If you're referring to the situation before the reforms, I think there were a lot of long-standing funding challenges in the education sector, which ultimately led a lot of institutions to recruit in large volumes before the caps were introduced.
The federal government then proceeded to introduce the caps, but as I mentioned earlier, each province and territory gets an allocation based on the overall numbers, and it is up to them to determine which institutions get their allocations. The only caveat we put on that is a certain percentage being reserved for graduate students, just to make sure that we continue to welcome talent.