Mr. Speaker, I thank my hon. colleague for his question and I will be responding on behalf of the Minister of Intergovernmental Affairs.
The Government of Canada is committed to working with the provinces, territories and business and labour partners to ensure that post-secondary education in Canada continues to be an important priority. We welcome the Council of the Federation's initiatives in this regard. We look forward to working with the Council of the Federation as we go forward to ensure that post-secondary education and training remains an integral part of the government's priorities.
Our government has several initiatives it will be bringing forward to encourage skills development for people of all ages, whether it is through our trades program with incentives for apprentices and for employers to hire more apprentices into those skill jobs or whether it is assistance for university students, not through tuition credits but through relief of their student bursaries and scholarships.
We will be developing programs that will help all students continue lifelong learning. Currently, the Government of Canada invests $9 billion in post-secondary education, including $5 billion annually in direct support through such activities as student financial assistance, scholarship tax measures, and $3.8 billion in cash transfers and tax measures to the provinces to support post-secondary education.
Since 1988 the Government of Canada has provided $2.5 billion as part of the Canada education savings grants program. With the 2006 budget, the government is committing up to $1 billion of additional funding to provinces and territories in support of post-secondary education. Through this investment the government is taking action to address some of the short term pressures facing provinces and territories.
The government will undertake consultations with provincial and territorial governments with a view to identifying appropriate roles and responsibilities for each order of government in meeting future challenges and to examine the most appropriate ways to deliver support. Currently, 45 red seal trades are eligible for the apprenticeship job creation tax credit and the apprenticeship incentive grant.
The government, in consultation with provinces and territories, will consider extending eligibility to other economically strategic and provincially recognized apprenticeship programs in the future. The provinces have responsibility for apprenticeship training and certification of skilled journeypersons. The red seal trades are those trades for which agreed interprovincial standards have been developed. The government believes that it is unfair to tax students on the recognition they receive for their academic excellence.
All students work hard and they benefit from a number of tax measures such as the Canada employment credit and the tuition education and text book tax credits which reduce the tax liability of working students.
The 2006 budget provides $200 million over two years for university based research and development through the indirect cost of research programs, the federal granting councils, and the Canada Foundation for Innovation. The government will also be undertaking granting councils activities