Madam Speaker, today we are debating a motion put forward by the member for Fundy--Royal. The motion asks the government to consider introducing a new tax credit for students.
The credit would be for repayments of the principal of a graduates' Canada student loans. Each year, for 10 years after graduation, the graduate could claim a credit on the principal that he or she repays.
The member would limit this credit to 10% of the principal per year and would limit it to graduates who stay in Canada. In other words, graduates who stay in Canada would receive a credit for the full loan repayment over the 10 years following graduation.
Let me say at the outset that the member's objectives are laudable. In the new economy, supporting post-secondary education and post-secondary students must be a priority.
The government has taken action on several fronts to help students with the cost of education. However I must take this opportunity to raise some concerns about the member's motion.
Foremost, I want to tell the members of the House that there is a better way to help students with the cost of post-secondary education, and we are already doing it.
Today we have a tuition tax credit that recognizes tuition costs. We have an education tax credit that recognizes non-tuition costs of education, such as the purchase of textbooks.
Starting in 2001, we doubled the monthly education amounts to $400 for full time students and $120 for part time students. In fact we have increased the full time education credit fivefold since 1985.