Mr. Bob Dechert (CPC)

Hon. Gary Goodyear (CPC)

Budget 2010 will also provide another $45 million to the granting councils to establish a flagship Canada post-doctoral fellowship program that will retain and attract global research talent and leaders to Canada. When fully implemented, this new program will annually fund about 140 new two-year post-doctoral fellowships valued at $70,000 each per year, which is, by all accounts, the most attractive post-doctoral program in the world. This program builds on our support for Canada graduate scholarships, for the Canadian apprenticeship program and for the Vanier graduate scholarships to cover the full spectrum of support for the development of high quality research talent.

 

 

***CAPS SENDS LETTERS TO VARIOUS MPs in CPC, LIB, BQ, NDP, and GREEN***

Hon. Marlene Jennings (LIB)

Mr. Speaker, Isabelle Thiffault, from McGill University, received two post-doctoral scholarships. Her research could open the door to new treatments for neurological problems.  Because of the 2010 budget, which limits eligibility for education tax credits, Isabelle will see her taxes increase by $4,000.

Will the Minister of Finance explain to Isabelle why he increased her taxes by $4,000?

 

(response to Hon M. Jennings)

Hon. Diane Finley (CPC)

Mr. Speaker, the hon. member is ignoring the facts. We have done a lot for students: there are many more scholarships and funding opportunities available.  We have invested in universities and colleges to help them accept students. We have also modified the repayment system to make it easier for students to study.

 

March 19

Mr. Michael Savage (LIB)

Mr. Speaker, budget 2010 increases taxes on post-doctoral students with scholarships. This means that while last year's students who earned an average of $32,000 in scholarships did not pay tax, this year's students, like Isabelle Thiffault, will now be taxed to the tune of $4,000.

Would the minister agree that not paying a tax last year but paying a tax this year on the same thing is a tax increase?

Hon. Diane Finley (CPC)

Mr. Speaker, what the hon. member conveniently ignores is that we actually made scholarships and bursaries for post-secondary students non-taxable. Maybe he does not want to remember that because he voted against it.

What we have done to help students is quite remarkable, especially when we contrast it with the $25 million in cuts that the hon. member's Liberal government made in terms of social services, to cut transfers to the provinces, including post-secondary education.

 

Mr. Michael Savage (LIB)

Mr. Speaker, budget 2010 is a tax budget. We have new taxes on jobs, on health, on safety and on savings, and we have this tax on education and innovation.

It does not take a post-doctoral fellowship to figure out that if one did not pay tax last year but one has to pay tax this year, that is a punishing tax increase.

Why is the government increasing taxes on education?

 

Hon. Diane Finley (CPC)

Mr. Speaker, I would like the hon. member to explain to Canadians why he and his party, since they pretend to support post-secondary education, voted against all of our initiatives: the initiative to make scholarships and bursaries tax-free, $2 billion in infrastructure investment for colleges and universities, expanding the RESP program and expanding RDSP program.

We are doing so much to help students. We even brought in a new grants program that helps low- and middle-income students access post-secondary education, and of course the hon. member voted against it.

 

March 22

Hon. John McCallum (LIB)

Mr. Speaker, the Conservatives are raising so many different taxes that they cannot even remember which ones will be raised.

I would like to remind them that they created a new tax on income trusts and that they are raising the income taxes of our brightest post-doctoral researchers, along with employment insurance premiums and taxes on airline tickets.

Which of these tax increases is the Prime Minister's favourite?

 

Hon. Jim Flaherty (CPC)

Mr. Speaker, we are delivering historical and permanent tax relief in Canada. Total savings for a typical family in Canada is now over $3,000 as a result of four years of Conservative government.

We have reduced the GST from 7% to 5%. On this side of the House, unlike the official opposition, we do not intend to raise the GST.

We are also continuing with our business tax cuts, where we will have most of the provinces at 10% by 2013 or so. The federal government is 15%, a combined tax rate for businesses in Canada, which is a great brand internationally of—

Mr. Nicholas Dufour (BQ)

Mr. Speaker, the minister put in the wrong tape.

In addition to depriving Quebec of post-secondary education transfers and cutting some research programs, the government has now decided to cut post-doctoral fellowships, which will now be taxable, thus drastically reducing the meagre income of these students. This decision runs the risk of creating a brain drain as well as discouraging leading-edge research.

Why does the government have such a lack of vision when it comes to research?

 

Hon. Jim Flaherty (CPC)

Mr. Speaker, the university community very much welcomed the creation of 45 million dollars' worth of post-doctoral fellowships. Indeed, it was the university community, including the university leadership in Quebec at Laval and McGill and others, that asked for this. Now some are suggesting that at $70,000 a year a post-doctoral fellowship ought not to be taxed. Say that to the rest of the Canadian people who earn $70,000 a year and pay their fair share of Canadian taxes.

 

March 23

Mr. Marc Garneau (LIB)

Mr. Speaker, the government has just imposed a tax on research by eliminating the tax exemption granted to post-doctoral students.

Let us call a spade a spade: the government just imposed a new tax that will negatively affect research in Canada.

After creating grants, supposedly to fund post-doctoral research, the government decided to tax all post-doctoral students, supposedly to pay for those grants.

Does the government understand what it has done?

 

Hon. Jim Flaherty (CPC)

Mr. Speaker, there has been no change in the tax policy in Canada with respect to post-doctoral fellowships. It is exactly the tax policy that was followed by the Liberal government.

We made a big change several budgets ago and that is with regard to scholarships. Pure scholarships are not taxable in Canada. However as we know, post-doctoral fellows work. Just as the Liberal government recognized, they are going to be paid through the fellowships, $70,000 a year. As I said earlier, they should pay their fair share of taxes in Canada.

 

Mr. Marc Garneau (LIB)

Mr. Speaker, most researchers recognize that the most productive phase in research begins at the post-doctoral level when a person has acquired the necessary research skills and knows where he or she wants to focus. This is where a researcher has the greatest potential to make important contributions. This is not the time to clobber post-doctoral students with taxes that will reduce their already-meagre incomes.

Does the government recognize that it is suffocating research and innovation in this country?

 

Hon. Jim Flaherty (CPC)

Mr. Speaker, only a Liberal could stand up in this place and say to Canadians that $70,000 a year is meagre income. Only a Liberal could do that in this place.

The member opposite is so out of step. Here is what the presidents of 13 Canadian universities said, including the hon. Allan Rock, the president of the University of Ottawa:

For that vote of confidence on higher education and advanced research, we are indeed grateful to the Government of Canada and to the taxpayers of Canada.