DISSENTING OPINION ON FACILITING THE ENTRY OF TEMPORARY WORKERS TO CANADA
SUBMITTED THE REFORM PARTY OF CANADA
PRESENTED BY VAL MEREDITH, M.P.
"In the economy of the 1990s, it is the information and knowledge-based industries that are providing the foundation for jobs and economic growth. Canadians must have the skills, opportunities, and knowledge to meet the demands of the new job market".
The above comment was made in 1993, on page 28 of the Liberal Red Book. Today in 1997, the hi-tech industry is looking abroad for skilled workers due to a shortage of qualified Canadians. The current Liberal government has failed to provide Canadians with training and education to meet the demands of the job market and more precisely the hi-tech industry. This problem was identified by the Liberals in 1993 and now close to four years later, nothing has been done. In fact, since 1994, the Liberals have cut over 3 billion dollars in social & education transfer payments to the provinces. The current federal government has reneged on its promise to "enhance the opportunity for job training" and "support and facilitate the national effort to prepare Canadians to compete in the world." (Liberal Red Book 1993)
WORK PERMITS FOR FOREIGN WORKERS
Hi-tech industry officials have indicated that the immediate problem in staffing vacant positions is caused by lengthy delays in processing work permits for foreign workers with the required skills and experience. While the Reform Party acknowledges the economic benefit in recruiting foreign workers with exceptional qualifications and experience in highly-skilled jobs, we question whether this strict criteria applies to all positions referred to in this report. Several companies in the Ottawa area have been pressuring the federal government to expedite the job validation process. Currently, this process requires companies to obtain approval from the Department of Human Resources Development Canada (HRDC) before recruiting from abroad. HRDC must be satisfied that the company has made every effort to find a qualified Canadian to fill the vacant position. Once the company satisfies this requirement, HRDC refers the request to Citizenship & Immigration and a work permit is issued to the foreign worker. Work permits are valid for up to 3 years.
PILOT PROJECT
The departments of Citizenship & Immigration and HRDC have introduced a pilot project to remove the job validation process for seven positions in the hi-tech field. This project is due to begin in May 1997.While we strongly support on-going efforts to seek Canadian talent before recruiting from abroad, the Reform Party recognizes that there is currently a shortage of qualified Canadians available to fill positions in these seven areas. By denying Canadian companies expedited access to qualified foreign workers, the government would be further hampering the efforts of these companies to compete in the international market.
Given the current situation, in the short-term it should be a priority for the departments of Citizenship & Immigration and HRDC to provide the necessary personnel to accelerate the process and clear any backlog of authorizations for foreign workers.
But rather than introducing a pilot project to remove the job validation process in these key areas, the Reform Party believes this can be accomplished by including these positions in the HRDC - Validation Exemption Category list.
The Reform Party recommends that priority be given to processing applications in the seven key areas in the hi-tech industry by exempting these positions from the job validation process, providing this list be reviewed on yearly basis by HRDC and Citizenship & Immigration officials.
HI-TECH CRISIS
Although the initial problem raised by hi-tech companies concerned delays in processing work permits, the discussion in the meetings of the Standing Committee on Citizenship & Immigration quickly shifted to examining the reasons why the federal government and industry failed to address this problem before it became a "crisis" and what must be done to solve the shortage of qualified Canadians. Both industry and government have acknowledged that more needs to be done in education, training and co-operative programs. Yet, after weeks of discussion there is no firm commitment from either the federal government or industry on providing additional funds in these areas. In fact, since 1993, the federal government has significantly reduced transfer payments to the provinces in education and training.The shortage of skilled workers in the hi-tech field is also a direct result of what is commonly known as "brain-drain". Educated and competent Canadians are leaving the country for employment elsewhere. When questioned about this, industry officials attributed the problem to other countries, such as the U.S., offering better salaries, lower taxes, increased benefits and incentives and a lower cost of living as the primary reasons for this exodus. As one witness, Mr. Fillmore, confirmed: "a more comprehensive analysis will show that salaries are not the only factor. The cost of living and social programs should also be considered". A long-term solution must be found to ensure that Canadian talent remains at home. The Reform Party believes that job creation and economic growth can be achieved by cutting capital gains tax in half. This measure is supported by many hi-tech companies.
The federal & provincial governments, industry and educational institutions must work together in finding a solution to this problem. The Reform Party believes that education and training are a provincial responsibility and supports an increase in transfer payments to the provinces to administer these programs. As well, industry and educational institutions must also play an active role in preparing Canadians to meet the future needs of the hi-tech industry.
FINDING A SOLUTION
The Reform Party of Canada has consistently emphasized that immigration should focus on Canada's economic needs. During the course of hearings, several witnesses stated that bringing in foreign workers in this instance would be beneficial to our economy because these positions would, in fact, create several other jobs for Canadians. Based on the information received, the Reform Party supports a short-term solution to the current shortage of skilled hi-tech workers. However, a much larger problem exists in this country which current and previous governments failed to address. The "big government, high-tax" philosophy of the former Conservative and current Liberal governments continue to have a detrimental effect on Canada's ability to compete internationally. The current tax burden in Canada has driven Canadians to seek opportunities elsewhere and with cuts in education and training in the past three and half years, it is doubtful the Liberal government will be able to find a concrete and viable solution to this problem."High taxes are undermining the Canadian economy. They threaten the financial security of Canadians, kill jobs, hurt the ability of our entrepreneurs to compete internationally and reduce the disposable incomes of families. It's time to give Canadians the tax relief they want and deserve". (Reform Party Fresh Start 1997)