Mr. Speaker, I am pleased to rise today to speak in support of Bill C-23, an act to create the Department of Human Resource and Skills Development.
I would like to use the bulk of my time today to discuss something that I heard members raise yesterday, which is access to post-secondary education. I believe it is important to put some of these statements in context for all members, as we sometimes do not appreciate the value that Canadians and the federal government place on post-secondary education.
My colleague, the member for Brant, inspired my intervention today. He mentioned yesterday a fact that is very important and bears repeating. Canada is the second biggest investor in the world in post-secondary education as a percentage of gross domestic product.
What is more, according to a new report, entitled “A New Measuring Stick: Is Access to Higher Education in Canada Equitable?”, released on September 27, 2004 by the Educational Policy Institute, Canada has one of the best records in the western world of encouraging people from lower socio-economic backgrounds to attend post-secondary institutions. The 11 country, 10 province study on equitable access to higher education ranks Canada third behind Ireland and the Netherlands, but reserves the highest marks for the provinces of Manitoba and my home province of Ontario.
Canadians 25 to 64 have the highest attainment rate in post-secondary education in the world at 41%. We should also know that earlier this year a TD Bank financial group study found that the return on a university degree was 12% to 20% annually and on a college diploma it was around 15% to 28% annually. Tangibly, this means that over their lifetimes university graduates earn $1 million more on average than those without a post-secondary education.
Whether apprenticeship, college or university, these are investments students, their families and governments make in post-secondary education, and they are sound investments.
During the current academic year of 2004-05, it is estimated that approximately 470,000 full time and part time students will be assisted in accessing learning opportunities through Canada student loans, student grants and interest subsidies. The amount of total financial support is expected to reach nearly $2 billion. Of that amount, more than $1.7 billion will be disbursed as Canada student loans to approximately 365,000 students. Approximately $80 million will be made as non-repayable Canada study grants to over 50,000 of those students and the remaining amount will be disbursed in the form of interest subsidies to approximately 105,000 borrowers in study.
While the government and all Canadians can be proud of these achievements, the Government of Canada and the new Department of Human Resources and Skills Development is determined to do better. The legislation modernizes the mandate of the department to allow the minister to improve the Canada student loans program and ultimately access to post-secondary education in cooperation with the nine participating provinces and the Yukon Territory.
The Government of Canada will invest close to $137 million in 2005-06 to modernize the Canada student loans program. The Government of Canada is committed to ensuring that all Canadians have access to the skills development and learning opportunities needed to realize their potential and participate fully in the 21st century economy.
Fostering a culture of lifelong learning is a key fulfilment of this commitment. Access to a post-secondary education is an important component of Canada's strategy to secure a higher standard of living and a better quality of life for all Canadians. The Government of Canada offers a wide spectrum of programs and services that work together to help ensure that Canadians of all ages can achieve their learning goals.
The Government of Canada recognizes that the learning process starts with the birth of a child and continues into adulthood. The 2004 Speech from the Throne reflected this by proposing the introduction of the new Canada learning bond. The bond builds on the success already achieved by the Canada education savings grant, which has helped many parents to save for their children's education through grants and tax sheltering of earnings. Since its inception, $2 billion in grants have been paid to over two million Canadian children of all ages. The total asset value of registered education savings plan savings by Canadians for their children's education is $13 billion, up from a little over $2 billion in 1997. Currently one in four Canadian children between the ages of zero and 17 benefit from the Canada education savings grant. The Canada learning bond will also play an important role in ensuring that wherever possible any Canadian who wishes to undertake post-secondary education will have that opportunity.
The Government of Canada introduced Canada millennium scholarships in 1998 to help Canadian students acquire a post-secondary education and reduce student debt loans. The Canadian Millennium Scholarship Foundation is the autonomous organization responsible for managing a $2.5 billion endowment from the Government of Canada and providing scholarships to students across the country. Over 90,000 students have received Canada millennium scholarships, awarded through the Canada Millennium Scholarship Foundation, totalling $285 million annually. Recently, in a member's statement, I had the good fortune of recognizing individuals in my riding who received this scholarship.
While the government makes significant investments in post-secondary education through these and other programs, it is working to do more to ensure that every Canadian can fully participate in the workforce and society. The 2004 budget outlined new initiatives aimed at opening up the range of people able to acquire post-secondary education and student financial assistance, including introducing a new grant worth up to $3,000 for first year students from low income families to cover a portion of their tuition, also introducing a new upfront grant of up to $2,000 a year for students with permanent disabilities.
Above and beyond that, some of the other initiatives include increasing weekly loan limits of up to $210 per week, including computers as eligible expenses, extending loan eligibility to more middle income families by reducing the amount parents are expected to contribute and increasing income thresholds used to determine eligibility for interest relief and increasing the maximum debt reduction and repayment.
The budget of 2004 package of improvements is the result of a productive, collaborative dialogue with our provincial and territorial partners and stakeholders. In addition, each year the government youth employment strategy helps approximately 50,000 students between the ages of 15 and 30 by providing financial support to help them to return to their studies. To ease the transition to a post-secondary education for adult learners with registered retirement savings plans, the lifelong learning plan allow them to allow amounts from their RRSPs to finance training or education for themselves, their spouse or their common law partner.
Learners may withdraw up to $10,000 a year from their RRSP to finance full time training or education. Through the personal income tax system, the Government of Canada provides tax credits for post-secondary education tuition, educational expenses and interest paid on student loans. Courses taken to finish high school, improve literacy skills or upgrade secondary school credentials with the goal of preparing adults for specific occupations in fields of higher learning may also qualify for tax assistance.
In summary, the government and Canadians are doing the right thing when it comes to investing in post-secondary education. Again, Canada is the second biggest investor in the world, as a percentage of GDP, in post-secondary education. This is all the more important when we consider that research suggests that investment in education and skills training may rank as the most important factor for achieving economic growth over a long run via increased productivity.
When we look back at the years between 1996 and 2003, we note that the increased standard of living was largely driven by increased favour productivity.
The legislation is geared at creating the Department of Human Resources and Skills Development that is a machinery of the government bill, an important bill to ensure the minister and the department have the legal powers and tools needed to fulfill the minister's mandate. It is also a reminder of the range of federal programs that support post-secondary education and the tangible investments that Canadians value.