Mr. Speaker, I am pleased today to rise in this House to speak to the bill to amend the Bankruptcy and Insolvency Act, a bill that is very dear to my heart.
First, I must say that the Bloc Québécois is in favour of Bill C-236. It is thus in favour of reducing from ten to two years the period of time during which a former student cannot be released, through bankruptcy, from the reimbursement of his debts relating to student loans.
This legislative change will specifically assist the least fortunate among former Quebec and Canadian students and will restore a balance between the moral duty to reimburse the state for the loans and the right to be released from their debts through bankruptcy.
The Bloc Québécois considers that the ten year period, which affects only former students, is too long and is thus a discriminatory measure that is uncalled for.
The Bloc Québécois is aware that bankruptcy must not become an easy way for students to be released from their debts. However, it is unfair to deny this relief to former students who are really in need.
It is because of the fiscal imbalance created by the federal government that Quebec and the provinces now have to increase tuition and change the bursary and loans programs. These measures have a direct impact on the level of student debt.
Allowing former students to clear their student debt by declaring bankruptcy does help the least fortunate Quebeckers and Canadians, but does not provide a sustainable funding solution for the post-secondary education system.
The federal government's lack of vision and willingness to significantly increase education transfers is a clear indication of how much it prefers visibility measures such as the millennium scholarships over truly beneficial measures.
Reducing the timeframe in which a former student cannot declare bankruptcy to clear their debt would help reduce the financial pressure on the poorest in our society, people who, upon finishing school, do not find gainful enough employment to pay back their loans.
Although in Quebec—by virtue of a social choice that distinguishes us from the other Canadian provinces—the average student debt is less than in the other provinces, this does not change the fact that some students are burdened by debt they are unable to pay off. The proposed measure would allow students to benefit, with a very reasonable limit, from the same right as other people, and that is to clear their debt by declaring bankruptcy.
The two-year period proposed in Bill C-236 is short enough so as not to hurt lower income former students. There does need to be a certain period where the student must try to make arrangements to fulfill their financial obligations.
I also want to point out that student debt is a major contributing factor to the drop in Quebec's birth rate. Debt overload discourages thousands of Quebec students from starting a family.
The bill has two major flaws. First, it does not include any measure to hold students responsible for fulfilling their financial obligations and using their loans appropriately. Obviously, students are not irresponsible and there is no reason to believe they do not manage their money as well as other individuals.
However, measures to raise student awareness of the use of loans and of repayment terms would have added value to what Bill C-236 proposes.
Second, the bill is not providing any real answers to the underfunding problem of post-secondary education systems. The fiscal imbalance that is continuing to choke Quebec and the provinces is the primary reason why students get into debt. A substantial increase in direct transfers to Quebec and the provinces is the best way to curb student debt and ensure quality education.
Since the 1990s, federal transfers for post-secondary education have dropped dramatically. Even the Canadian Association of University Teachers came to the conclusion that the weakening of the provinces' ability to fund post-secondary education is primarily due to the reduction in federal transfer payments.
When the member for LaSalle—Émard became Minister of Finance, Ottawa paid 1.7¢ on every dollar of revenue into the transfers for education and social services. When he left his position, nine years later, Ottawa was paying only 1¢ on every dollar of revenue. This represents a 40% decrease.
The federal contribution to total expenditures in education and social programs is now less than 12%.
The Bloc Québécois wants the issue of fiscal imbalance resolved, which would mean a substantial increase in funding available to post-secondary education.
In keeping with the consensus of the provincial premiers, the Bloc Québécois wants federal funding to be 25% of the total expenditure on education and health care by 2009-2010.
Currently, the Quebec system of education is short of resources as the result of cuts in transfer payments, a lack of funding, a shortage of teachers and so, despite the monumental efforts of the Government of Quebec with the meagre resources at its disposal.
The Fédération étudiante universitaire du Québec, the FEUQ, and the Canadian Federation of Students are also critical of the federal government's refusal to increase transfer payments for post-secondary education by $4 billion to offset the cuts during the 1990s. This money would have allowed Quebec to expand its manoeuvring room in order to reinvest in universities, and the rest of Canada to reduce tuition.
In closing, I want to reiterate the Bloc Québécois's support for this bill so students can start their working life in a respectable fashion, and I invite the other parties to support it.