CIMM Committee Report

Dissenting Report of Her Majesty’s Official Opposition The Conservative Party of Canada

M-39, Immigration to Atlantic Canada

Michelle Rempel, Member of Parliament for Calgary Nose Hill

Bob Saroya, Member of Parliament for Markham – Unionville

Larry Maguire, Member of Parliament for Brandon – Souris

The Standing Committee on Citizenship and Immigration considered the issue of Immigration to Atlantic Canada during the Spring and Fall of 2017. In particular, it studied the aging population and shrinking base of residents in the region, issues pertaining to retention of newcomers and analysis of the Atlantic Immigration Pilot program.

The Atlantic Immigration Pilot program (AIP) is a three-year project that seeks to bring 2,000 immigrants and their accompanying families to the region starting in 2017[1]. It also aims to address the unique labour market of Atlantic Canada by attracting skilled newcomers via this pilot program. Specifically, this initiative is “for skilled workers and international student graduates who want to permanently live in one of the four Atlantic Provinces”[2].

Witnesses were quick to point out that in order to meet the objectives of this program, retention issues and problems with other federal programs that are related to immigration first need to be resolved. There were concerns raised regarding the overly bureaucratic process that employers must go through to access the program, leading Luc Erjavec to speculate that the program may not even be renewed because so many employers gave up on the process.[3]

Several testimonies also addressed the recent Auditor General Report, which clearly identify the need for improvement within the Temporary Foreign Worker Program (TFWP). This is particularly concerning, considering that the Auditor General Report shows that “80% of fish processors are laying off workers at the same time as they're using workers from the temporary foreign worker program.”[4] Such actions demonstrate that domestic employees are being harmed by this program and that reforms are needed. 

Additionally, many who appeared before the Committee addressed the need for economic prosperity and job opportunities in Atlantic Canada to retain and attract immigrants to the region. Witnesses stated that viable employment is one of the most important reasons an immigrant stays in a given region. Evidence also indicates that the rural regions of Atlantic Canada are particularly suffering in terms of unemployment[5]. Therefore, it is vital for the government to create the right economic conditions for job creators to grow in the region, or retention of immigrants will suffer.

The Provincial Nominee Program was also discussed as a means of combatting the population challenges facing the Atlantic provinces. This program allows for targeted economic immigration to the region and allocations of nominees to the Atlantic provinces have been increasing over the past decade. This program plays an important role in increasing population in the region while also bringing economic migrants to Atlantic Canada. Some witnesses stated that it must be increased to reflect the needs of the region.

A strong and economically viable Atlantic Canada is necessary for our country to prosper. Increased immigration is helpful, but on its own will not stop the demographic challenges facing the region. Instead, the government must meet increased levels of newcomers by creating the economic conditions for the private sector to grow and ensure prosperity in the provinces. 

It is the opinion of the Conservative Members that the recommendations in the report tabled by this Committee had numerous deficiencies. Throughout the study witnesses at the Committee made it clear that the federal government can play a significant role in shaping immigrant retention and economic opportunities. The report tabled by the Committee does not entirely address the needs of Atlantic Canadians. 

This dissenting report therefore provides recommendations to address the deficiencies in the report tabled by the Committee. In particular, we would like to emphasize the following themes:

• Population retention
• Economic growth and prosperity
• Increasing the Provincial Nominee Program
• Reforming the Temporary Foreign Worker Program
• Demand for integration services

Many witnesses argued in favour of increased economic immigration in Atlantic Canada through opportunities like the AIP. However, witnesses were quick to point to the issue of low retention rates of both immigrants and native-born Atlantic Canadians in the region. The Fredericton Chamber of Commerce noted in their briefing that with increased immigration to the Atlantic provinces, it is important to “capitalize on this momentum of net immigration” with regards to retention rates[6]. However, with the federal government’s high tax policies and lack of job opportunities, the Atlantic region will have a hard time capitalizing on this program. As Mr. Karl Flecker from KEYS Job Centre discussed in his briefing, “with little prospect for employment, people move out of the region”[7]. Therefore, the federal government must first address economic barriers to retention if they want Atlantic Canada to see long-term success with this pilot program.

The AIP attempts to address the retention problem by mandating that employers develop a settlement plan for newcomers which they hire through the program.[8] This is based on the assumption that the best way to increase retention is the added responsibilities on the employers. What we heard at committee was that typically employers hire settlement agencies to write this plan. For instance we heard from Gerry Mills, who said that his organization, the Immigrant Services Association of Nova Scotia, “has developed 123 settlement plans to date, 109 outside Canada for all the four provinces.”[9] There are only a few settlement agencies that are approved by Immigration, Refugees, and Citizenship Canada, which has resulted in long wait times for the settlement plans. Mr. Vaughn Hatcher, National Manager, Owner Operator Recruiting, Day and Ross Freight, Day and Ross Transportation Group, stated:

“when it comes to settlement agencies, we are having to use five settlement agencies that were indicated we have to use out of Halifax, I believe Toronto, Montreal, and Vancouver, or whatever. We have a local settlement agency here that works with people that are already in Canada. If we could use them, it would be so much easier than using one of the five approved settlement agencies. The one here is a multicultural association of New Brunswick. They know the area, they know the challenges people will have coming here, and it's good to work with that.”[10]

While this additional work is being done to develop a settlement plan, it is not clear that this is the missing piece to address retention. Witnesses and briefings often pointed out that the lack of economic growth, high taxation policies and prosperity for job creators are significant barriers to retaining of newcomers and current residents of the Atlantic Provinces. For example, the Fredericton Chamber of Commerce cited “removing barriers to doing business in New Brunswick” as one mechanism for improving retention rates to the region[11]. This briefing noted that cumbersome regulations pose a problem for newcomers[12]. Without retention, there is limited ability for the AIP to succeed in aiding population and demographic challenges in the region.

Given that the Atlantic Immigration Pilot program is not addressing retention rates in the region, we recommend:

• 1. That Immigration, Refugees and Citizenship Canada (IRCC) work with other relevant departments to create a whole of government plan that reduces regulatory barriers to retention in the Atlantic Provinces.

Furthermore, witnesses at the Committee made it clear that population decline in the Atlantic region cannot simply be remedied with increased immigration alone. Instead, testimony demonstrated that economic prosperity is necessary to address the demographical challenges of these provinces. This sentiment was clearly demonstrated by Mr. Kevin Lacey when he said:

“[Atlantic Canada’s] population has declined; we are aging, and the cost to provide public services is becoming unaffordable. The solution that many have put forward is to find ways to bring as many new immigrants to the region as possible. This is a laudable goal, but it won't work in isolation from other changes.”[13]

Witnesses made clear that fixing the Atlantic Canadian economy would ensure immigration and population retention in the region. As Mr. Kevin Lacey stated, “fix the economy and we can attract thousands home, as well as others from around the world.”[14] Therefore, a large part of a solution to increase retention of immigrants and the population of the Atlantic provinces relies on strong and stable economic policy. However, policies in Atlantic Canada have not allowed for substantive economic improvement and success. This was made clear when a witness stated:

“It's all about the economy, and the Atlantic economy is failing under high taxes, excessive regulations, a failure to explore our natural resources, and costly bureaucracy.”[15]

The problem of high taxation has contributed to stagnation in the local economies of Atlantic Canada and has hindered economic prosperity. Mr. Marco Navarro-Genie, President and Chief Executive Officer of the Atlantic Institute for Market Studies, pointed out that “the region's economies are the most taxed jurisdictions in the country.”[16] Increased taxes under the federal Liberal Government, including the federal imposition of a carbon tax and planned increase in proposed taxes, contribute to the economic challenges.

These failed economic policies deter prosperity in Atlantic Canada and affect the ability to retain newcomers to the region. If the federal government seeks to continue or expand the Atlantic Immigration Pilot program, its imposition of high taxes and growth of the debt burden will need to change. If not, retention levels will continue to pose a challenge to the region. The government will need to address the economic challenges in the both the rural and urban regions in order to successfully retain newcomers to Atlantic Canada.

High unemployment rates facing Atlantic Canadians also contribute to the experience of newcomers. As Professor James Ted McDonald stated, “high provincial unemployment rates arise from high rural unemployment rates in Atlantic Canada.”[17] Regulatory barriers that halt construction of projects, like Energy East, were also identified as challenges facing the Atlantic region. Mr. Finn Poschmann identified regulatory barriers as a challenge that faced the Energy East pipeline decision[18]. He also pointed out that the cancellation of this project was “unfortunate for the province of New Brunswick”[19]. The federal government should be encouraging job growth if they wish to increase immigrant retention and not set-up onerous regulatory barriers that threaten investment.

Due to these factors and challenging economic conditions for job creators, retaining immigrants to Atlantic Canada faces a serious challenge. This is because, as many witnesses stated, an indisputable factor in immigrant retention is the availability of employment[20]. Economic growth should be the government’s main priority if they wish to find tangible solutions to the aging demographic and population challenges facing the Atlantic region. Without meaningful economic growth, retention of newcomers to Atlantic Canada will suffer and locals will continue to leave.

Given that economic prosperity and job opportunities are essential to retention of immigrants, we recommend:

• 1.    That IRCC collaborate with Employment and Social Development Canada to examine strategies to retain immigrants in the rural regions of Atlantic Canada.
• 2.    That the government immediately reverse their imposition of a carbon tax on the provinces and abandon their increased payroll taxes on employees.
• 3.    That the government take immediate measures to reduce regulatory barriers that have led to the termination of the Energy East project and could lead to others.

Witnesses also highlighted the Provincial Nominee Program (PNP) and its positive impact on addressing population challenges in the Atlantic Provinces. Mr. Alex LeBlanc, the Executive Director of the New Brunswick Multicultural Council described the “promising results over the last decade with the provincial nominee program.”[21] He emphasized the need for a targeted approach to economic immigration in the region.

Additionally, Ms. Laurie Hunter from the Department of Citizenship and Immigration highlighted the increase in new Canadians through the PNP under the previous Conservative government. This is demonstrated by Ms. Hunter’s quote:

For example, in 2005, only 1.5% of new immigrants to Canada were destined for any of the Atlantic Provinces. By 2014, that percentage had more than doubled to 3.1%.”[22]

Witnesses pointed to options to expand the provincial nominee program. Mr. LeBlanc suggested the possibility of creating a municipal program, while the Hon. Donald Arseneault discussed the increases to francophone immigrants in New Brunswick through their PNP.[23] Regardless of proposal, witnesses were generally supportive of the program and expansion of the amount of provincial nominees for Atlantic Provinces.

Gerry Mills, Executive Director, Immigrant Services Association of Nova Scotia added to this by saying:

“Most of our immigrants to Nova Scotia come through the PNP stream. If the federal government is truly interested in increasing immigration to the Atlantic, raise or eliminate the caps.”[24]

Given the discrepancy in population size and PNP designation, as well as the positive economic benefits of the program, we recommend:

• 4.    That the government increases the number of provincial nominees designated to the Atlantic provinces so that the total allotment is more representative of Canada’s population make-up.
• 5.    That IRCC examine different options to adapt the provincial nominee program to meet the specific needs of the various Atlantic Provinces.  

A reoccurring issue that was addressed during this study was the Temporary Foreign Worker Program. One witness in particular made clear that the reliance on the program was negatively impacting the retention of Atlantic Canadians to the region. Mr. Kevin Lacey, Atlantic Director of the Canadian Taxpayer’s Federation addressed this problem when he stated:

“At any one time, we have almost 100,000 people collecting employment insurance cheques, yet in this region, we are bringing temporary foreign workers into areas that already have lots of people without work.”[25]

One witnesses alluded to the fact that some requested changes to the TFWP actually just indicate a need for more economic immigrants[26]. This point must be considered if the government makes changes to the TFWP and when planning for future immigration levels.

Finally, the way in which the TFWP drives down wages for Atlantic Canadians was also identified as an issue of concern for retention of newcomers and the local populations more broadly. As referenced by Mr. Lacey, this Auditor General Report found that “80% of fish processors are laying off workers at the same time as they're using workers from the temporary foreign worker program, which is why there needs to be reform.”[27] These findings demonstrate problems within the TFWP, especially if zealously used as part of one’s business model.

Given these realities, we recommend:

• 6.    That the government reform the Temporary Foreign Worker Program to adequately address the issues identified by the Auditor General’s Report in 2017
  • a. That these reforms include measures that necessitate the use of government data on labour markets to corroborate the validity of an employer’s application.
  • b. That these reforms include increased measures to ensure all options within the domestic workforce have been exhausted prior to seeking temporary foreign workers.
  • c. That the government study the possible depression of wages caused by the TFWP
• 7. That IRCC examine whether industries in the Atlantic region have created a business model based off of the TFWP and investigate possible mechanisms to stop such actions.

Several witnesses were also concerned with the lack of integration support for newcomers, which make it less attractive for immigrants to stay in the Atlantic region. Ms. Sarah Parisio, a Coordinator for the Fédération des francophones de Terre-Neuve et du Labrador, described how a lack of available French language training services for newcomers serves as a major challenge, particularly in terms of retention[28]. She noted that funds had been cut to local French programming. This was referenced by the quote:

“In terms of French-language services in Newfoundland and Labrador, this is the first year that the annual funding for the provincial francophone immigration network has been significantly reduced.”[29]

This lack of integration support services is especially problematic in the rural areas of the Atlantic Provinces. This sentiment was expressed by Ms. Parisio when she said, “as we well know, cuts always have disproportionate impacts on areas remote from major centres.”[30] For newcomers to experience a successful transition into Canadian life, settlement services and integration support is needed.

Witnesses also addressed the need for local community engagement in the settlement process, in order to help integrate newcomers to the Atlantic region. Mr. Alex LeBlanc expressed this sentiment to the Committee when he stated that “broader community involvement in [the case of Syrian refugees] has led to better integration, a greater sense of belonging, and I expect improved retention.”[31] This example demonstrates the importance of engagement with the local community in settlement of newcomers, which should ultimately lead to higher rates of retention in Atlantic Canada.

Given the importance of settlement services and encouraging community engagement, we recommend:

• 8. That IRCC works with its non-profit partners in the region to most efficiently deliver the settlement services that help increase retention rates, particularly in rural parts of Atlantic Canada.

The AIP has added additional bureaucratic mechanisms to existing immigration streams and does very little to address the issue of retention. Programs such as the PNP already provide a path to matching immigrants to labour needs on a provincial level. At the same time, it has been demonstrated that temporary band-aid fixes such as the TFWP should be reduced as much as possible. While settlement and cultural services are an important aspect of integration, ultimately the evidence suggests that both newcomers and current residents will be incentivized to move to provinces where they have access to better economic mobility.

• 1.  That IRCC work with other relevant departments to create a whole of government plan that reduces economic barriers to retention in the Atlantic Provinces.
• 2.  That the government immediately reverse their imposition of a carbon tax on the provinces and abandon their increased payroll taxes on employees and employers through Canadian Pension Plan hikes. 
• 3.  That the government take immediate measures to reduce regulatory barriers that have halted the Energy East project.
• 4.  That IRCC collaborate with Employment and Social Development Canada to examine strategies to retain immigrants in rural regions of Atlantic Canada.
• 5.  That the government increases the number of provincial nominees designated to the Atlantic Provinces so that the total allotment is more representative of Canada’s population make-up.
• 6.  That IRCC examine different options to adapt the provincial nominee program to meet the specific needs of the various Atlantic Provinces. 
• 7.  That the government reform the Temporary Foreign Worker Program to adequately address the issues identified by the Auditor General’s Report in 2017
  • a.  That these reforms include measures that necessitate the use of government data on labour markets to corroborate the validity of an employer’s application.
  • b.      That these reforms include increased measures to ensures all options within the domestic workforce have been exhausted prior to seeking temporary foreign workers.
  • c.  That the government study the possible depression of wages caused by the TFWP
• 8.  That IRCC examine whether industries in the Atlantic region have created a business model based off of the TFWP and investigate possible mechanisms to stop such actions.
• 9.  That IRCC works with its non-profit partners in the region to most efficiently deliver the settlement services that help increase retention rates, particularly in rural parts of Atlantic Canada.