Thank you, Mr. Chairman. Mr. Chairman, thank you for the opportunity to discuss Bill 4, An Act to Amend the Student Financial Assistance Act. I would like to make a few comments about the bill itself and the redesign of the Student Financial Assistance Program that will result from the passage of this bill.
The key objective of the changes to the act is to pave the way for providing increased levels of financial support to students attending colleges, universities and technical schools.
Mr. Chairman, the changes proposed to the act are relatively minor. If this bill is approved, the individual lifetime loan limit will be increased to $47,000 and the size of the revolving loan fund increased to $33 million. However, as all Members are aware, these changes are being made to permit comprehensive redesign of the Student Financial Assistance Program.
To understand the importance of the proposed redesign, it is important to recognize that postsecondary students in Canada face rising tuition, book, living allowance and travel costs. A study of 27 Canadian universities in 1998 indicated the average education costs across Canada had increased significantly. While costs have been rising, there have been no increases to the level of funding provided to students under the SFA Program since 1992.
Postsecondary education and training are extremely important to Northerners. While 80 percent of Northerners with postsecondary diplomas, and 90 percent of those holding degrees, are employed, less than 50 percent of Northerners with less than grade 10 are employed. Employers are now requiring many of their employees to have postsecondary education, due to the increasingly technical nature of many jobs. Recent studies in Canada show that nearly 70 percent of all new jobs require postsecondary education.
Given the rising costs for postsecondary education, its importance to the northern labour force, and our current limited financial resources, we face the challenge of finding a way to give more money to students in a prudent and fiscally responsible manner.
Since 1997, the Department of Education, Culture and Employment has been consulting extensively with the public, students, aboriginal leaders and legislative standing committees, regarding reform of the Student Financial Assistance program. This consultation included a Minister's Forum on Student Financial Assistance made up of members who represented a broad range of public interests. The group held public hearings in a number of locations and talked to representatives from virtually every community in the NWT. The final report of the forum, tabled with the Minister of the day, outlined a series of recommendations, virtually all of which have been addressed in the program redesign.
Since the completion of the Minister's Forum, there have been further extensive discussions with legislators, aboriginal leaders, students and other interested Northerners. We have received many excellent comments and suggestions targeted at ensuring we have a strong and effective program. These suggestions have been very useful - and many, but not all of them, have been accommodated within the program redesign. The result of all of this work is a program that balances the wide variety of interests that have been expressed, but continues to keep a very sharp focus on the financial needs of students.
I would like to highlight a few key facts. Under the redesigned Student Financial Assistance Program, tuition allowances will increase to a maximum of $1750 a semester from the current amount of $1250. Funding for books will increase to $300 per semester. Living allowances will increase by no less than seven percent. All of these increases will directly benefit students.
In addition to these increases in benefits, we are increasing the amount of funds a student can borrow. However, we are also limiting the maximum so that unnecessary student debt is not built up.
This program redesign was done in a manner so as to ensure that overall costs for the program would be similar with those of the current program. However, as a result of the public hearings of the Standing Committee on Social Programs and the committee's subsequent recommendation, we have added the option for Metis and Inuvialuit students to receive either a grant or a remissible loan to cover living costs. This change has resulted in an increase to overall program funding of approximately $500,000.
Mr. Chairman, we must act now. Students expect us to assist and it is vital that we move quickly; if we do not, the current trend of erosion of support will continue. If students are to receive additional benefits in the 2000-2001 academic year, it is essential that the finalization of program regulations occurs quickly and that program information is effectively communicated.
I would like to close by emphasizing once again that we must focus on the needs of the students. We want and need postsecondary graduates to work in the North and to contribute to the development and growth of our communities, our businesses and our Territory. The program redesign is a balanced approach to supporting student needs as well as recognizing the interests and commitments of this government and all Northerners. Thank You.