GOVERNMENT RESPONSE TO THE SIXTH REPORT OF THE STANDING SENATE COMMITTEE ON SOCIAL AFFAIRS, SCIENCE AND TECHNOLOGY, ENTITLED OPENING THE DOOR: REDUCING BARRIERS TO POST-SECONDARY EDUCATION IN CANADA HELPING ALL CANADIANS ACQUIRE THE SKILLS AND KNOWLEDGE TO CONTRIBUTE TO CANADA'S PROSPERITY The Government of Canada welcomes the opportunity to respond to the Sixth Report of the Standing Senate Committee on Social Affairs, Science and Technology, entitled Opening the Door: Reducing Barriers to Post-Secondary Education in Canada. Canada’s growth and long term prosperity will depend in large part on the way people develop and use their talent. With a diminishing share of the overall population of working age, access to post-secondary education (PSE) will be vital to meeting labour market demand for skills and increasing national productivity. Growth in emerging economies also makes skill gains necessary, as firms will rely on graduates from universities, colleges, polytechnics and apprenticeships to innovate, adopt new digital technologies, and to improve competitiveness. In light of these demographic and economic challenges, increasing PSE participation, especially of individuals currently under-represented in PSE, has become an economic necessity. But responsibility must be shared between both governments and individuals, as there are also significant personal benefits for Canadians with PSE, as graduates enjoy higher salaries, lower unemployment, and a higher likelihood of making successful career transitions. This is why the Government of Canada remains committed to working in partnership to reduce barriers to, and contribute to the affordability of PSE. The Government of Canada supports the creation of PSE opportunities for Canadians by investing over $10 billion annually since 2009-2010 in direct support to students and their families, research and infrastructure funding, and transfers to provinces and territories. Recent federal announcements have reaffirmed the Government of Canada’s commitment to helping Canadians attend and afford PSE through up-front grants to students with financial need, tax measures such as those to support apprenticeships, and tailored support for groups such as Aboriginal people. The federal government also invests in the research capacity of colleges and universities to train the next generation of researchers and of highly skilled workers and to establish new connections with innovative industries. The Government of Canada supports the skills development of Canadians by working in partnership with provinces, territories and stakeholders. It recognizes the provincial and territorial governments’ primary responsibility for the design and delivery of education and training. As a result, federal-provincial/territorial collaboration in areas of mutual interest such as student financial assistance has proven highly effective. Canada leads the world in many measures of educational attainment, and Canadians can be proud of their country’s record in terms of education and skills. But in a competitive global knowledge economy, Canada cannot afford to take prosperity for granted. The Government of Canada, through its Economic Action Plans and other measures highlighted in this document, seeks to build on these 1 educational successes and will continue to help Canadians develop the knowledge and skills needed to fully participate in their communities, to fill the jobs of today, and create the jobs of tomorrow. PROMOTING SUCCESS IN POST-SECONDARY EDUCATION AND TRAINING The Government of Canada makes significant investments to help make postsecondary education and skills development more affordable and accessible for all Canadians, with the long-term objective of supporting jobs, growth and longterm prosperity. Making Post-Secondary Education Affordable for Students and Families The Government of Canada offers a range of programs to promote high attainment rates and equity in college, university and apprenticeships while enabling students and families with proven financial need to complete their education at a reasonable cost. Loans, Grants and Repayment Assistance The Canada Student Loans Program Since its introduction in 1964, 4.7 (CSLP) offers financial assistance to million students have received $34 students with demonstrated need. billion from the CSLP, including nearly The Government of Canada provides $2.1 billion in student loans in 2009this assistance in partnership with 2010. participating provinces and 1 territories following a 60% / 40% cost-sharing formula. Provinces and territories play a significant role in delivering the CSLP’s benefits and, consequently, changes to the program at the federal level are undertaken in close collaboration with provincial and territorial partners. CSLP supports include student loans for full- and part-time students, nonrepayable grants to targeted groups (e.g., low- and middle-income students, students with disabilities, students with dependents), and repayment assistance measures for borrowers who experience difficulty repaying their loans. The Government of Canada is In 2010-2011, over 300,000 students committed to modernizing and received $621 million in non-repayable improving its programs and services grants through the Canada Student to meet the evolving needs of Grants Program. Canadians. One of the most significant modifications to the CSLP over the last decade has been the introduction of the Canada Student Grants 1 Quebec, Nunavut and the Northwest Territories receive alternative payments from the Government of Canada to operate their own student financial assistance programs, and do not participate in the CSLP. 2 Program (CSGP) in Budget 2008. It provides up-front predictable grants to students from low- and middle-income families who qualify for a Canada Student Loan. This includes monthly grants of $250 for low-income students, and $100 for middle-income students, both of which are available through all years of an undergraduate or college program. Grants for students with dependents and students with permanent disabilities are also available for each year of study including post-graduate studies. Budget 2008 also announced the development of the income-based Repayment Assistance Plan (RAP). More than 160,000 borrowers have benefited from RAP, which allows those who have difficulty repaying their loan to pay back only what they can reasonably afford. Budget 2011 built on these efforts and demonstrated the Government of Canada’s commitment to meet the evolving needs of Canadian students. Key announcements for students included: doubling the in-study income exemption for Canada Student Loans, which will allow roughly 100,000 students earn more employment income without affecting their eligibility for loans; helping part-time students by increasing their eligibility for Canada Student Loans and Grants and reducing the interest rates charged on their loans while studying; and providing partial Canada Student Loan forgiveness for new family physicians and nurses who choose work in under-served rural and remote areas, including communities that provide health services to First Nations, Inuit and Métis populations. Economic Action Plan 2012 committed to extend eligibility for this initiative to family medical residents in training with an accredited medical school in Canada. In addition to these measures, the Canada Student Loans Program continues to work to improve online services, simplify application and repayment processes, and improve communication with students. PSE savings incentives The Government of Canada also Since its inception in 1998, the Canada promotes accessible and affordable Education Savings Program has post-secondary education through disbursed $6.47 billion in grants to savings incentives and tax measures. almost 4.3 million Canadians. The Canada Education Savings Program (CESP) offers savings incentives in the form of Canada Education Savings Grants (CESG) and Canada Learning Bonds (CLB) to encourage Canadian families to plan and save for a child’s PSE using tax-assisted Registered Education Savings Plans (RESPs). By helping families build savings, the CESP aims to help make PSE more affordable. As of 2011, more than 44 percent of Canadian children had received a savings incentive through the CESP. 3 PSE tax measures The Government of Canada also supports post-secondary students and their families through a number of tax measures, which cumulatively provided about $1.8 billion in 2008 for PSE and training and for families saving towards their children’s PSE. In Budget 2011, the Government of Canada built on its support for aspiring tradespeople by making all occupational, trade and professional examination fees required to obtain a professional status in Canada eligible for the Tuition Tax Credit. The Government of Canada recognizes the cost of PSE through three non-refundable tax credits: the Tuition Tax Credit, the Education Tax Credit; and the Textbook Tax Credit. The Education and Textbook Tax Credits are intended to recognize the non-tuition expenses associated with the pursuit of PSE. In recognition of the important role that families play in helping students overcome financial barriers, unused credit amounts may be transferred to a parent, grandparent or spouse. Credits that are not transferred can be carried forward by the student indefinitely for use in a future taxation year. Additionally, to help foster academic excellence, the Government introduced a full tax exemption for post-secondary scholarships, fellowships and bursaries in Budget 2006. These measures make PSE more affordable by lowering the taxes owed by students and their families. A Finance Canada evaluation conducted in 2006 on the impact of the income tax system on investments in higher education found that, taken together, tax measures and support programs provide a substantial incentive to undertake PSE. Together, direct financial assistance to students, savings incentives, and tax measures recognize the costs associated with investments in PSE and help to promote increased affordability and access to the skills, education and training that Canadians need to actively participate in the economy and their communities. Supports for Apprentices The Government of Canada has taken significant steps to support apprentices and recognizes the important contributions tradespersons make to Canada’s economy, demonstrated through a combination of grants and tax measures. In Budget 2006, the Government of Canada introduced the Apprenticeship Incentive Grant (AIG). The AIG is a taxable cash grant of $1,000 per year for registered apprentices once they have successfully completed their first or second year/level (or equivalent) of an apprenticeship program in a designated Red Seal trade for a maximum of $2,000 per eligible apprentice. As of April 15, 2012, over 246,000 AIGs had been issued since program inception. Through Canada’s Economic Action Plan in Budget 2009, the federal government announced the Apprenticeship Completion Grant (ACG). The ACG provides an additional $2,000 taxable cash grant to registered apprentices upon completion 4 of apprenticeship training and receipt of journeyperson certification in a designated Red Seal trade. As of April 15, 2012, over 70,795 apprentices had received support through the ACG. Through these measures, apprentices who complete their apprenticeship training in a designated Red Seal trade and become certified journeypersons are eligible to receive up to $4,000. To date, the Government of Canada has provided over $384 million in apprenticeship grants. In addition to grants and tax measures, the Government of Canada supports approximately 60,000 apprentices each year for the technical or school-based portions of their apprenticeship through Employment Insurance Part I and Part II funding. The Government of Canada also provides tax support to tradespersons. The Deduction for Tradespeople’s Tool Expenses allows tradespeople to deduct up to $500 of the total cost of eligible tools acquired in a taxation year that exceeds the amount of the Canada Employment Credit ($1,095 in 2012). Encouraging Participation in Skills Development, Education, and Training Informing Canadians about PSE, apprenticeship training, and the labour market While there are many benefits associated with PSE, the decision by individuals to invest in and complete PSE remains a complex one. In order to help Canadians make a well-informed decision, the Government of Canada recognizes the importance of providing Canadians with timely and relevant information about PSE, labour market outcomes and the supports available to students and families. Through the Working in Canada Economic Action Plan 2012 provides $21 website, the Government of Canada million over two years to enhance the provides customized reports that content and timeliness of the job and combine job postings, occupational labour market information that the profiles, labour market information Government of Canada supplies to and forecasts, certification and skills Canadians. requirements, and training and education information. This website is continually updated with the latest available information on PSE programs (including trade schools and apprenticeships), educational institutions, and scholarships. It is widely used by students, parents and guidance counselors to obtain information about occupations, labour market outcomes and outlooks as well as the education and training required to work in specific occupations. The Government of Canada provides information about the costs and benefits associated with PSE and how best to save, plan and pay for that education through the CanLearn website. This website contains an array of information on PSE programs and available loans, grants, scholarships and bursaries. It also provides student financial assistance-related tools, such as a loan repayment 5 estimator and parental contribution calculator, which are intended to help students and their families make informed decisions about PSE. The Government of Canada also promotes careers in the skilled trades through the Youth Awareness Program, which encourages youth to enter the skilled trades through skills competitions designed to increase the visibility of the skilled trades. Canadians can find information on apprenticeship training programs on the Red Seal website, which includes information on examinations, financial supports, and trade profiles, and on the Ellis Chart website, which provides governments, industry and educational institutions with data on more than 300 designated trades training, certification, requirements, prior learning assessment, and accreditation processes. Collectively, these federal initiatives provide Canadians with the tools they need to make informed investments in education and training, help them choose the right skills for the right jobs, and help them find jobs to match their abilities, education, and training. Supports for Employers In recognition of the importance of continuing education in today’s rapidly evolving knowledge and skills-based economy, the Government of Canada is working to support Canadian businesses to train their employees. For income tax purposes, expenditures on employee training receive favourable treatment in the income tax system. An employer may deduct expenses incurred for an employee's training provided that such expenses are reasonable in the circumstances. This is a relatively favourable tax treatment, since the employer may deduct the expenses in the year that they are incurred but the training is likely to provide benefits to the employer over a number of years. Through the Apprenticeship Job Creation Tax Credit, employers can also receive a nonrefundable tax credit equal to 10% of the eligible salaries and wages payable to registered apprentices in designated Red Seal trades for the first two years of their apprenticeship contract, to a maximum of $2,000 per year per eligible apprentice. In addition to these credits, the Economic Action Plan 2012 extends the Government of Canada offers a temporary Hiring Credit for Small number of financial incentives to small and medium enterprises (SMEs) Business to make it more attractive to hire new workers. This temporary credit that support job growth and will benefit about 536,000 employers, investments in workforce skills reducing small business 2012 payroll development. These include: a costs by about $205 million. temporary Hiring Credit for Small Business; an additional $20 million in funding over two years to support the Canadian Youth Business Foundation's activities in extending loans to young entrepreneurs and providing mentoring services; $80 million over three years to the National Research Council Canada’s Industrial Research Assistance Program (NRC-IRAP) to support collaboration between colleges and SMEs to accelerate the adoption of information and communication technologies; as well as an additional $110 million annually 6 provided to IRAP announced in Economic Action Plan 2012 to double support to Canadian companies to create new products, services, and industrial processes. Helping Canadians Overcome Barriers to Participation in Skills Development Through its investments in student financial aid, the provision of learning and labour market information, and tax measures, the Government of Canada helps Canadians achieve post-secondary graduation rates that are among the best in the world. Our success in promoting access to PSE has been demonstrated through the increased participation rate of some groups such as persons with disabilities and young men. While women still participate in PSE at a higher rate than men, men have recently experienced higher rates of increase in PSE participation. Despite these successes, a number of Canadians still face significant non-financial barriers to education and training. In a rapidly changing economy, As new technologies are changing the possessing foundational levels of way skills are used in the workplace, the literacy, numeracy and digital skills is Government of Canada reallocated $60 important for finding and maintaining million in Budget 2011 to enhance employment. Yet some Canadians digital skill development and increase lack the skills and education they enrollment in digital disciplines such as need to succeed in the workforce. science, technology, engineering and The Government of Canada mathematics. demonstrates its commitment to helping these individuals reach their full potential through a variety of initiatives. Through the Office of Literacy and Essential Skills (OLES), the Government of Canada complements provincial and territorial literacy and essential skills efforts by working with partners across Canada to help employers, practitioners and trainers build literacy and essential skills into their training programs. These efforts help Canadians and their families develop the skills necessary to evolve with their jobs and adapt to change. For example, OLES is collaborating with Industry Canada’s Canada Business Network to build on their existing infrastructure to encourage and support small business owners and entrepreneurs to invest in skills development in the workplace. The federal government recognizes the critical role that community-based organizations play in supporting those at risk of not completing high school. In Budget 2010, the Government of Canada announced $20 million in support for Pathways to Education Canada, an organization with an established record of reducing high school drop-out rates and increasing post-secondary enrolment among disadvantaged youth. This organization’s innovative approach addresses the complex set of factors that shape attitudes and aspirations associated with completing high school and accessing PSE. Through its variety of supports to address barriers to PSE - including financial supports, information, supports for skills training, and targeted measures for disadvantaged groups – the Government of Canada has contributed to the 7 development of a stable foundation of educational and skills development supports, a foundation upon which Canadians can acquire the skills they need to fully participate in and shape the economy of the future. SUPPORTING ABORIGINAL SUCCESS The Government of Canada recognizes the vital part that a young and rapidly growing Aboriginal population can play in the Canadian economy. In the Prairies and the North, where Aboriginal people make up a significant proportion of the total population (from 16% in Manitoba and Saskatchewan up to 86% in Nunavut) improving Aboriginal labour market contributions will be especially important in achieving economic growth. The natural resources sector in particular represents an area of challenge and opportunity. Existing and forecasted skilled labour shortages in several industries, along with the geographic proximity of many Aboriginal communities to key natural resources, means the Aboriginal population is well-positioned to make a significant contribution to labour force needs in this sector if the right skills and education are accessible. While demographics highlight the increasingly important role that Aboriginal people can play in advancing Canada’s economic well-being, their contribution is currently being hampered by poor learning and labour market outcomes. In an effort to improve these outcomes, the federal government is working with its partners to ensure Aboriginal people can obtain the skills and education required to take advantage of these opportunities. K-12 Education – Building a Foundation for Success The Government of Canada’s goal is to provide First Nations students with quality education that enables them to realize their aspirations and obtain the skills they need to enter the labour market and be full participants in a strong Canadian economy. In 2010-2011, Aboriginal Affairs and Northern Development Canada (AANDC) invested $1.9 billion in education to support First Nations and Inuit students across Canada. The largest component, $1.5 billion, was targeted at elementary and secondary education for First Nations students living on reserve. In Budget 2008, the Government also launched the “Reforming First Nation Education Initiative” to help set the foundation for long-term improvements in kindergarten to grade 12 (K-12) education. The initiative includes two new programs: the First Nation Student Success Program and the Education Partnerships Program. These two programs represent new investments of $268 million over five years and $75 million in ongoing funding. Recognizing that First Nations K-12 education is a shared responsibility between First Nations students, parents, educators, leaders, provincial governments, and the federal government, the Government of Canada has negotiated seven tripartite education partnerships across Canada. To date, partnerships have 8 been reached with Nova Scotia (1997), British Columbia (1999), New Brunswick (2008), Manitoba (2009), Alberta (2010), Prince Edward Island (2010), and a sub-regional agreement with the Saskatoon Tribal Council (2010). The federal government continues to develop these partnerships and on January 27, 2012, Canada, British Columbia, and the First Nations Education Steering Committee, on behalf of BC First Nations, signed a Tripartite Education Framework Agreement. This Agreement defines and formalizes the roles and responsibilities, structures, and supports that need to be in place to ensure that First Nations students in BC have access to quality, comparable education whether the classroom is located on or off reserve. The Government of Canada recognizes that there is still much work to be done in order to improve the educational outcomes of First Nations people. In December 2010, the Government of Canada and the Assembly of First Nations jointly appointed an independent National Panel on First Nation Elementary and Secondary Education to lead an engagement process and provide guidance on how to improve First Nations education. In response to recommendations in the Panel’s final report, submitted in February 2012, and from other reports on reforming First Nations education such as that of the Senate Standing Committee on Aboriginal Peoples, the Government of Canada committed in Economic Action Plan 2012 to work with willing partners to introduce a First Nation Education Act in 2014. In addition Economic Action Plan Economic Action Plan 2012 provides 2012 also committed to invest $275 $275 million over three years to support million over three years for First First Nations education and build and Nations education. Of this renovate schools on reserve. investment, $100 million is dedicated to early literacy programming and other supports and services to First Nations schools and students, and to strengthen their relationships with provincial school systems. Another $175 million will be used to build and renovate schools on reserve, providing First Nations students with a better learning environment. This will add to investments in on-reserve school infrastructure made as part of Canada’s Economic Action Plan between 2009 and 2011. The Government will also work to explore mechanisms to ensure stable, predictable, and sustainable funding for First Nations elementary and secondary education. Helping Aboriginal People Obtain the Right Skills for Labour Market Success The Government of Canada is also playing an active role in Aboriginal workplace skills training and PSE. Through its Aboriginal-specific labour market programs, the Government of Canada is working to help First Nations, Metis and Inuit people succeed in the workplace. 9 In partnership with the private sector, provinces and territories, and learning As announced in Budget 2011, the Government of Canada is investing $27 institutions, the Aboriginal Skills million over five years to expand adult Employment and Training Strategy basic education in the territories. (ASETS) provides training, education, Delivered through the territorial skills development and employment colleges, this CanNor initiative supports opportunities to Aboriginal clients. northern economic development by The Government has invested $1.68 raising the basic skill levels of local, billion over five years (2010-2015) in working age residents. ASETS to support a network of Aboriginal employment centres and services across Canada with approximately 800 points of service. ASETS and its predecessor, the Aboriginal Human Resources Development Strategy (AHRDS), have resulted in between 14,000 and 16,000 jobs per year, on average. Launched in July 2010, the Skills and Partnership Fund (SPF), with funding of $210M over five years, supports the integration of Aboriginal people into the labour market by supporting projects aiming to encourage innovation and partnerships and increase Aboriginal skills development and participation in the labour market. SPF also has the flexibility to respond to Government priorities and the emerging labour market needs of the Canadian economy. In 2011-2012, the Government of Canada allocated $295.4 million through AANDC’s Post-Secondary Student Support Program and University College Entrance Preparation Program to support approximately 22,500 First Nations and Inuit post-secondary students. In addition, AANDC’s Indian Studies Support Program provided approximately $21 million in financial support to PSE institutions to develop PSE programs tailored to First Nations and Inuit cultural and educational needs. Through the Aboriginal Canada Portal website, the federal government is also facilitating access to PSE for First Nations, Metis and Inuit people by providing information on over 600 bursaries, scholarships, and incentives offered by governments, universities and colleges, companies, individual Canadians, and organizations. In addition to these and other Aboriginal-specific programs, Aboriginal people also have access to the same universal skills upgrading and educational supports available to other Canadians such as the Canada Student Loans Program and the many interventions funded through Labour Market Agreements (LMAs) and Labour Market Development Agreements (LMDAs) with the provinces and territories. Despite the significant investments already being made, the Government of Canada recognizes that more work remains to be done in order to help Aboriginal people achieve better labour market outcomes. Canada’s economic well-being will increasingly depend upon better integration of the Aboriginal population into the labour market, particularly in certain regions and sectors. To this end, the Government of Canada will continue to evaluate its programs and assess the way it does business to ensure that, in collaboration with its partners, it provides the best learning and labour market supports possible for Aboriginal 10 people. The Government of Canada is working to build a future in which First Nations are self-sufficient and prosperous, making their own decisions, managing their own affairs and making strong contributions to the country as a whole. RESEARCH AND TALENT DEVELOPMENT Sustained investments in PSE research and development are critical to fostering the skills, talent and innovation that will enable Canada to increase its productivity, compete internationally, and respond to economic and social challenges. Through its Science and Technology Strategy, the Government of Canada is committed to support the pursuit of innovation and research excellence by investing in people and infrastructure, and by promoting PSEprivate sector linkages. Investing in Talent The Government of Canada supports the next generation of highly skilled workers and researchers by providing financial assistance to graduate students, including through tax measures, the merit-based Canada Graduate Scholarships (CGSs) administered by the three research granting councils,2 Canada Student Loans, and Canada Students Grants. Budget 2008 introduced the Vanier Canada Graduate Scholarships for outstanding doctoral students, Budget 2009 temporarily expanded the CGSs by $87.5 million over three years, and Budget 2010 created the Banting Postdoctoral Fellowships. The Government of Canada invests As of March 2012, there were 1,825 $300 million annually through the Canada Research Chairs active in 72 Canada Research Chairs (CRC) institutions across Canada. program to support Canadian postsecondary institutions in strengthening their positions as global leaders in research and development. In Budget 2008, the Government announced $200 million over seven years to create the Canada Excellence Research Chairs (CERC) program to attract and retain the world’s most accomplished researchers in Canada’s priority science and technology areas. The inaugural Canada Excellence Research Chairs were announced in May 2010, and Budget 2011 invested a further $53.5 million over five years to award 10 additional chairs. Both the CRC and CERC programs contribute to improving Canada's international competitiveness, and also provide exceptional learning opportunities that help train the researchers and highly skilled workers of tomorrow. Investing in World-Class Research and Learning Infrastructure In addition to investing in talent development, the Government of Canada invests in the infrastructure and institutions necessary to conduct world-class 2 The Natural Science and Engineering Research Council (NSERC), the Social Sciences and Humanities Research Council (SSHRC) and the Canadian Institutes of Health Research (CIHR). 11 research and research training. It does this in part through the Canada Foundation for Innovation (CFI). Economic Action Plan 2012 provides an additional $500 million over five years to the CFI. The CFI funds up to 40 percent of eligible costs of infrastructure projects in Canadian universities, colleges, research hospitals, and non-profit research institutions. CFI funding is then leveraged to attract the remaining investment from partners in the academic, private, public and non-profit sectors. Through the Knowledge Infrastructure Program (KIP) announced in the Economic Action Plan 2009, close to $2 billion was spent on over 500 projects to renew, expand and build university and college facilities. By leveraging funding from partners, KIP led to a $5.2 billion investment in infrastructure at post-secondary institutions between 2009 and 2011. The Government of Canada also helps universities and colleges make optimal use of federal research investments and enables researchers to concentrate on cutting-edge discoveries and scholarship excellence through the Indirect Costs Program (ICP). Budget 2011 provided an additional $10 million per year for the ICP, bringing total federal investments in the program to $332 million in 20112012. Through targeted initiatives such as CFI’s Small Institutions Fund and Canadian Institute of Health Research (CIHR) Regional Partnership Programs, the federal government recognizes the differing sizes and diversity among Canada’s colleges and universities and how they respond to local needs and priorities. The Canada Research Chairs program also reserves 120 of its 2,000 available chairs for small universities to help them build capacity and compete for top researchers. Enhancing Industry Connections The Government of Canada supports strong connections between the excellent talent found in Canada’s colleges and universities and the businesses that create innovative new products, services and processes. Economic Action Plan 2012 affirms the importance of supporting collaborative research between postsecondary researchers and private sector partners. Highly skilled graduate students are The Mitacs Elevate program supports encouraged to establish connections approximately 160 internships and with the private sector through such individual training programs for PhD incentives as the Industrial Research graduates and post-doctoral fellows in and Development Internship (IRDI) southern Ontario. program. Economic Action Plan 2012 affirmed the importance of integrating high-quality researchers into the labour market by providing an additional $14 million over two years to expand the IRDI program and increase the number of students undertaking hands-on research in Canadian companies. Another federal program, the Industrial Research and Development Fellowships, provides scholarships to recent doctoral graduates to engage in private sector research and development. In 2010-2011, this program supported 225 active awards, for a total value of $4.7 million. In 2010, the federal government also invested $11 million to help PhD graduates transition to private sector employment through 12 the Mitacs Elevate program. Mitacs, which is also a delivery agent for IRDI, is an organization that offers research and training programs that connect Canadian businesses with the next generation of highly skilled workers. Other recent federal initiatives recognize the role of colleges and technical institutes in applied research and the commercialization of new innovations. Budget 2011 provided $23 million over five years to support Industrial Research Chairs at Canadian colleges. This is in addition to investments of $32.5-million announced in July 2010 for CFI’s College-Industry Innovation Fund, aimed at enhancing colleges’ infrastructure and innovation capacity, and to the existing College and Community Innovation Program, designed to stimulate collegeindustry partnerships and stimulate entrepreneurship. Taken together, these initiatives help make Canada a location of choice for scientific research and technological development, and establish strong connections between the academic research community and the private sector. WORKING WITH PARTNERS Canada occupies an enviable position among OECD peers in terms of performance and equity in education, including PSE participation. The foundation for this success resides in stable and predictable funding arrangements and on a range of collaborative partnerships between governments, and with educational/training institutions, the private sector, and community organizations. The Government of Canada recognizes that provincial and territorial governments are best placed to determine program priorities and to design and deliver programs in their areas of constitutional jurisdiction. The Government of Canada places its policy focus in areas of mutual federal-provincial/territorial interest and this approach has resulted in numerous successful partnerships with provinces and territories in order to advance common PSE-related objectives. Funding Transfers to PTs The Government of Canada makes a significant investment in PSE through the Canada Social Transfer (CST), a federal block transfer to provinces and territories covering PSE, support for children, and social programs. In Budget 2007, the Government of Canada placed this funding on a stable and long-term growth track. It increased annual funding for PSE through the CST by $800 million in 2008-2009, and legislated an annual three percent escalator in 20092010. The Government of Canada also addressed concerns regarding the transparency of the federal contribution to PSE by notionally earmarking a portion of the CST for PSE. CST cash transfers will reach $11.9 billion in 20122013, $3.6 billion of which is notionally allocated to PSE. Economic Action Plan 2012 reaffirmed that the CST will continue to grow at three per cent annually in 2014-2015 and subsequent years. 13 The Government of Canada also transfers approximately $2.5 billion each year to provincial and territorial governments through Labour Market Agreements (LMAs) and Labour Market Development Agreements (LMDAs). LMAs/LMDAs funding gives provinces and territories the flexibility to target skills development programs according to local needs. Many of the recipients of this funding obtain their training at one of Canada’s community colleges. Due to the unique nature and governance arrangements of the Aboriginal population in Canada, the federal government recognizes that strong partnerships are especially important to the successful educational and employment outcomes of Aboriginal people. As such, the Government of Canada is committed to continue developing initiatives such as tripartite educational partnerships with provincial, territorial, and First Nations governments. These transfer arrangements reflect a long history of Canadian governments working together towards shared national priorities, and recognize the fact that provincial and territorial governments are accountable directly to their citizens for outcomes achieved and dollars spent. Partnering on Research, Data Development and Policy Coordination The federal government engages collaboratively with provincial and territorial governments as well as other stakeholders on a range of issues of mutual interest, such as data development and research, student financial aid, labour mobility, apprenticeship and the trades, and skills/credential recognition. Recent successes demonstrate that this flexible and decentralized approach is effective in areas where communities, employers, and provincial and territorial governments can better assess needs and priorities and more efficiently allocate resources. The Government of Canada works with the provinces and territories through the Council of Ministers of Education, Canada (CMEC) to develop standardized sources of information on skills development in Canada. Recent successes include federal-provincial/territorial cooperation in large scale international surveys such as the Programme for International Assessment of Adult Competencies (PIAAC) and the Programme for International Student Assessment (PISA), as well as multilateral collaboration on collecting skills and learning data (e.g., student enrolment and PSE graduation rates). These efforts will strengthen the foundation of information on skills levels and labour force supply in Canada, facilitate evidence-based decision-making, and generate improved matching of skills and course offerings with market demand. Another area of federal-provincial/territorial engagement success is the coordinated delivery of student financial assistance. The Government of Canada, through the Intergovernmental Consultative Committee on Student Financial Assistance, works with participating jurisdictions towards the seamless operation of both federal and provincial/territorial student financial aid programs. Recent achievements include the extension of the Repayment Assistance Program to almost all participating provinces and the streamlining of federal and provincial/territorial student loans application processes. 14 The Government of Canada also collaborates with provinces and territories through the Forum of Labour Market Ministers (FLMM), which promotes labour mobility, co-operation, and a highly skilled workforce with transferrable skills and qualifications. The FLMM facilitates the development and expansion of interprovincial job standards and contributes to Canada’s adaptation to changes in economic structure and skill requirements. Among recent achievements is the ongoing implementation of the Pan-Canadian Framework for the Assessment and Recognition of Foreign Qualifications and advances in developing and promoting reliable and relevant labour market information. An additional area of cooperation is apprenticeship training and trade certification, where the Government of Canada works closely with provincial and territorial governments and industry stakeholders. Through the Canadian Council of Directors of Apprenticeship (CCDA), both levels of government strengthen and promote apprenticeship systems and manage and deliver the Interprovincial Red Seal Program. The Red Seal Program, which currently covers 52 trades, encourages the harmonization of provincial and territorial apprenticeship training and certification programs and promotes labour mobility across the country. In 2009, the Red Seal trades accounted for 81% of registered apprentices in Canada. The Government of Canada also regularly engages on issues of workplace skills and workforce development with the private sector, educational/training institutions, and labour through the “Roundtable on Workforce Skills”. The Government of Canada also Economic Action Plan 2012 provides a works with the private sector and further $50 million over 2 years to the community organizations to Youth Employment Strategy. This is in encourage innovation and initiatives addition to over $300 million invested which will enhance Canada’s annually to help connect nearly 70,000 competitive and knowledge Canadian youth with the work advantage. It does so by supporting experience and skills training they need stronger connections between to build a foundation for success in the industry and Canada’s pool of job market. innovation and talent produced by PSE, and by providing funding to employers to offer young post-secondary graduates with career-related skills and experience. In addition, the federal government is continuing to explore ways to support innovative and effective community-based approaches and encourage the development of government-community partnerships. The range of funding mechanisms and partnership-based efforts put in place by the Government of Canada through a decentralized and flexible approach is producing good results: the OECD recently recognized Canada as one of the strong world performers in terms of education. 15 CONCLUSION The Government of Canada remains committed to expanding opportunities in all forms of PSE – whether in apprenticeships, undergraduate studies at universities, colleges, and polytechnics, or in graduate studies – as it continues to find ways to help Canadians obtain the education, skills and training they require to succeed and to contribute to Canada’s prosperity. If current trends continue, a significant proportion of future jobs are expected to require PSE. But as technology advances and economic changes occur, the need for PSE may be even higher. While some of this demand for skills will be met by skilled and qualified immigrants, over 80% of tomorrow’s labour force growth will be driven by the youth of today. This fact alone means that we will have to maintain and strengthen our PSE participation. However, this is not the sole responsibility of the Government of Canada. Provinces and territories have primary jurisdiction for the delivery of PSE in this country. Firms have a responsibility for investing in the upskilling of their current workforce. And individuals are responsible to develop and maintain the skills they need to gain and sustain employment to benefit themselves, their families and their communities. For this reason, the Government of Canada remains committed to holding the doors of opportunity open to all Canadians. The Government of Canada is firmly focused on jobs, growth and long-term prosperity. Looking to the future, the federal government will continue to support learners and their families, provide support to PSE research as well as the development of highly skilled workers, and engage in a range of partnership-based initiatives to improve skills acquisition and success for all Canadians. 16 Annex A ACRONYMS AANDC ACG AIG ASETS CanNor CCDA CESG CESP CFI CGSs CIHR CLB CMEC CSGP CSLP CST FLMM F-P/T ICP ICT K-12 LMA LMDA MITACS NSERC OECD OLES P/Ts PIAAC PISA PSE RAP RESPs SMEs SPF SSHRC Aboriginal Affairs and Northern Development Apprenticeship Completion Grant Apprenticeship Incentive Grant Aboriginal Skills Employment and Training Strategy Canadian Northern Economic Development Agency Canadian Council of Directors of Apprenticeships Canada Education Savings Grants Canada Education Savings Program Canada Foundation for Innovation Canada Graduate Scholarships Canadian Institutes of Health Research Canada Learning Bonds Council of Ministers of Education, Canada Canada Student Grants Program Canada Student Loans Program Canada Social Transfer Forum of Labour Market Ministers Federal, Provincial and Territorial Indirect Costs Program Information and Communication Technology Kindergarten to Grade 12 Labour Market Agreement Labour Market Development Agreement Mathematics of Information Technology and Complex Systems Natural Science and Engineering Research Council Organisation for Economic Co-operation and Development Office of Literacy and Essential Skills Provinces and Territories Programme for International Assessment of Adult Competencies Programme for International Student Assessment Post-Secondary Education Repayment Assistance Plan Registered Education Savings Plans Small and Medium-sized Enterprises Skills and Partnership Fund Social Sciences and Humanities Research Council 17
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