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Senator Pierrette Ringuette speaks in support of Bill C-288, An Act to amend the Income Tax Act (tax credit for new graduates working in designated regions)

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.

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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).