OTTAWA – Last
Week, Senator Pierrette Ringuette resumed debate in support of Bill C-288, An
Act to amend the Income Tax Act (tax credit for new graduates working in
designated regions).
Bill C-288
proposes to give every new graduate who settles in a designated area a tax
credit equal to the lesser of 40 per cent of the individual's salary, or
$3,000, or the amount by which $8,000 exceeds all amounts paid for a preceding
taxation year. The bill will help foster economic development is areas that have
been losing young people, such as rural towns and First Nations communities, by
giving trained and skilled workers the incentive to relocate to these
communities and contribute to the local economy.
“As a senator from New Brunswick, I can attest to the fact that small
towns and communities are facing an exodus of young people who are moving to
larger centres. Whether in the forestry, agriculture, mining or agri-food
sector, our communities are being deprived of their talent because we are not
paying more attention to this issue,” said Senator Ringuette. “For decades, we
have been focusing on tax credits, repayable loans or other types of incentives
to bring businesses and industries to remote regions, without thinking about
the human resources these businesses need in order to contribute to the economy
of those communities.”
Senator
Ringuette is encouraging all Senators to support this bill, saying that
“through the passage of this bill, all regions of Canada will benefit socially
and economically from this country’s wonderful post-secondary education
system.”
A full
Hansard transcript of Senator Ringuette’s remarks is attached.
Transcript:
Bill to Amend—Second
Reading—Debate Continued
On the
Order:
Resuming
debate on the motion of the Honourable Senator Rivest, seconded by the
Honourable Senator Lang, for the second reading of Bill C-288, An Act to amend
the Income Tax Act (tax credit for new graduates working in designated
regions).
Hon.
Pierrette Ringuette: Honourable senators, I wish to speak in support of Bill C-288,
introduced by Senator Rivest.
Hon. Gerald
J. Comeau (Deputy Leader of the Government): Honourable senators, the second
person to speak on a bill usually has 45 minutes. If we could agree that this
side of the chamber still has 45 minutes for this bill, we would not object to
allowing Senator Ringuette to speak at this time.
Senator
Ringuette: Honourable
senators, Bill C-288, which was passed at third reading in the House of
Commons, contains some important elements.
Basically,
the bill has to do with recent graduates and grants them tax credits of up to
$8,000 over a period of three years. The tax credits could be worth up to
$3,000 a year, with a maximum of $8,000 over three years.
As a senator
from New Brunswick, I can attest to the fact that small towns and communities
are facing an exodus of young people who are moving to larger centres. Whether
in the forestry, agriculture, mining or agri-food sector, our communities are
being deprived of their talent because we are not paying more attention to this
issue.
Thus, I
believe that Bill C-288, presented by Senator Rivest, is an attempt to pay more
attention to remote communities by providing tax credits to recent graduates
who settle in these areas to begin their careers and contribute, both socially
and economically, to the future of those small communities.
For decades,
we have been focusing on tax credits, repayable loans or other types of
incentives to bring businesses and industries to remote regions, without
thinking about the human resources these businesses need in order to contribute
to the economy of those communities.
The Province
of Quebec, among others, has experience with this type of tax credit to
encourage new graduates to settle in specific remote regions designated by
Quebec's finance minister. The purpose of Bill C-288 is similar. It asks the
Minister of Finance to designate the specific regions that will benefit from these
incentives.
When I talk
about communities, I am not just talking about rural communities and small
towns. I am also talking about Aboriginal communities that could also benefit
from the return of their energetic and talented young people.
Just look at
the medical field where, for years, there have been long lineups in emergency
rooms and a shortage of qualified staff. This would be another way of helping
not only our new graduates, but also our communities.
(1700)
I have
looked into this and found that the Province of Saskatchewan also had a similar
tax credit program that offered up to $20,000 in tax credits for new graduates
over a period of seven years. Getting a university degree, regardless of the
discipline, is becoming more and more expensive for our young people. Most
leave university with an exorbitant debt. They have to settle in a community to
start their career and cover the costs of housing and a vehicle and so on.
I think it
is high time we ensured that our new graduates have opportunities in our
regions to help our businesses and help our communities both socially and
economically.
It is
important to remember that for decades we have been helping our industries
without considering that they also need adequate and even outstanding human
resources to secure their future in our remote regions.
Honourable
senators, I therefore support Bill C-288, presented by Senator Rivest, without
any reservations whatsoever.
Hon. Andrée
Champagne: Honourable
senators, I wonder whether Senator Ringuette has seen a Quebec film called
Seducing Doctor Lewis. If she has, she will have seen how a small community
on the Lower North Shore finds itself a doctor without asking the government
for help and without asking for tax credits. I think she would find some good
ideas for people who do not always want to dip into the government's pockets,
which is to say, into our pockets.
Senator
Ringuette: Thank you
for your question, Senator Champagne. Unfortunately, I have not seen the film,
but I have heard a lot about it. For everyone's information, I lived in
Sept-Îles for seven years, so I know all the little communities along the Lower
North Shore. They are all fantastic, unique communities. That is certainly one
element.
I would like
to get back to the point I wanted to get across about Bill C-9, which provides
tax credits for corporations. These corporations cannot survive in smaller
communities without human resources. That is the issue. Recent graduates could
get a tax credit for going to work in those communities. I think that, in the
end, the only thing we are doing is increasing the exodus of young people
toward larger communities.
I think that
when it comes to tax credits, it is time to look beyond tax credits for
corporations, banks, big companies, big this, big that and big the other.
Because the point is that if those big companies do not have the human
resources to do the work, provide the services, manufacture the products, they
have nothing. We have to think about those resources.
Tax credits
have been tried in Quebec and Saskatchewan. This reminds me a little of the
health insurance debate in western Canada. It started at the provincial level
and succeeded. I think we can also conclude that given how little time it took
to implement the tax credits in Quebec and Saskatchewan, it should also be a
success at the national level.
Moreover,
the bill provides that the regions would be designated by the federal Minister
of Finance and his provincial and territorial counterparts. I thank you for
your question.
Senator Champagne: The
honourable senator should also know that Quebec gives large salary bonuses to
young physicians who agree to practise in remote areas. I am not saying that
what Senator Rivest is proposing has no merit; I am just saying we will have to
look at it. But as this session comes to an end, I can assure the honourable
senator that what I am suggesting is an hour and a half that will bring a smile
to her face, and we could all use a smile when we leave here.
The Hon. the
Speaker: Are the
honourable senators ready for the question? Would Senator Rivest like to ask
any supplementary questions about Senator Ringuette's speech? If Senator Rivest
speaks, that will close the debate.
Senator
Rivest: Usually,
when I speak, it settles the debate.
Senator
Comeau: Honourable
senators, if we do not want to close the debate at this point, I move the
adjournment of the debate.
(On motion
of Senator Comeau, debate adjourned).