HANSARD A Report from the Government Relations Office
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HANSARD A Report from the Government Relations Office
HANSARD A Report from the Government Relations Office APRIL 2007 THE BUDGET ISSUE Federal Budget 2007: “A Stronger, Safer, Better Canada” IN THIS EDITION… • • • • • • • Message The Federal Budget The Provincial Budget Visits by Dignitaries Upcoming Events Heard on the Hill Breakfast & Brainstorms Welcome to this latest edition of the Government Relations Office (GRO)’s Hansard newsletter—the first to be distributed strictly on an electronic basis. We made the switch to a paperless format to allow for wider, faster and more cost-effective distribution. With this new format, we hope to publish approximately 6 editions of Hansard each year to provide timely updates on government matters affecting the university. I hope that you enjoy this edition and find it to be informative. - John Alho Associate VicePresident (External) the provinces, direct spending and tax measures this year. On March 19, 2007, federal Finance Minister Jim Flaherty presented his 2nd budget “ASPIRE to a stronger, safer, better Canada” in the House of Commons. Budget 2007 contains a wide range of spending initiatives and tax measures aimed at appealing to the middle class. Polling showed Conservative popularity rose to as much as 40% in the immediate wake of the Budget release. The following is a summary of Budget measures of interest to the university community. Overall, the Government indicates in Budget 2007 that over $8.4B will be provided in support of postsecondary education (PSE) through transfers to TRANSFERS TO PROVINCES & TERRITORIES Budget 2007 delivers $39B in additional federal funding to the provinces over a 7 year period to restore the so-called fiscal balance. Included is $12.7B for a revamped Equalization program in 2007-08 ($1.5B higher than in 2006-07). In 2006-07, Manitoba received $1.709B in legislated payments. Under the ’new’ program, Manitoba will likely receive $1.826B in 2007-08 (an increase of $123M). Opposition Leader Stéphane Dion claims that the equalization formula “is little more than using taxpayers own money to buy favour” since the Government has “already cut nearly $10B in provincial transfers since taking power by scrapping agreements on child care, labour Continued onto page 2... Manitoba Provincial Budget 2007: The Building Budget On April 4, 2007, Manitoba’s Minister of Finance, Greg Selinger, presented Budget 2007 – The Building Budget in the Legislature, his eighth straight ‘balanced’ budget. As noted by the Winnipeg Free Press on Budget Day, “Selinger has at his disposal almost $100M in new money from Ottawa, as well as rising income tax revenues and an economy pegged to grow faster than the Canadian average in 2007.” With a provincial election looming, Budget 2007 takes advantage of this new money by including ‘something for everyone’ setting the basis for the NDP Government’s upcoming campaign platform. However, the Budget is also fodder for the other provincial party leaders. In a posting on his blog, Dr. Jon Gerrard, the leader of the Manitoba Liberal Party, commented that Budget 2007 suffered from the fatal flaw that “The budget continues the same old NDP sham of announcing and reannouncing millions in government spending while getting little real results for working Manitobans.” He also noted that university students are faced with “voluntarily hiking their tuition fees to fix crumbing university facilities and retain top caliber professors.” Progressive Conservative Opposition Leader, Hugh McFadyen, likened the Budgetary tax cuts to mere "crumbs for Manitoba families." The following is a summary of many of the Budget measures of interest to the university community. Continued onto page 4... HANSARD Page 2 Federal Budget Continued from page 1... market partnerships and more…” Dion argues the net benefit of Budget 2007 over the next 5 years would only be $1.1B. Also included in the additional funding to provinces will be monies for a “strengthened” Canada Social Transfer (CST) that will be legislated to 2013-14. Specifically, Budget 2007 includes a CST base increase of $687M in 2007-08, a further increase of $1.05B in 2008-09, and an automatic 3% increase per year thereafter. The CST will be made more ‘transparent’ by explicitly identifying the dollar amount within it for each of the 3 priority areas: PSE, support for children, and other social programs. Budget 2007 proposes to dedicate 25% of the CST for PSE, meaning: in 2007-08 an additional $176M will be earmarked for PSE transfers and in 2008-09 an additional $800M will be transferred to provinces. The Budget also proposes further increases in the future, reaching a total of $3.8B in additional funding by 2013-14. Unfortunately, the Government did not create a separate PSE transfer fund and the commitment to dedicate 25% won’t be legislated until 2013/14. With monies still flowing through the CST, there is no guarantee that the provinces and territories will actually direct funding to universities and other PSE institutions, despite it being ‘earmarked’ for that purpose. STUDENTS Budget 2007 points out that Canada has the highest postsecondary attainment rates among OECD countries and is ranked 2nd, and nearly on par with the United States, in terms of total post-secondary expenditures as a percentage of GDP. Nonetheless, the Government acknowledges that the country’s success must never be taken for granted. [T]he global, knowledge-based economy and changing demographics are presenting Canadians with major new challenges. At a time when the growth of the country’s population is slowing, Canadians must learn to adapt to changing technologies and meet the new knowledge and skills requirements of the labour market. Investments in post-secondary excellence are key to meeting these challenges and building Canada’s Knowledge Advantage. Budget 2007 companion document—The Budget Plan 2007 In order for Canada to be well-positioned to succeed in this new global economy, Budget 2007 includes investments made “to create the best-educated, most-skilled and most flexible labour force in the world.” Budget 2007 includes $15M in 2007-08, $20M in 2008-09 and $27M per year thereafter to support an additional 1,000 students (for a total of 5,000 students) each year through the Canada Graduate Scholarships Program. These new scholarships will be divided and named as follows: 400 Sir Frederick Banting and Dr. Charles Best scholarships (health-related studies through CIHR); 400 Alexander Graham Bell scholarships (natural sciences and engineering through NSERC); and 200 Joseph-Armand Bombardier scholarships (social sciences and humanities through SSHRC). Changes will also be made to registered education savings plans (RESPs) by eliminating the $4,000 limit on annual contributions and increasing the lifetime contribution from $42,000 to $50,000, and increasing the maximum Canada Education Savings Grant (CESG) annual amount from $400 to $500. “Each child will continue to be eligible to receive up to $7,200 in CESGs.” Budget 2007 also improves access to RESP assistance for part-time students. As well, Budget 2007 indicates that the Minister of Human Resources and Social Development will be leading a review of the Canada Student Loan Program (CSLP), in consultation with the provinces, territories and stakeholders. Resulting changes will be announced next year. The Liberal Party of Canada argues that Budget 2007 fails to “put a penny into the pockets of Canada’s under-graduate students.” Should the Liberals be elected to power in the next election, the party has already committed to investing $3.1B over 5 years for students’ financial assistance, graduate scholarships, and international study. RESEARCH INVESTMENTS Budget 2007 includes $1.3B in new spending on research and innovation. The Budget contains $85M per year for the granting councils ($37M for each of NSERC and CIHR and $11M for SSHRC — an overall increase of 5.3%) “for research targeted on key priorities: health sciences, energy, the environment, information and communications technologies and management, business and finance.” An additional $15M per year is allocated for indirect costs bringing the annual support in 2007-08 to $315M or 25.4% of federally sponsored research - falling short of the $200M increase required to raise the reimbursement rate to 40%. The government also allocates $510M to CFI for another major competition before 2010 and an additional $100M in 2006-07 year-end monies to Genome Canada “to extend promising research projects and sustain funding for regional genome centres and related technology platforms” (falling short of the $380M over the next 3 years requested by Genome Canada). Budget 2007 allocates: $120M in 2006-07 to CANARIE Inc. to maintain CA*net for the next 5 years and to develop the next generation CA*net5; $10M over the next 2 years to the Canadian Institute for Advanced Research “to help Canadian students and researchers participate in and lead groundbreaking research on the international stage”; and $6M in 2008-09 towards the relocation of Natural Resources Canada’s CANMET Materials Technology Laboratory to the McMaster Innovation Park. The Government indicates in Budget 2007 that it will “launch an independent expert panel that will consider options for transferring federal laboratories to universities or the private sector” as well as identify up to 5 laboratories that could be early candidates for the transfer. Continued onto page 3... HANSARD Page 3 Federal Budget Conclusion from page 2… $350M is allocated over 2006-07 and the next 2 years to support 9 Centres of Excellence in Commercialization and Research across Canada. A further $165M in 2007-08 and $30M in 2008-09 is allocated to support competitions under a new Centres of Excellence in Commercialization and Research program. Budget 2007 allocates $11M in 2008-09 to accelerate the creation of new business-led Networks of Centres of Excellence. Up to 5 new networks are expected to be supported by this funding, beginning in 2008-09. years to Environment Canada “to develop a targeted science plan and a Canada-Manitoba Agreement to support the long-term sustainability” of Lake Winnipeg; $39M over 2 years to the Department of Fisheries and Oceans “to increase fisheries science research programs to strengthen fisheries management and resource conservation”; and $19M over 2 years for initiatives that will “contribute to keeping Canada’s coastal waters clean. This funding will support the sustainable development, management and protection of ocean resources and water quality.” The Budget also dedicates $4.5M over 2 years to the Networks of Centres of Excellence program to establish a new Industrial R&D Internship program. This new program will partner 1,000 graduate students and post-doctoral candidates with businesses annually for 1 semester internships “to undertake applied research aimed at meeting the innovation needs of the host firm.” • The elimination of the capital gains tax for charitable dona- As well, $30M will be allocated in 2006-07 to The Rick Hansen Man in Motion Foundation “to translate research into practical benefits for Canadians living with spinal cord injuries”. • $13M commitment to create the Foreign Credential Referral Budget 2007 indicates that the Minister of Industry will “shortly release a comprehensive and forward-looking science and technology strategy” that will “outline a multi-year funding framework for action.” This strategy was originally expected to be released prior to Budget 2007. OTHER AREAS OF POTENTIAL INTEREST • $2M over the next 2 years “to launch a new international education marketing campaign to attract talented students to Canada. • $1.5B for the Canada ecoTrust for Clean Air and Climate Change - a trust allocated on a per capita basis providing a minimum of $15M per province and $5M per territory, drawn down over 3 years, “to support efforts to develop technology, improve energy efficiency, and undertake other projects that will result in significant environmental benefits.” tions of publicly-listed securities to private foundations. • $4.1B in 2007-08 and $4.4B in 2008-09 for Canada’s total international assistance and confirms Budget 2006 commitment to double international assistance by 2010-11 from 2001-02 levels. Office. As part of its mandate, the Office will refer immigrants to the appropriate assessment bodies for foreign credential recognition. The Office is expected to be fully operational by late spring 2007. • $33.6M, over 2 years, to help Canadian-educated foreign students and skilled foreign workers stay in Canada as permanent residents. CONCLUSION Liberal and NDP Members of Parliament were quite vocal in their opposition and voted against Budget 2007. The Bloc Quebecois, on the other hand, joined the Conservatives to pass the Budget by a vote of 176 to 119 on March 27. In Manitoba, Premier Doer indicated that he was taken aback by the lack of new money in Budget 2007 for PSE in 2007-08 and that the province had been counting on getting at least some new money for PSE this fiscal year. Budget documents and additional information are available through the Government Relations website. • A new National Water Strategy, which includes $7M over 2 Visits by Chinese and Czech Republic Dignitaries The Government Relations Office coordinated two recent visits to the University of Manitoba (UM) by foreign dignitaries. On March 21, His Excellency Shumin Lu, Ambassador of the People’s Republic of China to Canada, accompanied by the Consul General of the People’s Republic of China Mme. Taoying Zhu, and members of the Chinese Embassy Consulate Staff visited the UM. As part of the visit, His Excellency spoke to an I.H. Asper School of Business International Management Class. The delegation also toured the Richardson Centre for Functional Foods and Nutraceuticals (RCFFN). On March 27, His Excellency Pavel Vošalik, Ambassador of the Czech Republic to Canada and the Honourable Jirf Sneberger, Deputy Chairman of the Senate of Parliament of the Czech Republic, and a delegation visited the UM and toured HANSARD Page 4 Provincial Budget Continued from page 1... FUNDING FOR PSE INSTITUTIONS Budget 2007 maintains the tuition freeze at 10% below 1999 levels. In the Budget Speech, Minister Selinger claimed that the $95M provided by the Province for post-secondary education (PSE) funding since 2000 has fully offset the resulting lost revenue to universities and colleges, tied directly to enrolment. The Minister also claimed that the 1/3 increase in Manitoba’s university and college enrolment was “supported” by the 10% reduction. • $2,891,300 for Medical Student/Resident Financial Assis- Minister Selinger referenced last year’s commitment of “$60M over three years”, including the promise of a 5% funding increase in 2007/08, before noting that Budget 2007 goes further by committing to increasing provincial operating grants to universities and colleges by an average of 7% this year. In his Budget Speech, Minister Selinger stated that this 2 percentage point increase “is equivalent to a 4% tuition fee increase” and noted that the government commits to this increase despite the fact that the recent federal budget did not include any new funding for PSE until next year. As well, Budget 2007 contains a 60% income tax rebate on tuition fees paid on or after January 1, 2004 for all postsecondary graduates who graduate on or after January 1, 2007 and who live and work in Manitoba, up to a maximum lifetime rebate of $25,000. Recognized institutions may be located anywhere in the world, and include private colleges. It is estimated to cost the province $2.2M in reduced tax revenues in 2006/07. Overall, Budget 2007 allocates $448,623,900 in support for universities and colleges – up from last year’s $414,446,100. Among other things, this money goes towards: • $328,241,200 in funds for university operating grants, as discussed above; • $5,896,100 for the post-secondary strategic initiatives fund (a $5.3M increase over last year); and • $7.61M for ACCESS programs (a $438,000 increase over last year). INFRASTRUCTURE Budget 2007 pledges $25M, previously announced in the fall 2006 Speech From the Throne, for the University of Winnipeg to support “projects like the new Richardson College for the Environment.” As well, Budget 2007 allocates funding to improve the University College of the North (UCN)’s electronic network, linking 14 regional centres, including 9 on reserves. STUDENT AID AND AWARDS The Budget allocates $59,248,700 for Manitoba Student Aid, up 1.7% from $58,276,600 last year. Funding will go towards administrative costs and the following: • $5M for the Manitoba Scholarship and Bursary Initiative (no change over last year); • $624,500 in new funding for Manitoba Graduate Scholar- ships (MGS) for a total of $2M for 2007/08, fulfilling the provincial promise made in 2004 when the program was established. MGS will be awarded to more than 100 Masters and 60 PhD students this year; • $8.26M for the Manitoba Bursary Fund (up from $8.06M last year) benefiting 2,500 students; • $3,336,000 for loans and bursaries (no change over last • year); $13,874,300 for the Tuition Rebate Grants (no change over last year); tance (no change over last year); • $12,785,500 for the Canada Millennium Scholarship Fund, federal funds flowed through the Province (no change over last year); and • $3M for Canada Study Grants, again, federal funds flowed through the Province (no change over last year). SCIENCE, RESEARCH AND INNOVATION As recognised in Budget Paper A: Research and development (R&D) helps form the ideas and create the expertise that ultimately lead to innovation. Those in the forefront of innovation will be best positioned to develop higher valueadded sectors and better-paid, knowledge-based jobs. In the absence of innovation, economies may lose competitive position and societies will not realize the full benefits that innovation can bring: higher productivity, rising incomes, a cleaner environment and sustainable development, improvements to personal health and wellness, and so forth. Budget 2007 allocates: $13.85M for Manitoba Research and Innovation Fund (a 4.5% or $600,000 increase over last year); $720,100 for the Manitoba Centres of Excellence Fund (a 9.8% or $64,300 increase over last year); $1,952,600 for Manitoba Health Research Council (no change over last year); and $14.3M in Grant Assistance for Climate Change and Green Strategy Initiatives (no change over last year). Budget 2007 also allocates $6,047,700 for Water Stewardship Initiatives (a 20% or $1M increase over last year), providing funding for scientific research, projects, incentives, and activities that further the protection and stewardship of Manitoba’s water and fishery resources and aquatic ecosystems. As well, Budget 2007 allocates more than $10M in new funds for water protection, including for further scientific research on Lake Winnipeg and beneficial management practices. Furthermore, the province “will work with the federal government on plans to fully invest the $7M” earmarked in the federal Budget for Lake Winnipeg. Budget 2007 also maintains the $3.4M allocation for the Sustainable Development Innovations Fund providing funding for the development, implementation, and promotion of environmental innovation and sustainable development projects delivered by government, industry, and community groups. Continued onto page 5... HANSARD Page 5 Provincial Budget Conclusion from page 4... ABORIGINAL STUDENTS Minister Selinger noted that Aboriginal student enrolment in universities and colleges is up 77% and 59% respectively since 1999 and that Aboriginal apprenticeship registrations have tripled during that same time. The government acknowledges that this increase is due in part to ACCESS programs. The Budget Speech referenced the provincial commitment for multiyear funding to Career Trek, designed to help students complete high school and pursue PSE. Budget 2007 also commits increased resources to Manitoba’s Aboriginal Education Directorate “to support the inclusion of Aboriginal education and training into all aspects of government operations.” As well, Budget 2007 creates a new young Aboriginal entrepreneur initiative to provide assistance with business development costs. Furthermore, Budget 2007 provides additional funding to expand educational programming through UCN, including 50 new nursing spaces. NEW IMMIGRANTS Manitoba commits to double the Province’s current immigration level over the next 10 years. To help with this goal, Budget 2007 provides more than $9.5M in new funding “to enhance settlement services, language training, labour market integration and ethno-cultural and anti-racism initiatives, supported by federal resources.” Support will be provided for a wide range of services and programs including by “increasing support for Manitoba’s Qualification Recognition Initiative to better assess and recognize the valuable qualifications immigrants bring to the province.” No details are provided as to the amount of funding that will be put towards this initiative and whether any of the University of Manitoba (UM) foreign credential recognition programs, especially the IEEQ program, will receive some of these funds. HEALTHY LIVING Budget 2007 fulfills the commitment to increase funding for Sport Manitoba by $1M “supporting high performance athletes and community sports programs across Manitoba.” AGRICULTURE, FOOD AND RURAL INITIATIVES Budget 2007 continues the annual $868,300 Manitoba Agriculture, Food and Rural Initiative grant to the UM’s Faculty of Agriculture. Budget 2007 maintains the $1M funding to the Agri-Food Research and Development Initiative, again no change over last year, providing funding aimed at enhancing diversification and value-added opportunities in Manitoba’s agri-food sector. Budget 2007 increases funding for the Food Development Centre located in Portage la Prairie to $2,233,800 (an increase of $120,000 over last year) to support the development and commercialization of new food products. Minister Selinger indicated that this “builds on recent provincial investments in the RCFFN.” The Provincial Government’s vision is for “Manitoba to be a leader in biodiesel production”, though no monies are allocated for research in this area. Budget 2007 does provide an unspecified amount of funding “for rural pilot projects to construct and test the feasibility of anaerobic digesters on hog farms”. The province is also working alongside industry “to study the feasibility of carbon dioxide enhanced oil recovery in Manitoba.” Finally, there will be continued assistance, in an unspecified amount, to Brandon University’s Rural Development Institute “to support rural research and development projects.” OTHER HIGHLIGHTS • For a 2nd year in a row, the Minister indicates that the government will be investing in “a new state-of-the-art Cardiac Centre of Excellence at St. Boniface General Hospital.” As well, new legislation will apparently be introduced “to improve recognition of foreign qualifications.” • Budget 2007 commits more than $2M in “new resources for MEDICINE AND NURSING Budget 2007 provides the ongoing funding to support the additional 100 medical spaces at the UM, the increased 25-space licensing program for international medical graduates, the 3,000 nurses in training and “more than 50 new technologist training seats.” • Budget 2007 increases the payroll exemption threshold for Budget 2007 also provides $3 million in new funding for “physician specialist training, including emergency room doctors, oncologists and pediatricians.” The new funds will address the current ER doctor shortage, as well as the previously announced additional 2 medical oncologist residency spaces and the 2 additional pediatric residency spaces in Brandon. key training and skills priorities, including growing apprenticeship training, expanding sector councils, and more flexible funding to meet critical skills shortages.” the Health and PSE Tax Levy by 25% to $1.25M benefiting one-third of the employers currently paying this tax. • In the Budget Speech, Minister Selinger indicated that this year, the province “will engage First Nations and communities in the northern Interlake region to explore the feasibility of expanding local training opportunities”. Budget documents and additional information are available through the Government Relations website. The University of Manitoba, the province’s largest research institution, is a national and global innovation leader. Areas of excellence include functional foods and nutraceuticals, plant and human genomics, proteomics and systems biology, cardiovascular and diabetes diseases, HIV/AIDS research, alternative energy and advanced composite materials. Budget 2007 companion document – Manitoba’s Action Strategy for Economic Growth HANSARD Page 6 Heard on Parliament Hill... UPCOMING Federal Parliamentarians have mentioned the University of Manitoba (UM) on numerous occasions EVENTS… April 17 Carol Bellringer, Auditor General of Manitoba, addresses the Manitoba Chambers of Commerce May 8 Rosann Wowchuk, Minister of Advanced Education & Literacy, addresses the Manitoba Chambers of Commerce May 15 International Day of Families May 17 Lloyd Axworthy, President & Vice Chancellor of the University of Winnipeg addresses the Winnipeg Chamber of Commerce May 21 Victoria Day, University Closed May 21 to May 25 House of Commons Break Week since the 39th Parliament, 1st session of the House of Commons re-convened on January 29th, 2007, and the Senate on January 30th, 2007. On Februay 1, as part of the House of Commons (House) debate surrounding the Liberal Party motion on climate change, Hon. Raymond Simard (St. Boniface, Lib.) discussed his visit to the icebreaker, the CCGS Amundsen, a trip organised by the GRO in the fall of 2005, and noted that UM researcher, Dr. Barber, along with his colleagues from the Université Laval, talked to the group about climate change in the north. On February 13, in response to a question in the House about partisan appointments playing a role in the appointment to the Parole Board of the wife of a long time assistant to the former minister of justice, Hon. Peter Van Loan (Leader of the Government in the House and Minister for Democratic Reform, CPC) noted that the individual in question, Patricia Haasbeek, has incredible qualifications to be on the Parole Board including applied counselling with the University of Manitoba. On February 21, as part of a motion in the House to have the Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities undertake a study of the current level of financial support provided to persons with disabilities through the Canada Pension Plan Disability Benefit, Hon. Karen Redman (Kitchener Centre, Lib.) referenced a UM study that revealed women with disabilities were far more likely to be victims of domestic violence. In the House, on February 27, 2007, Hon. Anita Neville (Winnipeg South Centre, Lib.) made a Member’s Statement congratulating the UM on its 130th anniversary. On February 28, 2007, Mr. Rod Bruinooge (Winnipeg South, CPC) also made a Member’s Statement in the House congratulating the UM on its anniversary. On February 28, Hon. Sharon Carstairs and Hon. Mira Spivak made Senators’ Statements congratulating the UM on its 130th anniversary. On March 2, in response to a question in the House regarding the launch of the International Polar Year and Canada’s contribution to it, Mr. Rod Bruinooge referenced the official launch of International Polar Year, the largest ever international research program focused on the earth's polar regions, with $150M in federal funding for 44 Canadian research projects, including one at the University of Manitoba. The full Hansard transcripts are accessible online through the Government Relations website. Breakfast & Brainstorms Hansard is published by the Government Relations Office. If you have any comments or questions please contact us at: 310 Administration Bldg. University of Manitoba (204) 474-7881 Fax: (204) 474-8421 Government_Relations @umanitoba.ca http:// www.umanitoba.ca/ government_relations As part of its outreach efforts, the Government Relations Office organizes Breakfast & Brainstorms, a legislative speaker series at the Manitoba Legislature, with the Council on Post-Secondary Education. The Series is designed to bring public policy decision makers and influencers together with University of Manitoba researchers. The most recent session, Documenting Social Change: Processes and Outcomes from 16 Years of Study of the Family Violence Court, was held on March 9th, 2007. Dr. Jane Ursel was the presenter. Previous session topics included Climate Change in the North and Livestock and the Environment. Dr. Ursel with Minister Diane McGifford, Minister of Advanced Education & Literacy