HUMA Committee Report
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Mr.
Ed Komarnicki Dear Mr. Komarnicki: Pursuant to Standing Order 109 of the House of Commons, I am pleased to respond, on behalf of the Government of Canada, to the recommendations proposed by the Report of the Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities (the Committee), entitled Skills Development in Remote Rural Communities in an Era of Fiscal Restraint, which was tabled in the House of Commons on June 21, 2012. I would like to thank the members of the Committee, as well as all the witnesses who appeared before it for all their valuable perspectives on this important subject. The Government of Canada shares the Committee’s view about the importance of resource development to the current and future prosperity of Canada and the important role that remote rural and northern communities have to play in realizing that potential. Estimates suggest that as much as $650 billion will be invested in more than 600 mining and energy projects during the next decade, many of which will be centered in the territories or in the northern regions of the provinces. Taking full advantage of the economic potential presented by Canada’s natural resources will benefit all Canadians. Realizing this potential hinges upon ensuring individuals get the skills they need and that industry has the labour force it requires to do business. As pointed out in the Committee’s report, labour shortages are already a concern for many employers in the natural resource sectors and the demand for skilled labour is expected to increase. At the same time, many Canadians in remote rural and northern communities do not always have the requisite education and work experience required to secure employment in the resource sector. Our Government acknowledges the challenges related to skills development in remote rural and northern communities as described by the Committee. This response outlines some of the ways in which the federal government is currently addressing the five priority policy areas for skills development discussed in your Report: ensuring that skills development meets labour market demand, supporting increased skills development and training, improving the educational and employment outcomes of Aboriginal Peoples, improving infrastructure in Northern remote communities and improving the regulatory process. Working with partners to ensure skills development and training in the North meet labour market demand Our Government is committed to helping Canadians get the information and skills they need to make smart learning and labour market decisions and maximize their potential. Knowledge about current and future labour market conditions is critical in this regard. Well informed companies and individuals make better decisions, making it possible for workers to access jobs that meet their skills and for employers to find the qualified workers they need. Our Government shares the Committee’s view that partnerships are central to ensuring that skills development and training are matched to labour market demand. Successful skills development must take into consideration the needs of learners, their communities and employers. This is why demand-driven, partnership-based programming will continue to be a priority of our Government. Nowhere are strong partnerships more critical to success than in remote rural and northern communities. Through Labour Market Agreements ($500 million annually, from 2008-09 to 2013-14), Labour Market Development Agreements ($1.95 billion annually on an on-going basis) and Labour Market Agreements for Persons with Disabilities ($218 million until 2012-13), the Government of Canada provides funding to the provinces and territories for programming to help Canadians who are unemployed, low-skilled or have disabilities return to and succeed in the labour market. The Government of Canada has developed new labour market information strategies in partnership with other jurisdictions, including the Yukon and Northwest Territories. These strategies are annexed to LMDAs and provide a mechanism for greater collaboration in the production and dissemination of labour market information. For example, the Canada-Yukon strategy involves a re-launch of the Yukon workfutures.yk.ca website to provide detailed information on key occupations in the territorial labour market. The recently established Nunavut Labour Force Training Forum provides another example of the role of the Government of Canada in facilitating partnership development. This forum includes key players (e.g., ASETS service delivery organizations, the Government of Nunavut, HRSDC, local employers, and Arctic College) dedicated to helping local organizations and employers to connect, improve employment outcomes, and contribute to economic growth. Another way in which our Government is helping Canadians is by providing more accessible and relevant learning and labour market information online. The workingincanada.gc.ca website offers detailed analyses of labour market outlooks by occupation and location, including information on education and training requirements, plus wage rates and salaries. It is a key resource for workers and business-owners, allowing them to make more informed skills and employment-related decisions, and to better match skills with needs. These and other related Government of Canada online services that support employment, such as the jobbank.gc.ca and youth.gc.ca are particularly useful for Canadians in remote communities, where access to labour market information can be difficult to obtain. Canlearn.ca is the Government’s primary online resource for the information Canadians need to plan, save and pay for their participation, or their children’s participation, in post-secondary education. The site also provides information on the benefits of continuing education, how to repay student financial assistance, and links to other non-government resources. The Government of Canada’s commitment to building strong, prosperous communities throughout Canada’s remote rural and northern regions includes providing in-person labour market-related information and supports to residents. Service Canada has 52 points of service inthe territories and northern provincial regions, including 14 Service Canada Centres (SCCs) and 38 Scheduled Outreach locations which provide similar services on a part-time basis. Federal programs and services related to skills development are also promoted via mobile outreach targeted to youth and stakeholders in northern and rural communities. Our Government is working closely with partners, communities and stakeholders to ensure that skills development programming and information remains relevant and responsive to changing economic and labour market conditions. Flexibility in program design and delivery produces the most effective results, ensuring that Northerners successfully transition into the labour market while the changing needs of employers are kept in the foreground. Increasing skills development and training for all Northerners Today’s youth represent the workforce of tomorrow and that is why programs like the Youth Employment Strategy (YES) are so important. Delivered across the country in both urban and remote areas, the more than $300 million invested annually in programs like Career Focus, Skills Link and Summer Work Experience, helps young people make successful transitions into the workplace. Budget 2012 reaffirmed the federal government’s commitment to youth by providing an additional $50 million over two years in support of YES, to connect youth with jobs in areas of high demand. As our population ages and labour force demand increases, the Targeted Initiative for Older Workers (TIOW) represents an example of another important initiative for helping Canadians find work. This federal-provincial/territorial cost-shared initiative (70%/30%) assists unemployed older workers in medium and small communities (250,000 or less) that have been affected by significant downsizing, closures or ongoing high unemployment. Often these communities are located in rural or remote areas where older workers may have diminished access to employment services, and can benefit greatly from programming aimed at reintegrating them into employment. The Government of Canada will invest $25 million in 2012-13 to help older workers through the TIOW. Canadians with disabilities face unique challenges when it comes to labour market participation. This is why the Government of Canada invests $27 million annually in the Opportunities Fund for Persons with Disabilities and why it committed an additional $30 million over three years in Budget 2012. Through funding for organizations, the Opportunities Fund program helps people with disabilities prepare for, obtain and maintain employment or self-employment. In recognition of the great need for improved foundational skills in Canada’s north, in February 2012, the Government of Canada announced an investment of $27 million (over five years) to expand adult basic education in the territories, through the new Northern Adult Basic Education Program. This program will improve access to basic skills (such as literacy and numeracy training) in small and remote communities by improving the capacity of the three territorial colleges to provide those services. Through the Adult Learning, Literacy and Essential Skills Program (ALLESP), the Government of Canada is also working with provincial and territorial organizations on literacy and essential skills development for Canadians, including those who reside in remote rural and northern communities. ALLESP is investing nearly $9 million in support of literacy organizations in the territories between 2009-2015 to improve knowledge, develop critical tools, and build partnerships. It also funds a number of other targeted initiatives in rural and remote regions. For instance, ALLESP is investing $3.1 million in an innovative literacy and essential skills model in Manitoba aimed at increasing labour market attachment of Aboriginal individuals residing in small and remote communities through employment in the manufacturing sector. Skilled tradespeople are vital to growing the economy in Canada’s remote rural and northern regions, and in recent years the Government of Canada has taken significant steps to support them. In 2007, the federal government introduced the Apprenticeship Incentive Grant, followed by the Apprenticeship Completion Grant in 2009. These grants provide up to a maximum of $4,000 in support for apprentices who complete their training in designated Red Seal trades and who go on to become certified journeypersons (the Red Seal allows qualified tradespeople to practice their trade in any province or territory thereby greatly increasing their mobility). Since their inception, approximately 340,000 grants have been issued. In addition to these grants, the Government of Canada provides tax support to tradespersons in the form of a deduction of up to $500 for tool expenses and supports approximately 60,000 apprentices each year during the technical or school-based portions of their training through Employment Insurance funding. At the same time, employers are also being encouraged to support training for their employees. Through the Apprenticeship Job Creation Tax Credit, employers can receive a non-refundable tax credit of up to $2,000 a year, per eligible apprentice in a Red Seal trade, to help cover salary and wage costs during the first two years of their contract. As a further incentive, employers may claim tax deductions for expenses related to employee training. Investments like these work to the advantage of both employers and employees. The Canada Student Loans Program offers financial assistance to all students with demonstrated financial need. Through this program, the Government of Canada works with provinces and territories to provide loans for full- and part-time students, non-repayable grants to targeted groups and repayment assistance measures for borrowers who experience difficulty repaying their student loans. In the 2010-2011 school year approximately 425,000 full-time students received $2.2 billion in Canada Student Loans and more than 320,000 students received $630 million in Canada Student Grants. While Quebec, Nunavut and the Northwest Territories do not participate in the Canada Student Loans Program, the Government of Canada provides them with alternative payments to help fund their respective student financial assistance programs. Addressing the unique challenges and opportunities related to increasing Aboriginal labour market participation Aboriginal people make up a significant proportion of the population in remote rural and northern communities and often face unique challenges to skills development. In order to effectively address these challenges, the Government works closely with the provinces and territories, employers and Aboriginal partners to ensure programming meets their needs. The federal government’s primary programs in support of Aboriginal skills development are the Aboriginal Skills and Employment Training Strategy (ASETS) and the Skills and Partnership Fund (SPF). Through ASETS, $1.68 billion has been committed from 2010-2015 to increase Aboriginal participation in the Canadian labour force. ASETS focuses on developing demand-driven skills through partnerships between Aboriginal organizations and employers. Delivered by over 80 Aboriginal organizations throughout Canada (using over 800 access points), this decentralized approach allows skills development programming to take place closer to job sites and closer to those who need the training. With an investment of $210 million from 2010-2015, the SPF emphasizes our Government’s commitment to working with partners to develop projects that respond to economic opportunities. To qualify for SPF funding, job-specific training proposals must include evidence from employers that the proposed training satisfies identified needs and that job opportunities exist for those who successfully complete their training. In this way, the SPF is helping people train for real jobs, including projects in the natural resource sector and the North. The latest call for concepts under the SPF targeted the mining and energy industries. Reforms to the federal Income Assistance program on reserve announced in Budget 2012 will help to encourage those who can work to access training that will improve their prospects for employment. In partnership with First Nations, provinces/territories and private industry we continue to build on previous active measures pilot projects, paying particular attention to resource development in rural remote areas. A solid elementary and secondary school education is essential to providing Aboriginal children and youth the start they need to succeed. In Budget 2012, the Government of Canada committed $275 million over three years in order to improve school infrastructure, to provide early literacy programing and other supports to First Nation schools and students and to strengthen their relationship with provincial school systems. This is in addition to $1.5 billion invested annually in elementary and secondary education for First Nation students living on-reserve. In response to the recommendations from the National Panel on First Nation Elementary and Secondary Education, the Government of Canada also committed to working with willing partners to introduce a First Nations Education Act. The purpose of this legislation will be to establish the structures and standards necessary to support strong and accountable education systems on-reserve. In combination with investments in schools, early literacy and other supports this will set the stage for more positive education outcomes for First Nation children and youth. It will also allow them to enjoy a high-quality education close to home, sometimes a significant issue for those who reside in Canada’s remote rural and northern communities. The Government of Canada also provides additional funding to eligible First Nation and Inuit students to access educational opportunities at the post-secondary level. In 2010-2011, the Government of Canada allocated $295 million through Aboriginal Affairs and Northern Development Canada’s Post-Secondary Student Support Program (PSSSP) and University College Entrance Preparation Program (UCEP) to support approximately 22,500 First Nations and Inuit post-secondary students. The PSSSP provides funding for First Nation and Inuit students who are in post-secondary education, while UCEP supports students who need to upgrade their academic qualifications to enter a degree or diploma program. These programs also support Post-Secondary Education Coordinators who can play an important role in providing high school students on-reserve with guidance on educational and career choices. In addition, Aboriginal Affairs and Northern Development Canada’s Indian Studies Support Program provides approximately $21 million in financial support to post-secondary institutions for the design and delivery of college or university level courses for First Nation and Inuit students. The Government of Canada is also specifically addressing the need for medical expertise across remote rural and northern communities. To attract more doctors and nurses to under-served rural and remote communities, Budget 2011 introduced student loan forgiveness for health care professionals (up to a maximum of $40,000 for doctors and $20,000 for nurses over five years) working in those communities. By working with Indspire (formerly the National Aboriginal Achievement Foundation), a charitable organization that delivers Aboriginal learning and skills programming, the Government of Canada’s Aboriginal Health Human Resources Initiative (AHHRI) has supported over 2800 Aboriginal students in the field of health sciences from across the country, including students in remote rural and northern communities. As well as providing scholarships, Indspire offers the bridging and access programs many Aboriginal students need to enter academically demanding health sciences programs. Indspire also promotes health careers in remote communities through the use of career fairs, role models, public information campaigns, school presentations, social media and other initiatives. These are just some of the ways in which the Government of Canada, along with its partners, is supporting Aboriginal skills development so that Aboriginal Peoples may realize their tremendous potential for long-term success and economic prosperity. Helping to put in place the infrastructure required to support skills development and economic growth in remote rural and northern communities The Knowledge Infrastructure Program (KIP), part of Canada’s 2009 Economic Action Plan, was a $2 billion temporary economic stimulus initiative undertaken in response to the very specific circumstances of a world-wide economic recession. It supported infrastructure enhancements at Canada’s post-secondary institutions, including those located in the rural/remote locations of every province and territory. For example, KIP included more than $6.3 million in funding (and leveraged an additional $8 million) for six projects at the three territorial colleges including new information technology and new learning facilities. While private sector investment has been the principle driver of increased broadband coverage, the Government of Canada has used a variety of targeted initiatives to extend coverage to unserved areas or to improve coverage in underserved areas. The Connecting Rural Canadians Program in Budget 2009 extended coverage to 218,000 previously unserved Canadian households, more than a quarter of them in remote communities. Budget 2012 announced the Government of Canada will hold broadband spectrum auctions in 2013 that will allow Canadians living in rural Canada to receive the same high-quality services available elsewhere. Better access to broadband services for Canadians in remote areas means better access to valuable online information related to skills development and job opportunities. In August 2012, the federal government announced another key investment in the North, $189 million over six years for the construction of the Canadian High Arctic Research Station and to run its Science and Technology Program. This state of the art facility will help to develop and diversify the economy in Canada’s North, create a scientific hub for Arctic research and inspire and build capacity through training and education. Construction of the site alone will provide a direct injection into the local economy by generating up to 150 jobs. Improving the regulatory process for major resource projects As noted in your report, our Government is taking steps to improve and streamline the regulatory process for major economic projects. In 2009, the Government of Canada established a Northern Projects Management Office within CanNor, which works to foster responsible resource development by coordinating federal environmental assessment efforts and economic development activity around major projects. Part of these efforts includes working with partners in and out of government to assess workforce gaps and labour market opportunities around major projects in the North. Canada’s Economic Action Plan 2012 introduced regulatory reform to ensure resource projects are not held back by unnecessarily complex, duplicate and overlapping review processes. With recent legislation, the Government of Canada has made regulatory reviews more predictable and timely, while balancing resource development with high standards of environmental protection and our ongoing commitment to meaningful engagement between government and Aboriginal groups. In Canada’s North, there are currently 11 major resource projects undergoing environmental assessment, representing potentially 3,000 jobs and $8 billion in capital investment. A more efficient and predictable review process will ensure Northerners will benefit from this development sooner rather than later. The Government of Canada has adopted a responsible, sustainable and highly strategic approach to new investments, whether to promote resource development or support the growth of skills. The role of government is not to replace private sector job-creation, but to ensure companies can make the investments that ensure a prosperous future for all Canadians, including those who reside in remote rural and northern communities. The Government of Canada will continue to examine, review and adapt its programs and processes in order to maximize their efficiency and ensure the ever changing needs of both the labour market and workers are being met. This includes making fiscally responsible, strategic investments in new programming when and where there is a demonstrated need. Conclusion The federal government remains committed to working in close partnership with the private sector, provinces and territories and other stakeholders to encourage resource development while ensuring skills shortages do not become a barrier to investment and job creation. The unique economic and labour market conditions common in remote rural communities and across the North require and are receiving special attention. Our Government has a plan for Canada that is based upon jobs, growth and long-term prosperity and is committed to ensuring that residents of remote rural and northern communities are provided with the opportunity to be full participants. Yours sincerely, The Hon.Diane Finley, P.C., M.P. |