Mr. Speaker, the government is firmly committed to supporting literacy. The question has always been how can we do this without jeopardizing the hard won progress that we have made in getting the nation's finances in order.
It is quite clear that any measures taken must be effective and in fact fiscally responsible. That is why the government has introduced an initiative that rebates 100% of the GST paid on books to public libraries, schools, universities, colleges and other bodies which promote literacy.
This means that there is no GST on any books distributed freely for use in primary or secondary schools or other educational settings. This also results in tax relief on books, not only for structured learning in our schools and colleges but also for life long learning through public libraries and front line literacy groups.
The GST rebate on books recognizes the important role played by educational institutions and community groups in helping individuals get the tools they need to learn how to read. In addition, it is an efficient and responsible investment. Targeting assistance for front line literacy groups will certainly ensure a greater impact for every dollar of expenditure.
The special rebate complements government initiatives announced in the 1997 budget to support learning and education in Canada. And this year funding to the National Literacy Secretariat will rise by 30% to $30.3 million, creating more opportunities for individuals to improve their literacy and communication skills.
For students the education credit has been increased to recognize the non-tuition costs of schooling and the tuition credit has been expanded to cover not only tuition fees but also mandatory fees imposed by post-secondary institutions for educational purposes. In addition, students are now able to carry forward any unused tuition and education credits to be applied to future income.
Further, the annual contribution limit for registered education savings plans has been doubled and parents are now able to transfer that unused RESP into their registered retirement savings plan. Furthermore, the Canada Council provides support to Canadian authors and assistance is available to Canadian publishers through the Department of Canadian Heritage.
There are a number of ways that the government has taken on the initiative of literacy and is ensuring that the expenditures being made are targeted to front line literacy groups so that we can ensure that individuals who are most in need of literacy assistance will get it through the tax and rebate that we have provided through the GST.
Quite clearly the government does not claim that targeted tax relief will answer all the challenges that we face with respect to literacy and education. However, we are certainly convinced that these measures will go a long toward supporting efforts to improve literacy levels in communities across Canada. The Prime Minister, the Minister of Finance and all members of the House are committed to ensuring that literacy is a priority for the government. It is a priority which is reflected when we speak with Canadians.
I think the agreement in the House is perhaps how we will achieve the goal of increasing literacy in this country. We feel we have balanced that approach through our tax expenditure and will continue on that track to ensure that Canadians are well served by the expenditures the government makes.