Canadian government pledges to improve the responsiveness of immigration system

In its budget for financial year 2008-09, the Canadian government has pledged $22 million investment over two years, growing to $37 million per year, to modernize the existing immigration system.

Canada’s immigration system has been in need of repair for many years. Due to the growing backlog of 850,000 applications, the immigration wait times has been surged more than 20 per cent since 2004. It is expected that the new funding will not only improve the responsiveness of Canada’s immigration system but also better align it with the immediate and longer-term needs of labor market.

This funding will be used to support immigration initiatives such as legislation to speed up the processing of permanent resident applications, ensuring shorter wait times and making Canada’s immigration system more competitive by improving Immigration and Refugee Protection Act (IRPA).

To improve the Canada’s competitive position, as outlined in Advantage Canada, budget 2008-09 will (a) support Canadian students with a $350 million investment in 2009–10, rising to $430 million by 2012–13, in a new, consolidated Canada Student Grant Program that will reach 245,000 college and undergraduate students per year when it takes effect in the fall of 2009; (b) commit $123 million over four years starting in 2009–10 to “streamline and modernize” the Canada Student Loans Program; (c) enhance the flexibility of Registered Education Savings Plans by increasing the time they may remain open to 35 years from 25 years, and by extending the maximum contribution period by 10 years; (d) provide $25 million over two years to establish a new Canada Graduate Scholarship award for top Canadian and international doctoral students; (e) provide $3 million over two years to establish a new international study stipend for Canada Graduate Scholarship recipients who wish to study at international institutions; and (f) strengthen the ability of Canadian universities to attract and retain top science leaders with $21 million over two years to establish up to 20 Canada Global Excellence Research Chairs.

A Tax-Free Savings Account will also be introduced, that allows Canadians to contribute up to $5,000 a year to the account. Investment income and capital gains will not be taxed and withdrawals will be tax-free. Budget 2008-09 will also expand the list of eligible expenses under the Medical Expense Tax Credit.

A higher-security electronic passport by 2011 with a validity period of 10 years is also announced. Budget 2008-09 is also committing $6 million to support plans to introduce enhanced driver’s license and $26 million to introduce the use of biometric data into visas issued to foreign national entering Canada.