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Results: 1 - 15 of 25
View Matthew Green Profile
NDP (ON)
Thank you. I'm trying to get an outlook for the next generation, notwithstanding the fact that our aging population has had some good years and of course some other decades that might not have been so good.
I want to take a moment right now and zero in on your legislative costing note on eliminating interest on the Canada student loans program. In it, you have suggested that it will cost $315 million for 2020–21. It showed that in the past five years, ESDC has written off, waived or forgiven more than $2 billion in students loans due to financial distress and what student borrowers are experiencing here throughout COVID. That's on top of the $410 million ESDC has to spend to contract the administration of Canada student loans programs to DH Corporation over the same period of time.
In your opinion, what would be the effect of eliminating student loan interest payments; what effect would it have on borrowers; and could this help potentially offset the losses experienced by the student loan defaults and writeoffs?
Yves Giroux
View Yves Giroux Profile
Yves Giroux
2021-01-27 17:39
The cost estimate we did, which was pegged to not imposing interest on student loans, as you pointed out, was a $315-million gross cost, minus $5 million in reduced tax credit for the interest expense. Of course, this would probably have a positive impact on the number of defaults, given that the amount owed by students collectively would be lower, so the probability of default, other things being equal, would probably go down slightly.
That's one thing we considered, and we also noticed when we did cost estimates in a previous setting. In the electoral campaign a couple of questions were asked by various parties on various student loan measures. When relief measures are afforded to students, they have a corresponding impact in reducing the number of bankruptcies, loans in default and loans written off.
View Matthew Green Profile
NDP (ON)
I note that the new Biden administration has extended the freeze. We have not, to date. We're hoping this government will go down that path.
Just for my own clarification, what is the effective rate right now on the program? Is it also impacted by the really low interest rates?
Yves Giroux
View Yves Giroux Profile
Yves Giroux
2021-01-27 17:41
Yes, it is, but given my apparent age it's been a while since I've paid interest on student loans.
Maybe Xiaoyi or Trevor knows the going rate on interest on student loans.
Trevor Shaw
View Trevor Shaw Profile
Trevor Shaw
2021-01-27 17:41
I believe the interest rate on that program is close to the government's own borrowing costs of close to the prime rate of interest.
View Matthew Green Profile
NDP (ON)
Respectfully, though, I'm not looking for comfort; I need to get a sense of the number.
I say that with the utmost respect to you.
View Jean-Yves Duclos Profile
Lib. (QC)
Thank you, Mr. Chair.
I would first like to thank the committee for inviting me back to speak this time to the supplementary estimates (B) 2020-21, which were tabled last October.
With me today, I have the pleasure of introduce to you Glenn Purves, assistant secretary, expenditure management sector; Karen Cahill, assistant secretary and chief financial officer; Sandra Hassan, assistant deputy minister, employment conditions and labour relations; and finally Kathleen Owens, assistant comptroller general, acquired services and assets.
These supplementary estimates (B) are the second of three supplementary estimates planned for fiscal year 2020-21. They outline new and updated spending needs for programs and services that were not sufficiently developed in time for inclusion in the 2020-21 main estimates.
The government needs to make sure that it gives Canadians the support they need during the COVID-19 pandemic, while at the same time promoting our country's economic recovery and prosperity .
We do this by investing in critical health care and supporting the safe restart of our economy. Our spending plans, the ones you have in front of you, will help Canada thrive, and remain strong and united.
The government continues to invest in Canadians and the economy, particularly in efforts to respond to the public health threats of the COVID-19 virus and to minimize its health, economic and social impacts.
These supplementary estimates (B) present a total of $79.2 billion in incremental budgetary spending. This includes $20.9 billion to be voted by Parliament and $58.3 billion in forecast statutory expenditures.
As you know, vote expenditures require annual approval from Parliament through an appropriation bill. These types of expenditures include operating, capital, and grants and contributions.
Statutory spending does not require annual approval from Parliament because that type of spending is already authorized by Parliament through separate legislation, such as the federal-provincial transfers that are pursuant to the Federal-Provincial Fiscal Arrangements Act.
In these supplementary estimates (B), most of the $20.9 billion in new voted spending is for emergency responses to the COVID 19 pandemic, including medical research, vaccine development and purchases of personal protective gear, and medical equipment and supplies. They also cover economic responses to the pandemic, including support for small- and medium-sized businesses, salary top-ups for essential workers, and funding for provinces and territories to safely restart their economies, and bring students back to school.
Overall, funding requirements for the top 10 organizations account for approximately 85% of the voted spending sought through these estimates. Of those 10 organizations, eight are each seeking more than $500 million to support their priorities. For example, in my department, the Treasury Board Secretariat is asking for $646.6 million.
In addition, the $58.3 billion in planned statutory spending included in these estimates reflects the government's key response measures and emergency supports, including $28.5 billion for the Canada emergency response benefit, $12.3 billion for payments to provinces and territories for the safe restart agreement, $3.8 billion for medical research and vaccine development and $3.3 billion for the acquisition of protective gear and medical equipment.
These supplementary estimates (B) also include $1.3 billion in non-budgetary measures related primarily to student loans.
To conclude, my officials and I are very appreciative of the time the committee spends studying the government's spending on behalf of Canadians.
We would be pleased to take any questions you may have.
Thank you.
View Carla Qualtrough Profile
Lib. (BC)
Mr. Chair, I apologize. My remarks are in both languages, back and forth. I'm going to do my best to just do English, so please indulge me.
Hello, everyone. I'm pleased to join you today to speak about the measures to support Canadians during the COVID-19 pandemic as they pertain to my current portfolio.
Before I begin, I'd like to thank the committee for your study on our government's response to the COVID-19 pandemic. Your work is truly essential to our democratic process.
It's been nearly two months now that Canadians have been adapting to the COVID-19 pandemic gripping our country and the world. To give you a sense of the scope of the need, I can tell you that we've received 11.38 million applications, of which we have processed 11.29 million applications under the Canada emergency response benefit, both through Service Canada and through the CRA. A total of $30.48 billion in payments have been made to 7.83 million people.
The CERB was created to come to the aid of Canadians during these unprecedented circumstances. In reality, our EI system was not built for the situation of a global pandemic. It doesn't cover all the different situations in which Canadians find themselves in this time of a public health crisis. Service Canada and CRA stepped up, formed a team, and in the space of a couple of weeks elaborated and put into place a system that really responded to Canadians' needs. For eligible workers, the CERB provides temporary income support of $500 a week for up to 16 weeks. It applies to workers who have stopped working for reasons related to COVID-19. It also supports working parents who are staying home to care for children because of school and day care closures.
We've made extraordinary efforts to make this emergency benefit as inclusive as possible. Workers, including the self-employed, can earn up to $1,000 per month while collecting the benefit. The benefit also applies to workers who've recently exhausted their regular EI benefit payments and aren't able to start working again because of COVID-19. This helps many seasonal workers, including fishers and those in the tourism industry, who may not have had their usual seasonal work to return to as a result of COVID-19.
Now I'll say a word about supporting temporary foreign workers and ensuring Canada's food supply.
The COVID-19 pandemic has made it difficult to bring in the needed temporary foreign workers. That's why we've made modifications to our temporary foreign worker program to try to add some flexibility to the system. I want to emphasize that there are definitely jobs available for Canadians in the areas that are also supported by temporary foreign workers, as has been the case historically.
I'll now say a word about students and youth.
We've announced comprehensive support for post-secondary students and recent graduates, representing an investment of approximately $9 billion. As part of that support, we introduced a four-month Canada emergency student benefit. Students who are not receiving the CERB and meet the criteria for this new benefit will be able to apply to receive $1,250 per month between May and August. Students with permanent disabilities and students with dependants could receive an additional $750 per month.
We've heard a lot in the past few weeks about how these payments might disincentivize students to work. Well, that's not what we've heard from young people across the country. We've heard very clearly from students that they want to work and serve in their communities in this time of crisis. That's why we also announced the creation of 76,000 additional jobs and training opportunities, including jobs in the agriculture and processing sectors, through mechanisms such as our youth employment and skills strategy program. This is on top of the 70,000 jobs that will be available through the Canada summer jobs program, with greater flexibility for employers to hire young people this summer and through the fall.
Other important measures to help students during the COVID-19 pandemic are changes to the Canada student loans program. These changes will expand eligibility, increase the weekly cap and double the value of our grants. These new measures came in addition to earlier measures to pause the repayment of student and apprentice loans, interest-free, until September 30, 2020.
Mr. Chair, we've taken these measures with the goal of helping Canadians and supporting our economy. As the situation evolves, my colleagues in cabinet and I will be ready to respond to whatever Canadians need.
I'm available now for questions.
View Julie Vignola Profile
BQ (QC)
Mr. Duclos, I have noticed in the budget that just over 33,000 students debts would be written off and that there was a $230-million increase for loans and another $125-million increase for grants, or vice versa. Since you are familiar with my party, my question will not surprise you.
Among those 33,000 written off debts and those millions of dollars provided for loans and grants, what proportion will go to Quebec?
View Jean-Yves Duclos Profile
Lib. (QC)
This is very important because, as we know very well, not only students in Canada are experiencing a difficult economic situation that is often very dire, but we need them and their investments in their human capital to continue to grow the economy while growing the middle class.
In Quebec, we are very aware of that and have a loans and grants program that is separate from the Canadian government's program. Here is how it works. The Canadian government announces, as in this case, substantial investments to improve students' quality of life and their investments in their human capital. Part of that budget is allocated to the Government of Quebec, and we expect it to reinvest it in programs for students.
For your information, Mrs. Vignola, our student associations in Quebec also need to know how students in Quebec will be supported through those federal investments. We know that we can count on the Quebec government to provide that response because we know that it is even more important to take care of our students in Quebec.
View Jean-Yves Duclos Profile
Lib. (QC)
I could give you a fairly vague answer, but you have the right to know the exact amount. So I will ask my colleagues who are here to provide it to you. They will tell you what the proportion is, but they will also share with you the mechanisms through which that money is transferred to the Government of Quebec, which is just as important.
View Julie Vignola Profile
BQ (QC)
Thank you.
In the case of some transfers, there was nothing in 2017-18, but votes suddenly reached several million dollars, even several billion dollars in some cases. I would like to know what explains the fact that, for 2017-18, there are small points in the tables, while there are amounts of several million dollars for 2020.
Is it because something new was created? Can you explain it to us?
View Irek Kusmierczyk Profile
Lib. (ON)
I know the Department of Employment and Social Development is requesting $180 million under vote 90(b) to write off unrecoverable debts in terms of directly financed Canada student loans.
What percentage of the total loans out there does this represent in terms of the writeoffs?
Glenn Purves
View Glenn Purves Profile
Glenn Purves
2020-02-27 10:00
I understand there's a stock of about $34 billion. Typically what happens is that from a fiscal planning standpoint they end up putting a provision in the fiscal framework for loans. This is effectively the end result of non-performing loans, going to CRA and seeking six years in order to see if they can be retrievable. Then, at some point, it's just a required expense that has to be done under ESDC's page proof.
Vote 90 is used to facilitate that. There's no actual payment that goes out; it's just an expense to facilitate that. It's ongoing.
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