I hope the member is not going to heckle throughout my response. Since I listened to him, I would hope he would listen to my comments. However I know the Chair will keep an eye on him.
In the 1998 budget we also opened the education credit to part time students. We made it possible for unused tuition and education amounts to be carried forward into future tax years.
These measures are quite generous. The tuition and education credits alone provide over $1 billion in tax assistance to some 1.4 million students each year. Largely because of these credits, 80% of full time students pay no tax at all while they are studying.
Not only are these measures generous but they are fairer than the credit proposed by the hon. member. The existing credits apply to all students, not just the ones who use the Canada student loans to finance their studies. Students who take part time work instead of borrowing also benefit.
As a final comment on the member's motion, I share the member's desire to encourage our graduates to stay in Canada. A graduate's decision about where to work after school is complex and money is no doubt an important factor in that decision.
As a former educator, I am particularly interested in the debate and in the comments that all colleagues will be making with regard to the motion.
Would the member's proposal actually encourage graduates to stay? I doubt it. Here is why. For someone with a $20,000 student loan, this measure would be worth about $320 per year. Surely this amount is far too small to sway a graduate's career choices.
In my view, the government is taking the better path. Our measures to promote research, innovation and excellence, and to reduce the tax burden represent a fairer and more effective way to attract and keep talent in Canada.
I have already pointed to some highlights in the government's record on support for post-secondary education. I would like to share some other examples that clearly show the government's commitment.
In the 1998 budget we launched the Canadian opportunities strategy. The strategy introduced several important measures, like the $2.5 billion millennium scholarship program. The program awards over 90,000 scholarships every year to post-secondary students on the basis of their financial needs. The average scholarship is $3,000. That was just a start.
In the 1998 budget we introduced a credit for the interest portion of student loan repayments. We strengthened support for advanced research. We introduced the Canada education savings grant to encourage families to save for their children's education. We introduced a Canada study grants for students with exceptional financing needs. I could go on.
Since then, we have not been content to simply rest on our laurels. We have continued to find ways to make post-secondary education more affordable and accessible for more Canadians.
In 2000, for example, we increased the amount of scholarships and bursaries that are exempt from income by a factor of six.
I should also mention the changes we made to the Canada student loans program. This program is a cornerstone of Canada's system of support to post-secondary education students. It provides essential financial aid to some 400,000 Canadians. And we have taken steps to make it stronger.
Before I explain these changes, I first want to discuss some comments made by the hon. member. In his press release, he stated that the credit would lessen the debt burden faced by Canadian students.
Debt burden is an issue for some but, thankfully, most graduates can manage their student debt. This is no surprise. A post-secondary education is probably the best investment one can make. It means better job prospects and better pay. For example, for someone with a post-secondary degree the likelihood of being unemployed five years after graduation is one-third of the general youth unemployment rate.
As I said before, debt burden is an issue for some. That is why the government has taken significant action to make student debtloads more manageable. Now graduates who have difficulty repaying their loans can apply for various relief measures.
The relief period, before interest starts to accumulate on their loans, can be extended by up to 54 months. Their loan repayments can be extended from 10 to 15 years. After that, if they are still having financial difficulties, they can apply to have their debt reduced. The relief that we have put in place is efficient and fair.
We will continue looking for ways to do more.
Just last February the government launched two papers on Canada's innovation strategy. In those papers we reinforced our strong commitment to learning. We proposed an ambitious national goal: to ensure that all qualified Canadians have access to high quality post-secondary education. This national dialogue is an important step toward building a stronger future for Canada and for Canadians.
In closing I would like to reiterate that the government has a better approach to helping students with the cost of post-secondary education. Our approach is also fairer. It not only assists those who use Canada student loans to finance their education, it also assists those who rely on other means, such as part-time work.
If our objective is to attract and keep the best and the brightest, then I would suggest that the best way is to focus on creating more opportunity in Canada. We will do this through our strategy to promote innovation and excellence.
For those reasons, I would urge hon. members not to support the motion. However I do commend the member, in spite of some of his heckling, for putting this issue on the floor. It is an appropriate venue for us to discuss it. I am looking forward to hearing the comments from members of other parties and from my colleagues on this side of the House. As I said before, we are always looking at innovative approaches.