Mr. Speaker, I would like to begin with a comment directed to my Bloc colleague. He should know that, despite his comments that this bill interferes in an area under provincial jurisdiction, his colleague on the committee was prepared to support the bill, until departmental staff made it clear that it would have negative effects. I will discuss that later on.
I would add that financial aid for students does fall under federal jurisdiction even though we agree that education is a provincial responsibility. We have to respect that.
Since this bill comes back empty, today's debate allows me to speak to the NDP's approach to students' financial assistance, which differs significantly from other national parties.
We believe that post-secondary education is a public good and that is the key to Canada's social and economic future. It is through education that we will ensure a cohesive, peaceful and high functioning civil society and it is through education that Canadians will be able to compete in a globalized knowledge economy.
However, to meet those two objectives, we need an effective system of financial assistance for students that ensures equitable access for Canadians from every province and territory.
In our society, it is vitally important for every person capable of post-secondary education to be there and to finish. Ireland is a good example of a country that has recognized the principle of equitable access for everyone. Ten years ago, it decided to abolish undergraduate fees resulting in dramatic increases in post-secondary enrolment and retention rates and a booming economy.
This idea is the precise opposite of the Liberal-Conservative approach which was best defined perhaps in the Bob Rae report that advocated keeping tuitions high and helping only the most needy with a token handout. Half a year's tuition for only the first year and for only the lowest income students would be laughable if it were not so appallingly inadequate.
For years, the NDP has argued for a national system of needs based grants to replace our inefficient and inadequate patchwork of student assistance. Such a grants system would tackle Canada's crisis of student debt for all students from low and middle income families in every year of study. This is what is missing now. It would be complemented with an adequate core funding to the provinces so that soaring student debt could be brought back to earth and everyday families could once again afford higher education for their children without the fear of overwhelming debt. It would ease the tremendous burden on Canada's broken down student loans system and enable fixes to make loans more flexible and responsive to students' needs and circumstances.
I believe that Bill C-284 could have been a tiny step in that direction. Unfortunately, it was fatally flawed, as I suggested earlier. It became clear to committee members that for technical reasons, Bill C-284 would exclude students from Quebec, thereby depriving them of $5.4 million in subsidies. That is unfortunate, because after 15 years, the Liberal Party had finally decided to give students up-front money for each year of study, not just the first year.
The bill was a lot better than the Liberal promise to pay half of students' tuition fees for the first and last years of study. That would have meant $600 million for children of millionaires as well as children from low and middle income families. Fortunately, the Liberals changed course with this bill, in which they proposed giving up-front funds to students in need.
That said, Bill C-284 has the same flaws as does the current Canada access grants program. First, the bill excludes middle-income families by making those whose gross income exceeds $36,000 ineligible. Second, it is based on income, rather than on a needs assessment. Third, it excludes adult students who go back to school after more than four years out of school. Finally, it does not target the specific needs of aboriginal students or of students living in rural areas.
Yet, by providing unconditional grants for all years of study, this bill would have helped keep students in school, while also dealing with the growing student debt crisis.
Unfortunately, the delay in Liberal action after a decade of funding cuts has left us to deal with a Conservative government that sees tax cuts as the solution to all problems.
The Conservative government is like some kind of free market cyborg that reduces everything into economic terms. When those members look at a university campus, they see student widgets that need to be moulded to fit into the cogs of the economy.
The Conservatives have delayed replacing the expiring millennium foundation with a real public system of upfront federal student grants. Their most recent reports on the millennium fund reveal the flaws in the old Liberal piecemeal approach to student aid. The seemingly preordained Conservative conclusions reflect an ideological bias toward more loans to students instead of non-repayable grants.
The fundamental problem with this bias toward student loans is that it creates two classes of students in Canada: one class that can afford to pay upfront the soaring student fees and other education costs; and, a second class who are forced to borrow and therefore end up paying substantially more for their education through loan interest. To make matters worse, interest rates charged on student loans are crushingly high.
Not only do we charge low and middle income students more for their education than we do wealthy families, but the federal government actually makes $300 million a year on those student borrowers. That is a shame.
In a petition I have been collecting from across Canada to fix student aid, students and their families are calling on the minister to go beyond mere administrative fixes of the Canada student loan program. They are calling for a comprehensive change to the student aid system.
In addition to a single grant system, they want a reduction in the federal student loan interest rate, a student loan ombudsperson to ensure that students are treated with fairness and respect, and better relief programs during repayment of student loans for those in financial hardship.
A few months ago, the Liberals offered a partial fix to this problem through Bill C-284. This would have helped to catch up to the needs and realities of today's students. It was regrettable to discover from a departmental legal expert that the bill was flawed beyond repair from the outset. In its current form, the bill would strip $5.4 million in grants from Quebec students. That is unacceptable by any measure.
I will end by appealing to Canada's students who are listening today, or their families, to stand up and join our campaign for a comprehensive student aid system that includes upfront student grants. Students need and deserve a public system of upfront student grants that ensures equitable access for everyone.
I urge Canada's student leaders to be bold and to demand nothing less from the government, from the NDP and any other national party.