Good afternoon. My name is Cameron Campbell and I'm the campaign coordinator for the Canadian Federation of Students, Newfoundland and Labrador. I'm joined by Keith Dunne, who is our provincial organizer for the federation.
The federation represents every public university and college student in Newfoundland and Labrador. On behalf of our members we would like to thank the committee for the opportunity to provide input today.
Our recommendations to this committee will focus on how the next federal budget can enhance access to post-secondary education and reduce student debt.
Over the last few years the federal government has made some progress in increasing access to post-secondary education. This progress has been wholeheartedly welcomed by our federation. In particular, the increase to the Canada social transfer and the introduction of a national grants program have been applauded by students. However, I think many will agree that there is much more work to be done in making post-secondary education more affordable and accessible. At a time when over 70% of new jobs require a post-secondary degree or diploma, it is crucial that the country have a national strategy for post-secondary education.
Although education is a provincial jurisdiction, not unlike in health care the federal government has a clear role to play in providing funding for post-secondary education as well as student financial assistance. In order to achieve this worthwhile goal the federal government should work together with the provinces to implement a national post-secondary education act.
Similar to the Canada Health Act, a national piece of legislation would clarify the roles and ensure accountability for the billions of federal dollars transferred to the provinces each year.
The recent implementation of the national grants program is helping thousands of students attend school while also reducing their debt loads upon graduation; however, we must do more to increase funding to our national student financial assistance portfolio. As we have outlined in our written brief, increasing funding to the grants program can be done without new budgetary expenditures.
Each year the federal government allocates more than one billion dollars in education-related tax credits. That's almost triple the budget of the Canada student grants program.
We recommend refocusing these funds to those who need the dollars by reallocating funding from the tax credits to the new Canada student grants program. In doing so the federal government can triple the size of the new grants, increasing accessibility for post-secondary education for those from lower socio-economic backgrounds while also very significantly reducing student debt.
Let's be clear: investing in student grants, especially during the current economic circumstances, is a necessity. Students spend grants almost immediately in the local economy while developing broader skills that add to the labour force's overall flexibility.
I would now like to take the opportunity to discuss the recent experience in our home province of Newfoundland and Labrador as it relates to increased funding for post-secondary education and student financial assistance.
On the education front, successive provincial governments have invested heavily in post-secondary education, and the results are becoming quite evident. Tuition fee reductions and freezes, progressive changes to student financial assistance, and increases in core funding to our public post-secondary institutions have paid huge dividends in our province while saving students and their families millions of much-needed dollars. As a result, the province now boasts what is fast becoming, if it's not already, the most accessible system of post-secondary education and student financial assistance in Canada.
The work is clearly paying off. Not only has student debt decreased, but enrolment has gone up, college and university campuses are thriving, and the province has been attracting a growing number students from across Canada and around the world.
Many economists argue that the best way to weather the current economic downturn is to invest in social programs, particularly education, research and development, and training.
A 2004 study quantified the benefits derived by government investment in our public college system, the College of the North Atlantic. The study demonstrated that a direct and indirect benefit from funding post-secondary education is extended to society as a whole, including job creation and expansion of the tax base, improved economic productivity and health, declining crime, and greater participation in civil society. The study found that from a broad investment perspective, it was estimated that the College of the North Atlantic provided an impressive cost-benefit ratio of $11.50 for every dollar invested.
Investing in education is clearly a proven economic stimulus package. Action must be taken in the next federal budget to establish a concrete and stable framework to increase funding to our post-secondary system and reduce student debt.
I'll end there. I can perhaps go into more depth during the question period.
Again, I thank you for the opportunity to present our ideas here today.