Vancouver Sun

Ottawa plans fi nal off er to provinces

Only challenge is that funds will be oversubscr­ibed, says employment minister

- PETER O’NEIL VANCOUVER SUN poneil@ postmedia. com Twitter. com/ poneilinot­tawa

OTTAWA — The Harper government will make a final offer within days to provinces in hope of settling a battle over $ 300 million a year in job training funds, Employment Minister Jason Kenney said Friday.

That offer includes a mechanism that could lead to an earliertha­n- planned shutdown of Ottawa’s new Canada Jobs Grant, Kenney said.

Ottawa, he said, is considerin­g some of the requests from provincial government­s that have been infuriated by Ottawa’s plan to claw back from the provinces $ 300 million a year in transfers they use for an existing federal jobs program.

B. C. Jobs Minister Shirley Bond and her provincial counterpar­ts asked Kenney earlier this month to consider several changes, including having a review after two years to determine if the new program is helping to fix Canada’s socalled “skills gap” problem.

That request is based partly on concerns that many companies might not be able to pay $ 5,000 to combine with $ 10,000 in government funding for short- term training of new workers.

“We’re not dogmatic about it, and if indeed an evaluation after a couple of years were to prove it’s not meeting its objectives, we wouldn’t force it to continue,” Kenney said.

But the minister said he doubts employers are all-talk, no- action on the training front.

He noted that if the program is funded by government to the tune of $ 300 million annually, that means the private sector would contribute a maximum $ 150 million.

“In a $ 1.8- trillion economy, where employers are telling us there are acute skill shortages, the only challenge of this program is that it will be massively oversubscr­ibed,” he said. “It is quite a small amount of money in the context of what we spend overall on training.”

In 2008, the federal government began giving $ 500 million a year to the provinces for job training, saying it is mostly a provincial responsibi­lity to help people on the workforce’s margins, such as the undereduca­ted, aboriginal­s, new immigrants, youths, the disabled and older workers, to get into the job market.

Ottawa, complainin­g that the provinces weren’t doing a good job, announced last year that it was taking back $ 300 million of the $ 500 million, phased in over four years. In addition, the federal government asked provinces to come up with $ 300 million of their own money, or $ 5,000 a worker, though that request has been dropped.

The provincial counter- offensive has included the release of several studies, including one done by the federal government, indicating that the existing program has been a success.

Bond complained that the federal government was being unreasonab­le in declaring in this week’s federal budget that the new program will start on April 1.

The provinces have said they’d consider administer­ing the new program if Ottawa made some concession­s, and if its launch were delayed by six months.

Kenney said he’d agree to that delay for any province that agrees to his final offer.

He wouldn’t say if Ottawa is prepared to make concession­s on the $ 300- million take- back. One of the provinces’ requests, according to media reports, is that the money be taken from other transfers, including the $ 2 billion a year spent on job training for EI recipients, and that the drawdown in transfers be spread out over six years.

 ?? DARIO AYALA/ POSTMEDIA NEWS FILES ?? A student trains to become an electricia­n at a technical college. A new federal program aims to fi ll the need for skilled workers.
DARIO AYALA/ POSTMEDIA NEWS FILES A student trains to become an electricia­n at a technical college. A new federal program aims to fi ll the need for skilled workers.

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