"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)
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.
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.
"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)