moved that Bill C-207, An Act to amend the Income Tax Act (tax credit for new graduates working in designated regions), be read the second time and referred to a committee.
Mr. Speaker, in order to curb the exodus of young graduates to large urban centres and to encourage them to move to the regions to begin their professional careers, I am proposing an amendment to the Income Tax Act to introduce a non-refundable tax credit for new graduates working in designated regions. I myself live in a resource region in Saguenay—Lac-Saint-Jean and I see first-hand everyday the impact of the exodus of young people on our region.
The tax credit would be for individuals who, in the 24 months following the date on which they successfully complete the courses leading to the awarding of a recognized diploma, begin to hold employment in their field of specialization in a designated region.
Recognized diplomas generally mean those awarded for technical training, or college, occupational or university studies. This bill allows individuals, for a maximum of 52 weeks, to benefit from a tax credit totalling a maximum of $8,000. Based on this year's taxation table, here are a few examples of how beneficial such a tax credit could be.
For an individual earning $30,000, the amount of federal income tax payable will be $2,695. This amount will be credited in full with the implementation of such a tax measure for new graduates. If the individual has income of $40,000, the amount of the credit will be $4,172, whereas someone who makes $50,000 will receive a tax credit of $6,000. I would like to specify that this is a credit for new graduates working in designated regions and that these figures represent the situation of a taxpayer without a basic personal tax credit.
I would like to inform the members of the House of Commons that the Quebec government adopted a similar measure in 2003. In the first year after it was implemented, 2,500 individuals benefited from the new Quebec government tax measure. The year after, the number rose substantially, to 9,700 individuals. The measure had a definite impact on several administrative regions in Quebec.
In 2005, many individuals benefited from this tax credit: more than 1,200 in Abitibi-Témiscamingue, more than 1,600 in the Lower St. Lawrence, almost 800 in Gaspésie—Îles-de-la-Madeleine, more than 1,000 on the North Shore and more than 4,000 in Saguenay—Lac-Saint-Jean. In the second year, almost 10,000 individuals took advantage of the tax credit.
These people might not otherwise have come to the regions to take their first job after graduating. In many cases, they came with spouses who decided to look for work in the regions as well.
Last spring, the Government of Quebec changed the tax credit, which is now a maximum of $3,000 per year and can reach $8,000 over three years, rather than over one year. Bill C-207 provides only for a credit for a one-year period. This will make it easier for us to assess the impact of this sort of measure on young people and will let us make any changes that are needed in due course.
In addition to the large number of young people who are leaving our regions, the shortage of skilled labour is a real problem for the regions, which are losing workers to larger centres. Putting this sort of measure in place will stop the population drain and make it easier to develop processing industries by providing businesspeople with the skilled labour they need.
Specialized workers are needed for many regional jobs, especially in primary resource processing and secondary and tertiary processing in forestry, metallurgy, electrical technology and other fields.
Unfortunately, specialized labour is often easier to find in major centres than in the regions, forcing many businesses to move to large cities or close their doors. Without the labour they need, many businesses in the regions are forced to stay small or have trouble expanding. But there is hope for our young people in the regions.
People who do not live in a resource region cannot truly understand the demographic problems many regions are experiencing. Out-migration is having a devastating impact on regional economies. Young people leaving the regions and new arrivals prefer to settle in major centres. We cannot abandon the men and women living outside these centres. Smaller communities are beginning to decline, with the exodus of young people and the aging of the population.
The exodus of young people is not a new phenomenon, but for many years the birth rate compensated for it. That is no longer the case. That is why, for the past few years, the Government of Quebec has been trying to bring young people back to the regions and encourage them to stay there. Some municipalities have decided to follow suit by offering new residents property tax breaks for a certain number of years. For example, the City of Mont-Joli, in Gaspésie, was offering a three-year property tax holiday to everyone who decided to build a new home there. Businesses are also offering a number of incentives to new property owners. This is just one example to illustrate the urgency of the situation.
The Government of Quebec, some municipalities and some businesses are doing everything they can to save the cities and towns that are part of our shared heritage. The federal government must do its part to keep our young people in the regions and encourage them to settle there. That is why I have decided to introduce Bill C-207 on behalf of my party, the Bloc Québécois. I myself am from a resource region, so it is clear to me that both the Saguenay—Lac Saint-Jean and my riding, Chicoutimi—Le Fjord, are in an unenviable position.
In 2006, the Government of Quebec's tax credit for new graduates cost about $30 million. We can therefore assume that a similar program on a national scale would cost about four to five times as much. The Government of Canada can afford such a measure, which is sure to benefit all Canadians and Quebeckers.
Although the situation is not as serious everywhere in Canada, economic activity has gradually been moving from resource and rural regions to larger centres, a phenomenon that, in places like Saskatchewan and Manitoba, is creating economic difficulty in regions with shrinking populations. This situation remains a concern for every one of Canada's provinces.
I would invite members of this House to support this bill so we can help our resource regions and rural communities keep their young people who, in many cases, want to stay.
