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The world we live in today is changing rapidly. Canadian businesses compete in global markets that are increasingly integrated and driven by innovative new technologies. As outlined in Advantage Canada, investments in people, knowledge, modern infrastructure and a sound and efficient financial sector provide the foundation for global success.

Investing in People

Improving Canada’s competitive position means developing the best-educated, most-skilled and most flexible workforce in the world. That is why Budget 2008 is:

  • Supporting Canadian students with a $350-million investment in 2009–10, rising to $430 million by 2012–13, in a new, consolidated Canada Student Grant Program that will reach 245,000 college and undergraduate students per year when it takes effect in the fall of 2009.
  • Committing $123 million over four years starting in 2009–10 to streamline and modernize the Canada Student Loans Program.
  • Enhancing the flexibility of Registered Education Savings Plans by increasing the time they may remain open to 35 years from 25 years, and by extending the maximum contribution period by 10 years.
  • Providing $25 million over two years to establish a new Canada Graduate Scholarship award for top Canadian and international doctoral students.
  • Providing $3 million over two years to establish a new international study stipend for Canada Graduate Scholarship recipients who wish to study at international institutions.
  • Strengthening the ability of Canadian universities to attract and retain top science leaders with $21 million over two years to establish up to 20 Canada Global Excellence Research Chairs.
  • Recognizing exceptional achievement in health research by providing additional resources for the creation of the Canada Gairdner International Awards.
  • Modernizing the immigration system with a $22-million investment over two years, growing to $37 million per year, including legislation to speed up the processing of permanent resident applications, ensuring shorter wait times and making Canada’s immigration system more competitive.
  • Removing disincentives to work for seniors by raising the current Guaranteed Income Supplement earned income exemption to $3,500 from its current maximum exemption level of $500.

Investing in Knowledge

Investing in the future means investing in knowledge, science and innovation. Science and technology play important roles in almost every aspect of our lives. That is why Budget 2008 is:

  • Investing in knowledge by providing an additional $80 million per year to Canada’s three university granting councils for research in support of industrial innovation, health priorities, and social and economic development in the North.
  • Providing an additional $15 million per year to the Indirect Costs of Research program.
  • Building on Canada’s knowledge and people advantage in genomics with an additional $140 million for Genome Canada.
  • Providing an additional $10 million over two years to strengthen the operations of the Canadian Light Source research synchrotron in Saskatoon.
  • Providing $250 million over five years to support strategic, large-scale research and development projects in the automotive sector in developing innovative, greener and more fuel-efficient vehicles.
  • Enhancing Export Development Canada’s guarantee programs to support the automotive and manufacturing sectors.

Supporting Communities and Traditional Industries

While Canada’s economic fundamentals are solid, some workers and communities face challenges in adjusting to changes in the international economy. In January 2008, the Government announced up to $1 billion for the Community Development Trust to support those experiencing hardship due to international economic volatility. Budget 2008 builds on this initiative by:

  • Providing an additional $90 million to extend to 2012 the Targeted Initiative for Older Workers to help older workers stay in the workforce.
  • Providing $10 million over two years to Natural Resources Canada to promote Canada’s forestry sector in international markets as a model of environmental innovation and sustainability.
  • Allocating $72 million over two years to farm programs and to improve access to $3.3 billion in potential cash advances to Canadian farmers.
  • Providing $22 million over two years for innovation and to provide greater regulatory certainty in the aquaculture industry.

Investing in Infrastructure

Modern, high-quality infrastructure is vital to Canada’s long-term prosperity. That is why Budget 2008 is:

  • Making the Gas Tax Fund, which will be worth $2 billion in 2009–10, a permanent measure, allowing municipalities to better plan and finance their long-term infrastructure needs.
  • Setting aside up to $500 million in support of capital investments to improve public transit.
  • Announcing the establishment of a Crown corporation, PPP Canada Inc., to work with the public and private sectors to support public-private partnerships.
  • Providing $10 million over two years to enable repairs and environmental cleanup to permit the transfer of more small craft harbours across Canada from the federal government to interested parties.

A Sound and Efficient Financial Sector

Global and domestic financial sector developments of the past year, including turbulence in global financial markets, have demonstrated more than ever the importance of well-functioning capital markets and a sound and efficient financial sector. This is why Budget 2008 is:

  • Advancing the Capital Markets Plan for Canada, including the recent launch of an Expert Panel on Securities Regulation.
  • Modernizing the authorities of the Bank of Canada to support the stability of the financial system.
  • Updating treasury risk guidelines to ensure that federal entities continue to adhere to leading practices in financial risk management.


Canadians recognize that the world we live in is changing rapidly, creating remarkable opportunities for Canadians but also bringing new challenges. Canadian businesses compete in global markets that are increasingly integrated and propelled by innovative new technologies. Nations that best combine their human, knowledge and capital resources to create value will prosper.

Advantage Canada, the Government’s long-term economic plan, recognized that Canada must put in place the elements that will enable individuals and businesses to compete effectively with the best in the world. This means ensuring that Canada has access to the right skills, ideas and assets to thrive in a knowledge-based global economy.

Budget 2008 further implements the Advantage Canada plan, and builds on funding announced in the previous two budgets with investments in people, knowledge and business innovation, communities and traditional industries, and infrastructure. It also proposes further steps to promote a sound and efficient financial sector.

Investing in People

Canada is well positioned to compete in the global marketplace. Improving on our competitive position means creating the best-educated, most-skilled and most flexible workforce in the world. Investing in students and better managing Canada’s immigration system are critical to that objective.

Support for Students and Their Families

Advantage Canada recognized that a high-quality education system— from early childhood development to higher education to ongoing learning —is critical for Canada’s prosperity. The Government’s action to implement the Advantage Canada framework is delivering important benefits through:

  • A $350-million investment in 2009–10—rising to $430 million in 2012–13—for a new, consolidated Canada Student Grant Program.
  • $123 million over four years to streamline and modernize the Canada Student Loans Program, building on the $20 million a year provided in Budget 2006.
  • Making Registered Education Savings Plans more attractive by increasing limits and flexibility.
  • $28 million over two years in this budget for new scholarships for Canadian and international doctoral students, and support for Canadian graduate students to study abroad. This builds on the additional 1,000 Canada Graduate Scholarships provided for in Budget 2007.
  • $800 million per year, starting in 2008–09 and growing by 3 per cent annually, for provinces and territories to strengthen the quality and competitiveness of Canada’s post-secondary education system, building on the $1 billion provided in Budget 2006 for post-secondary education infrastructure.
  • A Textbook Tax Credit amount of $65 per month of full-time study, or $520 for a typical full-time academic year, and a full exemption of scholarship, fellowship and bursary income.

Enhancing Support for Canadian Students

The Government knows that a quality education system—from early childhood development to post-secondary education—is critical for Canada’s continued prosperity. In Advantage Canada, the Government committed to making federal student financial assistance more effective. While Canada continues to have the highest post-secondary attainment rates among countries in the Organisation for Economic Co-operation and Development, maintaining this standard of excellence means adapting programs to meet the needs of Canadian students in a modern economy.

The Government has followed through on its Budget 2007 commitment by conducting a comprehensive review of the Canada Student Loans Program in consultation with provinces, territories, students, stakeholders and the public. The review found that the current programs are complex, difficult to understand and unpredictable. It also found that the Canada Millennium Scholarship Foundation bursaries have had limited success in encouraging more people to go to college or university, and did not provide students with predictable funding from one year to the next. The Canada Millennium Scholarship Foundation is also a significant intrusion into provincial jurisdiction. Budget 2008 announces its termination in 2009.

Canada Student Grant Program

Budget 2008 is launching a new consolidated Canada Student Grant Program to take effect in the fall of 2009, to coincide with the wind-down of the Canada Millennium Scholarship Foundation. All federal grants will be integrated into one program that will provide more effective support to more students for more years of study, assisting Canadian families who struggle with the cost of higher education.

Budget 2008 invests $350 million in 2009–10, rising to $400 million in 2010–11, $415 million in 2011–12 and $430 million in 2012–13. The Canada Student Grant Program will consolidate this funding with approximately $138 million in annual investments currently provided through the patchwork of existing federal grants that go to students eligible for Canada Student Loans.

The new Canada Student Grant Program will be simple, transparent and broad-based, providing certainty and predictability for Canadian families:

  • Students from low- and middle-income families will qualify based on clearly defined income thresholds.
  • The program will provide defined monthly grants of $250 for low-income students and $100 for middle-income students, for whom predictable financial assistance will have a direct impact on their decision to pursue post-secondary education.
  • The Canada Student Grant will be provided up-front.
  • The new grant will be paid through all years of an undergraduate or college program so that students and their families can plan the funding of their education.
  • In the first year, the new grant is expected to reach 245,000 college and undergraduate students, an increase of over 100,000 students currently receiving debt remission and grants.

This new design is aimed at increasing post-secondary education participation and completion rates—particularly of under-represented groups—so that much-needed talent and energy can be engaged in Canada’s future. For many students, this assistance will provide encouragement to enrol and stay in school and thus the capacity to build a prosperous future.

The Government will ensure that students who receive Canada Millennium Scholarship bursaries in 2008–09 will be unaffected by the wind-down of the Canada Millennium Scholarship Foundation (CMSF) by providing transitional grants.

In contrast to the CMSF, this new approach to providing support to students fully respects provincial jurisdiction. The Government of Canada will work with participating provinces and territories, student associations, and individual students and borrowers to implement this new grant program, thus ensuring that post-secondary education is more affordable and accessible for Canadians. The alternative funding arrangements for non-participating jurisdictions currently in place for the Canada Student Loans Program will apply to the Canada Student Grant.

Streamlining and Modernizing the Canada Student Loans Program

Canadian students and their families need simple, effective financial assistance programs. The complexities and gaps in the current system are preventing students from obtaining financial help and affecting their decision to pursue post-secondary education. Budget 2008 commits $123 million over four years starting in 2009–10 to streamline and modernize the Canada Student Loans Program.

Measures will be put in place to improve service for students through a new service delivery vision, more equitable supports for part-time and married students, a new in-study interest-free period for reservists, and enhanced flexibility for those experiencing difficulty in debt repayment that is more reflective of the study-to-work transition of young graduates and the needs of students with disabilities.

New investments include:

  • $23 million over four years for a new service delivery vision that will expand online services and enable students to manage their loans online from application through repayment.
  • $26 million over four years to narrow the gap between contributions from spouses and parents of students by reducing the expected spousal contributions, and to make federal student loans more attractive to part-time students.
  • $74 million over four years to make the Canada Student Loans Program more responsive to the economic circumstances of borrowers, including those with disabilities, by providing greater assistance for those experiencing difficulty in repaying their loans.

Over the next year, the Government will work with provinces and territories to implement these new measures and ensure effective coordination with existing programs.

The combination of the new Canada Student Grant Program and measures to streamline and modernize the Canada Student Loans Program will contribute to Canada’s Knowledge Advantage by helping to develop a highly educated workforce well equipped to take on the challenges of a fast-paced global economy.

Making RESPs More Responsive to the Changing Needs of Families and Students

Current Registered Education Savings Plan (RESP) termination limits may be constraining, particularly for plans with more than one beneficiary or for students who pursue their post-secondary studies over an extended period of time. Budget 2008 proposes to enhance the flexibility of RESPs by raising the maximum time limit that an RESP may remain open from 25 to 35 years and by extending the maximum contribution period by 10 years. Corresponding changes will be made to individual RESPs for beneficiaries who are eligible for the Disability Tax Credit.

Budget 2008 also proposes to introduce a six-month grace period for making a withdrawal from an RESP, to ensure that students who are delayed in their application are still able to receive Educational Assistance Payments.

The changes to the plan termination limits and maximum contribution period for RESPs will apply to all existing and future RESPs, effective January 1, 2008. The six-month grace period will apply to students whose periods of study end after December 31, 2007. It is estimated that these measures will have a small fiscal impact in 2007–08 and in subsequent years.

Federal Support for Post-Secondary Education

The Government of Canada’s support for post-secondary education will rise to $9.7 billion in 2008–09 through transfers, direct spending and tax measures:

  • $3.2 billion earmarked for post-secondary education in 2008–09 to provinces and territories through the $10.6-billion Canada Social Transfer, increasing by 3 per cent annually as announced in Budget 2007.
  • $1.8 billion to help students and families save for their education and deal with tuition and other costs via the tax system, including the tuition, education and textbook tax credits and carry-forward of unused credits.
  • $2.1 billion to help students deal with the costs of education through grants, scholarships and loan programs.
  • Over $2.7 billion to fund research and development in post-secondary institutions, including support provided through the university research granting councils, including the Canadian Institutes of Health Research, and the Canada Foundation for Innovation.

Please visit for more information on planning and saving for post-secondary education, including material on Budget 2008 initiatives.

Attracting the Best Students to Canadian Institutions

Canadian universities are recognized internationally for providing a world-class education. Students from other countries bring unique knowledge and ideas that enrich our learning and research environments, and help build linkages and networks with institutions in their home nations. All countries compete to attract the top students in the world.

The Government supports Canada’s top graduate students through the Canada Graduate Scholarships Program. Budget 2008 establishes a new prestigious Canada Graduate Scholarship award that when fully in place will support 500 top Canadian and international doctoral students a year. The new scholarships will be dedicated to the memory of Georges Philias Vanier, decorated soldier, distinguished ambassador, and Governor General of Canada. The new award is designed to attract the world’s best doctoral students to Canadian universities, and will be worth $50,000 per year for up to three years. Budget 2008 provides $25 million over two years to establish this program.

Supporting International Studies

International experience and knowledge forge stronger ties between Canada and the world that translate into future research and commercial advantages.

Canadian recipients of Canada Graduate Scholarships (CGSs) will now be able to pursue exceptional research opportunities at institutions outside Canada for a portion of their studies. Recognizing the added costs associated with foreign study, Budget 2008 provides $3 million over the next two years to the granting councils to establish a new study stipend for Canadian CGS recipients who study at institutions outside the country. These new stipends will be worth up to $6,000, and will be available to 250 CGS recipients each year for one semester of foreign studies.

Canada Global Excellence Research Chairs

Canada’s strengths in post-secondary research make it a destination of choice, and Canadian institutions have attracted some of the world’s best researchers. To be at the leading edge of scientific and technological breakthroughs in the future, Canada’s universities must continue to attract the keenest minds in the world.

To strengthen the ability of Canadian universities to attract and retain the world’s top science leaders, Budget 2008 provides an additional $21 million over two years to establish up to 20 prestigious Canada Global Excellence Research Chairs. The new research chairs will be offered in the four priority areas targeted in the Government’s science and technology strategy: the environment, natural resources and energy, health, and information and communication technologies. Research in these areas will contribute to the competitiveness of our industries, including manufacturing, and help generate other economic and social benefits for Canadians.

The new research chairs will be competitively awarded to institutions on the basis of a candidate’s research excellence, standing in the international science community, and potential to place an institution at the forefront of global research in a selected field. Each Canada Global Excellence Research Chair will receive up to $10 million over seven years to provide competitive salaries, assemble outstanding research teams and undertake cutting-edge research in areas of strategic importance to Canada.

The Canada Gairdner International Awards

The Gairdner International Awards, first given in 1958 through the generosity of the late James Arthur Gairdner of Toronto, are one of the three most prestigious awards in medical science, along with the Swedish Nobel Prize in Medicine and the American Albert Lasker Medical Research Awards. The Gairdner Foundation also promotes and diffuses scientific achievement by connecting award winners with Canadian scientists, and inspires Canadian youth across the country through scientific symposia and outreach events.

To celebrate the 50th anniversary of the Gairdner International Awards and promote exceptional achievement in health research, Budget 2008 provides the Gairdner Foundation with a $20-million endowment in 2007–08. This endowment will allow the Gairdner Foundation to enhance its awards and expand its outreach activities. Recognizing the significant endowment from the Government of Canada, the Foundation will rename its awards the Canada Gairdner International Awards, helping to brand Canada internationally as a global leader in health research.

Modernizing the Immigration System

Advantage Canada recognized that in a modern global economy, Canada’s immigration policies need to be closely aligned with our labour market needs. Budget 2007 took action to make the immigration system more responsive to the new labour market realities in Canada. The Temporary Foreign Worker Program was streamlined to enable employers to bring in workers more quickly to address their immediate labour shortages. The Government also introduced the new Canadian Experience Class to expedite the process for skilled temporary foreign workers and foreign students with Canadian credentials and work experience to remain in Canada as permanent residents, under certain conditions.

Canada must maintain the ability to compete globally for the best and the brightest by creating the optimal conditions to attract immigrants who can contribute fully to Canada’s prosperity. A well-managed and efficient immigration system is critical to achieving this objective. The Government will continue to modernize Canada’s immigration system.

Budget 2008 builds on Advantage Canada priorities with additional measures to improve the immigration system’s capacity and flexibility to respond to Canada’s dynamic and evolving labour market needs. Concrete measures will be initiated to expedite the processing of permanent resident applications. Combined with the recent improvements to the Temporary Foreign Worker Program, the expansion of the Provincial Nominee Program and the new Canadian Experience Class announced in Budget 2007, these measures will ensure that the labour needs of employers in all provinces and territories are met in a more timely fashion.

To complement these actions, changes will be made to the Immigration and Refugee Protection Act to improve the immigration process. It is not fair for prospective immigrants to wait for years before being considered, and it is not desirable to wait that long for the immigrants the country needs. The measures proposed in Budget 2008 will expedite the processing of permanent residents to ensure that skilled immigrants can get to Canada when their skills are in demand. The proposed legislative changes will provide flexibility for concrete measures, as required, to more effectively manage the future growth in the inventory, such as addressing the number of applications accepted and processed in a year. The end result will be reduced wait times and improved service. These changes will allow Canada to take the first steps towards establishing a "just-in-time" competitive immigration system which will quickly process skilled immigrants who can make an immediate contribution to the economy.

Action will also be taken to help address the growing demand at Canadian missions abroad for temporary resident visas for students and skilled workers. In particular, the Government will focus on helping post-secondary educational institutions attract foreign students and on facilitating their arrival in Canada. For example, an online application system, as well as other measures to improve service and speed up processing, will be implemented for student visas. These initiatives, combined with new Canada Graduate Scholarships for Canadian and international students, will enhance Canada’s ability to compete with other countries to attract and retain the best foreign students.

Taken together, these initiatives will ensure the ongoing integrity of the immigration program. They will enable Canada to respond to growing demand and to admit more highly-skilled immigrants and their families, including foreign students. At the same time, Canada’s social and humanitarian objectives will be preserved and continue to be balanced with Canada’s labour market needs.

Budget 2008 provides $22 million over the next two years, rising to $37 million per year by 2012–13, to implement this next critical stage of modernizing the immigration system.

Advancing Equality of Women

Budget 2007 increased the Women’s Program budget to $20 million. Over the next year, the Government will build on this achievement through the development of an Action Plan that will advance the equality of women across Canada through the improvement of their economic and social conditions and their participation in democratic life.

Removing Disincentives to Work for Low-Income Seniors

Today’s seniors are living longer and healthier lives. Their participation in the labour market is growing. To further encourage this labour market participation, Budget 2008 is investing $60 million per year to ensure that low-income seniors who work can realize greater benefits from their earnings through an increase in the Guaranteed Income Supplement (GIS) exemption.

The GIS is a monthly benefit provided to low-income seniors who receive the Old Age Security benefit, which is provided to all Canadians aged 65 and over who meet residence requirements. To ensure that the GIS is targeted to seniors most in need, it is income-tested and reduced by 50 cents for every dollar of other income individuals receive. There is an exemption for employment earnings to encourage labour market participation. The exemption is currently 20 per cent of earned income up to $2,500, providing a maximum exemption of $500.

Budget 2008 is proposing to fully exempt the first $3,500 of earnings— the average amount of earned income by seniors in receipt of the GIS. This means the typical GIS recipient will be able to keep more of her or his hard-earned money without any reduction in GIS benefits, encouraging labour market participation and providing support for low-income seniors.

Investing in Knowledge

Investing in the future means investing in knowledge, science and innovation. Science and technology play important roles in almost every aspect of our lives, and can provide solutions to many of the issues that are most important to Canadians, such as improved health, a cleaner environment and a stronger society. Knowledge is also a critical driver of Canada’s economy. Firms that successfully translate knowledge into innovative products, services and technologies are able to compete and win in the global marketplace. Budget 2008 continues to implement the commitment in Advantage Canada for the Government to invest on its own, and in partnership with the private sector, in strategic areas such as primary research and a cleaner environment.

Investing in Science and Technology

In May 2007, the Government released Mobilizing Science and Technology to Canada’s Advantage, a forward-looking strategy aimed at positioning Canada for global knowledge leadership. The strategy recognized that the advanced discoveries and ideas flowing from science and technology are increasingly critical to economic competitiveness, while contributing to a higher quality of life for Canadians through new and improved goods and services.

As a result of this and the previous two budgets, the Government will invest an additional $850 million in 2009–10 in support of the objectives of the strategy, including improvements to the scientific research and experimental development tax incentive program.

The Granting Councils

The Natural Sciences and Engineering Research Council of Canada (NSERC), the Canadian Institutes of Health Research (CIHR) and the Social Sciences and Humanities Research Council of Canada (SSHRC) are the primary agencies through which the federal government supports research at Canada’s universities and research hospitals. They award research grants on a competitive basis, support the work of graduate students and help accelerate the translation of knowledge into practical applications.

Budget 2008 provides an additional $80 million per year for the three granting councils, targeted to the priorities of Canadians. The granting councils will jointly support multidisciplinary and internationally peer-reviewed research in priority areas, and partner with public and private stakeholders to ensure that practical solutions are found.

  • NSERC will be provided with $34 million per year for collaborative research that directly contributes to the knowledge and innovation needs of Canada’s automotive, manufacturing, forestry and fishing industries.
  • CIHR will be provided with $34 million per year for research that addresses the health priorities of Canadians, including the health needs of northern communities, health problems associated with environmental conditions, and food and drug safety.
  • SSHRC will be provided with $12 million per year for research that contributes to a better understanding of how the environment affects the lives of Canadians and of the social and economic development needs of northern communities.

Indirect Costs of Research

Post-secondary researchers need to have access to modern facilities, well-maintained equipment, top-notch journals and libraries, and strong administrative and technical support. The Indirect Costs of Research program provides $315 million per year to post-secondary institutions to create the productive and stimulating environments that enable world-class research.

Budget 2008 provides an additional $15 million per year to the Indirect Costs of Research program to help institutions support the research activities made possible by the new resources provided to the granting councils.

Genome Canada

Genome Canada is a not-for-profit corporation dedicated to establishing Canada as a research leader in genomics, a multidisciplinary science with the potential to improve lives through better health and a cleaner environment. Through its investments in six regional genome centres across the country and through domestic and international partnerships, Genome Canada has funded world-class research, established cutting-edge technology platforms and helped train the next generation of researchers. The Government’s contributions to Genome Canada will result in over $1.5 billion in genomics research in Canada, including funding from other partners.

To build on Canada’s knowledge and people advantage in genomics, Budget 2008 provides an additional $140 million to Genome Canada in 2007–08. This funding will enable Genome Canada to launch a new targeted competition in a priority area, sustain the regional genome centres, and support the participation of Canadian researchers in a major collaborative international genomics project.

The Canadian Light Source

The Canadian Light Source research synchrotron, located at the University of Saskatchewan, is among the most advanced in the world. This facility enables Canadian researchers from industry and academia to observe matter down to the atomic level, with applications in a wide range of fields, including advanced materials and the detection of environmental pollutants.

Budget 2008 builds on the current funding of $16.5 million provided each year to the Canadian Light Source through the university research granting councils and the National Research Council Canada by providing it with an additional $10 million above current funding over the next two years to strengthen its operations.

Supporting Business Investment in Innovation

A high level of business innovation is a key feature of leading economies. Investments by companies in research and development (R&D) lead to better machinery, products and breakthrough technologies that create a leadership position in the marketplace. Canada’s tax and business environment are helping companies to become R&D and innovation leaders. Additional measures in Budget 2008 will accelerate progress toward this objective.

Supporting the Manufacturing Sector

Manufacturers and processors are major contributors to Canada’s economy and employ Canadians in many communities across the country. The Government’s actions to implement the Advantage Canada framework have delivered important benefits for manufacturers and processors by helping them to better invest and compete, specifically through:

  • Over $9 billion in tax relief by 2012–13, including broad-based tax reductions as well as a temporary accelerated write-off for investments in machinery and equipment used in manufacturing or processing.
  • $1.3 billion per year in additional funding to the provinces in Budget 2007 for post-secondary education and training to create a more highly skilled workforce.
  • More than $1.5 billion over three years through Budgets 2006 and 2007 to support Canada’s leadership in science and technology.
  • Action to streamline the regulatory system and reduce the regulatory burden on businesses.
  • $33 billion over seven years in infrastructure investments provided through Budgets 2006 and 2007, including for transportation corridors and gateways that benefit businesses, including manufacturers.

Automotive Innovation Fund

The automotive sector is the largest manufacturing industry in Canada. Canada’s automotive sector has a proven global reputation for quality and productivity, helping Canada rank as one of the top vehicle-producing countries in the world.

To maintain its leadership and competitive advantage, Canada’s automotive sector will need to become more innovative and adapt to new environmental standards. This will require a highly skilled workforce and increased investments in research and innovation to develop new process technologies and products that are more fuel-efficient and environmentally sustainable.

Budget 2008 provides $250 million over five years to support strategic, large-scale research and development projects in the automotive sector to develop innovative, greener and more fuel-efficient vehicles. This funding will contribute to a more competitive Canadian automotive sector and help Canada achieve its environmental objectives, as outlined in Chapter 4.

Strengthening Access to Financing

Recognizing the challenges currently faced by the manufacturing sector, Export Development Canada (EDC) is working in partnership with financial institutions to develop financing and insurance solutions aimed at improving access to capital. EDC is proposing enhancements to its financial products to help small and medium-sized manufacturing companies, including automotive suppliers, obtain access to credit facilities to fulfill export contracts.

Specifically, EDC will enhance its existing Export Guarantee Program by increasing the guarantee coverage from 75 to 90 per cent for loans up to $500,000. In addition, EDC is working closely with Canadian financial institutions to strengthen its financial guarantees by enhancing the coverage available for larger transactions. These enhancements to EDC’s guarantee programs are particularly important to the automotive sector, where EDC has over 400 clients.

Each year, EDC provides billions of dollars in financial support to the manufacturing and automotive sectors through a range of financing facilities, including loans, guarantees, insurance and equity-based investments. With these program enhancements, EDC will be able to do even more to support Canadian exporters.

Securing Continued Leadership for the Automotive Sector

Canada’s automotive industry has a track record of excellence and is among our leading employers and exporters. This industry is currently facing a number of challenges, including the stronger dollar, increasing competition from other jurisdictions, and the need to adjust to new North American environmental regulations. Recognizing the importance of this sector to our continued economic success, the Government has committed over $1.6 billion to measures that will help the automotive industry successfully meet these challenges, including:

  • Over $1 billion in tax relief for the auto sector by 2012–13.
  • $250 million over five years through a new Automotive Innovation Fund, to support large-scale research and development projects in the automotive sector to develop innovative and more fuel-efficient vehicles.
  • $400 million as a contribution towards the access road to the new Windsor-Detroit border crossing.
  • An enhancement to Export Development Canada’s existing Export Guarantee Program that will increase the guarantee coverage from 75 to 90 per cent for loans up to $500,000, benefiting particularly those businesses in the automotive sector, where Export Development Canada has over 400 clients.
  • $34 million per year for new research through the Natural Sciences and Engineering Research Council of Canada, targeted to the needs of key industries such as the auto sector.

Venture Capital for Innovative Growing Companies

Innovative businesses play a crucial role in translating knowledge into world-leading products and services, opening new markets and creating high-value jobs for Canadians. Budget 2008 sets aside $75 million for the Business Development Bank of Canada to support the creation of a new privately run venture capital fund.

Supporting Communities and Traditional Industries

The Community Development Trust

While Canada’s strong economic fundamentals set the stage for long-term growth and prosperity, economic adjustments pose significant challenges for some workers and communities. Certain communities are vulnerable because of their dependence on a single employer or a sector facing difficulties due to such factors as exchange rate fluctuations, increased competition and declining demand in key markets.

On January 10, 2008, the Prime Minister announced the establishment of the Community Development Trust, which will provide up to $1 billion for provincial and territorial initiatives to assist workers and communities that are experiencing hardship due to international economic volatility. Recognizing the need for rapid action, the Government received timely parliamentary approval to provide funding.

The trust will support such activities as job training to create opportunities for workers, community transition plans that foster economic development and create new jobs, and infrastructure investments that stimulate economic diversification.

The Government is working with provinces and territories to identify initiatives to be supported with this funding. Funding will be accounted for in 2007–08, and paid into a trust for those provinces and territories that identify initiatives before March 31, 2008. A base amount of $10 million will be provided to each province and $3 million to each territory, with the balance of the funding allocated on a per capita basis. Provincial and territorial governments will have the flexibility to draw down the funding as they require over the next three years. They are encouraged to report directly to their residents on the expenditures financed and outcomes achieved with the funding provided through the trust.

Support for Training and Adjustment

Being competitive in the modern economy means having the skills and training to adapt to a changing global market. Following through on Advantage Canada commitments, the Government has taken decisive action so that employees and employers have access to the skills and training they need to participate fully in the labour market, including:

  • $1 billion for the Community Development Trust to assist vulnerable communities.
  • $3 billion over six years for new Labour Market Agreements to address the gap in labour market programming for those who do not currently qualify for training under the Employment Insurance program.
  • $105 million over five years in the Aboriginal Skills and Employment Partnership initiative to ensure that Aboriginal Canadians receive skills and training that will lead to their increased participation in opportunity-driven economic development projects across Canada.
  • $550 million per year for the new Working Income Tax Benefit to improve work incentives for low-income Canadians.
  • $160 million over five years (including the $90-million extension announced in this budget) for the Targeted Initiative for Older Workers to assist unemployed older workers in communities experiencing ongoing high unemployment.
  • $100 million per year for the Apprenticeship Incentive Grant to encourage more young Canadians to pursue apprenticeships and $200 million per year for a tax credit to a maximum of $2,000 per apprentice per year through the Apprenticeship Job Creation Tax Credit to encourage employers to hire apprentices.
  • $22 million over two years to modernize the immigration system, giving it the capacity to quickly process immigrants with needed skills, building on $1.4 billion over five years to improve the quality and availability of settlement and integration programming.

Supporting the Labour Market Adjustment of Older Workers

The Government recognizes the particular challenges faced by unemployed older workers in vulnerable communities, where jobs are harder to find and which are often reliant on a single employer or industry. At a time when Canada is facing labour shortages, the experience of older workers represents an increasingly valuable asset that must not be overlooked. That is why in October 2006 the Government committed $70 million over two years to put in place the Targeted Initiative for Older Workers (TIOW). The TIOW is a federal-provincial employment program that provides a range of employment activities for unemployed older workers who live in vulnerable communities and helps them stay in the workforce.

Budget 2008 provides an additional $90 million over three years to extend the TIOW until March 2012 to help more older workers remain active and productive participants in the labour market.

On January 23, 2007, the Government appointed an expert panel to study the labour market conditions affecting older workers and to report back on ways to facilitate their labour market adjustment. The Government will be responding to this report in 2008.

Promoting Canada’s Forestry Sector

Canada’s forestry sector is among the world leaders in sustainable management and environmentally responsible practices. It has invested in innovative processes and upgrades to significantly reduce its dependence on fossil fuels and curb its greenhouse gas emissions and waste by-products. In October 2007, the forest products industry committed to becoming carbon-neutral by 2015, making a significant contribution to meeting Canada’s environmental and climate change objectives.

Budget 2008 provides $10 million over two years to Natural Resources Canada for an initiative to promote Canada’s forestry sector in international markets as a model for environmental innovation and sustainability. The Government will work with the forestry sector and interested provinces and territories to implement this initiative.

Strengthening Canada’s Forestry Sector

The forestry sector has faced a number of challenges in recent years, including the prolonged softwood lumber dispute with the United States, the stronger Canadian dollar, the mountain pine beetle infestation in western Canada and competition from low-cost foreign producers. The Government has taken important steps to help the sector adjust to these challenges, including by:

  • Negotiating the Canada-United States Softwood Lumber Agreement, restoring access to the U.S. market and resulting in the return of over $5 billion in duty deposits to Canadian producers.
  • Providing over $1 billion in tax relief for the sector by 2012–13.
  • Providing $200 million to combat the pine beetle infestation.
  • Investing $127.5 million in the Forest Industry Long-Term Competitiveness Initiative to support innovation and assist the forestry sector to shift toward higher-value products and tap into new markets.
  • Providing $160 million through the Targeted Initiative for Older Workers to help older workers who have lost their jobs in vulnerable communities, and extending it until March 2012.
  • Establishing a $25-million Forest Communities Program that will assist 11 forest-based communities to make informed decision-making on the forest land base.
  • Providing $10 million over two years through this budget for an international marketing initiative to promote Canada’s forestry sector as a model for environmental innovation and sustainability.

Promoting Tourism Along the St. Lawrence and Saguenay Rivers

The tourism industry contributes to the strength of the Canadian economy. Building on the success of the cruise ship terminal in Québec City, Budget 2008 is investing $24 million over two years to assist with the further development of tourism-related infrastructure at strategic ports of call along the St. Lawrence and Saguenay Rivers to enhance their appeal as destinations for the global cruise ship market.

Support for Canada’s Agricultural Producers

Canada’s agricultural producers strive to provide Canadians and the world with high-quality food. The operating environment for producers has evolved rapidly, providing opportunities for some sectors while others, such as cattle and hog producers, continue to face challenges.

Over the past two years, the Government has introduced major improvements to the suite of business risk management programs to ensure that producers have access to more responsive, predictable and bankable farm income stabilization programs. The Government’s new integrated approach towards farm support provides producers with comprehensive income protection against various hazards ranging from income variability (AgriStability and AgriInvest), to natural hazards (AgriInsurance) and disasters (AgriRecovery) as well as easier access to credit through cash advances (the Advance Payments Program). The Government has provided an additional $4.5 billion to farmers through Budget 2006 and Budget 2007 to fund the improved suite of programs, facilitate the transition for producers and help address rising costs of production.

In December 2007, the Government took further steps to ensure that the new suite of business risk management programs provides timely support to cattle and hog producers. Producers’ access to program payouts for the 2006 and 2007 program years was accelerated, which will provide a total of $1.5 billion before the end of 2008 to cattle and hog producers.

Building on these measures, the Government is proposing changes to the Advance Payments Program’s security requirements, administrative terms and conditions, and emergency advances component to enhance the effectiveness of the program. These changes would ensure that security requirements for livestock are consistent with those of other products that are sh as grains, and that producers have access to larger emergency advances under a broader set addressing current limitations, and expanding the ability to make emergency advances, these measures would significantly improve access to $3.3 billion in potential cash advances to livestock producers. The Government allocates $22.1 million in 2008–09 for the changes to the Advance Payments Program.

The Government is also allocating $50 million in 2007–08 for a Cull Breeding Swine Program to be delivered through the Canadian Pork Council to alleviate financial pressures faced by the Canadian hog industry. The Cull Breeding Swine Program would provide a payment to Canadian producers to reduce the supply of breeding stock in Canada and ease the transition for producers wishing to exit the hog industry. The payment would be based on a per head amount and reimbursement of costs of humane slaughter and carcass disposal. It is expected that the funding would support a 10-per-cent reduction of the Canadian swine breeding inventory.

In total, these measures would cost $72 million over two years.

Strengthening the Aquaculture Sector

Since 2006, the Government has committed nearly $860 million to help the fishing industry. Funded initiatives include an enhanced capital gains exemption; the Health of the Oceans initiative; reinvestment in fisheries science; and integration of Aboriginal fishermen and fisherwoman into Atlantic and Pacific commercial fisheries.

Aquaculture is an important and growing component 2006, the value of the aquaculture sector was $912 million, representing approximately 25 per cent of the value of Canada’s total fish production. The sector is also a growing source of employment for workers in rural and coastal communities. Expanding and sustaining the sector’s growth requires that environmental and food safety standards be maintained while reasonable regulatory timelines are provided for aquaculturalists and potential investors. Budget 2008 provides $22 million over two years to improve regulatory certainty through greater coordination between federal and provincial-territorial regulatory authorities, to improve federal regulatory science in order to establish performance-based environmental standards for aquaculture operations, and to spur research and innovation to enhance the sector’s competitiveness and productivity. This funding will also assist the industry in developing a certification scheme that will ensure that the fish produced in Canada meets rigorous food safety and quality standards and international market requirements.

Investing in Infrastructure

The importance of an Infrastructure Advantage to Canada’s long-term prosperity is highlighted in the Government’s economic plan, Advantage Canada. Investments in infrastructure help to reduce road congestion and travel times and ensure t he efficient movement of goods to market. Quality infrastructure, such as reliable water systems and public transit, also helps in the achievement of environmental goals. Infrastructure is critical to maintaining the high quality of life that Canadians enjoy.

Permanent Gas Tax Fund

The Government recognizes the need for long-term funding for infrastructure to help drive economic growth and productivity, to achieve our environmental goals, and to build strong, competitive communities.

To this end, in Budget 2007 the Government announced the historic seven-year $33-billion Building Canada Plan. More than half of this investment under the plan will flow to municipalities. For example, municipalities can access the $8.8-billion Building Canada Fund and benefit from the increase from 57.14 per cent to 100 per cent in the rebate of the Goods and Services Tax they pay.

The largest component of the Building Canada plan is the Gas Tax Fund, which provides municipalities with funding for priorities such as public transit, water and wastewater infrastructure, and local roads. Under the plan, the Gas Tax Fund will grow and reach $2 billion by 2009–10 and stay at that level through 2013–14.

In response to ongoing requests for stable, long-term funding, the Government announces that the Gas Tax Fund will be extended at $2 billion per year beyond 2013–14 and become a permanent measure. This will allow all municipalities, both large and small, to better plan and finance their long-term infrastructure needs. A permanent $2-billion-per-year Gas Tax Fund will help put in place the world-class infrastructure Canada needs.

Strengthening Public Transit

Public transit plays an important role in easing traffic congestion in urban areas and contributing to cleaner air and lower greenhouse gas emissions. In Budget 2006, the Government set aside $1.3 billion in support of public transit infrastructure and introduced a new tax credit for public transit passes.

Budget 2008 sets aside up to $500 million in 2007–08 to be paid into a third-party trust, allocated on a provincial-territorial per capita basis, for public transit infrastructure. Funding will be paid into the trust, once legislation has been passed, for only those beneficiaries that have made public commitments before March 31, 2008 to undertake investments in public transit. The beneficiaries of the trust will have the flexibility to draw down the funding as they require over the next two years. They are encouraged to report publicly on the expenditures financed and outcomes achieved.

The trust will be used for specific projects of capital infrastructure such as rapid transit, rail, transit buses, and high occupancy vehicle and bicycle lanes.

Public-Private Partnerships

Recognizing the need to look beyond traditional approaches to infrastructure financing and delivery, Budget 2007 announced measures to transform Canada into a leader for public-private partnerships, including:

  • A $1.257-billion Public-Private Partnerships Fund (P3 Fund), a unique infrastructure program designed to support innovative P3 projects.
  • A federal P3 office to spearhead efforts to promote the use of public-private partnerships in Canada.

The Government has made significant progress in implementing these measures. Key milestones include:

  • The federal P3 office, PPP Canada Inc., has been created. As a Crown corporation, the office will work with the public and the private sectors towards encouraging the further development of Canada’s P3 market.
  • Program parameters of the P3 Fund have now been defined. The P3 Fund will target the same categories of projects as the Building Canada Fund and will invest in public-private partnerships using a range of innovative financing instruments, such as loans, loan guarantees, non-voting shares and repayable contributions. Implementing the P3 Fund will be a key priority of the new Crown corporation during its transition to full operational status.

New Funding for the Canadian Air Transport Security Authority

Continuing risk in aviation as a target for terrorist attacks underlies the importance of a secure air transportation system. A federal Crown corporation, the Canadian Air Transport Security Authority (CATSA), is responsible for the security screening of air passengers and their baggage at Canada’s airports. Significant operational pressures, including continuous growth in air traffic, will challenge CATSA’s ability to deliver on its screening responsibilities over future years. Budget 2008 provides funding of $147 million in 2008–09 to help CATSA address such pressures.

The Air Travellers Security Charge (ATSC) will continue to provide funds for air travel security. ATSC rates will be reviewed and adjusted in future years, consistent with funding decisions for air travel security, to ensure that revenues from the ATSC and expenses for air travel security balance over time.

Marine Atlantic Inc.

Marine Atlantic Inc., a federal Crown corporation, provides ferry services between the island of Newfoundland and Nova Scotia. These services form a virtual extension of the Trans-Canada Highway and provide an important transportation link to Newfoundland and Labrador for many travellers and businesses. Budget 2008 provides $17 million over two years so Marine Atlantic Inc. can secure a new vessel to address growing traffic.

Small Craft Harbour Divestiture

The Government operates and maintains a national system of small craft harbours to provide commercial fisheries and recreational boaters with safe and accessible facilities. Over the past 10 years, the Government has focused its resources on harbour infrastructure critical to commercial fisheries. At the same time, it has begun the process of divesting a large number of recreational and non-core fishing harbours to interested parties such as local municipalities, non-profit associations or First Nations. Many local communities across Canada have shown a strong interest in acquiring and operating non-core fishing and recreational small craft harbours.

Budget 2008 provides $10 million over two years to enable the necessary harbour repairs and environmental cleanup to permit more harbours to be transferred to interested parties.

A Sound and Efficient Financial Sector

Over the past year, global and domestic financial sector developments have demonstrated more than ever the importance of well-functioning capital markets and a sound and efficient financial sector. Competition to host global securities trading grew more intense, and regulators around the world reinforced efforts to establish more competitive capital markets regulation. Concurrently, the turbulence in global financial markets drew attention to the need for transparency and appropriate disclosure, and highlighted financial stability as an overarching objective of financial sector policy and regulation.

In 2007–2008, Canada participated in the International Monetary Fund’s (IMF) Financial Sector Assessment Program. The IMF concluded that "Canada’s financial system is mature, sophisticated, and well-managed. Financial stability is underpinned by sound macroeconomic policies and strong prudential regulation and supervision."[3]

The Government is committed to further fostering a financial sector regulatory framework that promotes soundness and efficiency, is anchored in well-understood principles, is responsive and innovative, and gives Canada a strong international voice.

Advancing the Capital Markets Plan

In March 2007, the Government published Creating a Canadian Advantage in Global Capital Markets, which established a Capital Markets Plan for Canada based on four building blocks:

  • Enhancing regulatory efficiency.
  • Strengthening market integrity.
  • Creating greater opportunity for businesses and investors.
  • Improving investor information.

The plan focuses on giving enterprises better access to capital, providing investors with increased investment choices, and creating more highly-skilled, well-paying jobs.

Progress has been made in all areas of the plan. In some areas the Government has been able to act alone, while in areas of shared responsibility it is pursuing collaborative efforts with provinces and territories.

Implementing the Capital Markets Plan

To enhance regulatory efficiency, the Government has:

  • Launched an Expert Panel on Securities Regulation to advise on ways to enhance the effectiveness, content and structure of capital markets regulation.
  • Revised Canadian insolvency legislation to better protect counterparties to derivative contracts and other securities-financing agreements in case of insolvency.
  • Consulted on securities transfer law, and it is developing a response aimed at ensuring federal statutes are consistent with the highly harmonized securities transfer acts being implemented by provinces.

To strengthen market integrity, the Government has:

  • Appointed a senior expert advisor to assess the effectiveness of the RCMP-led Integrated Market Enforcement Teams. The advisor’s report was published in December 2007. The RCMP and other federal partners are implementing its recommendations.
  • Participated in the federal-provincial-territorial securities fraud working group of police, securities regulators and prosecutors reporting to federal and provincial-territorial ministers responsible for Justice.

To create greater opportunity for businesses and investors, the Government has:

  • Continued to promote free trade in securities with the U.S. and spearheaded discussions in the Group of Seven (G7).
  • Adopted measures that will reduce borrowing costs for Canadian businesses and facilitate more efficient cross-border capital flows.

    In particular the Government has:

    • Legislated changes to tax rules to remove the withholding tax on arm’s length interest payments made to non-residents, effective January 1, 2008.
    • Signed a new Protocol amending the Canada-U.S. Tax Treaty.
  • Begun to implement the consolidation of the borrowings of three Crown corporations: the Business Development Bank of Canada, Farm Credit Canada and Canada Mortgage and Housing Corporation (see Annex 2 for more details).
  • Amended tax rules for investment in securities listed on prescribed stock exchanges to improve responsiveness to market and regulatory developments and to lower a tax barrier on non-residents who invest in Canadian companies listed on recognized exchanges abroad.
  • Expanded the range of debt and listed securities that can be held by retail investors in a Registered Retirement Savings Plan under the Income Tax Act.

To improve investor information, the Government has:

  • Signed an agreement with the British Columbia Securities Commission to adapt its high school financial literacy program into a Web-based instrument to make it available across the country. It has also provided ongoing funding to the Financial Consumer Agency of Canada to support efforts to improve financial literacy in Canada.
  • Published for comment new principles-based regulations for principal protected notes issued by federally regulated financial institutions, with a view to moving forward with final regulations by the spring.

The Capital Markets Plan is being implemented against the backdrop of ongoing evolution in the global capital markets. Over the past year, competition to host global securities trading intensified, as the planned mergers of the TSX Group and the Montréal Exchange followed several other mergers of major exchanges. At the same time, the European Union, the United States and the United Kingdom reinforced efforts to establish more competitive capital markets regulation. In the coming year, the Government will continue to advance the Capital Markets Plan in focused areas to contribute to a Canadian advantage in global capital markets.

The Government is committed to working with provinces and territories to move toward a common securities regulator that will deliver proportionate, more principles-based regulation and strong enforcement. A common securities regulator for Canada has been endorsed by numerous organizations and private sector leaders in recent years. Most recently, the IMF concluded that while significant improvements to the securities regulatory system have been made, "moving further to a single regulator would allow policy development to be streamlined, reduce compliance costs, and improve enforcement."[4]

On February 21, 2008, the Government announced the establishment of the Expert Panel on Securities Regulation to advise on ways to enhance the effectiveness, content and structure of securities regulation. The panel will present to the Minister of Finance and provincial and territorial ministers responsible for securities regulation a report and a model common securities act by the end of the year. The Government will ensure it is in a position to act promptly on the report’s recommendations and to engage with market participants and provincial and territorial partners on next steps.

Continued challenges with securities fraud enforcement in Canada underscore that further effort is needed to secure the integrity of our capital markets. The Government is working with provincial and territorial authorities to strengthen enforcement through an approach that encompasses all aspects of this issue, both regulatory and criminal.

In this context, the senior expert advisor to the Integrated Market Enforcement Teams and a federal-provincial-territorial securities fraud working group observed that the power to compel third-party witnesses to testify in respect of capital market criminal offences could contribute to strengthening enforcement. This is a complex issue that requires careful study. Therefore, federal and provincial-territorial experts will be examining this proposal and other enforcement measures for the consideration of federal and provincial-territorial ministers responsible for Justice later this year.

The Government will continue to assess the need for further legislative measures to protect the integrity of Canada’s financial system. This includes taking action, as appropriate, in response to the evaluation of Canada’s anti-money-laundering and anti-terrorist-financing regime by the international Financial Action Task Force, expected shortly. Furthermore, in order to bolster existing capacities to combat terrorist financing, the Government is announcing funding of $10 million over two years for the Canadian Security Intelligence Service and the Canada Revenue Agency’s Charities Directorate.

Further Strengthening Financial System Resilience

Over the past year, turbulence in global financial markets has focused attention on the stability and resilience of the international financial system. Against the backdrop of a strong global economy and rapid innovation in the financial marketplace, the turmoil has revealed weaknesses in market discipline and transparency.

The market is adjusting as investors and financial institutions recognize losses and draw corresponding lessons. Investors will demand greater transparency and disclosure from issuers and from rating agencies, and step up their own due diligence. Financial institutions are also strengthening their risk management policies and practices.

Governments must encourage and reinforce this market-driven response with a view to enhancing the resilience of the financial system. The G7 finance ministers have launched a coordinated work program, under the auspices of the Financial Stability Forum (FSF), to examine recent events and advise on policy responses. At their meeting in Tokyo on February 9, G7 ministers reviewed an interim report of the FSF and identified key areas of priority attention, including disclosure of losses and risk exposures by financial institutions, the management of liquidity risk, incentive structures in the financial services industry, credit rating agencies, and capital adequacy under the Basel II framework. G7 ministers pledged to take action as needed, drawing on the FSF’s final report to be issued in April 2008.

Against this background, the Government is committed to enhancing its core instruments for promoting financial system resilience and stability within a framework founded on open and competitive markets. It proposes to modernize the statutory authorities of the Bank of Canada to support the stability of the financial system and the conduct of monetary policy. It will also ensure that responsible federal agencies have continued capacity to safeguard financial stability through diligent oversight of financial institutions and a range of flexible and up-to-date regulatory tools.

The Government of Canada is a major participant in the capital markets. Consistent with leading practices, the Government has policies that require its exposures to financial risks to be identified, measured, monitored, controlled and disclosed in a transparent manner. The Minister of Finance also establishes treasury risk guidelines for major financial Crown corporations to support a common standard. The guidelines and their scope of application will be reviewed and updated to ensure that federal entities continue to adhere to leading practices in financial risk management.


Table 3.6
Investing in the Future
(millions of dollars)





Investing in People        
Enhancing support for Canadian students:        
  Canada Student Grant Program     350 350
  Streamlining and modernizing the Canada
    Student Loans Program
45 45
Attracting the best students
  to Canadian institutions:
    Canada Graduate Scholarships (CGSs)   8 17 25
    Study stipend for CGS recipients   2 2 3
Canada Global Excellence Research Chairs   7 14 21
The Canada Gairdner International Awards 20 20
Modernizing the immigration system   8 14 22
Removing disincentives for
  low-income seniors
  60 60 120
Subtotal—Investing in People 20 85 501 606
Investing in Knowledge        
Granting councils   80 80 160
Indirect Costs of Research   15 15 30
Genome Canada 140     140
Canadian Light Source   5 5 10
Automotive Innovation Fund   50 50 100
Subtotal—Investing in Knowledge 140 150 150 440
Supporting Communities
  and Traditional Industries
Community Development Trust 1,000     1,000
Supporting the labour market
  adjustment of older workers
    30 30
Promoting Canada’s forestry sector   5 5 10
Promoting tourism along St. Lawrence
  and Saguenay rivers
12 12 24
Support for Canada’s agricultural producers 50 22   72
Strengthening the aquaculture sector   11 11 22
Subtotal—Supporting Communities
  and Traditional Industries
1,050 50 58 1,158
Investing in Infrastructure        
Strengthening public transit 500     500
Canadian Air Transport Security Authority   147   147
Marine Atlantic   7 10 17
Small craft harbour divestiture 5 5 10
Subtotal—Investing in Infrastructure 500 159 15 674
A Sound and Efficient Financial Sector        
Combatting terrorist financing 3 6 10
Subtotal—A Sound and Efficient Financial Sector   3 6 10
Total—Investing in the Future 1,710 448 730 2,888
Note: Totals may not add due to rounding.

3 IMF Financial System Stability Assessment, 2008. [Return]

4 IMF Financial System Stability Assessment, 2008. [Return]

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