Thank you, Mr. Chair.
On behalf of our 26 post-secondary institutions across Canada representing over 300,000 students, we'd like to thank you and the members of the committee for inviting CASA here today.
Before we begin, I'd like to take a moment to remind the committee of the importance of investing in education. During the last federal election, the Prime Minister commented on our education system by saying “...with all of its challenges and problems, [it] is still a great unifier, a great equalizer, a great provider of opportunity, a symbol of some of the best things about our country”.
We come before you today on behalf of students to propose smart solutions that will help address the challenges and problems of post-secondary education in Canada and help create a high-quality education system that is accessible, affordable, and innovative.
In a time of difficult choices, the government must prioritize investments in areas that will promote sustained economic growth and strong returns to Canadians. The recommendations we are advancing today are a series of high-return policy options for the federal government to ensure access to post-secondary programs.
To address what we have put on the table today, CASA recommends investments to strengthen federal support for first nations education, address unmet student financial need, and make books cheaper.
Canada's aboriginal peoples face persistent inequalities in employment, wage levels, and supported access to post-secondary education. Between 1971 and 2001, Canada's aboriginal population grew 322%, compared to 37% in the non-aboriginal population. Further, a larger proportion of the aboriginal populace is now of school age. Fifty percent of aboriginals are under the age of 25, while a third are under the age of 14. These numbers highlight the importance this demographic will play in ensuring that Canada has the labour force to grow and be competitive in the future.
To ensure that these important Canadians are prepared, we must give them the tools to improve their educational outcomes. CASA recommends that the federal government lift the 2% cap on spending to INAC's post-secondary student support program and ensure that the PSSS program is supported with the appropriate program delivery budget. Our estimates suggest that the government would need to initially invest $318 million, with a 5.6% escalator for annual growth.
Another challenge facing Canadians is the extraordinary debt of new graduates. For more than one in three student loan borrowers, however, the problem is the opposite: an inability to secure enough cash or credit to afford tuition, books, and basic costs of living. CASA is asking the federal government to increase the Canada student loan program limit from $210 a week to $290 a week, beginning in the year 2011-12. This increase will cover 95% of a student's financial need, compared to the current 66%.
The recession has been particularly cruel to students, who, on average, rely on employment for 40% of their college or university funding. Thirty-four percent of students are working while in study to help pay for their education. We are also asking that the federal government support working students by increasing the allowable in-study work income exemption from $50 to a minimum of $100 a week. The government could go even further to increase that to $200 a week, which would result in $81 million of new money for students at only a cost of $7 million to the government.
Finally, we would like to address the issue of parallel book importation regulations, an issue recently well presented by Campus Stores Canada. Supported through government legislation, textbooks in Canada have risen in price over the past 15 years by 280%. The importation regulations force retail book sellers to buy textbooks domestically at an inflated price and prevent domestic book sellers from capitalizing on more competitive prices elsewhere. If these provisions were eliminated, it would save close to $30 million annually for students alone, at no cost to the government. As a matter of perspective, the most recent reduction in the GST by one percentage point saved students $3.7 million on textbooks. CASA is recommending that the Copyright Act be amended to eliminate section 27.1, prohibiting the parallel importation of books from foreign distributors.
In closing, let me emphasize the importance of increasing the percentage of people pursuing post-secondary education in this country. By 2025, the number of persons retiring from the labour force will exceed newcomers by 34%. To continue funding in health and social services, we need to substantially increase the value of our workforce. If as a country we want to invest in ourselves and invest in our future prosperity, this committee will recognize education as a symbol of what makes Canada great, and that investing in education will build our human infrastructure and strengthen Canada's economic position.
Thank you.