Thank you, Mr. Chair.
On behalf of our membership of 26 post-secondary student associations across Canada, representing over 300,000 students, I'd like to thank you and the members of the committee for inviting CASA here today. We are here to present three reasonable, affordable, and necessary investments that the Government of Canada can make, with high returns, to improve the lives of Canadians. I'm sure around this table there's no disagreement that accessing and persisting in education will contribute to a more prosperous and engaged citizenry.
Discussions around Canada's aging population are prominent. In the media, in scholarly articles, and around the dinner table, Canadians are aware that our aging population will cause strain on our social services and labour force in the years to come. As increasing numbers of Canadians retire, labour shortages will become an economic trend. We need to ensure that the education and training opportunities are available now so we can continue to prosper in the face of our future challenges. The realistic investments that the Government of Canada can make to help address the educational needs of the country as well as the future demands of our economy include creating a vehicle exemption in the CSLP assessment, removing the 2% cap on all AANDC funding, and amending the Copyright Act to remove the parallel importation regulations.
On the vehicle exemption, Canadian students' needs are dynamic and ever changing. The standards for assessing needs today do not reflect those of a decade ago. Today many students, particularly those in suburban and rural areas, need a vehicle to go between their home, class, and jobs every day. Unfortunately, public transit is often inadequate, so a dependable vehicle is fundamental to their participation. A low of 31% of students in Atlantic Canada and a high of 49% in British Columbia rely on a vehicle to attend school. The current vehicle exemption is $5,000, despite the median advertised price of a used vehicle in Ontario being $11,400. Given the changing reality for many students, we ask that the federal government exempt a single vehicle from the CSLP assessment of borrowers' assets.
On increasing access for first nations and Inuit students, Canada's aboriginal peoples face persistent inequalities in educational outcomes due to chronic underfunding of programs and services. Between 1971 and 2001, Canada's aboriginal population grew 322% compared to 37% for the non-aboriginal population. Furthermore, a large proportion of the aboriginal populace is now of school age. Forty-five percent of the first nations population is under the age of 25 while a quarter is under the age of 15. These numbers highlight the importance this demographic will play in ensuring Canada has the labour force to grow and be competitive in the future.
CASA recommends that the federal government lift the 2% cap on spending to AANDC's post-secondary student support program and ensure that the program is supported with the appropriate program delivery budget. Our estimates suggest that the government would need to initially invest $424 million with an escalator fixed to eligible enrolment and costs.
Finally, allow parallel importation of academic materials. No Canadian student should carry the burden of unaffordable university textbooks. These regulations force retail booksellers to buy at an inflated price. They also prevent domestic booksellers from finding price efficiencies through competition. If these regulations were eliminated, it would save close to $30 million annually for students alone. As a matter of perspective, the most recent reduction in the GST of 1% saved students around $3.75 million on textbooks. These savings do not include further savings through competition by breaking the federal government endorsed monopoly of exclusive book resellers. CASA recommends that C-32 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 health and social services, we need to substantially increase the value of our workforce. The federal government cut investment in education in the mid-1990s to help reduce the deficit. Due to these cuts, Canada faced a brain drain as researchers and graduates left to find opportunities elsewhere. If we want to invest in ourselves and invest in the future solutions to our challenges, this committee will invest in education as a cornerstone to amplifying our human infrastructure and strengthening Canada's economic position.
Thank you.