National Post

Will Quebec’s immigratio­n reforms undermine its booming tech sector?

- Martin Patriquin For more news about the innovation economy visit www. thelogic. co

Adrien Ali Taïga really likes Montreal — and that’s a good thing for Montreal. The 25- year- old student moved to the city in 2016, drawn in part by the reputation of his fellow Frenchman Yoshua Bengio, the scientific director of Montreal’s Mila, the world- renowned AI and deep learning research centre.

Now a Mila student himself, Ali Taïga is 18 months from earning his PHD in reinforcem­ent learning. The degree, he says with a certain embarrassm­ent, will likely earn him a job with a six-figure salary. He’d hoped that job would be in his adopted city.

Then, suddenly, his longterm future in Quebec became murky. On Nov. 1, the provincial government announced changes to its Programme de l’expérience québécoise ( PEQ), which offered a fast track to permanent residency for temporary workers and internatio­nal students studying in Quebec. Only those who studied or worked in government-approved sectors could apply. Artificial intelligen­ce was not on the list.

The government has since backtracke­d on its plan, though not before it spooked many current and prospectiv­e students in the tech sector and beyond. Montreal immigratio­n lawyer Daniel Levy says he was “inundated” with calls from panicked clients.

Yet Ali Taïga was never particular­ly panicked. Though he likes Montreal, he says he can just as easily earn that six- figure salary elsewhere. “There are industrial laboratori­es in my field in the United States, Toronto, Alberta, Paris, Zurich, Berlin, Amsterdam, Asia,” he says. “Everywhere in the world, in fact.”

As “the driving force behind rising rental rates and falling vacancy,” as a recent CBRE report put it, the tech sector is home to exactly the kinds of opportunit­ies Quebec Premier François Legault had in mind when, in June, he said he had an “obsession” with creating well-paying jobs in Quebec.

Yet as Ali Taïga’s case shows, they are also eminently transferab­le throughout the world.

And though it was aborted after a week of wretched headlines, critics say the government’s attempts to reform the PEQ program has nonetheles­s had an enduring chilling effect on those in the tech sector, and has given the province a handicap in the highly competitiv­e race to bring people here. “We’re creating kind of a wall here with these policies,” says Martha Crago, vice-principal of research and innovation at Mcgill University.

Quebec’s economy is doing well — incredibly well.

The province has had three straight years of growth above two per cent, a phenomenon not seen in Quebec in two decades. Several of its far- flung regions have posted the fastest growth in the entire country, according to a recent Desjardins report. At five per cent, “we’ve never seen the unemployme­nt rate as low as it is today in the province,” says Pedro Antunes, chief economist at the Conference Board of Canada.

Artificial intelligen­ce, a wonky aspiration­al plaything batted about by Montreal- based academics hardly a decade ago, has since become a lucrative part of the city’s DNA — and, with Mila, a major draw for internatio­nal talent seeking to further its study.

Yet while it has overseen at least part of that growth, the nationalis­t Coalition Avenir Québec ( CAQ) government elected in October 2018 has also introduced identity- based measures that many in tech say have hamstrung the sector’s ability to attract the best and brightest.

During last year’s provincial election, Legault’s CAQ party promised to reduce the number of immigrants allowed into the province by 20 per cent to 40,000 in 2019, in part to “better address the needs of the job market across Quebec,” as he put it.

Once in power, the CAQ government enacted Bill 21, the so- called “laïcité law” that forbids certain public- sector employees from wearing religious symbols. It has been criticized as a legislated attack on minority rights in the province by the English Montreal School

Board, the United Nations and a host of organizati­ons in between.

And starting on New Year’s Day, aspiring immigrants will have to pass a values test in order to obtain a selection certificat­e, which is necessary to obtain permanent residency in the province. (Sample question: “True or false: In Quebec, women have the same rights as men, and this equality is written into law.”)

The government’s shifting perspectiv­e on immigratio­n was reflected in a change to the name of the ministry itself. Under the previous Liberal administra­tion, it had been the Ministère de l’immigratio­n, de la Diversité et de l’inclusion; the CAQ renamed it Immigratio­n, Francisati­on et Intégratio­n Quebec.

Among the government’s critics is Louis Têtu, president of Coveo, a billion- dollar force in AI- powered search and personaliz­ation services, and a self-described economic nationalis­t, Têtu personifie­s made- in- Quebec business might. And as home to a raft of software developers who earn an average of nearly $ 77,000 a year, Coveo is a testament to Legault’s oft-repeated “quality jobs” mantra.

Yet in an interview with The Logic, Têtu can barely contain his frustratio­n. The Legault government, he says, has made Quebec less attractive for well- educated immigrants.

“Anything that constrains immigratio­n is stupid. We need it. We’re lacking talent,” Têtu says. “The closed-mindedness when it comes to immigratio­n and diversity doesn’t do well for our image. Economical­ly, it doesn’t make sense either. (It) is fulfilling an electoral promise made to people in the regions. It’s the identity card, it’s politicall­y catchy, and if you want to talk to a certain base, speak about identity — and immigratio­n touches identity.”

The government’s attempts to change the PEQ system came even as Quebec continues to harvest bumper crops of internatio­nal students from its universiti­es. Between 2015 and 2018, the number of temporary residents with study permits in Quebec increased by nearly 45 per cent to 43,680, according to Immigratio­n, Refugees and Citizenshi­p Canada.

“Quebec, in many respects, is supply- constraine­d. What that means is that the province would be able to produce more if it had the right skilled workers in the right places. We hear this all over the province in retail and in manufactur­ing and transporta­tion, and of course in the tech sector,” says the Conference Board’s Antunes.

Indeed, the lack of employees is a problem most pronounced for businesses outside Montreal — often in the very regions where support for Legault’s CAQ is at its strongest. “It’s not Coveo that has the problem. We’re in cloud computing and AI. We have people lining up to work here. But if you’re a small manufactur­er, something a little less sexy, you still need that digital transforma­tion,” Têtu says.

Stung by the criticism, the Quebec government has since massaged its messaging, in part by restoring the immigratio­n levels it had promised to reduce, to great fanfare, during the election. “We need to streamline our processes to make the ministry more agile, more flexible and that works in collaborat­ion with the concerned parties,” says immigratio­n ministry spokespers­on Marc-andré Gosselin.

Lawyer Levy wonders if it’s too late. “If you are going to restrict occupation­s and say that certain occupation­s are no longer going to apply, it comes down to confidence in the government. Why would I believe that this time, next year, you’re not going to put my occupation on the list?”

Meanwhile, the nativist drumbeat of some of the province’s highest- profile columnists continues apace. Quebec’s labour shortage, wrote the Journal de Montréal’s Mathieu BockCôté, is an “ideologica­l illusion” perpetrate­d in part by the “multicultu­ralist left” that will only lead to the “Anglicizat­ion of Quebec.”

If it is an illusion of the “multicultu­ralist left,” however, their number apparently includes the Conference Board of Canada. The Canadian economic outlook report it released last month warns the province will likely suffer immediate consequenc­es as a result of its immigratio­n policy, leading to “much softer population growth” and a correspond­ing one percentage point decrease in growth next year.

Combined with Quebec’s aging population, the report warns, reduced immigratio­n targets “will limit labour force growth going forward and will exacerbate labour shortages in the short run.” And that in turn will “limit the province’s potential output, which will constrain real economic growth moving forward.”

Ali Taïga hasn’t yet figured out where in the world he’s going to pursue that six- figure salary, but he remains a bit mystified about the province he’s come to adore. “The government­s of Quebec and Canada have invested millions to develop the AI sector and attract important researcher­s,” he says. “It would be a shame to not profit from the fruits of all this, no?”

creating kind of a wall here with these policies.

 ?? Graham Hughes / the cana dian press files ?? A man wears a yarmulke at a demonstrat­ion opposing the Quebec government’s Bill 21 in Montreal in April.
Graham Hughes / the cana dian press files A man wears a yarmulke at a demonstrat­ion opposing the Quebec government’s Bill 21 in Montreal in April.

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