Madam Speaker, the bill we are debating today includes some very important elements of the Canadian opportunities strategy which was introduced in the 1998 budget.
In particular, the bill launches the Canada millennium scholarships foundation. With an initial endowment of $2.5 billion this foundation will provide more than 100,000 students full time and part time at colleges, vocational and technical institutes as well as universities with scholarships averaging $3,000 per student.
The bill also includes some very important measures to help manage student debt. It introduces a Canada education savings grant to help families save for their children's education. It gives employers an employment insurance premium holiday for hiring additional young Canadians, reducing payroll costs for those employers by about $100 million over two years.
These measures are only part of the strategy that we set out in the 1998 budget, a strategy that will help Canadians by expanding their access to the knowledge and skills they will need for better jobs and higher standards of living in the 21st century.
I want to take a moment to outline the other elements of that strategy. It is important to view these measures in the context of one another since they work together to provide a comprehensive set of tools to increase Canadians' access to knowledge and skills.
As part of the Canadian opportunities strategy the government proposes to introduce new Canada study grants. These grants recognize that many student needs are not fully met by scholarships and students loans. Beginning in 1998-99, Canada study grants of up to $3,000 a year will go to over 25,000 needy students who have children or other dependants. These grants will help both full time and part time students and will provide $100 million annually.
Assistance to students is only part of the information age equation. We must also recognize that nothing is more critical to Canada's economic success in the 21st century than vigorous broad based research and development.
To support graduate students and researchers as they develop the leading edge skills needed in a knowledge based economy, the opportunities strategy will increase funding to the three federal granting councils, the Natural Sciences and Engineering Research Council, the Medical Research Council and the Social Sciences and Humanities Research Council.
These very important councils provide research grants, scholarships and fellowships. Over the next three years their combined budget of $766 million in 1997-98 will be increased by $400 million, and by the end of the year 2000-2001 the councils' budgets will be at the highest level in history.
As the Minister of Finance said in his budget speech, Canadians do not need to be told that student debt is a problem. That is why the strategy includes a range of measures to help reduce the financial burden on students, measures included in Bill C-36.
In addition, our strategy proposes that for the first time students will be given tax relief on interest payments on their student loans. This will be provided through a tax credit and it will help one million Canadians who are repaying those student loans.
Many Canadians in the workforce want to take time away from work to upgrade their skills through part time or especially full time study. But they often lack the necessary resources, so the budget also proposes several new measures to improve their access to learning through their lives. Therefore beginning January 1, 1999 Canadians will be able to make tax free withdrawals from their RRSPs for lifelong learning.
The need to continually upgrade knowledge and skills can be particularly hard for the growing number of Canadians studying part time and trying to manage the difficult balance of work, family and study. We are proposing therefore two new measures to help them.
Beginning in 1998 the education credit will be extended to part time students. This measure will benefit up to 250,000 Canadians. In addition, for the first time parents studying part time will also be able to deduct their child care expenses within certain limits. Currently only full time students are eligible. This new measure will benefit some 50,000 part time students with children.
Finally, our strategy takes action to improve Canadians' access to the information highway. Beginning in 1998-99 we will provide an additional $205 million over three years to expand and extend SchoolNet and the community access programs. There will be an additional $55 million to the Canadian network for the advancement of research, industry and education.
The Canadian opportunities strategy provides a diverse and comprehensive set of tools. These tools will help Canadians acquire the knowledge and skills they will need for better jobs and a better life in the 21st century. By expanding access to opportunity we are building a stronger economy and a more secure society.
The federal government has done its utmost to ensure that the Canadian economy continues to be built on solid foundations. The federal government will continue to offer programs which meet Canadians' needs and expectations.
That is why I urge all members to support Bill C-36 in moving us forward to implement key elements of our strategy. I know certainly that the people of Waterloo—Wellington support this bill and want it to proceed and I know that all Canadians indeed want this bill to proceed as well.