The hon. member says that I am keeping him awake. I am thankful, and I am sure his constituents are very thankful, that he is staying awake. It is not often that the member stays awake in this Chamber. I thank him for the compliment.
This tax credit complements other student assistance measures announced in the 1998 budget, such as graduated interest relief and extended loan repayment periods which will assist a further 100,000 students.
To help Canadians upgrade their skills through full time study, often difficult for those in the workplace, Bill C-72 includes measures such as tax free RRSP withdrawals for lifelong learning. It is not uncommon, as I am sure hon. members across the way and certainly members on this side of the House are aware, to find that there are constituents back home who find themselves in a job, in a position, they are employed. They have been able to put away some money in RRSPs, but they need to upgrade their skills and they find themselves unable to access money to do that. Much like the homeowner program which utilizes the registered retirement savings plan, this program would allow Canadians to access tax free RRSP money for lifelong learning in order for them to upgrade their skills and to further their education.
An individual who is enrolled in full time training for at least three months can withdraw a maximum of $10,000 per year from their RRSP up to a limit of $20,000 over four years. The money must be repaid to their RRSP program over a 10 year period.
Another measure in Bill C-72 extends the education credit to many part time students who are trying to balance work, family and other commitments. Students can claim a credit for each month they are enrolled in a qualifying course which is at least three weeks in duration and meets a minimum of 12 hours per month. That also facilitates lifelong learning for about 250,000 part time students.
I am sure members will recall that in the 1998 budget the government made some improvements to what is known as the registered education savings plan. The 1998 budget introduced the Canada education savings grant. I have received a number of calls and a number of constituents have contacted me to find out about the program. I am sure the same is true for hon. members across the way. They include grandparents, parents, aunts and uncles who want to contribute to their niece's or nephew's, grandson's or granddaughter's educational savings program. The government has provided a 20% grant on the first $2,000 put into a registered education savings plan for children under 18. That is a maximum of $400 per year that the federal government will contribute to that program to help young Canadians access post-secondary education.
Bill C-72 also proposes additional changes to RESPs. It is important to note that disabled part time students will now be eligible for educational assistance payments from RESPs for the first time. Families whose children do not pursue higher education would be able to transfer up to $50,000 from their registered education savings plan to their registered retirement savings plan. That is an increase of $10,000. That creates a bit more flexibility in the registered education savings plan which will encourage more Canadians to contribute.
There is also the new caregiver credit which provides Canadians caring for an elderly parent or a disabled family member a tax reduction. This credit will assist about 450,000 caregivers who are not normally eligible for it.
Another important measure which was included in the 1998 budget, and I am hopeful that members opposite will draw attention to it because many of their constituents will benefit from it, will benefit self-employed Canadians. As a result of the 1998 budget self-employed Canadians will now be able to deduct health and dental insurance premiums from their business incomes. We have allowed that particular measure to go forward. I know that the Canadian Federation of Independent Business was a big promoter of that measure, as well as a number of members opposite. Members on this side of the House have consistently fought for self-employed Canadians. This is an example of an initiative that will help that sector of the business community.
Volunteer firefighters, under previous legislation, received $500 tax free for their volunteer efforts. In the 1998 budget we have increased it to $1,000 and will extend it to other emergency service volunteers such as ambulance technicians and search and rescue volunteers. There is also a recognition of volunteerism in the 1998 budget because we know that individuals, like volunteer firefighters, give of their time and contribute to their communities. This is a way for the federal government to provide some tax free moneys to them as reimbursement for expenses they incur in the work they do for their community.
The 1998 budget continued the government's policy of providing targeted tax relief and began the process of ensuring general tax relief, starting with low and middle income Canadians. The 1999 budget builds on these measures and is part of a long term strategy to reduce taxes. Of course members opposite will simply say “Cut taxes at any cost”. They do not understand that the commitment the government has made is to remain in balance. We have provided targeted tax relief in the 1999 budget. We have provided $16.5 billion in tax relief and we have never said that this is the end of our tax strategy. We have always said that this is the beginning of our tax strategy.
Together the 1998 and 1999 budgets set us on the track for tax relief and will continue to provide tax relief to Canadians.