SlideShare una empresa de Scribd logo
1 de 14
Descargar para leer sin conexión
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
              Canadian Federation of Students                                                                       14
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
09876543210987654321098765432121098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
  9876543210987654321098765432121098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321
0                                                                                                                             1
                                                                                                                              1
                                                                August, 2001
                          Standing Committee on Finance
                                House of Commons
                                                        submission to the
                        Canadian Federation of Students
Canadian Federation of Students’
                                 Submission to the
                   House of Commons
             Standing Committee on Finance
                                    August, 2001




INTRODUCTION                                system of post-secondary education is
                                            working to exacerbate the gap between
The unprecedented growth of the             those who prosper in the new economy
Canadian economy over the past six          and those who languish in low-paying,
years has created unique challenges and     unfulfilling work. In the past three
opportunities. On June 1, 2000 the          budgets the federal government has
gross domestic product reached the          undertaken a variety of new policy
benchmark of $1 trillion and the past       initiatives under the banner of the “new
three federal budgets have produced         economy” and the challenge of
surpluses of over $5 billion. Using         providing opportunities for all.
conservative economic indicators, the       However, as we shall outline, these
Canadian Association of University          measures have, for the most part, been
Teachers estimates the surplus will         cosmetic.
grow to at least $34.6 billion over the     Besides calling for more core funding,
next five years. Despite these              this brief will make the case that the
achievements the gap between the rich       money the federal government is
and poor in Canada continues to widen.      investing in post-secondary education
According to the Canadian Fact Book         and research could be allocated more
on Poverty there are 1.3 million more       effectively. In addition, though the
poor households in Canada than there        federal government has restored a
were 20 years ago. Between 1981 and         portion of the funding cut to the Canada
1997, the rate of poverty among young       Health and Social Transfer (CHST) in
families more than doubled from 21.7        1994, almost none of this new funding
per cent to 46.1 per cent.                  is being used for public colleges and
During this same period of economic         universities. The federal government
expansion and increased poverty, the        has yet to implement any framework
cost of post-secondary education has        with the provinces that works toward
dramatically increased and access to        national standards of quality and
education for low and middle income         mobility. Before such a framework can
Canadians is declining. An important        be built the federal government must
indicator about the mismatch between        find a means of making the provinces
macro-economic prosperity and the           more accountable for the funds
declining opportunities for low and         transferred under the CHST designed to
middle income Canadians can be found        fund post-secondary education.
in recent trends in post-secondary          In the light of the trends outlined above
education policy. Regrettably, Canada’s     it is regrettable that the Standing
2001 Submission to the Standing Committee on Finance                                1
Committee on Finance has                     decline in access to post-secondary
recommended that almost all of the           education among low and middle
accrued surplus for the next three years     income Canadians. Throughout the
be allocated for tax cuts. Tax cuts will     1990’s, the federal government pointed
do nothing to address the growing            to high participation rates to argue that
income disparity in Canada and, more         funding cuts have had no effect on
importantly, they limit the                  access to post-secondary education.
government’s ability to properly fund        However, recent data suggests that
programs like healthcare and post-           there is a direct link between funding
secondary education that soften socio-       and accessibility. Between 1990 and
economic divisions. In this brief we         2000, tuition fees increased by a
will outline how these recent policy         national average of 126%. During this
measures are actually contributing to        same period, university operating
what Judith Maxwell called the ‘social       revenues from governments fell by
deficit’ and why the basic tenor of          25%.1 Student debt also rose from an
federal government policy on post-           average of $8,000 in 1990 to $25,000 in
secondary education is moving us             1998.
further away from the democratic goal
                                             The effect of this paradigm shift in how
of a high quality system of universal
                                             education is funded has been felt most
education accessible to all.
                                             acutely by low and middle income
This brief will be divided into three        Canadians. Canadians who are in the
sections: Access to Post-Secondary           bottom 20% in terms of after-tax
Education; Research; and Skills and          income now devote 23% of their after-
Training. In each section we assess          tax income to tuition fees and
current policy as well as offer proactive    educational expenses.2 That figure
solutions to the problems endemic in         represents a 64% increase from 1991.
our system of post-secondary                 During this period, the after-tax income
education. The policy themes and             of this demographic decreased by 3% in
recommendations that govern this brief       real dollars.3
will explore both the economic and
                                             The downloading of educational costs
social peril Canada invites by ignoring
                                             from the collective pool of public
the crisis in post-secondary education.
                                             resources to the individual has had a
ACCESS: OPPORTUNITY FOR ALL?                 predictable effect on access. Over the
                                             past 18 months reliable data has
“Every Canadian who wants to learn
                                             emerged that tracks the effect of the
should have the opportunity to do so.
                                             public policy terms enumerated above.
Students from lower income families
                                             At the University of Western Ontario a
are under-represented in our institutions
                                             study was undertaken to quantify the
of higher learning. Too many are
                                             effects of tuition fee increases. The
deterred from pursuing higher
                                             study documented the household
education because of a fear of a large
                                             income of two groups of students. The
debt.”
                                             first were students entering Western’s
                         Paul Martin, 1998
                                             medical school in the first year in
The withdrawal of federal funding over       which tuition fees had been fully
the past decade has led to a steady

2                                                       Canadian Federation of Students
deregulated, resulting in substantial fee   These findings provide conclusive
increases. The second group were            evidence that tuition fees operate as a
fourth year medical students who had        direct barrier to families at the low end
entered the program three years earlier     of the socio-economic scale. In short,
during a period when the fees were          federal and provincial under-funding of
regulated and considerably lower. The       education is creating yet another divide
study found that after deregulation, the    in Canadian society between those who
participation rates of students from        have access to the skills, training, and
families with a household income of         experience of post-secondary education
less than $40,000 dropped by more than      and those Canadians who are denied
50% (from 17.3% to just 7.7%).              access for purely financial reasons. This
Participation rates of students from        mounting evidence supports the
very high-income families tripled, from     prescient claim of the Maritime
8.6% to 24.4%. A similar study at the       Provinces Higher Education
University of Guelph found that the         Commission in its study of accessibility
number of students entering the             in 1997:
University of Guelph from homes with
                                               The research clearly demonstrates that
family incomes of $40,000 or less was          the cost of post-secondary education
40% in 1987. That number had dropped           and increasing debt levels are
to 16% by 1998.                                significant factors in the decision
                                               students make about whether or not to
The withdrawal of public funding and
                                               continue their studies beyond high
increased cost of post secondary
                                               school. Even more significant is the
education has had a particularly               finding that students from lower
detrimental effect on aboriginal               income households are much more
communities in Canada.                         likely to be affected by financial issues
Unemployment rates and other social            when deciding to pursue or not pursue
determinants in aboriginal communities         their education beyond high school (ii,
remain at levels near that of developing       1997).
nations. A recent review of post
                                            In the face of this mounting crisis the
secondary education by the Assembly
                                            federal government has taken several
of First Nations confirms that funding
                                            modest steps to address the problem of
and opportunity are being denied to
                                            accessibility. Before offering
aboriginal Canadians who are least
                                            recommendations we will evaluate the
likely to afford the increased cost of
                                            effect these measures, in particular, the
tuition.4 The study focused on the
                                            Registered Education Savings Program
capping of band funding for post-
                                            (RESP) and the Millennium
secondary education and the effect that
                                            Scholarship Foundation (MSF), are
this cap has had on access to education
                                            having.
for First Nations peoples. In addition,
the report points to federal funding cuts   In the face of mounting tuition fees and
as the primary reason why Canada’s          other individualised costs of education,
First Nations have been unable to           the federal government recently
expand the number of institutions           extended the Registered Education
devoted exclusively to the needs of         Savings Program to include a national
aboriginal learners.                        system of grants (Canada Education


2001 Submission to the Standing Committee on Finance                                       3
Savings Grant-CESG) based on the           save for a child’s education and that
ability to save. In addition to the        62.6% actually were saving.
forgone tax revenue of the original        Figure 1. - Post Secondary Aspirations and Savings
program, the federal government set                                   % of children whose        % of children
aside a grant of 20% on the first $2000                             parents hope they will     whose parents
                                            Household               attend post secondary       are saving for
deposited into an RESP. The grant           Income                              institutions        their PSE
totals $400 per year and continues until    <$30,000                                79.8              18.7
the year in which the child for whom        $30,000-$49,000                         85.8              37.4
the account is opened turns 17.             $50,000-$59,000                         90.6              45.6
The addition of the grants program,         $60,000-$79,000                         93.4              52.6
along with a cessation of certain           $80,000+                                95.0              62.6
restrictions, increased participation in   Source: Statistics Canada, The Daily, April 10, 2001

the program dramatically and               These numbers confirm the case put
represents a significant federal           forward by the Canadian Federation of
government expenditure on post-            Students in our submission to the
secondary education. Between 1998          Standing Committee on Finance last
and May 2001 the government of             year. Through the available data we
Canada spent $959,487,905 on direct        argued that the RESP program was in
grants. This figure does not take into     effect a national system of grants for
account the cost of administering the      the wealthy. The RESP is ostensibly a
program or the forgone tax revenue.        social program funded by all Canadians
Despite this public expenditure the        designed to reward those with the
participation rates of low and middle      means to save. The aforementioned
income Canadians are rapidly               findings by Statistics Canada confirms
declining. Recent data from Statistics     this analysis and provides hard data to
Canada demonstrates why the federal        support the contention that the RESP
government is seeing such a poor fiscal    and CESG programs are a regressive
and social return on this investment.      use of public funds that are doing
In an April 2001 study, entitled Survey    virtually nothing to assist those
of Approaches to Educational               Canadians most in need of the skills
Planning, researchers tracked attitudes    and training offered by post-secondary
toward saving for a child’s post-          education. RESPs merely expand the
secondary education as well as the         already existing gap in Canada between
actual savings families were able to       the desire for post-secondary education
accumulate. The study controled for        and the ability to afford it. It is indeed
family income and parental educational     perverse public policy to spend public
attainment. In homes where the family      funds on those who least need
income was less than $30,000, 80% of       assistance while doing little or nothing
parents said they hoped to save funds      to help those for whom post-secondary
for a child’s education. However, only     education remains only a dream.
18.7% of those parents were actually       The other policy measure taking up
able to save. In homes with family         public resources is the Millennium
income of over $80,000 researchers         Scholarship Foundation (MSF).
found that 95% of parents hoped to         Enshrined in the 1998 federal budget,


4                                                          Canadian Federation of Students
the MSF has had little or no impact on      direction of funds would allow the
student debt in Canada. Since Finance       federal government to provide an up-
Minister Paul Martin rose in the House      front grant to those most in need of
of Commons and promised Canadians           financial assistance without adjusting
that the MSF would reduce a students’       any current budgetary projections.
debt by $12,000 over a four-year
                                            Finally, years of under-funding by the
program, the MSF has been mired in
                                            federal government and provincial
public relations gaffes and disputes
                                            governments has led to increased
with provincial governments. The
                                            reliance on the Canada Student Loan
complex public/private structure of the
                                            Program. As previously noted, student
Foundation forced it to enter into
                                            debt has skyrocketed to an average of
negations with provincial governments
                                            $25,000 as students bear the brunt of
to disburse approximately $250 million
                                            funding shortages. In response to this
per year. When these negotiations were
                                            increased pressure on the CSLP, the
completed it became apparent that
                                            federal government has simply
some provinces (Nova Scotia and
                                            attempted to make the program more
Ontario in particular) were simply not
                                            restrictive by instituting regressive
going to use funds transferred from the
                                            policy measures under the guise of
MSF to relieve student debt. The
                                            accountability.
creation of the MSF as a stand-alone
body was designed to give the federal       In the case of the bankruptcy
government a higher profile in the          legislation, the federal government is
funding of post-secondary education.        attempting to address the crisis of
Consequently, the MSF has become a          student debt by criminalising students.
public relations vehicle that is not        This unconscionable legislation strips
addressing the root problem of student      students of the very last financial
debt. This, despite an endowment of         protection offered under the law. The
$2.5 billion over ten years.                law introduces a fundamental inequity
                                            in the way Canadians are treated under
The Canadian Federation of Students is
                                            the law. It is this provision that has
proposing that the funds currently being
                                            compelled the Canadian Federation of
expended in the RESP and CESG
                                            Students to launch a Charter challenge
programs, along with the Millennium
                                            before the Superior Court of Ontario to
Scholarship Foundation endowment, be
                                            repeal this unjust and unconstitutional
rolled into a national system of needs
                                            law. The provisions of the Bankruptcy
based grants. If the program were to be
                                            and Insolvency Act are designed to
administered through the current needs-
                                            offer a last hope to those unable to cope
assessment mechanism of the Canada
                                            with debt. Under the Act, an individual
Student Loan Program (CSLP) it would
                                            must appear before a judge and present
require no start-up funding and no
                                            evidence under oath that their financial
increase to administrative costs. In
                                            disposition makes it impossible for
addition, such a program of needs-
                                            them to meet their obligations.
based grants would be revenue neutral
as we are proposing that it be funded       In 1997, the federal government
with resources re-directed from the         undertook a review of the Act with the
RESP and MSF budgets. This re-              aim of enacting a two-year prohibition


2001 Submission to the Standing Committee on Finance                                 5
on declaring bankruptcy. During the
                                             Recommendation #3:
consultation period the Canadian
                                             The federal government should
Federation of Students and other groups
                                             reverse discriminatory changes to
made a compelling case against such a
                                             the Bankruptcy and Insolvency
prejudicial change. Despite the
                                             Act.
consensus view that such changes
would only lead to misery for those          Recommendation #4:
most desperate, the federal government       The federal government should
enacted legislation setting out the two-     abandon the practice of doing
year prohibition. Less than ten months       credit checks on Canada Student
later, without consultation or supporting    Loan applicants.
reasons, the 1998 ‘education’ budget         Recommendation #5:
legislation extended the ban to ten          The federal government should
years. As it now seems clear that the        enact a Post-Secondary Education
Ministry of Finance initiated these          Act that enforces national
changes, we are calling on the Standing      standards of mobility, quality and
Committee on Finance to recommend            accessibility.
that this discriminatory law be repealed.
The cumulative effects of diminished
funding to post-secondary coupled with      RESEARCH: PUBLIC RESEARCH
policy initiatives like credit checks for   FOR PUBLIC DOLLARS?
student loans and changes to the Bank-      “At a certain point…we don’t have
ruptcy and Insolvency Act have created      universities anymore, but outlying
a crisis in student debt and additional
                                            branches of industry. Then all the
accessibility problems for low and
                                            things that society turns to the univer-
middle income Canadians. New policy
                                            sity for––breadth of knowledge, far
that individualises the cost of higher
                                            time horizons, and independent voice––
education have only exacerbated the
                                            are lost.”
existing inequities. Successful ways to
                                                John Polanyi, Nobel Prize winning chemist
address these problems will have to be
                                                               at the University of Toronto
national in scope, and be sensitive to
students who are most in need.              In the 2001 Speech from the Throne,
                                            the federal government committed to
    Recommendation #1:                      doubling spending on research and
    The federal government should           development over the next ten years.
    terminate the RESP program and          The announcement continues the trend
    institute the Canada Student            of increased public investment in
    Grants Program.                         research. However, recent trends in
                                            federal government research policy
    Recommendation #2:                      gives rise to several concerns about
    The federal government should           who will benefit from this boom in
    terminate the Millennium                spending.
    Scholarship Foundation and
    transfer the funds to the Canada        Since freezing funding for Canada’s
    Student Grants Program.                 three granting councils in the early and
                                            mid 1990’s the federal government has

6                                                       Canadian Federation of Students
taken modest steps to re-invest in           Two recent examples highlight the
public research. In addition to replacing    dangers of public/private partnerships.
the Medical Research Council with the        Both examples are drawn from the
Canadian Institutes of Health Research,      University of Toronto. The story of the
the federal government has brought the       University of Toronto is an instructive
Social Sciences and Humanities               example in assessing the cost of public/
Research Council and the Natural             private partnerships. The University of
Sciences and Engineering Research            Toronto has been able to raise a
Council back to 1995 levels.                 staggering amount of money over the
                                             past ten years in private and corporate
While modestly investmenting in
                                             donations. Most of this fundraising
public research, the federal government
                                             activity has been spurred by the
increased funding for the Canada
                                             withdrawal of provincial and federal
Foundation for Innovation (CFI) by
                                             funding and the contemporaneous
$900 million. Introduced in the 1997
                                             introduction of public/private
budget, the CFI funds research projects
                                             partnerships. However, the University
that are able to secure 20% - 60% of
                                             of Toronto’s success at fundraising has
their funding from private industry.
                                             been accompanied by a diminishment
Under the current scheme, the CFI will
                                             of academic and research freedom.
only fund projects that are public/
                                             Consider the case of Dr. Nancy
private partnerships.
                                             Olivieri, a researcher at the University
The rapid growth of the CFI has had          of Toronto and the Hospital for Sick
four detrimental effects on research in      Children. Olivieri was contracted by
Canada:                                      Apotex, Canada’s largest drug
i) The CFI subsidises private, for-          manufacturer and one of the University
     profit research in Canada by            of Toronto’s most important donors, to
     transferring hundreds of millions of    test a new drug to treat thalassemia.
     research dollars to private industry.   During the course of her research
     There is very little public             Olivieri discovered several disturbing
     accountability for the results of       side effects of the drug and
     publicly funded research when kept      recommended that the trials be
     secret for ‘proprietary’ reasons.       discontinued, or at least suspended,
ii) The institutionalisation of public/      until the risk to her patients could be
     private research through the CFI is     assessed. When Olivieri sought to
     stifling public research in Canada,     publish her results and alert her
iii) Public/private partnerships create a    patients, she was threatened with legal
     two tier system of education in         action and a smear campaign was
     Canada with large research              organised against her.
     universities triumphing over
                                             What is most disturbing and surprising
     smaller, generally regionally based,
                                             about Dr. Olivieri’s case is not the
     institutions.
                                             behaviour of the drug company but the
iv) Humanities funding is falling
                                             behaviour of the university. Instead of
     farther and farther behind other
                                             supporting Olivieri in this important
     academic disciplines like
                                             case of public safety versus corporate
     engineering and computer science.
                                             profit, the university attempted to fire


2001 Submission to the Standing Committee on Finance                                    7
Olivieri and did everything it could to     that benefits all of Canadian society.
mollify Apotex for fear of losing
                                            The CFI and other matching fund
funding from Apotex. University of
                                            programs have opened a significant gap
Toronto President Robert Pritchard
                                            between large, well-established
went so far as to write a letter to the
                                            universities and smaller colleges and
federal government in support of
                                            universities. Those institutions that
Apotex’s call for legislative changes to
                                            have a large pool of ‘seed capital’ to
generic drug patent laws. Throughout
                                            pursue and sustain large corporate
the entire controversy, the University of
                                            donations are reaping a windfall of
Toronto was involved in sensitive
                                            public funding. Those universities that
negotiations to establish a $20 million
                                            may not immediately have the same
partnership with Apotex under the
                                            appeal to corporate Canada or do not
auspices of the CFI.
                                            have the infrastructure to undertake
The second, and more recent example         multi-million dollar campaigns for
is the case of Dr. David Healy. Healy is    matching funds have no access to this
an internationally renowned psychiatric     funding. The Canadian Association of
researcher. He was offered a position       University Business Officers estimates
that he accepted with the University of     that Canadian universities have a deficit
Toronto. Shortly after his appointment,     of $3.6 billion in deferred maintenance
Healy presented at a conference where       costs. Institutions most able to leverage
he described a disturbing lack of           public funds with private strings
research to investigate the potential       attached are better able to meet these
relationship between Prozac and suicide     immediate needs. Those institutions
rates. He made his remarks in the           that cannot meet these needs are unable
context of a paper that raised serious      to sustain an innovative research
concerns about the ability of large         environment. Though some in the post-
pharmaceutical companies to drive the       secondary education sector have called
national research agenda.The                for a complex funding formula to
University of Toronto immediately           compensate for the indirect cost of
withdrew its offer of employment to         research, the only way to insure that all
Healy. Eli Lilly, the company that          universities and colleges have equal
manufactures Prozac, is a large donor       access to public funds is to restore core
to the University of Toronto.               funding to public universities and
                                            colleges.
The examples of Dr. Healy and Dr.
Olivieri illustrate what is lost when the   In the case of the humanities, almost all
funding of research is privatised and the   of the federal government’s matching
public interest becomes secondary to        fund programs explicitly exclude the
corporate research and public relations.    humanities. In addition, the value of
Though the federal government has           humanities programs is not considered
invested more money into research,          immediately useful by corporations that
Canadian citizens are seeing a poor         seek partnerships with universities and
return on this investment because           colleges. The humanities, unlike
almost all of the new funding is            science-related disciplines, are
subsidising private industry at the         chronically under-funded and the
expense of research and development         current move toward public/private

8                                                      Canadian Federation of Students
partnerships ensures that this under-       SKILLS AND TRAINING:
funding will continue.                      LIFE-LONG LEARNING FOR ALL?
Though the development of the CFI           In the most recent speech from the
and other matching fund programs            throne the federal government
ignores and, in some cases, undermines      announced its intention to renew the
the humanities, the data has never been     infrastructure of skills and training in
more thorough to demonstrate the            Canada. As part of this process, the
economic and social benefit of the          Canadian Federation of Students
humanities. Dr. Robert Allen, a             participated in a national roundtable on
University of British Columbia              skills and learning in Edmonton, March
economist, demonstrated that the            21-22. The roundtable, hosted by
demand for humanities graduates has         Human Resources Development
actually outstripped that of science and    Minister Jane Stewart, drew
engineering graduates. In addition,         participants from all regions of the
Allen noted the proclivity high-tech        country and almost all social sectors
firms exhibit for employees with the        were represented. The set of final
ability to think critically as opposed to   recommendations to emerge from the
those with primarily technical skills.      discussions reflected a clear consensus
The diversity and dynamism of the new       among the participants. It is in the
economy would appear, then, to call for     context of the final report of the
the retrenchment of funding and             national roundtable and the
research support for the humanities         comprehensive federal report entitled
rather than a withdrawal of public          Stepping Up: Skills and Opportunities
funding.                                    in the Knowledge Economy that we will
                                            offer our assessment of the skills and
                                            training challenges Canada faces.
  Recommendation # 6:                       The dominant theme of the roundtable’s
  The federal government should             final report was twofold. First, that the
  restructure the CFI in order to           federal government needed to play a
  ensure that matching funds from           prominent role in funding and
  the private sector are not a              administering a national skills strategy.
  condition of public funding for a         Such a national approach would
  research project. In addition, the        address the shortcoming of the current
  federal government should                 piecemeal approach to skills and
  double funding for public                 training. Second, the need for universal
  research over the next ten years.         access to skills and training must form
  Recommendation # 7:                       the foundation of any national skills
  The federal government should             strategy. In order to achieve that goal,
  provide an additional $100 million        funding must be restored to Canada’s
  per annum to the Social Science           public colleges and universities.
  and Humanities Research Council           The burgeoning private, for-profit
  in order to equalise funding with         training industry is in no position to
  the other granting councils.              provide solutions to the employment
                                            shortages and skills gap that the

2001 Submission to the Standing Committee on Finance                                 9
Canadian economy faces. Private             training, we believe that is important
training is generally characterised by      that the Employment Insurance
exorbitant tuition fees and sub-standard    program continue to fund and support
instruction that leaves students mired in   worker re-training. In addition, we
debt and bereft of the skills that drove    support the call for Canada to follow
them to private trainers. Regrettably, it   the lead of most European Union
is changes in federal government policy     countries and allow the EI program to
that is pushing many unemployed and         be utilised for training leave. Such a
underemployed Canadians to turn to the      program would mirror apprentice
private training industry.                  training programs that provide a
                                            powerful incentive to develop new
In 1996, the federal government
                                            skills by providing workers with
eliminated the practice of bulk
                                            income while they learn.
purchases of seats at public institutions
as a means of providing re-training to      Despite the compelling argument for a
unemployed workers. In place of this        public solution to the skills and training
purchase, unemployed workers now            challenges that Canada faces, the
receive a voucher that can be used at       federal government has contemplated
both public and private institutions. The   the introduction of Registered
new voucher system rarely provides          Individual Learning Accounts (RILA).
enough funding for the recipient to         In the initial stages of discussion, it
obtain adequate training.                   appears that the RILA will replicate all
                                            of the inequalities endemic to the RESP
At private institutions workers are often   program that was outlined earlier in this
forced to enter programs that offer         brief. Like RESPs, RILAs would
neither the quality nor the duration        expend significant public resources to
necessary to allow them to acquire the      assist those who already have the
skills needed to participate in the new     means to save for an education. Such a
economy. This point is particularly         program will do nothing to assist those
troubling given the fact that Human         Canadians who need basic literacy
Resources Development Canada’s              skills and other forms of training that
labour force studies demonstrate that       form a pre-requisite for sustainable
most of the workers who turn to the         employment.
federal government for training have
been displaced from jobs in the             In Britain, where a program similar to
resource industry. In addition, the         the proposed RILA has been
federal government is now quickly           implemented, less than 25% of those
ceding jurisdiction from training           who open a RILA are workers in need
through the Employment Insurance Act        of basic re-training and skills. In
to provincial governments. Though the       addition, the RILA program in Britain
recent speech from the throne and the       has been a boon for the private, for-
ongoing work on a major ‘White Paper’       profit training industry. Simply put, the
on skills, training and innovation are      solution to the skills gap in Canada is
hopeful signs that the federal              not to be found in repeating the errors
government still believes it has an         of the RESP and using public funds to
important role to play in skills and        support those who already have ample


10                                                     Canadian Federation of Students
access to skills and training. The
experience in Britain demonstrates that       Recommendation #10:
RILAs act more as a public subsidy for        The federal government should
business than as means of providing           retain juridiction over skills and
equal access to skills and training.          training and tie its national
Under the RILA model public funds             strategy to a national system of
subsidise the training of employees in        needs-based grants.
the form of forgone tax revenue and
direct grants. In the British example,      CONCLUSION
most of those who are opening accounts
are participating in training programs      There is little doubt about the social
that previously would have been funded      and economic merit of post-secondary
by the employer.                            education. However, public policy
                                            decisions taken by the federal
Finally, if the federal government is to    government in recent years has
address the gap between access to skills    undermined the vision of access to
and the need for those skills among the     post-secondary education as a social
most economically vulnerable                good available to all Canadians. The
Canadians it must reverse the recent        federal policy trends outlined in this
trends in Canada Student Loan Policy        brief point to a system of post-
outlined above. The implementation of       secondary education that determines
credit checks and the discriminatory        access on the basis of the ability to pay
bankruptcy legislation are barriers to      rather than merit or need. During the
lifelong learning that should have no       1960s and 1970s when participation
place in a national skills agenda           rates were growing and post secondary
designed for all Canadians.                 education opportunities were
                                            expanding, the federal government
                                            played a leadership role in ensuring
 Recommendation # 8:                        access to education. Indeed, as Finance
 The federal government should re-          Minster Paul Martin suggests, the
 institute the practice of block            federal government is still, at least
 purchases of seats in public post-         rhetorically, devoted to the idea that all
 secondary institutions with the            Canadians should have the opportunity
 purpose of supplying training to           to learn regardless of financial
 unemployed and underemployed               circumstance.
 workers.
                                            Unfortunately, as all the hard data
 Recommendation #9:                         attests, access to the skills and
 The federal government should              knowledge offered by post-secondary
 introduce a training leave program         education is quickly becoming a
 funded through Employment                  privilege for the wealthy in Canada. In
 Insurance. Such a program should           the face of this mounting challenge the
 allow workers up to 18 months of           federal government has put together a
 paid leave for training.                   patchwork of policy initiatives that
                                            focus largely on regressive tax credits
                                            as inducements to save for education

2001 Submission to the Standing Committee on Finance                                11
and increasing ties to private industry.
Neither approach has improved the
quality or accessibility of Canadian
colleges or universities. Accessible,
public post-secondary education which
is of high quality will require the
federal government to re-dedicate itself
to the funding necessary to ensure real
equality of opportunity. Ultimately,
such funding is the only measurable
standard and proven solution to ensure
that the rhetoric of opportunity for all
becomes a reality that offers hope to all.
We look forward to presenting these
arguments in person this fall.




12                                           Canadian Federation of Students
NOTES

1. Canadian Association of University Teachers, Education Review Vol. 3 No. 3. “The Growing
   Funding Gap: Government expenditures on post-secondary education, 2000-01.”

2 Canadian Association of University Teachers, Education Review Vol. 2 No. 1. “Out of Reach:
  Trends in household spending on education in Canada.”

3. Robinson, David & Andrew Jackson, Falling Behind: The state of working Canada, 2000.

4. Assembly of First Nations, First Nations Post Secondary Education Review (August 2000).




2001 Submission to the Standing Committee on Finance                                           13

Más contenido relacionado

La actualidad más candente

Jared Polis Foundation Education Report Spring 2003
Jared Polis Foundation Education Report Spring 2003Jared Polis Foundation Education Report Spring 2003
Jared Polis Foundation Education Report Spring 2003Lisa Finkelstein
 
Time is not on our side 2 11.29.13
Time is not on our side 2  11.29.13Time is not on our side 2  11.29.13
Time is not on our side 2 11.29.13John Wilton
 
America’s College Promise Proposal - Key note
America’s College Promise Proposal - Key noteAmerica’s College Promise Proposal - Key note
America’s College Promise Proposal - Key noteJeff Ritter
 
WestEd's Leandro report: The Missing Pages
WestEd's Leandro report: The Missing PagesWestEd's Leandro report: The Missing Pages
WestEd's Leandro report: The Missing PagesAnalisa Sorrells
 
COVID-19's Impact on Public School Budgets: Unstable Funding Requires Quick A...
COVID-19's Impact on Public School Budgets: Unstable Funding Requires Quick A...COVID-19's Impact on Public School Budgets: Unstable Funding Requires Quick A...
COVID-19's Impact on Public School Budgets: Unstable Funding Requires Quick A...Analisa Sorrells
 
Accessing Higher Education in Kenya: A Cry for Help for the Needy? A Brief Ov...
Accessing Higher Education in Kenya: A Cry for Help for the Needy? A Brief Ov...Accessing Higher Education in Kenya: A Cry for Help for the Needy? A Brief Ov...
Accessing Higher Education in Kenya: A Cry for Help for the Needy? A Brief Ov...Arnold Ochieng Oginga
 
all chicago final 6
all chicago final 6all chicago final 6
all chicago final 6Lara Brooks
 
Applied Summary Paper
Applied Summary PaperApplied Summary Paper
Applied Summary PaperBecky Smith
 
20080721 The High Price of Failure in California How Inadequate Education Cos...
20080721 The High Price of Failure in California How Inadequate Education Cos...20080721 The High Price of Failure in California How Inadequate Education Cos...
20080721 The High Price of Failure in California How Inadequate Education Cos...Vicki Alger
 
20090813 Down but Not Out in DC Bi-Partisan, Bi-Cameral Efforts to Continue t...
20090813 Down but Not Out in DC Bi-Partisan, Bi-Cameral Efforts to Continue t...20090813 Down but Not Out in DC Bi-Partisan, Bi-Cameral Efforts to Continue t...
20090813 Down but Not Out in DC Bi-Partisan, Bi-Cameral Efforts to Continue t...Vicki Alger
 
[18] Sept 2009 [E Pres] Judicial Review
[18] Sept 2009 [E Pres] Judicial Review[18] Sept 2009 [E Pres] Judicial Review
[18] Sept 2009 [E Pres] Judicial ReviewROSEMARY DC
 
Jared Polis Foundation Education Report Spring 2004
Jared Polis Foundation Education Report Spring 2004Jared Polis Foundation Education Report Spring 2004
Jared Polis Foundation Education Report Spring 2004Lisa Finkelstein
 
20090420 10 Questions State Legislators Should Ask About Higher Education
20090420 10 Questions State Legislators Should Ask About Higher Education20090420 10 Questions State Legislators Should Ask About Higher Education
20090420 10 Questions State Legislators Should Ask About Higher EducationVicki Alger
 
EconomicsofEducation-2012
EconomicsofEducation-2012EconomicsofEducation-2012
EconomicsofEducation-2012Rebecca John
 
New Jersey’s Abbott Districts: Education Finances During the Great Recession
New Jersey’s Abbott Districts: Education Finances During the Great RecessionNew Jersey’s Abbott Districts: Education Finances During the Great Recession
New Jersey’s Abbott Districts: Education Finances During the Great RecessionLuis Taveras EMBA, MS
 
20100921 Murray (Alger) GI Junior Scholarships Expanding Education Options fo...
20100921 Murray (Alger) GI Junior Scholarships Expanding Education Options fo...20100921 Murray (Alger) GI Junior Scholarships Expanding Education Options fo...
20100921 Murray (Alger) GI Junior Scholarships Expanding Education Options fo...Vicki Alger
 

La actualidad más candente (20)

Jared Polis Foundation Education Report Spring 2003
Jared Polis Foundation Education Report Spring 2003Jared Polis Foundation Education Report Spring 2003
Jared Polis Foundation Education Report Spring 2003
 
Time is not on our side 2 11.29.13
Time is not on our side 2  11.29.13Time is not on our side 2  11.29.13
Time is not on our side 2 11.29.13
 
Serving Communities, Strengthening the Nation
Serving Communities, Strengthening the NationServing Communities, Strengthening the Nation
Serving Communities, Strengthening the Nation
 
America’s College Promise Proposal - Key note
America’s College Promise Proposal - Key noteAmerica’s College Promise Proposal - Key note
America’s College Promise Proposal - Key note
 
WestEd's Leandro report: The Missing Pages
WestEd's Leandro report: The Missing PagesWestEd's Leandro report: The Missing Pages
WestEd's Leandro report: The Missing Pages
 
Reforming florida higher education
Reforming florida higher educationReforming florida higher education
Reforming florida higher education
 
COVID-19's Impact on Public School Budgets: Unstable Funding Requires Quick A...
COVID-19's Impact on Public School Budgets: Unstable Funding Requires Quick A...COVID-19's Impact on Public School Budgets: Unstable Funding Requires Quick A...
COVID-19's Impact on Public School Budgets: Unstable Funding Requires Quick A...
 
Accessing Higher Education in Kenya: A Cry for Help for the Needy? A Brief Ov...
Accessing Higher Education in Kenya: A Cry for Help for the Needy? A Brief Ov...Accessing Higher Education in Kenya: A Cry for Help for the Needy? A Brief Ov...
Accessing Higher Education in Kenya: A Cry for Help for the Needy? A Brief Ov...
 
2007 AIKCU Annual Report
2007 AIKCU Annual Report2007 AIKCU Annual Report
2007 AIKCU Annual Report
 
all chicago final 6
all chicago final 6all chicago final 6
all chicago final 6
 
Applied Summary Paper
Applied Summary PaperApplied Summary Paper
Applied Summary Paper
 
20080721 The High Price of Failure in California How Inadequate Education Cos...
20080721 The High Price of Failure in California How Inadequate Education Cos...20080721 The High Price of Failure in California How Inadequate Education Cos...
20080721 The High Price of Failure in California How Inadequate Education Cos...
 
20090813 Down but Not Out in DC Bi-Partisan, Bi-Cameral Efforts to Continue t...
20090813 Down but Not Out in DC Bi-Partisan, Bi-Cameral Efforts to Continue t...20090813 Down but Not Out in DC Bi-Partisan, Bi-Cameral Efforts to Continue t...
20090813 Down but Not Out in DC Bi-Partisan, Bi-Cameral Efforts to Continue t...
 
[18] Sept 2009 [E Pres] Judicial Review
[18] Sept 2009 [E Pres] Judicial Review[18] Sept 2009 [E Pres] Judicial Review
[18] Sept 2009 [E Pres] Judicial Review
 
Jared Polis Foundation Education Report Spring 2004
Jared Polis Foundation Education Report Spring 2004Jared Polis Foundation Education Report Spring 2004
Jared Polis Foundation Education Report Spring 2004
 
20090420 10 Questions State Legislators Should Ask About Higher Education
20090420 10 Questions State Legislators Should Ask About Higher Education20090420 10 Questions State Legislators Should Ask About Higher Education
20090420 10 Questions State Legislators Should Ask About Higher Education
 
EconomicsofEducation-2012
EconomicsofEducation-2012EconomicsofEducation-2012
EconomicsofEducation-2012
 
New Jersey’s Abbott Districts: Education Finances During the Great Recession
New Jersey’s Abbott Districts: Education Finances During the Great RecessionNew Jersey’s Abbott Districts: Education Finances During the Great Recession
New Jersey’s Abbott Districts: Education Finances During the Great Recession
 
20100921 Murray (Alger) GI Junior Scholarships Expanding Education Options fo...
20100921 Murray (Alger) GI Junior Scholarships Expanding Education Options fo...20100921 Murray (Alger) GI Junior Scholarships Expanding Education Options fo...
20100921 Murray (Alger) GI Junior Scholarships Expanding Education Options fo...
 
Policy Brief- Egan C
Policy Brief- Egan CPolicy Brief- Egan C
Policy Brief- Egan C
 

Destacado

C2 Submission En
C2 Submission EnC2 Submission En
C2 Submission EnROSEMARY DC
 
Conceptual model lars
Conceptual model larsConceptual model lars
Conceptual model larsMarco
 
Sub 2005 Financectteebrief
Sub 2005 FinancectteebriefSub 2005 Financectteebrief
Sub 2005 FinancectteebriefROSEMARY DC
 
Strategy For Change 2007
Strategy For Change 2007Strategy For Change 2007
Strategy For Change 2007ROSEMARY DC
 
Sub 2007 Financectteebrief
Sub 2007 FinancectteebriefSub 2007 Financectteebrief
Sub 2007 FinancectteebriefROSEMARY DC
 
Sub 2004 Financectteebrief
Sub 2004 FinancectteebriefSub 2004 Financectteebrief
Sub 2004 FinancectteebriefROSEMARY DC
 
Sub 2006 Financectteebrief
Sub 2006 FinancectteebriefSub 2006 Financectteebrief
Sub 2006 FinancectteebriefROSEMARY DC
 
Pădure de foioase & pădure de conifere
Pădure de foioase & pădure de coniferePădure de foioase & pădure de conifere
Pădure de foioase & pădure de conifereDumitru Maros
 
Sub 200312 Jointaucclttr
Sub 200312 JointaucclttrSub 200312 Jointaucclttr
Sub 200312 JointaucclttrROSEMARY DC
 

Destacado (13)

USGS Assessment for Size of Utica Shale
USGS Assessment for Size of Utica ShaleUSGS Assessment for Size of Utica Shale
USGS Assessment for Size of Utica Shale
 
C2 Submission En
C2 Submission EnC2 Submission En
C2 Submission En
 
Body gospel
Body gospelBody gospel
Body gospel
 
Conceptual model lars
Conceptual model larsConceptual model lars
Conceptual model lars
 
Icr Inequality
Icr InequalityIcr Inequality
Icr Inequality
 
Sub 2005 Financectteebrief
Sub 2005 FinancectteebriefSub 2005 Financectteebrief
Sub 2005 Financectteebrief
 
Strategy For Change 2007
Strategy For Change 2007Strategy For Change 2007
Strategy For Change 2007
 
Sub 2007 Financectteebrief
Sub 2007 FinancectteebriefSub 2007 Financectteebrief
Sub 2007 Financectteebrief
 
Believe!
Believe!Believe!
Believe!
 
Sub 2004 Financectteebrief
Sub 2004 FinancectteebriefSub 2004 Financectteebrief
Sub 2004 Financectteebrief
 
Sub 2006 Financectteebrief
Sub 2006 FinancectteebriefSub 2006 Financectteebrief
Sub 2006 Financectteebrief
 
Pădure de foioase & pădure de conifere
Pădure de foioase & pădure de coniferePădure de foioase & pădure de conifere
Pădure de foioase & pădure de conifere
 
Sub 200312 Jointaucclttr
Sub 200312 JointaucclttrSub 200312 Jointaucclttr
Sub 200312 Jointaucclttr
 

Similar a Sub 200108 Finance

Colorado Budget Impact on St Vrain and Prop 103
Colorado Budget Impact on St Vrain and Prop 103Colorado Budget Impact on St Vrain and Prop 103
Colorado Budget Impact on St Vrain and Prop 103JohnCr8on
 
Leandro fy2021 plan_rev06152020 - final
Leandro fy2021 plan_rev06152020 - finalLeandro fy2021 plan_rev06152020 - final
Leandro fy2021 plan_rev06152020 - finalEducationNC
 
2008 04-efa-cafs-challenges4 canada-mundy (1)
2008 04-efa-cafs-challenges4 canada-mundy (1)2008 04-efa-cafs-challenges4 canada-mundy (1)
2008 04-efa-cafs-challenges4 canada-mundy (1)Arif Anwar
 
In this activity, you will 1. visit the websile Budget O1. The. Unit.pdf
 In this activity, you will 1. visit the websile Budget O1. The. Unit.pdf In this activity, you will 1. visit the websile Budget O1. The. Unit.pdf
In this activity, you will 1. visit the websile Budget O1. The. Unit.pdfnijamabdulkarim
 
Economics of education 04.11.11(3)
Economics of education 04.11.11(3)Economics of education 04.11.11(3)
Economics of education 04.11.11(3)Dan Curtis
 
California Children in the 2013-14 State Budget
California Children in the 2013-14 State Budget California Children in the 2013-14 State Budget
California Children in the 2013-14 State Budget chellie99
 
Prosperity Through Education Plan
Prosperity Through Education Plan Prosperity Through Education Plan
Prosperity Through Education Plan Salt Lake Chamber
 
Economics in education1/financing Education
Economics in education1/financing EducationEconomics in education1/financing Education
Economics in education1/financing EducationReve Faith Bagas
 
How the California Budget is impacting Children
How the California Budget is impacting Children How the California Budget is impacting Children
How the California Budget is impacting Children Hanif Houston
 
Poverty Amongst Plenty: Waiting for the Yukon Government to Adopt a Poverty R...
Poverty Amongst Plenty: Waiting for the Yukon Government to Adopt a Poverty R...Poverty Amongst Plenty: Waiting for the Yukon Government to Adopt a Poverty R...
Poverty Amongst Plenty: Waiting for the Yukon Government to Adopt a Poverty R...TheHomelessHub
 
Budget03052012 presentation
Budget03052012 presentationBudget03052012 presentation
Budget03052012 presentationGary Cimorelli
 
North Carolina budget analysis from NC Justice Center
North Carolina budget analysis from NC Justice CenterNorth Carolina budget analysis from NC Justice Center
North Carolina budget analysis from NC Justice CenterEducationNC
 
JKCF ETUO Report v2
JKCF ETUO Report v2JKCF ETUO Report v2
JKCF ETUO Report v2Grace Healey
 

Similar a Sub 200108 Finance (20)

2016 Federal Budget
2016 Federal Budget2016 Federal Budget
2016 Federal Budget
 
Colorado Budget Impact on St Vrain and Prop 103
Colorado Budget Impact on St Vrain and Prop 103Colorado Budget Impact on St Vrain and Prop 103
Colorado Budget Impact on St Vrain and Prop 103
 
Hrdc Bonds 2004
Hrdc Bonds 2004Hrdc Bonds 2004
Hrdc Bonds 2004
 
Leandro fy2021 plan_rev06152020 - final
Leandro fy2021 plan_rev06152020 - finalLeandro fy2021 plan_rev06152020 - final
Leandro fy2021 plan_rev06152020 - final
 
2008 04-efa-cafs-challenges4 canada-mundy (1)
2008 04-efa-cafs-challenges4 canada-mundy (1)2008 04-efa-cafs-challenges4 canada-mundy (1)
2008 04-efa-cafs-challenges4 canada-mundy (1)
 
In this activity, you will 1. visit the websile Budget O1. The. Unit.pdf
 In this activity, you will 1. visit the websile Budget O1. The. Unit.pdf In this activity, you will 1. visit the websile Budget O1. The. Unit.pdf
In this activity, you will 1. visit the websile Budget O1. The. Unit.pdf
 
Economics of education 04.11.11(3)
Economics of education 04.11.11(3)Economics of education 04.11.11(3)
Economics of education 04.11.11(3)
 
California Children in the 2013-14 State Budget
California Children in the 2013-14 State Budget California Children in the 2013-14 State Budget
California Children in the 2013-14 State Budget
 
376387 1
376387 1376387 1
376387 1
 
Let's Talk FINAL
Let's Talk FINALLet's Talk FINAL
Let's Talk FINAL
 
Prosperity Through Education Plan
Prosperity Through Education Plan Prosperity Through Education Plan
Prosperity Through Education Plan
 
Economics in education1/financing Education
Economics in education1/financing EducationEconomics in education1/financing Education
Economics in education1/financing Education
 
ihenacho_Writing_Sample
ihenacho_Writing_Sampleihenacho_Writing_Sample
ihenacho_Writing_Sample
 
ihenacho_Writing_Sample
ihenacho_Writing_Sampleihenacho_Writing_Sample
ihenacho_Writing_Sample
 
How the California Budget is impacting Children
How the California Budget is impacting Children How the California Budget is impacting Children
How the California Budget is impacting Children
 
Poverty Amongst Plenty: Waiting for the Yukon Government to Adopt a Poverty R...
Poverty Amongst Plenty: Waiting for the Yukon Government to Adopt a Poverty R...Poverty Amongst Plenty: Waiting for the Yukon Government to Adopt a Poverty R...
Poverty Amongst Plenty: Waiting for the Yukon Government to Adopt a Poverty R...
 
Budget03052012 presentation
Budget03052012 presentationBudget03052012 presentation
Budget03052012 presentation
 
North Carolina budget analysis from NC Justice Center
North Carolina budget analysis from NC Justice CenterNorth Carolina budget analysis from NC Justice Center
North Carolina budget analysis from NC Justice Center
 
JKCF ETUO Report v2
JKCF ETUO Report v2JKCF ETUO Report v2
JKCF ETUO Report v2
 
Children and the 2015-16 State Budget Proposal
Children and the 2015-16 State Budget ProposalChildren and the 2015-16 State Budget Proposal
Children and the 2015-16 State Budget Proposal
 

Más de ROSEMARY DC

Sub 2008 Financectteebrief
Sub 2008 FinancectteebriefSub 2008 Financectteebrief
Sub 2008 FinancectteebriefROSEMARY DC
 
Ontario Human Rights Commission 2 Of 2
Ontario Human Rights Commission 2 Of 2Ontario Human Rights Commission 2 Of 2
Ontario Human Rights Commission 2 Of 2ROSEMARY DC
 
Ontario Ombudsman 1 Of 2
Ontario Ombudsman 1 Of 2Ontario Ombudsman 1 Of 2
Ontario Ombudsman 1 Of 2ROSEMARY DC
 
Ontario Ombudsman 2 Of 2
Ontario Ombudsman 2 Of 2Ontario Ombudsman 2 Of 2
Ontario Ombudsman 2 Of 2ROSEMARY DC
 

Más de ROSEMARY DC (6)

Sub 2008 Financectteebrief
Sub 2008 FinancectteebriefSub 2008 Financectteebrief
Sub 2008 Financectteebrief
 
Public Risk
Public RiskPublic Risk
Public Risk
 
Ontario Human Rights Commission 2 Of 2
Ontario Human Rights Commission 2 Of 2Ontario Human Rights Commission 2 Of 2
Ontario Human Rights Commission 2 Of 2
 
Ontario Ombudsman 1 Of 2
Ontario Ombudsman 1 Of 2Ontario Ombudsman 1 Of 2
Ontario Ombudsman 1 Of 2
 
Ontario Ombudsman 2 Of 2
Ontario Ombudsman 2 Of 2Ontario Ombudsman 2 Of 2
Ontario Ombudsman 2 Of 2
 
Up Ar 06e I P C
Up Ar 06e  I P CUp Ar 06e  I P C
Up Ar 06e I P C
 

Último

The Next Things To Immediately Do About Mating Press
The Next Things To Immediately Do About Mating PressThe Next Things To Immediately Do About Mating Press
The Next Things To Immediately Do About Mating Pressmatingpress170
 
What is the career path of a VFX artist?
What is the career path of a VFX artist?What is the career path of a VFX artist?
What is the career path of a VFX artist?santoshjadhav126
 
dentinalhypersensitivity, classification and material used
dentinalhypersensitivity,  classification and material useddentinalhypersensitivity,  classification and material used
dentinalhypersensitivity, classification and material usedaishwaryakhare5
 
Jumark Morit Diezmo- Career portfolio- BPED 3A
Jumark Morit Diezmo- Career portfolio- BPED 3AJumark Morit Diezmo- Career portfolio- BPED 3A
Jumark Morit Diezmo- Career portfolio- BPED 3Ajumarkdiezmo1
 
Human Rights are notes and helping material
Human Rights are notes and helping materialHuman Rights are notes and helping material
Human Rights are notes and helping materialnadeemcollege26
 
How To Land Your Next PM Dream Job - PMISSC Meeting - April 2024
How To Land Your Next PM Dream Job - PMISSC Meeting - April 2024How To Land Your Next PM Dream Job - PMISSC Meeting - April 2024
How To Land Your Next PM Dream Job - PMISSC Meeting - April 2024Hector Del Castillo, CPM, CPMM
 
Training for Deaconess, biblical qualifications.ppt
Training for Deaconess, biblical qualifications.pptTraining for Deaconess, biblical qualifications.ppt
Training for Deaconess, biblical qualifications.pptVidalMendoza5
 
Complete Benefits of career counseling in India
Complete Benefits of career counseling in IndiaComplete Benefits of career counseling in India
Complete Benefits of career counseling in IndiaMere Mentor
 
Banged Dubai Call Girls O525547819 Call Girls Dubai
Banged Dubai Call Girls O525547819 Call Girls DubaiBanged Dubai Call Girls O525547819 Call Girls Dubai
Banged Dubai Call Girls O525547819 Call Girls Dubaikojalkojal131
 
LinkedIn for Your Job Search in April 2024
LinkedIn for Your Job Search in April 2024LinkedIn for Your Job Search in April 2024
LinkedIn for Your Job Search in April 2024Bruce Bennett
 
Nathan_Baughman_Resume_copywriter_and_editor
Nathan_Baughman_Resume_copywriter_and_editorNathan_Baughman_Resume_copywriter_and_editor
Nathan_Baughman_Resume_copywriter_and_editorNathanBaughman3
 
Chapter 4 - Promoting Inclusive Culture.ppt
Chapter 4 - Promoting   Inclusive Culture.pptChapter 4 - Promoting   Inclusive Culture.ppt
Chapter 4 - Promoting Inclusive Culture.pptmoytopo
 
怎么办理美国UCLA毕业证加州大学洛杉矶分校学位证书一手渠道
怎么办理美国UCLA毕业证加州大学洛杉矶分校学位证书一手渠道怎么办理美国UCLA毕业证加州大学洛杉矶分校学位证书一手渠道
怎么办理美国UCLA毕业证加州大学洛杉矶分校学位证书一手渠道7283h7lh
 
Abanoub Ghobrial, Planning Team Leader.pdf
Abanoub Ghobrial, Planning Team Leader.pdfAbanoub Ghobrial, Planning Team Leader.pdf
Abanoub Ghobrial, Planning Team Leader.pdfAbanoubGhobrial1
 
Bobby singh - Digital Marketing Service
Bobby singh -  Digital Marketing ServiceBobby singh -  Digital Marketing Service
Bobby singh - Digital Marketing ServiceBobby singh
 
Get to know about Raquel Thompson Barbados.pdf
Get to know about Raquel Thompson Barbados.pdfGet to know about Raquel Thompson Barbados.pdf
Get to know about Raquel Thompson Barbados.pdfRaquel Thompson Barbados
 
How to prepare yourself for a job interview.pptx
How to prepare yourself for a job interview.pptxHow to prepare yourself for a job interview.pptx
How to prepare yourself for a job interview.pptxJohnreyFalsarioBasid
 
How to make career in advance 3d animation
How to make career in advance 3d animationHow to make career in advance 3d animation
How to make career in advance 3d animationsantoshjadhav126
 
Network to Success - Using Social Media in Job Search
Network to Success - Using Social Media in Job SearchNetwork to Success - Using Social Media in Job Search
Network to Success - Using Social Media in Job SearchBruce Bennett
 
Abanoub Ghobrial, Planning Team Leader.pdf
Abanoub Ghobrial, Planning Team Leader.pdfAbanoub Ghobrial, Planning Team Leader.pdf
Abanoub Ghobrial, Planning Team Leader.pdfAbanoubGhobrial1
 

Último (20)

The Next Things To Immediately Do About Mating Press
The Next Things To Immediately Do About Mating PressThe Next Things To Immediately Do About Mating Press
The Next Things To Immediately Do About Mating Press
 
What is the career path of a VFX artist?
What is the career path of a VFX artist?What is the career path of a VFX artist?
What is the career path of a VFX artist?
 
dentinalhypersensitivity, classification and material used
dentinalhypersensitivity,  classification and material useddentinalhypersensitivity,  classification and material used
dentinalhypersensitivity, classification and material used
 
Jumark Morit Diezmo- Career portfolio- BPED 3A
Jumark Morit Diezmo- Career portfolio- BPED 3AJumark Morit Diezmo- Career portfolio- BPED 3A
Jumark Morit Diezmo- Career portfolio- BPED 3A
 
Human Rights are notes and helping material
Human Rights are notes and helping materialHuman Rights are notes and helping material
Human Rights are notes and helping material
 
How To Land Your Next PM Dream Job - PMISSC Meeting - April 2024
How To Land Your Next PM Dream Job - PMISSC Meeting - April 2024How To Land Your Next PM Dream Job - PMISSC Meeting - April 2024
How To Land Your Next PM Dream Job - PMISSC Meeting - April 2024
 
Training for Deaconess, biblical qualifications.ppt
Training for Deaconess, biblical qualifications.pptTraining for Deaconess, biblical qualifications.ppt
Training for Deaconess, biblical qualifications.ppt
 
Complete Benefits of career counseling in India
Complete Benefits of career counseling in IndiaComplete Benefits of career counseling in India
Complete Benefits of career counseling in India
 
Banged Dubai Call Girls O525547819 Call Girls Dubai
Banged Dubai Call Girls O525547819 Call Girls DubaiBanged Dubai Call Girls O525547819 Call Girls Dubai
Banged Dubai Call Girls O525547819 Call Girls Dubai
 
LinkedIn for Your Job Search in April 2024
LinkedIn for Your Job Search in April 2024LinkedIn for Your Job Search in April 2024
LinkedIn for Your Job Search in April 2024
 
Nathan_Baughman_Resume_copywriter_and_editor
Nathan_Baughman_Resume_copywriter_and_editorNathan_Baughman_Resume_copywriter_and_editor
Nathan_Baughman_Resume_copywriter_and_editor
 
Chapter 4 - Promoting Inclusive Culture.ppt
Chapter 4 - Promoting   Inclusive Culture.pptChapter 4 - Promoting   Inclusive Culture.ppt
Chapter 4 - Promoting Inclusive Culture.ppt
 
怎么办理美国UCLA毕业证加州大学洛杉矶分校学位证书一手渠道
怎么办理美国UCLA毕业证加州大学洛杉矶分校学位证书一手渠道怎么办理美国UCLA毕业证加州大学洛杉矶分校学位证书一手渠道
怎么办理美国UCLA毕业证加州大学洛杉矶分校学位证书一手渠道
 
Abanoub Ghobrial, Planning Team Leader.pdf
Abanoub Ghobrial, Planning Team Leader.pdfAbanoub Ghobrial, Planning Team Leader.pdf
Abanoub Ghobrial, Planning Team Leader.pdf
 
Bobby singh - Digital Marketing Service
Bobby singh -  Digital Marketing ServiceBobby singh -  Digital Marketing Service
Bobby singh - Digital Marketing Service
 
Get to know about Raquel Thompson Barbados.pdf
Get to know about Raquel Thompson Barbados.pdfGet to know about Raquel Thompson Barbados.pdf
Get to know about Raquel Thompson Barbados.pdf
 
How to prepare yourself for a job interview.pptx
How to prepare yourself for a job interview.pptxHow to prepare yourself for a job interview.pptx
How to prepare yourself for a job interview.pptx
 
How to make career in advance 3d animation
How to make career in advance 3d animationHow to make career in advance 3d animation
How to make career in advance 3d animation
 
Network to Success - Using Social Media in Job Search
Network to Success - Using Social Media in Job SearchNetwork to Success - Using Social Media in Job Search
Network to Success - Using Social Media in Job Search
 
Abanoub Ghobrial, Planning Team Leader.pdf
Abanoub Ghobrial, Planning Team Leader.pdfAbanoub Ghobrial, Planning Team Leader.pdf
Abanoub Ghobrial, Planning Team Leader.pdf
 

Sub 200108 Finance

  • 1. 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 Canadian Federation of Students 14 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 09876543210987654321098765432121098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 9876543210987654321098765432121098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 098765432109876543210987654321210987654321098765432109876543212109876543210987654321098765432121098765432109876543210987654321 0 1 1 August, 2001 Standing Committee on Finance House of Commons submission to the Canadian Federation of Students
  • 2. Canadian Federation of Students’ Submission to the House of Commons Standing Committee on Finance August, 2001 INTRODUCTION system of post-secondary education is working to exacerbate the gap between The unprecedented growth of the those who prosper in the new economy Canadian economy over the past six and those who languish in low-paying, years has created unique challenges and unfulfilling work. In the past three opportunities. On June 1, 2000 the budgets the federal government has gross domestic product reached the undertaken a variety of new policy benchmark of $1 trillion and the past initiatives under the banner of the “new three federal budgets have produced economy” and the challenge of surpluses of over $5 billion. Using providing opportunities for all. conservative economic indicators, the However, as we shall outline, these Canadian Association of University measures have, for the most part, been Teachers estimates the surplus will cosmetic. grow to at least $34.6 billion over the Besides calling for more core funding, next five years. Despite these this brief will make the case that the achievements the gap between the rich money the federal government is and poor in Canada continues to widen. investing in post-secondary education According to the Canadian Fact Book and research could be allocated more on Poverty there are 1.3 million more effectively. In addition, though the poor households in Canada than there federal government has restored a were 20 years ago. Between 1981 and portion of the funding cut to the Canada 1997, the rate of poverty among young Health and Social Transfer (CHST) in families more than doubled from 21.7 1994, almost none of this new funding per cent to 46.1 per cent. is being used for public colleges and During this same period of economic universities. The federal government expansion and increased poverty, the has yet to implement any framework cost of post-secondary education has with the provinces that works toward dramatically increased and access to national standards of quality and education for low and middle income mobility. Before such a framework can Canadians is declining. An important be built the federal government must indicator about the mismatch between find a means of making the provinces macro-economic prosperity and the more accountable for the funds declining opportunities for low and transferred under the CHST designed to middle income Canadians can be found fund post-secondary education. in recent trends in post-secondary In the light of the trends outlined above education policy. Regrettably, Canada’s it is regrettable that the Standing 2001 Submission to the Standing Committee on Finance 1
  • 3. Committee on Finance has decline in access to post-secondary recommended that almost all of the education among low and middle accrued surplus for the next three years income Canadians. Throughout the be allocated for tax cuts. Tax cuts will 1990’s, the federal government pointed do nothing to address the growing to high participation rates to argue that income disparity in Canada and, more funding cuts have had no effect on importantly, they limit the access to post-secondary education. government’s ability to properly fund However, recent data suggests that programs like healthcare and post- there is a direct link between funding secondary education that soften socio- and accessibility. Between 1990 and economic divisions. In this brief we 2000, tuition fees increased by a will outline how these recent policy national average of 126%. During this measures are actually contributing to same period, university operating what Judith Maxwell called the ‘social revenues from governments fell by deficit’ and why the basic tenor of 25%.1 Student debt also rose from an federal government policy on post- average of $8,000 in 1990 to $25,000 in secondary education is moving us 1998. further away from the democratic goal The effect of this paradigm shift in how of a high quality system of universal education is funded has been felt most education accessible to all. acutely by low and middle income This brief will be divided into three Canadians. Canadians who are in the sections: Access to Post-Secondary bottom 20% in terms of after-tax Education; Research; and Skills and income now devote 23% of their after- Training. In each section we assess tax income to tuition fees and current policy as well as offer proactive educational expenses.2 That figure solutions to the problems endemic in represents a 64% increase from 1991. our system of post-secondary During this period, the after-tax income education. The policy themes and of this demographic decreased by 3% in recommendations that govern this brief real dollars.3 will explore both the economic and The downloading of educational costs social peril Canada invites by ignoring from the collective pool of public the crisis in post-secondary education. resources to the individual has had a ACCESS: OPPORTUNITY FOR ALL? predictable effect on access. Over the past 18 months reliable data has “Every Canadian who wants to learn emerged that tracks the effect of the should have the opportunity to do so. public policy terms enumerated above. Students from lower income families At the University of Western Ontario a are under-represented in our institutions study was undertaken to quantify the of higher learning. Too many are effects of tuition fee increases. The deterred from pursuing higher study documented the household education because of a fear of a large income of two groups of students. The debt.” first were students entering Western’s Paul Martin, 1998 medical school in the first year in The withdrawal of federal funding over which tuition fees had been fully the past decade has led to a steady 2 Canadian Federation of Students
  • 4. deregulated, resulting in substantial fee These findings provide conclusive increases. The second group were evidence that tuition fees operate as a fourth year medical students who had direct barrier to families at the low end entered the program three years earlier of the socio-economic scale. In short, during a period when the fees were federal and provincial under-funding of regulated and considerably lower. The education is creating yet another divide study found that after deregulation, the in Canadian society between those who participation rates of students from have access to the skills, training, and families with a household income of experience of post-secondary education less than $40,000 dropped by more than and those Canadians who are denied 50% (from 17.3% to just 7.7%). access for purely financial reasons. This Participation rates of students from mounting evidence supports the very high-income families tripled, from prescient claim of the Maritime 8.6% to 24.4%. A similar study at the Provinces Higher Education University of Guelph found that the Commission in its study of accessibility number of students entering the in 1997: University of Guelph from homes with The research clearly demonstrates that family incomes of $40,000 or less was the cost of post-secondary education 40% in 1987. That number had dropped and increasing debt levels are to 16% by 1998. significant factors in the decision students make about whether or not to The withdrawal of public funding and continue their studies beyond high increased cost of post secondary school. Even more significant is the education has had a particularly finding that students from lower detrimental effect on aboriginal income households are much more communities in Canada. likely to be affected by financial issues Unemployment rates and other social when deciding to pursue or not pursue determinants in aboriginal communities their education beyond high school (ii, remain at levels near that of developing 1997). nations. A recent review of post In the face of this mounting crisis the secondary education by the Assembly federal government has taken several of First Nations confirms that funding modest steps to address the problem of and opportunity are being denied to accessibility. Before offering aboriginal Canadians who are least recommendations we will evaluate the likely to afford the increased cost of effect these measures, in particular, the tuition.4 The study focused on the Registered Education Savings Program capping of band funding for post- (RESP) and the Millennium secondary education and the effect that Scholarship Foundation (MSF), are this cap has had on access to education having. for First Nations peoples. In addition, the report points to federal funding cuts In the face of mounting tuition fees and as the primary reason why Canada’s other individualised costs of education, First Nations have been unable to the federal government recently expand the number of institutions extended the Registered Education devoted exclusively to the needs of Savings Program to include a national aboriginal learners. system of grants (Canada Education 2001 Submission to the Standing Committee on Finance 3
  • 5. Savings Grant-CESG) based on the save for a child’s education and that ability to save. In addition to the 62.6% actually were saving. forgone tax revenue of the original Figure 1. - Post Secondary Aspirations and Savings program, the federal government set % of children whose % of children aside a grant of 20% on the first $2000 parents hope they will whose parents Household attend post secondary are saving for deposited into an RESP. The grant Income institutions their PSE totals $400 per year and continues until <$30,000 79.8 18.7 the year in which the child for whom $30,000-$49,000 85.8 37.4 the account is opened turns 17. $50,000-$59,000 90.6 45.6 The addition of the grants program, $60,000-$79,000 93.4 52.6 along with a cessation of certain $80,000+ 95.0 62.6 restrictions, increased participation in Source: Statistics Canada, The Daily, April 10, 2001 the program dramatically and These numbers confirm the case put represents a significant federal forward by the Canadian Federation of government expenditure on post- Students in our submission to the secondary education. Between 1998 Standing Committee on Finance last and May 2001 the government of year. Through the available data we Canada spent $959,487,905 on direct argued that the RESP program was in grants. This figure does not take into effect a national system of grants for account the cost of administering the the wealthy. The RESP is ostensibly a program or the forgone tax revenue. social program funded by all Canadians Despite this public expenditure the designed to reward those with the participation rates of low and middle means to save. The aforementioned income Canadians are rapidly findings by Statistics Canada confirms declining. Recent data from Statistics this analysis and provides hard data to Canada demonstrates why the federal support the contention that the RESP government is seeing such a poor fiscal and CESG programs are a regressive and social return on this investment. use of public funds that are doing In an April 2001 study, entitled Survey virtually nothing to assist those of Approaches to Educational Canadians most in need of the skills Planning, researchers tracked attitudes and training offered by post-secondary toward saving for a child’s post- education. RESPs merely expand the secondary education as well as the already existing gap in Canada between actual savings families were able to the desire for post-secondary education accumulate. The study controled for and the ability to afford it. It is indeed family income and parental educational perverse public policy to spend public attainment. In homes where the family funds on those who least need income was less than $30,000, 80% of assistance while doing little or nothing parents said they hoped to save funds to help those for whom post-secondary for a child’s education. However, only education remains only a dream. 18.7% of those parents were actually The other policy measure taking up able to save. In homes with family public resources is the Millennium income of over $80,000 researchers Scholarship Foundation (MSF). found that 95% of parents hoped to Enshrined in the 1998 federal budget, 4 Canadian Federation of Students
  • 6. the MSF has had little or no impact on direction of funds would allow the student debt in Canada. Since Finance federal government to provide an up- Minister Paul Martin rose in the House front grant to those most in need of of Commons and promised Canadians financial assistance without adjusting that the MSF would reduce a students’ any current budgetary projections. debt by $12,000 over a four-year Finally, years of under-funding by the program, the MSF has been mired in federal government and provincial public relations gaffes and disputes governments has led to increased with provincial governments. The reliance on the Canada Student Loan complex public/private structure of the Program. As previously noted, student Foundation forced it to enter into debt has skyrocketed to an average of negations with provincial governments $25,000 as students bear the brunt of to disburse approximately $250 million funding shortages. In response to this per year. When these negotiations were increased pressure on the CSLP, the completed it became apparent that federal government has simply some provinces (Nova Scotia and attempted to make the program more Ontario in particular) were simply not restrictive by instituting regressive going to use funds transferred from the policy measures under the guise of MSF to relieve student debt. The accountability. creation of the MSF as a stand-alone body was designed to give the federal In the case of the bankruptcy government a higher profile in the legislation, the federal government is funding of post-secondary education. attempting to address the crisis of Consequently, the MSF has become a student debt by criminalising students. public relations vehicle that is not This unconscionable legislation strips addressing the root problem of student students of the very last financial debt. This, despite an endowment of protection offered under the law. The $2.5 billion over ten years. law introduces a fundamental inequity in the way Canadians are treated under The Canadian Federation of Students is the law. It is this provision that has proposing that the funds currently being compelled the Canadian Federation of expended in the RESP and CESG Students to launch a Charter challenge programs, along with the Millennium before the Superior Court of Ontario to Scholarship Foundation endowment, be repeal this unjust and unconstitutional rolled into a national system of needs law. The provisions of the Bankruptcy based grants. If the program were to be and Insolvency Act are designed to administered through the current needs- offer a last hope to those unable to cope assessment mechanism of the Canada with debt. Under the Act, an individual Student Loan Program (CSLP) it would must appear before a judge and present require no start-up funding and no evidence under oath that their financial increase to administrative costs. In disposition makes it impossible for addition, such a program of needs- them to meet their obligations. based grants would be revenue neutral as we are proposing that it be funded In 1997, the federal government with resources re-directed from the undertook a review of the Act with the RESP and MSF budgets. This re- aim of enacting a two-year prohibition 2001 Submission to the Standing Committee on Finance 5
  • 7. on declaring bankruptcy. During the Recommendation #3: consultation period the Canadian The federal government should Federation of Students and other groups reverse discriminatory changes to made a compelling case against such a the Bankruptcy and Insolvency prejudicial change. Despite the Act. consensus view that such changes would only lead to misery for those Recommendation #4: most desperate, the federal government The federal government should enacted legislation setting out the two- abandon the practice of doing year prohibition. Less than ten months credit checks on Canada Student later, without consultation or supporting Loan applicants. reasons, the 1998 ‘education’ budget Recommendation #5: legislation extended the ban to ten The federal government should years. As it now seems clear that the enact a Post-Secondary Education Ministry of Finance initiated these Act that enforces national changes, we are calling on the Standing standards of mobility, quality and Committee on Finance to recommend accessibility. that this discriminatory law be repealed. The cumulative effects of diminished funding to post-secondary coupled with RESEARCH: PUBLIC RESEARCH policy initiatives like credit checks for FOR PUBLIC DOLLARS? student loans and changes to the Bank- “At a certain point…we don’t have ruptcy and Insolvency Act have created universities anymore, but outlying a crisis in student debt and additional branches of industry. Then all the accessibility problems for low and things that society turns to the univer- middle income Canadians. New policy sity for––breadth of knowledge, far that individualises the cost of higher time horizons, and independent voice–– education have only exacerbated the are lost.” existing inequities. Successful ways to John Polanyi, Nobel Prize winning chemist address these problems will have to be at the University of Toronto national in scope, and be sensitive to students who are most in need. In the 2001 Speech from the Throne, the federal government committed to Recommendation #1: doubling spending on research and The federal government should development over the next ten years. terminate the RESP program and The announcement continues the trend institute the Canada Student of increased public investment in Grants Program. research. However, recent trends in federal government research policy Recommendation #2: gives rise to several concerns about The federal government should who will benefit from this boom in terminate the Millennium spending. Scholarship Foundation and transfer the funds to the Canada Since freezing funding for Canada’s Student Grants Program. three granting councils in the early and mid 1990’s the federal government has 6 Canadian Federation of Students
  • 8. taken modest steps to re-invest in Two recent examples highlight the public research. In addition to replacing dangers of public/private partnerships. the Medical Research Council with the Both examples are drawn from the Canadian Institutes of Health Research, University of Toronto. The story of the the federal government has brought the University of Toronto is an instructive Social Sciences and Humanities example in assessing the cost of public/ Research Council and the Natural private partnerships. The University of Sciences and Engineering Research Toronto has been able to raise a Council back to 1995 levels. staggering amount of money over the past ten years in private and corporate While modestly investmenting in donations. Most of this fundraising public research, the federal government activity has been spurred by the increased funding for the Canada withdrawal of provincial and federal Foundation for Innovation (CFI) by funding and the contemporaneous $900 million. Introduced in the 1997 introduction of public/private budget, the CFI funds research projects partnerships. However, the University that are able to secure 20% - 60% of of Toronto’s success at fundraising has their funding from private industry. been accompanied by a diminishment Under the current scheme, the CFI will of academic and research freedom. only fund projects that are public/ Consider the case of Dr. Nancy private partnerships. Olivieri, a researcher at the University The rapid growth of the CFI has had of Toronto and the Hospital for Sick four detrimental effects on research in Children. Olivieri was contracted by Canada: Apotex, Canada’s largest drug i) The CFI subsidises private, for- manufacturer and one of the University profit research in Canada by of Toronto’s most important donors, to transferring hundreds of millions of test a new drug to treat thalassemia. research dollars to private industry. During the course of her research There is very little public Olivieri discovered several disturbing accountability for the results of side effects of the drug and publicly funded research when kept recommended that the trials be secret for ‘proprietary’ reasons. discontinued, or at least suspended, ii) The institutionalisation of public/ until the risk to her patients could be private research through the CFI is assessed. When Olivieri sought to stifling public research in Canada, publish her results and alert her iii) Public/private partnerships create a patients, she was threatened with legal two tier system of education in action and a smear campaign was Canada with large research organised against her. universities triumphing over What is most disturbing and surprising smaller, generally regionally based, about Dr. Olivieri’s case is not the institutions. behaviour of the drug company but the iv) Humanities funding is falling behaviour of the university. Instead of farther and farther behind other supporting Olivieri in this important academic disciplines like case of public safety versus corporate engineering and computer science. profit, the university attempted to fire 2001 Submission to the Standing Committee on Finance 7
  • 9. Olivieri and did everything it could to that benefits all of Canadian society. mollify Apotex for fear of losing The CFI and other matching fund funding from Apotex. University of programs have opened a significant gap Toronto President Robert Pritchard between large, well-established went so far as to write a letter to the universities and smaller colleges and federal government in support of universities. Those institutions that Apotex’s call for legislative changes to have a large pool of ‘seed capital’ to generic drug patent laws. Throughout pursue and sustain large corporate the entire controversy, the University of donations are reaping a windfall of Toronto was involved in sensitive public funding. Those universities that negotiations to establish a $20 million may not immediately have the same partnership with Apotex under the appeal to corporate Canada or do not auspices of the CFI. have the infrastructure to undertake The second, and more recent example multi-million dollar campaigns for is the case of Dr. David Healy. Healy is matching funds have no access to this an internationally renowned psychiatric funding. The Canadian Association of researcher. He was offered a position University Business Officers estimates that he accepted with the University of that Canadian universities have a deficit Toronto. Shortly after his appointment, of $3.6 billion in deferred maintenance Healy presented at a conference where costs. Institutions most able to leverage he described a disturbing lack of public funds with private strings research to investigate the potential attached are better able to meet these relationship between Prozac and suicide immediate needs. Those institutions rates. He made his remarks in the that cannot meet these needs are unable context of a paper that raised serious to sustain an innovative research concerns about the ability of large environment. Though some in the post- pharmaceutical companies to drive the secondary education sector have called national research agenda.The for a complex funding formula to University of Toronto immediately compensate for the indirect cost of withdrew its offer of employment to research, the only way to insure that all Healy. Eli Lilly, the company that universities and colleges have equal manufactures Prozac, is a large donor access to public funds is to restore core to the University of Toronto. funding to public universities and colleges. The examples of Dr. Healy and Dr. Olivieri illustrate what is lost when the In the case of the humanities, almost all funding of research is privatised and the of the federal government’s matching public interest becomes secondary to fund programs explicitly exclude the corporate research and public relations. humanities. In addition, the value of Though the federal government has humanities programs is not considered invested more money into research, immediately useful by corporations that Canadian citizens are seeing a poor seek partnerships with universities and return on this investment because colleges. The humanities, unlike almost all of the new funding is science-related disciplines, are subsidising private industry at the chronically under-funded and the expense of research and development current move toward public/private 8 Canadian Federation of Students
  • 10. partnerships ensures that this under- SKILLS AND TRAINING: funding will continue. LIFE-LONG LEARNING FOR ALL? Though the development of the CFI In the most recent speech from the and other matching fund programs throne the federal government ignores and, in some cases, undermines announced its intention to renew the the humanities, the data has never been infrastructure of skills and training in more thorough to demonstrate the Canada. As part of this process, the economic and social benefit of the Canadian Federation of Students humanities. Dr. Robert Allen, a participated in a national roundtable on University of British Columbia skills and learning in Edmonton, March economist, demonstrated that the 21-22. The roundtable, hosted by demand for humanities graduates has Human Resources Development actually outstripped that of science and Minister Jane Stewart, drew engineering graduates. In addition, participants from all regions of the Allen noted the proclivity high-tech country and almost all social sectors firms exhibit for employees with the were represented. The set of final ability to think critically as opposed to recommendations to emerge from the those with primarily technical skills. discussions reflected a clear consensus The diversity and dynamism of the new among the participants. It is in the economy would appear, then, to call for context of the final report of the the retrenchment of funding and national roundtable and the research support for the humanities comprehensive federal report entitled rather than a withdrawal of public Stepping Up: Skills and Opportunities funding. in the Knowledge Economy that we will offer our assessment of the skills and training challenges Canada faces. Recommendation # 6: The dominant theme of the roundtable’s The federal government should final report was twofold. First, that the restructure the CFI in order to federal government needed to play a ensure that matching funds from prominent role in funding and the private sector are not a administering a national skills strategy. condition of public funding for a Such a national approach would research project. In addition, the address the shortcoming of the current federal government should piecemeal approach to skills and double funding for public training. Second, the need for universal research over the next ten years. access to skills and training must form Recommendation # 7: the foundation of any national skills The federal government should strategy. In order to achieve that goal, provide an additional $100 million funding must be restored to Canada’s per annum to the Social Science public colleges and universities. and Humanities Research Council The burgeoning private, for-profit in order to equalise funding with training industry is in no position to the other granting councils. provide solutions to the employment shortages and skills gap that the 2001 Submission to the Standing Committee on Finance 9
  • 11. Canadian economy faces. Private training, we believe that is important training is generally characterised by that the Employment Insurance exorbitant tuition fees and sub-standard program continue to fund and support instruction that leaves students mired in worker re-training. In addition, we debt and bereft of the skills that drove support the call for Canada to follow them to private trainers. Regrettably, it the lead of most European Union is changes in federal government policy countries and allow the EI program to that is pushing many unemployed and be utilised for training leave. Such a underemployed Canadians to turn to the program would mirror apprentice private training industry. training programs that provide a powerful incentive to develop new In 1996, the federal government skills by providing workers with eliminated the practice of bulk income while they learn. purchases of seats at public institutions as a means of providing re-training to Despite the compelling argument for a unemployed workers. In place of this public solution to the skills and training purchase, unemployed workers now challenges that Canada faces, the receive a voucher that can be used at federal government has contemplated both public and private institutions. The the introduction of Registered new voucher system rarely provides Individual Learning Accounts (RILA). enough funding for the recipient to In the initial stages of discussion, it obtain adequate training. appears that the RILA will replicate all of the inequalities endemic to the RESP At private institutions workers are often program that was outlined earlier in this forced to enter programs that offer brief. Like RESPs, RILAs would neither the quality nor the duration expend significant public resources to necessary to allow them to acquire the assist those who already have the skills needed to participate in the new means to save for an education. Such a economy. This point is particularly program will do nothing to assist those troubling given the fact that Human Canadians who need basic literacy Resources Development Canada’s skills and other forms of training that labour force studies demonstrate that form a pre-requisite for sustainable most of the workers who turn to the employment. federal government for training have been displaced from jobs in the In Britain, where a program similar to resource industry. In addition, the the proposed RILA has been federal government is now quickly implemented, less than 25% of those ceding jurisdiction from training who open a RILA are workers in need through the Employment Insurance Act of basic re-training and skills. In to provincial governments. Though the addition, the RILA program in Britain recent speech from the throne and the has been a boon for the private, for- ongoing work on a major ‘White Paper’ profit training industry. Simply put, the on skills, training and innovation are solution to the skills gap in Canada is hopeful signs that the federal not to be found in repeating the errors government still believes it has an of the RESP and using public funds to important role to play in skills and support those who already have ample 10 Canadian Federation of Students
  • 12. access to skills and training. The experience in Britain demonstrates that Recommendation #10: RILAs act more as a public subsidy for The federal government should business than as means of providing retain juridiction over skills and equal access to skills and training. training and tie its national Under the RILA model public funds strategy to a national system of subsidise the training of employees in needs-based grants. the form of forgone tax revenue and direct grants. In the British example, CONCLUSION most of those who are opening accounts are participating in training programs There is little doubt about the social that previously would have been funded and economic merit of post-secondary by the employer. education. However, public policy decisions taken by the federal Finally, if the federal government is to government in recent years has address the gap between access to skills undermined the vision of access to and the need for those skills among the post-secondary education as a social most economically vulnerable good available to all Canadians. The Canadians it must reverse the recent federal policy trends outlined in this trends in Canada Student Loan Policy brief point to a system of post- outlined above. The implementation of secondary education that determines credit checks and the discriminatory access on the basis of the ability to pay bankruptcy legislation are barriers to rather than merit or need. During the lifelong learning that should have no 1960s and 1970s when participation place in a national skills agenda rates were growing and post secondary designed for all Canadians. education opportunities were expanding, the federal government played a leadership role in ensuring Recommendation # 8: access to education. Indeed, as Finance The federal government should re- Minster Paul Martin suggests, the institute the practice of block federal government is still, at least purchases of seats in public post- rhetorically, devoted to the idea that all secondary institutions with the Canadians should have the opportunity purpose of supplying training to to learn regardless of financial unemployed and underemployed circumstance. workers. Unfortunately, as all the hard data Recommendation #9: attests, access to the skills and The federal government should knowledge offered by post-secondary introduce a training leave program education is quickly becoming a funded through Employment privilege for the wealthy in Canada. In Insurance. Such a program should the face of this mounting challenge the allow workers up to 18 months of federal government has put together a paid leave for training. patchwork of policy initiatives that focus largely on regressive tax credits as inducements to save for education 2001 Submission to the Standing Committee on Finance 11
  • 13. and increasing ties to private industry. Neither approach has improved the quality or accessibility of Canadian colleges or universities. Accessible, public post-secondary education which is of high quality will require the federal government to re-dedicate itself to the funding necessary to ensure real equality of opportunity. Ultimately, such funding is the only measurable standard and proven solution to ensure that the rhetoric of opportunity for all becomes a reality that offers hope to all. We look forward to presenting these arguments in person this fall. 12 Canadian Federation of Students
  • 14. NOTES 1. Canadian Association of University Teachers, Education Review Vol. 3 No. 3. “The Growing Funding Gap: Government expenditures on post-secondary education, 2000-01.” 2 Canadian Association of University Teachers, Education Review Vol. 2 No. 1. “Out of Reach: Trends in household spending on education in Canada.” 3. Robinson, David & Andrew Jackson, Falling Behind: The state of working Canada, 2000. 4. Assembly of First Nations, First Nations Post Secondary Education Review (August 2000). 2001 Submission to the Standing Committee on Finance 13