Mr. Speaker, I will wait until the wind goes down.
I will be sharing my time with the hon. member for Etobicoke—Lakeshore.
I am very happy to finally see that a balanced budget has arrived. Canadians have been adding to the nation's mortgage for 27 years and now, because of our collective efforts, we are actually starting to pay it off and to pay off the debt. I will admit that it will take quite a few years to do this, but at least it is a start and we are now out of the blocks.
Before I comment on the initiatives contained in this budget, I want to briefly point out that we have not forgotten about job creation. In fact, the focus of this budget is on jobs, future jobs. We already have a proven track record of job creation and now we want it to continue by increasing access to the knowledge and skills required in the new economy.
Over the last four years, the number of jobs have grown by over one million. From 1997 alone, 372,000 new jobs were created, all of them full time and in the private sector. The unemployment rate fell to below 9% in December, and while that is not near a satisfactory number, the improving trend is clear and it will continue well into the future.
The federal government cannot ignore global pressures. Canada is part of a fast changing, competitive, interdependent world economy, an economy that is increasingly knowledge based, but this is not only because of the new high skill jobs in the high tech industries. There has already been a steady rise of skill requirements in all sectors of the economy and in most types of jobs.
We know not all Canadians are in a position to access the knowledge and skills they will need throughout their lifetime to find and to keep good jobs. Barriers, most often financial barriers, reduce access to post-secondary education for many. That is why this government has created this education budget. This budget is about enhancing the equality of opportunity in gaining the knowledge and skills for today and tomorrow.
The centrepiece of our increased support is the Canadian millennium scholarship foundation. Through an initial endowment of $2.5 million, the arm's length foundation will provide scholarships to over 100,000 students each year over 10 years, starting in the year 2000.
However, the most important aspect—and I know this is important to all Canadians and indeed to all Prince Edward Islanders—is that Canadians of all ages, studying full time or part time in publicly funded universities, community colleges, vocational or technical institutions and CEGEPs, will be eligible for these scholarships.
Moreover, the foundation will have the authority and the discretion to include privately funded institutions. This has a much broader scope than any existing support.
In recognition that many students' needs are not fully met by scholarships and student loans, the government is also introducing Canada study grants. Beginning in 1998-99, grants will go to over 25,000 needy full and and part time students who have children or other dependants.
Student debt has become a very heavy burden for many Canadians.
Last December federal and provincial first ministers agreed that something must be done to reduce the financial burden on students. They asked the federal government to take action in this budget and it is.
First, all students will get tax relief, a 17% federal credit for interest paid on their student loans. Second, we are increasing the income threshold used to qualify for interest relief on Canada student loans by 9%, making more graduates eligible. Third, we are introducing graduated interest relief which will extend assistance to more graduates further up the income scale.
Fourth, for individuals who have used 30 months of interest relief we will ask the lending institutions to extend the loan repayment period to 15 years. Fifth, if after extending the repayment period to 15 years a borrower remains in financial difficulty, there will be an extended interest relief period. Finally, for the minority of graduates who still remain in financial difficulties after taking advantage of these measures, we will reduce their student loan principal by as much as half.
Together these new interest relief measures will help up to 100,000 more borrowers and over 12,000 borrowers a year will benefit from debt reduction when this measure is fully phased in.
Many Canadians who are already in the workforce want to take time away from work to upgrade their skills through full time study. We have introduced measures to help them overcome financial barriers. Beginning in January of next year Canadians will be able to make tax free withdrawals from their RRSPs for lifelong learning.
To preserve the role of the RRSPs in providing retirement income, the amounts withdrawn will have to be repaid over a 10 year period. In many respects this plan resembles a successful homebuyers plan.
Canadians oftentimes study part time to upgrade their knowledge and skills. We are proposing two new measures to help them. Beginning this year the education credit will be extended to part time students. This will benefit 250,000 Canadians.
In addition, for the first time parents studying part time will now be able to deduct their child care expenses. Currently only full time students are eligible. This new measure will benefit some 50,000 part time students.
Any long range plan to acquire knowledge and skills for the next century must look ahead to the students of tomorrow. The best way to help ensure children's future is to save for their education today. We want to establish a new partnership to help parents save for their children's future. That is why we are introducing the Canada education savings grant to make registered education savings plans even more attractive. Beginning in January we will provide a grant of 20% on the first $2,000 up to a maximum annual grant of $400 per child.
I want to point out that this does not take much to save for a child's education. For example, if a family contributes $25 every two weeks for a total of $650 a year for 15 years, their child will have $4,700 available each year for a four year period of education. Of that amount almost $800 a year would be as a direct result of a Canada education savings grant.
The Canadian opportunity strategy also addresses the urgent problem of youth unemployment. The actions we are taking will give young Canadians the job experience they need and provide support for those who have dropped out of school and face particularly tough challenges. First, the budget provides—