costs. Universities are not in a position to cover these costs, which can be astronomical, and this also limits Canada's ability to develop a very highly qualified work force.
In conclusion, although education falls under provincial jurisdiction, it must be regarded as a tool for economic development and prosperity for Canadians. The current government must correct the mistakes made by previous governments and restore Canadian social transfers. Furthermore, in order to remain competitive on the international stage, develop its knowledge economy and get out of this crisis, Canada must focus more on research funding, particularly by increasing funding to granting agencies and by funding indirect research costs.
A university education generally translates into a higher salary. Higher salaries mean more income for the state. It is high time the government stopped thinking of education and research as an expenditure, when really, they should be considered an investment.
This is what the Fédération étudiante universitaire du Québec believes that Canada must do to get out of this crisis and prepare for the future.
Thank you.