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Home , Greg Selinger, Jon Gerrard, Rosann Wowchuk

HANSARD A Report from the Government Relations Office APRIL 2007 THE BUDGET ISSUE

IN THIS EDITION… Federal Budget 2007: “A Stronger, Safer, Better • Message • The Federal Budget Canada” • The Provincial the provinces, direct spending and tax meas- Budget ures this year.

• Visits by Dignitaries TRANSFERS TO PROVINCES & • Upcoming Events TERRITORIES • Heard on the Hill Budget 2007 delivers $39B in additional federal On March 19, 2007, federal Finance Minister funding to the provinces over a 7 year period to • Breakfast & nd Jim Flaherty presented his 2 budget “ ASPIRE restore the so-called fiscal balance. Included is Brainstorms to a stronger, safer, better Canada ” in the $12.7B for a revamped Equalization program in

House of Commons. 2007-08 ($1.5B higher than in 2006-07). In

Budget 2007 contains a wide range of spending 2006-07, received $1.709B in legis- Welcome to this latest initiatives and tax measures aimed at appealing lated payments. Under the ’new’ program, edition of the Govern- to the middle class. Polling showed Conserva- Manitoba will likely receive $1.826B in 2007-08 ment Relations Office tive popularity rose to as much as 40% in the (an increase of $123M). (GRO)’s Hansard news- immediate wake of the Budget release. Opposition Leader Stéphane Dion claims that letter—the first to be The following is a summary of Budget measures the equalization formula “is little more than using distributed strictly on an of interest to the university community. Overall, taxpayers own money to buy favour” since the electronic basis. the Government indicates in Budget 2007 that Government has “already cut nearly $10B in

over $8.4B will be provided in support of post- provincial transfers since taking power by We made the switch to a secondary education (PSE) through transfers to scrapping agreements on child care, labour paperless format to Continued onto page 2... allow for wider, faster and more cost-effective distribution. Manitoba Provincial Budget 2007:

With this new format, we The Building Budget hope to publish approxi- On April 4, 2007, Manitoba’s Minister of 2007 suffered from the mately 6 editions of Finance, , presented Budget 2007 fatal flaw that “The Hansard each year to – The Building Budget in the Legislature, his budget continues the provide timely updates eighth straight ‘balanced’ budget. same old NDP sham of on government matters announcing and re- As noted by the Free Press on Budget affecting the university. announcing millions in Day, “Selinger has at his disposal almost $100M government spending in new money from , as well as rising I hope that you enjoy while getting little real income tax revenues and an economy pegged this edition and find it to results for working Manitobans.” He also noted to grow faster than the Canadian average in be informative. that university students are faced with 2007.” “voluntarily hiking their tuition fees to fix crumb- - John Alho With a provincial election looming, Budget 2007 ing university facilities and retain top caliber pro- Associate Vice- takes advantage of this new money by including fessors.” President (External) ‘something for everyone’ setting the basis for Progressive Conservative Opposition Leader, the NDP Government’s upcoming campaign Hugh McFadyen, likened the Budgetary tax cuts platform. to mere "crumbs for Manitoba families." However, the Budget is also fodder for the other The following is a summary of many of the provincial party leaders. In a posting on his Budget measures of interest to the university blog, Dr. Jon Gerrard, the leader of the Mani- community. toba Liberal Party, commented that Budget Continued onto page 4...

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Federal Budget Continued from page 1 ...

market partnerships and more…” Dion argues the net benefit sciences and humanities through SSHRC). of Budget 2007 over the next 5 years would only be $1.1B. Changes will also be made to registered education savings Also included in the additional funding to provinces will be plans (RESPs) by eliminating the $4,000 limit on annual con- monies for a “strengthened” Canada Social Transfer (CST) tributions and increasing the lifetime contribution from that will be legislated to 2013-14. Specifically, Budget 2007 $42,000 to $50,000, and increasing the maximum Canada includes a CST base increase of $687M in 2007-08, a further Education Savings Grant (CESG) annual amount from $400 increase of $1.05B in 2008-09, and an automatic 3% in- to $500. “Each child will continue to be eligible to receive up crease per year thereafter. to $7,200 in CESGs.” Budget 2007 also improves access to

The CST will be made more ‘transparent’ by explicitly identi- RESP assistance for part-time students.

fying the dollar amount within it for each of the 3 priority ar- As well, Budget 2007 indicates that the Minister of Human eas: PSE, support for children, and other social programs. Resources and Social Development will be leading a review Budget 2007 proposes to dedicate 25% of the CST for PSE, of the Canada Student Loan Program (CSLP), in consultation meaning: in 2007-08 an additional $176M will be earmarked with the provinces, territories and stakeholders. Resulting for PSE transfers and in 2008-09 an additional $800M will be changes will be announced next year. transferred to provinces. The Budget also proposes further increases in the future, reaching a total of $3.8B in additional The argues that Budget 2007 fails to funding by 2013-14. “put a penny into the pockets of Canada’s under-graduate students.” Should the Liberals be elected to power in the Unfortunately, the Government did not create a separate PSE next election, the party has already committed to investing transfer fund and the commitment to dedicate 25% won’t be $3.1B over 5 years for students’ financial assistance, gradu- legislated until 2013/14. With monies still flowing through the ate scholarships, and international study. CST, there is no guarantee that the provinces and territories will actually direct funding to universities and other PSE insti- RESEARCH INVESTMENTS tutions, despite it being ‘earmarked’ for that purpose. Budget 2007 includes $1.3B in new spending on research and innovation. STUDENTS Budget 2007 points out that Canada has the highest post- The Budget contains $85M per year for the granting councils secondary attainment rates among OECD countries and is ($37M for each of NSERC and CIHR and $11M for SSHRC ranked 2 nd , and nearly on par with the United States, in terms — an overall increase of 5.3%) “for research targeted on key of total post-secondary expenditures as a percentage of priorities: health sciences, energy, the environment, informa- GDP. Nonetheless, the Government acknowledges that the tion and communications technologies and management, country’s success must never be taken for granted. business and finance.”

An additional $15M per year is allocated for indirect costs [T]he global, knowledge-based economy and bringing the annual support in 2007-08 to $315M or 25.4% of changing demographics are presenting Canadi- federally sponsored research - falling short of the $200M in- ans with major new challenges. At a time when crease required to raise the reimbursement rate to 40%. the growth of the country’s population is slowing, Canadians must learn to adapt to changing tech- The government also allocates $510M to CFI for another nologies and meet the new knowledge and skills major competition before 2010 and an additional $100M in requirements of the labour market. Investments in 2006-07 year-end monies to Genome Canada “to extend post-secondary excellence are key to meeting promising research projects and sustain funding for regional these challenges and building Canada’s Knowl- genome centres and related technology platforms” (falling edge Advantage. short of the $380M over the next 3 years requested by Ge- nome Canada). Budget 2007 companion document—The Budget Plan 2007 Budget 2007 allocates: $120M in 2006-07 to CANARIE Inc.

In order for Canada to be well-positioned to succeed in this to maintain CA*net for the next 5 years and to develop the new global economy, Budget 2007 includes investments next generation CA*net5; $10M over the next 2 years to the made “to create the best-educated, most-skilled and most Canadian Institute for Advanced Research “to help Canadian flexible labour force in the world.” students and researchers participate in and lead ground- breaking research on the international stage”; and $6M in Budget 2007 includes $15M in 2007-08, $20M in 2008-09 2008-09 towards the relocation of Natural Resources Can- and $27M per year thereafter to support an additional 1,000 ada’s CANMET Materials Technology Laboratory to the students (for a total of 5,000 students) each year through the McMaster Innovation Park. Canada Graduate Scholarships Program. These new schol- arships will be divided and named as follows: 400 Sir Freder- The Government indicates in Budget 2007 that it will “launch ick Banting and Dr. Charles Best scholarships (health-related an independent expert panel that will consider options for studies through CIHR); 400 Alexander Graham Bell scholar- transferring federal laboratories to universities or the private ships (natural sciences and engineering through NSERC); sector” as well as identify up to 5 laboratories that could be and 200 Joseph-Armand Bombardier scholarships (social early candidates for the transfer. Continued onto page 3...

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Federal Budget Conclusion from page 2 … $350M is allocated over 2006-07 and the next 2 years to sup- years to Environment Canada “to develop a targeted sci- port 9 Centres of Excellence in Commercialization and Re- ence plan and a Canada-Manitoba Agreement to support search across Canada. A further $165M in 2007-08 and the long-term sustainability” of ; $39M over 2 $30M in 2008-09 is allocated to support competitions under a years to the Department of Fisheries and Oceans “to in- new Centres of Excellence in Commercialization and Re- crease fisheries science research programs to strengthen search program. fisheries management and resource conservation”; and $19M over 2 years for initiatives that will “contribute to Budget 2007 allocates $11M in 2008-09 to accelerate the keeping Canada’s coastal waters clean. This funding will creation of new business-led Networks of Centres of Excel- support the sustainable development, management and lence. Up to 5 new networks are expected to be supported by protection of ocean resources and water quality.” this funding, beginning in 2008-09.

The Budget also dedicates $4.5M over 2 years to the Net- • The elimination of the capital gains tax for charitable dona- works of Centres of Excellence program to establish a new tions of publicly-listed securities to private foundations.

Industrial R&D Internship program. This new program will • $4.1B in 2007-08 and $4.4B in 2008-09 for Canada’s total partner 1,000 graduate students and post-doctoral candidates international assistance and confirms Budget 2006 commit- with businesses annually for 1 semester internships “to under- ment to double international assistance by 2010-11 from take applied research aimed at meeting the innovation needs 2001-02 levels. of the host firm.”

As well, $30M will be allocated in 2006-07 to The Rick Han- • $13M commitment to create the Foreign Credential Referral sen Man in Motion Foundation “to translate research into Office. As part of its mandate, the Office will refer immi- practical benefits for Canadians living with spinal cord inju- grants to the appropriate assessment bodies for foreign ries”. credential recognition. The Office is expected to be fully operational by late spring 2007. Budget 2007 indicates that the Minister of Industry will “shortly release a comprehensive and forward-looking science and • $33.6M, over 2 years, to help Canadian-educated foreign technology strategy” that will “outline a multi-year funding students and skilled foreign workers stay in Canada as per- framework for action.” This strategy was originally expected to manent residents. be released prior to Budget 2007. CONCLUSION OTHER AREAS OF POTENTIAL INTEREST Liberal and NDP Members of Parliament were quite vocal in • $2M over the next 2 years “to launch a new international their opposition and voted against Budget 2007. The Bloc education marketing campaign to attract talented students to Quebecois, on the other hand, joined the Conservatives to Canada. pass the Budget by a vote of 176 to 119 on March 27.

• $1.5B for the Canada ecoTrust for Clean Air and Climate In Manitoba, Premier Doer indicated that he was taken aback by the lack of new money in Budget 2007 for PSE in 2007-08 Change - a trust allocated on a per capita basis providing a and that the province had been counting on getting at least minimum of $15M per province and $5M per territory, drawn some new money for PSE this fiscal year. down over 3 years, “to support efforts to develop technology, improve energy efficiency, and undertake other projects that Budget documents and additional information are available will result in significant environmental benefits.” through the Government Relations website.

• A new National Water Strategy, which includes $7M over 2

Visits by Chinese and Czech Republic Dignitaries

The Government Relations Office coordinated two recent visits to the (UM) by foreign dignitaries.

On March 21, His Excellency Shumin Lu, Ambassador of the People’s Republic of China to Canada, accompanied by the Consul General of the People’s Repub- lic of China Mme. Taoying Zhu, and members of the Chinese Embassy Consu- late Staff visited the UM. As part of the visit, His Excellency spoke to an I.H. As- per School of Business International Management Class. The delegation also toured the Richardson Centre for Functional Foods and Nutraceuticals (RCFFN).

On March 27, His Excellency Pavel Vošalik, Ambassador of the Czech Republic to Canada and the Honourable Jirf Sneberger, Deputy Chairman of the Senate of Parliament of the Czech Republic, and a delegation visited the UM and toured

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FUNDING FOR PSE INSTITUTIONS • $2,891,300 for Medical Student/Resident Financial Assis- Budget 2007 maintains the tuition freeze at 10% below 1999 tance (no change over last year); levels. In the Budget Speech, Minister Selinger claimed that the $95M provided by the Province for post-secondary edu- • $12,785,500 for the Canada Millennium Scholarship Fund, cation (PSE) funding since 2000 has fully offset the resulting federal funds flowed through the Province (no change over lost revenue to universities and colleges, tied directly to enrol- last year); and ment. The Minister also claimed that the 1/3 increase in Manitoba’s university and college enrolment was “supported” • $3M for Canada Study Grants, again, federal funds flowed by the 10% reduction. through the Province (no change over last year).

Minister Selinger referenced last year’s commitment of “$60M As well, Budget 2007 contains a 60% income tax rebate on over three years”, including the promise of a 5% funding in- tuition fees paid on or after January 1, 2004 for all post- crease in 2007/08, before noting that Budget 2007 goes fur- secondary graduates who graduate on or after January 1, ther by committing to increasing provincial operating grants to 2007 and who live and work in Manitoba, up to a maximum universities and colleges by an average of 7% this year. In lifetime rebate of $25,000. Recognized institutions may be his Budget Speech, Minister Selinger stated that this 2 per- located anywhere in the world, and include private colleges. centage point increase “is equivalent to a 4% tuition fee in- It is estimated to cost the province $2.2M in reduced tax reve- crease” and noted that the government commits to this in- nues in 2006/07.

crease despite the fact that the recent federal budget did not SCIENCE, RESEARCH AND INNOVATION include any new funding for PSE until next year. As recognised in Budget Paper A:

Overall, Budget 2007 allocates $448,623,900 in support for Research and development (R&D) helps form the universities and colleges – up from last year’s $414,446,100. ideas and create the expertise that ultimately lead Among other things, this money goes towards: to innovation. Those in the forefront of innovation • $328,241,200 in funds for university operating grants, as will be best positioned to develop higher value- discussed above; added sectors and better-paid, knowledge-based jobs. In the absence of innovation, economies may • $5,896,100 for the post-secondary strategic initiatives fund lose competitive position and societies will not (a $5.3M increase over last year); and realize the full benefits that innovation can bring: higher productivity, rising incomes, a cleaner envi- • $7.61M for ACCESS programs (a $438,000 increase over ronment and sustainable development, improve- last year). ments to personal health and wellness, and so INFRASTRUCTURE forth. Budget 2007 pledges $25M, previously announced in the fall 2006 Speech From the Throne, for the University of Winnipeg Budget 2007 allocates: $13.85M for Manitoba Research and to support “projects like the new Richardson College for the Innovation Fund (a 4.5% or $600,000 increase over last Environment.” As well, Budget 2007 allocates funding to im- year); $720,100 for the Manitoba Centres of Excellence Fund prove the University College of the North (UCN)’s electronic (a 9.8% or $64,300 increase over last year); $1,952,600 for network, linking 14 regional centres, including 9 on reserves. Research Council (no change over last year); and $14.3M in Grant Assistance for Climate Change STUDENT AID AND AWARDS and Green Strategy Initiatives (no change over last year). The Budget allocates $59,248,700 for Manitoba Student Aid, up 1.7% from $58,276,600 last year. Funding will go towards Budget 2007 also allocates $6,047,700 for Water Steward- administrative costs and the following: ship Initiatives (a 20% or $1M increase over last year), pro- viding funding for scientific research, projects, incentives, and • $5M for the Manitoba Scholarship and Bursary Initiative (no activities that further the protection and stewardship of Mani- change over last year); toba’s water and fishery resources and aquatic ecosystems. • $624,500 in new funding for Manitoba Graduate Scholar- As well, Budget 2007 allocates more than $10M in new funds ships (MGS) for a total of $2M for 2007/08, fulfilling the pro- for water protection, including for further scientific research vincial promise made in 2004 when the program was estab- on Lake Winnipeg and beneficial management practices. lished. MGS will be awarded to more than 100 Masters Furthermore, the province “will work with the federal govern- and 60 PhD students this year; ment on plans to fully invest the $7M” earmarked in the fed- eral Budget for Lake Winnipeg. $8.26M for the Manitoba Bursary Fund (up from $8.06M • Budget 2007 also maintains the $3.4M allocation for the Sus- last year) benefiting 2,500 students; tainable Development Innovations Fund providing funding for • $3,336,000 for loans and bursaries (no change over last the development, implementation, and promotion of environ- year) ; mental innovation and sustainable development projects de- livered by government, industry, and community groups. • $13,874,300 for the Tuition Rebate Grants (no change over last year); Continued onto page 5...

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ABORIGINAL STUDENTS HEALTHY LIVING Minister Selinger noted that Aboriginal student enrolment in Budget 2007 fulfills the commitment to increase funding for universities and colleges is up 77% and 59% respectively Sport Manitoba by $1M “supporting high performance ath- since 1999 and that Aboriginal apprenticeship registrations letes and community sports programs across Manitoba.” have tripled during that same time. The government acknowl- AGRICULTURE, FOOD AND RURAL INITIATIVES edges that this increase is due in part to ACCESS programs. Budget 2007 continues the annual $868,300 Manitoba Agri- The Budget Speech referenced the provincial commitment for culture, Food and Rural Initiative grant to the UM’s Faculty of multiyear funding to Career Trek, designed to help students Agriculture. complete high school and pursue PSE. Budget 2007 also Budget 2007 maintains the $1M funding to the Agri-Food Re- commits increased resources to Manitoba’s Aboriginal Educa- search and Development Initiative, again no change over last tion Directorate “to support the inclusion of Aboriginal educa- year, providing funding aimed at enhancing diversification tion and training into all aspects of government operations.” and value-added opportunities in Manitoba’s agri-food sector. As well, Budget 2007 creates a new young Aboriginal entre- Budget 2007 increases funding for the Food Development preneur initiative to provide assistance with business develop- Centre located in Portage la Prairie to $2,233,800 (an in- ment costs. crease of $120,000 over last year) to support the develop- ment and commercialization of new food products. Minister Furthermore, Budget 2007 provides additional funding to ex- Selinger indicated that this “builds on recent provincial invest- pand educational programming through UCN, including 50 ments in the RCFFN.” new nursing spaces. The Provincial Government’s vision is for “Manitoba to be a NEW IMMIGRANTS leader in biodiesel production”, though no monies are allo- Manitoba commits to double the Province’s current immigra- cated for research in this area. Budget 2007 does provide an tion level over the next 10 years. To help with this goal, unspecified amount of funding “for rural pilot projects to con- Budget 2007 provides more than $9.5M in new funding “to struct and test the feasibility of anaerobic digesters on hog enhance settlement services, language training, labour market farms”. The province is also working alongside industry “to integration and ethno-cultural and anti-racism initiatives, sup- study the feasibility of carbon dioxide enhanced oil recovery ported by federal resources.” in Manitoba.” Finally, there will be continued assistance, in Support will be provided for a wide range of services and pro- an unspecified amount, to Brandon University’s Rural Devel- grams including by “increasing support for Manitoba’s Qualifi- opment Institute “to support rural research and development cation Recognition Initiative to better assess and recognize the projects.” valuable qualifications immigrants bring to the province.” No OTHER HIGHLIGHTS details are provided as to the amount of funding that will be put towards this initiative and whether any of the University of • For a 2nd year in a row, the Minister indicates that the gov- Manitoba (UM) foreign credential recognition programs, espe- ernment will be investing in “a new state-of-the-art Cardiac cially the IEEQ program, will receive some of these funds. Centre of Excellence at St. Boniface General Hospital.”

As well, new legislation will apparently be introduced “to im- • Budget 2007 commits more than $2M in “new resources for prove recognition of foreign qualifications.” key training and skills priorities, including growing appren- ticeship training, expanding sector councils, and more flexi- MEDICINE AND NURSING ble funding to meet critical skills shortages.” Budget 2007 provides the ongoing funding to support the addi- tional 100 medical spaces at the UM, the increased 25-space • Budget 2007 increases the payroll exemption threshold for licensing program for international medical graduates, the the Health and PSE Tax Levy by 25% to $1.25M benefiting 3,000 nurses in training and “more than 50 new technologist one-third of the employers currently paying this tax. training seats.”

Budget 2007 also provides $3 million in new funding for • In the Budget Speech, Minister Selinger indicated that this “physician specialist training, including emergency room doc- year, the province “will engage First Nations and communi- tors, oncologists and pediatricians.” The new funds will ad- ties in the northern Interlake region to explore the feasibility of expanding local training opportunities”. dress the current ER doctor shortage, as well as the previ- ously announced additional 2 medical oncologist residency Budget documents and additional information are available spaces and the 2 additional pediatric residency spaces in through the Government Relations website. Brandon.

The University of Manitoba, the province’s largest research institution, is a national and global innovation leader. Areas of excellence include functional foods and nutraceuticals, plant and human genomics, proteomics and systems biology, cardiovascular and diabetes diseases, HIV/AIDS research, alternative energy and advanced composite materials.

Budget 2007 companion document – Manitoba’s Action Strategy for Economic Growth

HANSARD Page 6 Heard on Parliament Hill... UPCOMING EVENTS… Federal Parliamentarians have mentioned the University of Manitoba (UM) on numerous occasions since the 39th Parliament, 1st session of the House of Commons re-convened on January 29th, 2007, April 17 and the Senate on January 30th, 2007. Carol Bellringer, Auditor General of Manitoba, On Februay 1, as part of the House of Commons (House) debate surrounding the Liberal Party motion addresses the Manitoba on climate change, Hon. Raymond Simard (St. Boniface, Lib.) discussed his visit to the icebreaker, the Chambers of CCGS Amundsen, a trip organised by the GRO in the fall of 2005, and noted that UM researcher, Dr. Commerce Barber, along with his colleagues from the Université Laval, talked to the group about climate change in May 8 the north. , Minister of Advanced On February 13, in response to a question in the House about partisan appointments playing a role in Education & Literacy, the appointment to the Parole Board of the wife of a long time assistant to the former minister of justice, addresses the Manitoba Hon. Peter Van Loan (Leader of the Government in the House and Minister for Democratic Reform, Chambers of CPC) noted that the individual in question, Patricia Haasbeek, has incredible qualifications to be on the Commerce Parole Board including applied counselling with the University of Manitoba.

May 15 International Day of On February 21, as part of a motion in the House to have the Standing Committee on Human Re- Families sources, Social Development and the Status of Persons with Disabilities undertake a study of the cur- rent level of financial support provided to persons with disabilities through the Canada Pension Plan Dis- May 17 ability Benefit, Hon. Karen Redman (Kitchener Centre, Lib.) referenced a UM study that revealed women , with disabilities were far more likely to be victims of domestic violence. President & Vice Chancellor of the In the House, on February 27, 2007, Hon. (Winnipeg South Centre, Lib.) made a Member’s University of Winnipeg Statement congratulating the UM on its 130th anniversary. On February 28, 2007, Mr. Rod Bruinooge addresses the (Winnipeg South, CPC) also made a Member’s Statement in the House congratulating the UM on its Winnipeg Chamber of Commerce anniversary.

May 21 On February 28, Hon. and Hon. Mira Spivak made Senators’ Statements congratulat- th Victoria Day, ing the UM on its 130 anniversary. University Closed On March 2, in response to a question in the House regarding the launch of the International Polar Year May 21 to May 25 and Canada’s contribution to it, Mr. Rod Bruinooge referenced the official launch of International Polar House of Commons Year, the largest ever international research program focused on the earth's polar regions, with $150M Break Week in federal funding for 44 Canadian research projects, including one at the University of Manitoba.

The full Hansard transcripts are accessible online through the Government Relations website.

Breakfast & Brainstorms

As part of its outreach efforts, the Government Relations Office organizes Breakfast & Brainstorms , a legislative speaker series at the Manitoba Hansard Legislature, with the Council on Post-Secondary is published by the Education. Government Relations Office. The Series is designed to bring public policy decision If you have any com- makers and influencers together with University of ments or questions please contact us at: Manitoba researchers.

310 Administration The most recent session, Documenting Social Bldg. University of Manitoba Change: Processes and Outcomes from 16 Years of (204) 474-7881 Study of the Family Violence Court , was held on Fax: (204) 474-8421 March 9th, 2007. Dr. Jane Ursel was the presenter. Government_Relations @umanitoba.ca Previous session topics included Climate Change in http:// the North and Livestock and the Environment. www.umanitoba.ca/ government_relations Dr. Ursel with Minister Diane McGifford, Minister of Advanced Education & Literacy