:
Good afternoon, ladies and gentlemen.
[Translation]
Good morning everyone.
[English]
Welcome to the 17th meeting of the Standing Committee on Industry, Science and Technology.
We are pursuing our study on the entertainment software industry. We have officials before us from the Department of Citizenship and Immigration: David Manicom, director general, immigration branch; and Martin Mündel, director, temporary resident program delivery division. We also have with us, from the Department of Employment and Social Development, Alexis Conrad, director general, temporary foreign worker directorate; Monika Bertrand, executive director, transfers and renewal, employment programs and partnerships directorate; as well as Amy Mifflin-Sills, the director of the program policy, skills and employment branch.
How may of you will be giving opening remarks? Two of you, okay.
We will begin with the Department of Citizenship and Immigration, as on our agenda. Go ahead with your opening remarks, please.
Mr. Manicom.
:
Thank you, Mr. Chair. Also, thank you to the committee for inviting us to today's meeting and for this opportunity to speak with you.
[Translation]
I would like to speak to you about some of ESDC's labour market programs that can help address the evolving skills needs of the entertainment software industry.
[English]
While Canada has had a good job creation record in recent years, challenges remain, as many Canadians are still out of work or underutilized at a time when employers are concerned about skills and labour shortages in certain sectors and regions.
[Translation]
While shortages are not universal, there is evidence of skill shortages in certain regions and sectors; including some occupations in the entertainment software industry.
These are complex issues and require collaborative efforts by government, the education and training sector, businesses and other key stakeholders to be addressed.
[English]
While addressing labour market challenges has been a long-standing objective of the ESDC, the government has recently announced measures to tackle these types of skills pressures in high-demand fields by focusing in three areas: first, transforming the skills training to better reflect labour market needs; second, training the workforce of tomorrow; third, ensuring Canadians have the first chance at available jobs.
As part of our work to transform skills training to better reflect labour market needs, we are in the process of transforming the labour market agreements, which expired on March 31, to new six-year Canada job grant fund agreements. As part of these new agreements, the government introduced the Canada job grant, which will be rolled out beginning July 1, 2014. The grant will be available to all private and non-profit businesses with a plan to train Canadians for a new or better job. Under the grant, employers will pay one-third of the cost of training, while the federal government will pay the other two-thirds. Small businesses can also benefit from flexible arrangements, such as the potential to count wages as part of their contribution. The grant could be used to help Canadians get the short-duration training they need for available jobs in the gaming sector.
We are also working to renegotiate the labour market development agreements and labour market agreements for persons with disabilities to better align training with employers' needs.
[Translation]
Students in Canada's education system are the largest source of labour market supply and helping them transition into jobs is a priority for the Government of Canada.
The Youth Employment Strategy is the government's flagship program to help youth, aged 15 to 30, gain skills and work experience to transition into the labour market.
The entertainment software industry, amongst others, can take advantage of this program. The YES is $330 million annually, is led by Employment and Social Development Canada and delivered by 11 federal departments and agencies.
[English]
For example, the career focus program helps post-secondary graduates to transition to the labour market through paid internships. This program also helps to better inform youth career choices through labour market information and work experience to help youth make more informed career decisions, find a job, and/or pursue advanced studies.
Through budget 2013, the government provided an additional $70 million over three years for the career focus stream of the youth employment strategy to support internships for recent graduates. As part of budget 2014, the government also announced it would take further steps to ensure youth employment programs kept pace with the evolving realities of the job market. More specifically, efforts will be made to promote internships in high-demand fields, such as the skilled trades and in science, technology, engineering, and math, so that youth can gain the work experience and skills necessary to find and retain jobs in industries such as video gaming, among others.
Furthermore, budget 2014 announced additional measures to ensure that apprentices are getting supports while in technical training, with the introduction of the Canada apprentice loan.
[Translation]
We are also exploring whether there are other opportunities to increase the supply of skilled labour through apprenticeship. Minister recently concluded a trip to Germany where they are testing new and innovative ways to have the apprenticeship model be applied to a broader range of occupations such as the information and communications technology industry.
[English]
ESDC also has a number of other programs that help improve participation of groups that are under-represented in the labour market: for example, the aboriginal skills and employment training strategy, the skills and partnership fund, first nations job fund for aboriginal people, as well as the opportunities fund for persons with disabilities.
Ensuring that Canadians have the first chance at jobs includes enhancing working centres and better connecting Canadians with the available jobs, making sure that employers looking for workers and workers looking for jobs can find each other. Budget 2014 announced additional measures to modernize the job bank, and plans to introduce an enhanced job-matching service, which will automatically match job seekers and employers on the basis of skills, knowledge, and experience.
Before closing, I would be remiss if I did not mention the temporary foreign worker program. Over the last few months, we've had the opportunity to meet with many representatives of the entertainment software and gaming industry. They have impressed upon me their strong commitment and efforts to recruit, train, and retain Canadians to work in the industry. They've also been clear that there are times when they simply cannot find Canadians or train them in time to do critical work, particularly skilled jobs at the top end of the talent continuum. This is either because the age of the industry in Canada means that not enough Canadians have had time to develop these very high-end skills or because some jobs are so highly specialized that there aren't Canadians who have that knowledge.
As a result, the industry has stated that they have and will continue to have needs for temporary foreign workers to fill these positions. They have been clear that they need these workers quickly, and are frustrated when delays in processing labour market opinion applications happen.
Recent and pending reforms to the temporary foreign worker program are not intended to stop the entertainment and software gaming industry from having access to highly specialized temporary foreign workers. In fact, the government is focused upon making sure that employers with a good track record who have demonstrated that there are no available Canadians to do highly paid work have timely access to temporary foreign workers.
The purpose of these reforms is to ensure that temporary foreign workers are not used as substitutes for Canadian workers or in lieu of a proper HR strategy to hire and train Canadians, and that employers who use the program play by the rules. That is why the government is putting in place requirements that companies who apply for temporary foreign workers include a plan outlining the steps they will take to transition to a Canadian workforce. Additionally, the government is introducing administrative monetary penalties as another tool to sanction employers who do not play by the rules.
From the discussions we have had with the industry, we believe these reforms will help the entertainment software and gaming industry and will support its continued growth in Canada.
In conclusion, we would like to add that the committee's study is timely, as the government is currently transforming its skills programming to be increasingly oriented to the evolving needs of employers and the labour market overall. We look forward to seeing the recommendations from the committee's study.
Thank you.
:
Mr. Chair, members of the committee, thank you very much for this invitation.
[English]
As director general for immigration policy at Citizenship and Immigration Canada, I am responsible for the development of policies to facilitate the entry of both temporary and permanent residents in a way that maximizes their economic, social, and cultural contribution to Canada.
I'll just make some very brief remarks to follow up on those of my colleague from ESDC, and speak briefly about our overall economic immigration programs that may benefit this industry.
[Translation]
As members of this committee are aware, employers must generally first apply to Employment and Social Development Canada for a labour market opinion (LMO) to hire a temporary foreign worker. Once this authority is granted, the intended employee can apply to CIC for work authorization, and for a visa if they are from a visa-required country.
[English]
However, there are certain types of business persons, such as those coming to Canada under a free trade agreement like NAFTA, who may be authorized to work in Canada in the absence of a labour market opinion. Other foreign nationals who may be authorized to work in Canada temporarily in the absence of a labour market opinion include youth coming to Canada on a working holiday as part of bilateral international agreements, and recent graduates of a Canadian post-secondary institution, among others.
In all cases, exemptions to the labour market opinion requirement are only granted in situations where the temporary employment of the foreign national is in the national interest.
Since 2012 the government has been conducting a review of the temporary foreign worker program to ensure that the program is aligned with today's economic and labour market needs, including where Canadians and permanent residents must be first in line for available jobs. Many of the changes to date have focused on the labour market opinion process; however, in addition, Canada's economic action plan 2014 committed to reviewing streams of the temporary foreign worker program that are exempt from the labour market opinion process.
[Translation]
I understand that some of your previous witnesses have commented specifically on changes to the process for bringing in temporary foreign workers as intracompany transferees, which is one of the LMO-exempt streams of the temporary foreign worker program. Last year, CIC consulted with employers and stakeholders in the review of the Intracompany Transferee component. this review is continuing with the objective of ensuring that this stream is used as intended.
[English]
More broadly, we are also working to ensure that economic immigrants have the skills and human capital to meet Canada's labour market needs and succeed in Canada. Previous work experience in Canada is often of significant benefit to new permanent residents. In that respect, the temporary foreign worker program serves as an important way to attract foreign nationals who may go on to successfully settle in Canada permanently. Programs such as the Canadian experience class, federal skilled workers program, and provincial nominee programs are all aimed at attracting highly skilled professionals to Canada.
For example, as part of the federal skilled workers program, employers can make a permanent job offer to a temporary foreign worker who is either abroad or is already here in Canada. Under these programs, getting in workers with needed skill sets is a key priority. To that end, applicants with valid job offers move to the front of the processing line.
In addition to existing programs, CIC is working hard to roll out a new electronic system to manage immigration applications next January. This system will allow the Government of Canada, provinces, territories, and employers to actively target highly skilled immigrants under key economic immigration programs. This change is intended to make our permanent immigration programs even more responsive to the needs of the labour market and economy, and employers in the gaming industry may find this to be a useful tool to focus efforts to recruit needed talent.
l understand that employers are concerned about processing times associated with work permit applications. l would like to assure you that CIC is committed to improving client service and modernizing its operations, with measures to improve efficiency, strengthen program integrity, and develop seamless service delivery.
l would just mention two such operational changes that may address some of the issues raised in previous committee meetings. CIC introduced electronic applications more than a year ago for all visitors, international students, and temporary foreign workers. Applicants using this online system are able to self-serve online by enrolling and logging in to a secure environment, uploading forms and documents, paying fees, and communicating with CIC.
Applicants in these categories also have access to application support services in more languages through our rapidly expanding global network of visa application centres. Unnecessary delays—such as when applications are incomplete—are minimized with the help of these centres. Both e-applications and the expansion of the visa application centre network are an improvement to service for temporary foreign workers.
[Translation]
To conclude, our two departments continue to examine ways to improve the existing temporary foreign worker program, with further announcements forthcoming.
Thank you.
With regard to the Canada job grant in budget 2013 the government announced a renegotiation of the labour market agreements and introduced the Canada job grant. At the heart of the Canada job grant is really the need for greater employer engagement in training and training decisions, and also greater employer investment in training.
The job grant is to be rolled out this year, just to give you an update on where we're at with it. We have been working with provinces and territories and have agreements in principle or letters of intent for negotiating implementation of the job grant. Two provinces have signed agreements, that's British Columbia and Ontario, so they will be implementing the job grant starting July 1.
Now how it would work is that, in general, businesses, employer organizations, including the entertainment software industry, are eligible to apply for a grant. It's a $15,000 maximum contribution to training. It is cost-shared. Employers would contribute a third to the training costs and it is available to all employed or unemployed Canadians who are looking for a new or a better job. For small businesses, of course, there's a certain flexibility required and there are provisions in the Canada job grant to make sure that small businesses can take advantage of that program. For example, when it comes to the employer contribution, wages could potentially count toward the one-third employer contribution.
The importance really is that employers get to select the training that they need. As I said in the beginning, that is at the very heart of the Canada job grant. So if an employer has a job and has an individual either employed or looking for a better job or is ready to train somebody unemployed, it is the employer who decides what training will be provided for the individual to equip that person for the job. So this is, in essence, how the Canada job grant works.
Thank you to all of our witnesses for being here. I'm particularly impressed that you clearly talked to each other before. They say departments don't talk to each other, but you're living proof that you do, so thank you for that.
Some of you focused on how to get people into the country, and I think that's a worthwhile goal and important. But for me, representing Winnipeg South Centre, there are lots and lots of people like me who have children in their late teens, early twenties, even thirties, who are looking to get work and wanting to find out how.
We have just had a fascinating study on this video industry, which is huge and new and burgeoning. There are probably lots of mothers and fathers in my riding who think that their son, based on.... I mean, if you have read Malcolm Gladwell's Outliers, these kids have put more than 10,000 hours into the product, so I think there is a competency base to grow from.
Can you tell us how you're going to or how you're able to help the industry help the people who live in all of our ridings, the people who have put the 10,000 hours of effort in and who want to be employable in this huge-growth, exciting industry?
:
Thank you very much, Mr. Chair.
I would like to thank the officials for being with us to answer our questions.
I would like to focus on the testimony we heard from the representatives of Ubisoft recently. Ubisoft is the largest player in terms of jobs in Canada in this sector. I would remind you that that company lost a quarter of its value on the stock market after it was announced that one of their two major games, Watch Dogs, developed in Montreal, was being postponed. This demonstrates how their inability to hire qualified workers for specific projects can lead to significant consequences.
One surprising problem that Ubisoft told us about was that Canadian workers sent abroad to Ubisoft development centres in Ukraine, France or elsewhere, would come back to Canada to work for Ubisoft, but their spouses and children would only have visitors' visas. So they were unable to study, work or obtain medical coverage.
What would the Department of Citizenship and Immigration propose to solve this problem, which can prevent the development of specific projects?
Thank you to the witnesses who are here today.
Mr. Jonathan Lutz, the vice-president and CFO of EA Canada, commented that:
Obviously, we would always much rather hire locally. We have a very, very experienced recruitment team that looks across the industry and would always hire a Canadian first....
What changes have we been making to the current programs under CIC and ESDC to ensure that Canadians are not overlooked for jobs?
Also, in line with that, in ESDC's presentation today, you said that industry:
...simply cannot find Canadians or train them in time to do critical work, particularly skilled jobs at the top end of the talent continuum. This is either because the age of the industry in Canada means that not enough Canadians have had time to develop these very high-end skills or because some jobs are so highly specialized that there aren't [enough] Canadians who have that knowledge.
So what are we doing? What changes are we making to current programs to ensure that Canadians aren't overlooked, and that we have a growing pool of potential Canadian employees at these companies?
It is an evolving industry, where skill sets that they have today will be even more stringent for them to be competitive in the industry. So how are we changing, how have we changed, and how are we going to be changing?
:
—and look back and see how that developed.
Mr. Chair, I'd like to use the rest of my time to move my motion:
That the Standing Committee on Industry, science and technology undertake a study of recent wireless plan price increases by Canadian wireless carriers and their impact on the affordability of life for consumers and report its findings to the House by April 30, 2014.
I know this is something that the government has expressed interest in. Certainly our goal in putting forth this motion is that as New Democrats we believe Canadians deserve access to the most reliable networks and the highest speeds possible at affordable prices. Canadians deserve clear and consistent action to improve competition in the market and bring down prices for our consumers. That's certainly our goal on this side.
It seems to us that the government has not handled this file well. They've spent in the area of $9 million on ads to fight Canadian companies when that money, energy, and time would have been better directed to actually improving services and costs for consumers. Our view is that the new entrants have been left by this government to wither on the vine and the government has signed off on further concentration in the industry, leaving consumers with fewer choices at higher prices.
We think this study would be welcomed by the industry and consumers. But I do want to say that there has been some confusion that stems from media reporting of this motion. The media was alleging—and I certainly wasn't, with this motion—that this motion spoke to an allegation of collusion in the industry, which was not at all the point of this motion.
There's been some debate on this and a retraction of recent media reports on the issue, but—