Thank you, Mr. Chairman. The assistant deputy minister, Education, Culture and Employment Programs, Mr. Conrad Pilon.
In terms of the question which was asked by Mr. Lewis, I will be very specific about some of the proposals and the changes which are, in fact, occurring. I do not want people to get the impression that this process just started when I became the Minister, Mr. Chairman. This issue of the student financial assistance budget reduction began as a result of the Strength at Two Levels report. In that particular report there was a suggestion that we review the student financial assistance program to identify administrative measures which could be implemented to improve efficiencies. As a result, on February 19, 1992 the document titled Reshaping Northern Government indicated that there were a number of ways in which program saving and reductions could be achieved by increased user pay through means testing, reduced benefits, or eligibility restrictions. They were specific changes which were recommended to the student financial assistance program. In June, 1992, the OPPLAN was presented which dealt with the department considering restructuring, that was one of the issues, of restructuring the manner in which we provided our supplementary grants benefits, similar to DIAND's program. Secondly, whether or not we would continue the practice of providing travel assistance through warrants rather than cash advances.
Further, there was a suggestion at that particular time for the student financial assistance right to be amended to delete the book allowance for non-native students, who receive a basic grant for 1992-93. On August 27, 1992, the then Minister, Mr. Arvaluk, appeared in front of the Standing Committee on Finance. In his opening remarks the Minister proposed that student grants be changed to provide benefits similar to federal programs. He, in fact, suggested the other changes as well. The Minister also said that the proposed 1992-93 reductions, and this was last year, would be delayed for one year, and this is the upcoming year.
On September 22, the Minister also presented the reductions to the Legislative Assembly but it, in fact, indicated they would be delayed. As a result of that, I am the Minister who is now coming forward with those changes from those comments which were made.
Mr. Chairman, I want to say that as a result of some of the methods by which we are utilizing the travel warrants rather than cash advances were for Christmas and year end travel. It is our intention to save the government $200,000. As a result of deleting the book allowance, we are considering saving another $98,000. As a result of restructuring the supplementary grant program to match the allowances to match it with Indian Affairs and Northern Development, we anticipate saving this government some $300,000. The result will be $589,000 of savings if we proceed.
I would also like to indicate to the honourable Member that despite the fact that we are reducing the book allowances, we are prepared and have agreed that we will provide for a needs assessed loan for those students who are in need. We will provide the loan. In those cases where it is clear both for books and supplies that are required for post-secondary education.
