Senator Martin: Yes, thank you for the added information. Truthfully, I am not an expert in any of these areas. But I am aware of the importance of the institutions and the timing of what happens.

You are right that it seems unfair. The fact that — had there been stronger funding from all levels — they would not have been in this situation. Thank you for adding that bit of information for the chamber.

The Hon. the Speaker pro tempore: Honourable senators, when shall this bill be read the third time?

(On motion of Senator Moncion, bill referred to the Standing Senate Committee on Banking, Trade and Commerce.)

[Translation]

On the Order:

Resuming debate on the motion of the Honourable Senator Klyne, seconded by the Honourable Senator Harder, P.C., for the second reading of Bill S-241, An Act to amend the Criminal Code and the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (great apes, elephants and certain other animals).

Hon. Senators: Agreed.

(Motion agreed to and bill read third time and passed.)

(At 5:33 p.m., the Senate was continued until tomorrow at 2 p.m.)

The Hon. the Speaker pro tempore: Is it your pleasure, honourable senators, to adopt the motion?

Hon. Ratna Omidvar: Honourable senators, I rise to speak in support of Bill S-215, An Act respecting measures in relation to the financial stability of post-secondary institutions. I would like to thank Senator Moncion for her initiative because it opens the doors for a necessary and imperative conversation.

I know that we can all agree on a lot of things, but we can agree that education, especially post-secondary education, is one of the most essential pillars of nation building. It is the bedrock of our prosperity, our innovation and our place in the world in economic, scientific and cultural terms.

For individuals, it leads to careers and jobs, but simply measuring the value of a good post-secondary education cannot be done simply in economic terms because that misses the mark. It builds people; it builds a whole person and a whole community. The fact that education is a provincial responsibility should not and must not allow us here in Parliament to simply sit back and shirk our responsibility to the nation.

We can do this in a respectful manner, as Senator Moncion has proposed in her legislation.

Underpinning the health of our post-secondary educational institutions is their financial viability. The scene here is not pretty. In fact, it’s a bit of a mess. If we were to be completely honest about this mess that universities and colleges — especially small and rural institutions — find themselves in, then we would perhaps look at ourselves here on the Hill. We have allowed ourselves to be sucked into a financial model that is unsustainable and needs a serious rethink and reboot.

The system relies on federal transfers, provincial grants to institutions and on tuition fees. The federal government also funds research fellowships directly, and if there is a silver lining in the cloud, it is the announcement in Budget 2022 of an increase of funding for research that is allocated to universities. A mix of revenue streams is generally considered to be a good business model, but this is sadly not the case here.

Outside of federal funding of research fellowships, the rest of the revenue model is in distress. First, government funding from all levels of government, which is their mainstay, has been either stagnant or decreasing. Between 1992-93 and 2015-16, the federal government’s contribution decreased by 40% per student.

Second, some provinces have capped tuition fees and the demand from domestic students is limited. These cuts hurt students the most. Many universities lean now on part-time or adjunct professors, which no doubt has a knock-on effect impacting the quality of education our students are getting.

In fact, research studies show that one in four, and maybe even one in five, students in Ontario colleges and universities are graduating with literacy and numeracy levels that do not meet the OECD standards; just imagine that.

Provincial funding for universities is a patchwork. Some provinces fund by quotas, others by student enrolment and others give grants, but regardless, the system is under stress.

For example, the Province of Alberta last year cut $135 million from operating budgets for universities. Manitoba has cut $10 million in funding for post-secondary institutions over the last three years.

Let’s then layer over this stressful financial situation the impact of the COVID crisis. Nationwide, universities and colleges faced a $2.5 billion shortfall. In my province of Ontario, the shortfall was $1.7 billion. The University of Alberta is facing a significant shortfall of $120 million and the same is true for Dalhousie University in Halifax.

Of course, post-secondary institutions have looked to other ways to generate revenue, and for many this means international students. Tuition fees for international students are five times higher than those of domestic students. On average, international students pay $32,000 in tuition annually compared to an average of $6,500 for Canadian kids.

For an international student, Canada is an attractive place. Expensive as the fees are, they are much cheaper than other comparable jurisdictions. In addition, students are allowed to work here under certain conditions and there is a clear pathway to permanency for foreign students. No wonder, then, that we’ve seen a dramatic increase in the number of international foreign students coming to Canada. In 2010, there were just 142,710 international students, but by 2019 this number had grown to 388,782 students who collectively contributed $22 billion to our economy.

This is a good thing. It is to our credit because it was a national imperative to give Australia and the U.S. some competition in this field.

However, most of the schools that attract international students are the big urban schools such as the University of Toronto, McGill or UBC. Smaller and sometimes more rural schools struggle to attract their share of these students. At Laurentian University, whose bankruptcy precipitated this bill, international students comprised only about 3% of the student population.

Nipissing University, which is also under financial stress, has a total of roughly 60 international students out of a student body of 4,500. Smaller institutions are missing out on the only other source of alternative revenue.

Perhaps Immigration, Refugees and Citizenship Canada should consider fast-tracking student applications, giving preference to student applications who are destined for smaller institutions as an incentive to study and stay in smaller places. We all know how very fed up international students are with the backlog of approvals. Programs such as this could get the train moving in the right direction.

I am all in favour of attracting the best and the brightest to Canadian schools, but I am appalled that the general financial health of our post-secondary institutions depends so much on international students. It’s a bit like predicating that all hip surgeries in Canada will be paid for by international patients. I hope we all realize that the outsourcing of revenue is neither healthy nor desirable for Canada in the long term.

And it’s not good for students either, whether they are international or not. And lest we are left with the impression that these international students are all rolling around in fancy cars and staying in fancy mansions, that is not the case. Many scrape together the fees, their families face significant hardship and the parental expectations of these poor, lonely students are extreme.

The Toronto Star has documented these experiences and they have determined that, despite the fact that many are from modest backgrounds, they pay hefty tuition fees not just for a chance to study, but to stay in this country. But they face difficult challenges, unforgiving timelines, social isolation, parental stress and are often prone to exploitation by employers and others.

If you lived in my city, you would have heard about the suicides by international students and, in fact, the sex-trafficking ring that is operated by exploiters of female foreign students who are here, have no protection and cannot meet their rent.

This is a tragedy of our own making. We shouldn’t be burdening international students without providing adequate supports for them just so our institutions can stay afloat. The end in this case may not justify the means.

I don’t want to go further on the plight of international students because I believe very firmly that this is a wonderful subject and an important subject for a committee study all on its own, but I do think we need to rethink the financial health of our post-secondary institutions.

This is why I welcome the intent of this bill and support that, if passed, the minister would develop a proposal for federal initiatives to reduce the risk of bankruptcy and insolvency; protect students, staff and faculty in the event that an institution becomes bankrupt or insolvent; and support communities that would be impacted by an institution becoming bankrupt or insolvent.

Further, in deliberating on this matter, the designated minister may also want to think about the role of the federal government in supporting universities that promote French-language degrees and diplomas as more than simply places of education but as an essential imperative foundation of a bilingual nation. A different consideration, apart from student enrolment or a decline in the francophone population outside Quebec, needs to be considered.

Senator Moncion has mused about direct transfers to French language departments at colleges or university. A case could be made that this falls within federal jurisdiction because it is about strengthening the bilingual foundation of our country.

We feel the impact of this on the Hill. We have debated, discussed and bemoaned the lack of French-language interpreters, which means that we cannot do our work as much as we would like to. I think the Hill plays an important role in this challenge as well. Of course, we always need to stay within our constitutional boundaries and not wander too far out of our lane, as Senator Martin has warned us. But this proposal calls for the federal minister to engage with provincial governments, consult with stakeholders and propose federal solutions and initiatives so that the sustainability of our post-secondary education systems is strengthened.

Colleagues, the second component of Senator Moncion’s bill is a very important loophole that she has identified and that needs to be looked at. This component seeks to prevent publicly funded post-secondary institutions from having recourse to the Companies’ Creditors Arrangement Act, or CCAA, or the Bankruptcy and Insolvency Act, the BIA — not to be mixed up with the other BIA that we are focusing on — to prevent similar situations to what happened at Laurentian University.

The question is really whether the CCAA, which is under federal jurisdiction, is the right place for colleges and universities to go if they are facing financial issues. I browsed the web and looked at a list of companies that have claimed insolvency protection under the CCAA in the last three months, and here is what I found: a sports franchise, a real estate corporation, a water management company and a pizza company.

The act is, in essence, for the private sector. One must really ask how a publicly funded university fell into this crowd.

As we know from Senator Martin’s speech, it did not have to be this way. The Auditor General of Ontario studied Laurentian University and concluded that it did not have to file for CCAA protection. Instead, despite being offered more money by the province, it strategically planned and chose to take steps to file for creditor protection. This prompted the Auditor General of Ontario, Bonnie Lysyk, to comment that the repercussions of this filing were profound and stirred up strong reactions, especially in Sudbury where the university is an important employer and contributor to the social and economic fabric of the community.

By opting for creditor protection under the CCAA, Laurentian was able to bypass provisions in its collective agreements, allowing the administration to effectively terminate more senior employees and clear a number of long-standing union grievances. Laurentian removed 36% of its programs and fired 195 staff, which severely impacted the aspirations of over 930 students.

The Auditor General concluded that there is a strong argument that the CCAA, an important tool used in the private sector, is an inappropriate remedy for public entities. There are certain principles held high in the public sector — transparency, accountability and the primacy of the public interest — that make the CCAA court-ordered protection a detrimental choice for public entities.

Today it is Laurentian that has chosen this path, and tomorrow it could be a hospital or a museum for all we know. We need to protect the public interest in ensuring the health of our public institutions and close this loophole.

In conclusion, colleagues, I support this bill and wish to have your support in sending it to committee.

Some Hon. Senators: Hear, hear!

Hon. Yonah Martin (Deputy Leader of the Opposition): Honourable senators, I rise today to speak to Bill S-215, An Act respecting measures in relation to the financial stability of post-secondary institutions. I would first like to thank Senator Moncion, who introduced this bill. A vibrant, world-class post-secondary education system in Canada is vital to our country’s future, to our productivity, to our international competitiveness, to the health of our society and to the success and well-being of our young people.

[English]

While the intention of the bill — to ensure financial stability for the post-secondary sector — is certainly laudable, how we accomplish that is, potentially, another matter. The bill asks the minister, in consultation with the institutions themselves — municipal and provincial governments, and groups and associations representing faculty, staff and students — to develop a proposal for federal initiatives to reduce the risk that an institution becomes bankrupt or insolvent; protect students, faculty and staff in the event that an institution becomes bankrupt or insolvent; and support communities that would be impacted by an institution becoming bankrupt or insolvent.

You will not be surprised to learn, mainly because the bill’s sponsor mentioned it in detail in her speech, that the immediate impetus for this bill is the situation of Laurentian University in Sudbury, Ontario.

In February of last year, Laurentian filed for protection from creditors under the Companies’ Creditors Arrangement Act. It was the first ever publicly funded entity in Canada to do so. In the process, it fired 100 academics, cut 69 programs and, as one observer put it, “. . . shattered what it proudly billed as its tri‑cultural mandate by disproportionately cutting back francophone and indigenous offerings.”

As the Office of the Auditor General of Ontario pointed out in its report on Laurentian University:

Until Laurentian’s filing . . . the CCAA process had been used exclusively in the private sector. However, there are no restrictions in the act that limit its use by a government-funded and broader public sector institution.

Laurentian University, as the Auditor General of Ontario also flagged, is one of the primary post-secondary institutions serving northern Ontario, a tri-cultural — English, French and Indigenous — and bilingual post-secondary institution. Moreover, it is one of Sudbury’s largest employers, so, as Senator Moncion pointed out in her speech, its insolvency issues are devastating for the community. They are also devastating for its student body, 19% of which is composed of French students.

This is a tragedy for the community, and for all staff and students who are a part of the Laurentian community — that we can all agree on.

I believe Senator Moncion’s bill has flagged an important issue, but I also believe there is some room for debate around the source of the problem her bill seeks to address, and perhaps even the solution that her bill seems to propose.

In short, things are more complicated than simply a lack of or a decline in government support.

Let me begin with the problem first. In her speech, Senator Moncion placed the source of the problem squarely at the feet of the government. In Laurentian’s case, the Ontario government:

Despite the emergence of institutions by and for francophones such as the University of Sudbury, which has clear unified community support, governments have been slow to act.

For example, the Government of Ontario, she continued:

. . . took over one year to intervene in the case of Laurentian University and only intervened because it was compelled to. Laurentian University was losing its operational funding, which would have accelerated the actual bankruptcy. This waiting game lasted a year with the Government of Ontario.

Elsewhere in her speech she pointed out that, over the past 20 years, the portion of funding coming from provincial governments for the post-secondary sector has decreased, and federal funding has been stagnant since about 2008. In real dollars, funding of the official languages and education programs has been in steady decline.

I don’t doubt that, but also in decline are the number of francophones living outside Quebec. Statistics Canada projects that if present trends continue, the number of francophones living outside Quebec will decrease from 4% in 2011 to 3% in 2036. This decline will have an impact on funding as well, at least in some provinces. The reason for that is the provincial funding formula for post-secondary education differs from province to province. In Ontario, Saskatchewan and Quebec, core funding is related to enrolment levels.

As The State of Postsecondary Education in Canada 2021 report notes:

. . . the amount of funding an institution receives is mostly based on the number of students it has in different types of programs. . . .

In the other seven provinces, funding is largely historically-driven: that is to say that what a school receives in any given year for core funding is largely a function of what it received the previous year . . . .

This does not negate the point Senator Moncion is making with her bill: the need for stable funding. But it does illustrate how complicated the situation is, especially when you understand that education is the exclusive purview of each province, as we all know.

So we are getting into jurisdictional issues as well. While there are similarities in the education systems across each province and territory, there are also many differences in legislation, policies and programs, not to mention geography, history, language, culture and the unique needs of the population in each province.

Again, this does not take anything away from Senator Moncion’s bill. It may, in fact, reinforce it. But it also hints at the fact that the way forward may not be straightforward.

I would suspect that, at the outset, a federal government initiative in this area might be viewed suspiciously by the provinces and territories who — once the feds start down this road — may well, at the very least, want to add their own particular issues to the agenda based upon those issues I just cited.

Finally, I want to say a word about the specific situation of Laurentian University. As I mentioned before, Senator Moncion was quick to point out the Ontario government’s tardy and half-hearted reaction to the university’s dire financial situation. This may be true. But the situation was also not so cut and dried, at least according to what I have read.

University World News, for instance, reported that Laurentian was plagued by mismanagement for years prior to seeking creditor protection. Also, as a former professor at the university commented, “The university had been so non-transparent with their finances for so long, that it was like crying wolf.” As a result of that mismanagement, the university had accumulated a debt of $322 million.

Furthermore, it did not do itself any favours in this debacle. For instance, in May of last year, according to the University World News article, Laurentian requested a loan of $100 million from the government which, in turn, requested an independent third-party review of Laurentian’s finances. The university refused. That obstinacy continues today.

The provincial Public Accounts Committee called upon the Office of the Auditor General of Ontario to look at the university’s finances, and its report is less than flattering. After noting that given the level of government funding the university received, there was an expectation of transparency and accountability. The report said:

Unfortunately, our office has been denied access by Laurentian to information we consider absolutely necessary for the conduct of our audit work . . . In many instances, it has also declined to provide non-privileged information on the basis that to review documents to determine if information is privileged would be too resource intensive . . . Such a pervasive restriction of our audit work is unprecedented.

The report further noted that the university had created a culture of fear among university staff around interactions with their office.

I do not think the situation of Laurentian University is the best test case of the need for a bill like this. However, as stated earlier, I do worry that some will get their backs up about the jurisdictional issues that a bill like this may raise.

[Translation]

Honourable senators, I don’t doubt the difficult financial situation in which our universities find themselves, especially in the last two years, because of the pandemic and the drop in international student enrolment. I support the idea of sending this bill to committee where it can be studied in depth. Thank you.

Senator Martin: Yes, I agree that there are these challenging factors, and that is why I support it going to committee. I hope that throughout this process what we can also shed light on is the importance of these institutions, as you so clearly demonstrated to us. I do agree with you on that.

(On motion of Senator Smith, debate adjourned.)

(At 6 p.m., pursuant to the order adopted by the Senate on May 5, 2022, the Senate adjourned until 2 p.m., tomorrow.)

Senator Moncion: Do you agree that using a federal law to correct a provincial problem could be a problem? This is something that we are studying within my office, these jurisdictional issues. But would you agree?

Hon. Lucie Moncion: I have a couple of questions for you.

I want to thank you for the excellent speech. The information that was brought forward is information brought forward after I started speaking on Bill S-215.

There is one situation with the Companies’ Creditors Arrangement Act, and the problem is that when you use this act, the larger creditors are the ones who usually get the money and the smaller creditors will not get the money because there is not going to be anything left at the end following the sale of assets, if it goes there.

What has happened — it’s the same situation that has happened at Nipissing University, which is the university where I live, and I was on the board of directors at Nipissing. I was there before 2010.

My question is that the deficits that were brought forward at Laurentian were exactly the same as the one at Nipissing, but Nipissing went to the government and Laurentian went to the government — but very late in the game — so the government did not have enough time to react and within a month Laurentian became involved with the Companies’ Creditors Arrangement Act.

I wanted to know if you were aware of that situation because it is in the report that you read. Do you agree with me that when they are a provincial entity and there is the use of a federal law, there could be a constitutional issue, like you said? But someone is paying down the line, and I think that small creditors are footing the bill here. There are a lot of things that I am providing here, but I would like to hear you on these few issues.

The Hon. the Speaker pro tempore: Senator Moncion, do you have a question?

[English]

Some Hon. Senators: Hear, hear.

Hon. Yonah Martin (Deputy Leader of the Opposition): Honourable senators, I rise today to speak to Bill S-215, An Act respecting measures in relation to the financial stability of post-secondary institutions. I would first like to thank Senator Moncion, who introduced this bill. A vibrant, world-class post-secondary education system in Canada is vital to our country’s future, to our productivity, to our international competitiveness, to the health of our society and to the success and well-being of our young people.

[English]

While the intention of the bill — to ensure financial stability for the post-secondary sector — is certainly laudable, how we accomplish that is, potentially, another matter. The bill asks the minister, in consultation with the institutions themselves — municipal and provincial governments, and groups and associations representing faculty, staff and students — to develop a proposal for federal initiatives to reduce the risk that an institution becomes bankrupt or insolvent; protect students, faculty and staff in the event that an institution becomes bankrupt or insolvent; and support communities that would be impacted by an institution becoming bankrupt or insolvent.

You will not be surprised to learn, mainly because the bill’s sponsor mentioned it in detail in her speech, that the immediate impetus for this bill is the situation of Laurentian University in Sudbury, Ontario.

In February of last year, Laurentian filed for protection from creditors under the Companies’ Creditors Arrangement Act. It was the first ever publicly funded entity in Canada to do so. In the process, it fired 100 academics, cut 69 programs and, as one observer put it, “. . . shattered what it proudly billed as its tri‑cultural mandate by disproportionately cutting back francophone and indigenous offerings.”

As the Office of the Auditor General of Ontario pointed out in its report on Laurentian University:

Until Laurentian’s filing . . . the CCAA process had been used exclusively in the private sector. However, there are no restrictions in the act that limit its use by a government-funded and broader public sector institution.

Laurentian University, as the Auditor General of Ontario also flagged, is one of the primary post-secondary institutions serving northern Ontario, a tri-cultural — English, French and Indigenous — and bilingual post-secondary institution. Moreover, it is one of Sudbury’s largest employers, so, as Senator Moncion pointed out in her speech, its insolvency issues are devastating for the community. They are also devastating for its student body, 19% of which is composed of French students.

This is a tragedy for the community, and for all staff and students who are a part of the Laurentian community — that we can all agree on.

I believe Senator Moncion’s bill has flagged an important issue, but I also believe there is some room for debate around the source of the problem her bill seeks to address, and perhaps even the solution that her bill seems to propose.

In short, things are more complicated than simply a lack of or a decline in government support.

Let me begin with the problem first. In her speech, Senator Moncion placed the source of the problem squarely at the feet of the government. In Laurentian’s case, the Ontario government:

Despite the emergence of institutions by and for francophones such as the University of Sudbury, which has clear unified community support, governments have been slow to act.

For example, the Government of Ontario, she continued:

. . . took over one year to intervene in the case of Laurentian University and only intervened because it was compelled to. Laurentian University was losing its operational funding, which would have accelerated the actual bankruptcy. This waiting game lasted a year with the Government of Ontario.

Elsewhere in her speech she pointed out that, over the past 20 years, the portion of funding coming from provincial governments for the post-secondary sector has decreased, and federal funding has been stagnant since about 2008. In real dollars, funding of the official languages and education programs has been in steady decline.

I don’t doubt that, but also in decline are the number of francophones living outside Quebec. Statistics Canada projects that if present trends continue, the number of francophones living outside Quebec will decrease from 4% in 2011 to 3% in 2036. This decline will have an impact on funding as well, at least in some provinces. The reason for that is the provincial funding formula for post-secondary education differs from province to province. In Ontario, Saskatchewan and Quebec, core funding is related to enrolment levels.

As The State of Postsecondary Education in Canada 2021 report notes:

. . . the amount of funding an institution receives is mostly based on the number of students it has in different types of programs. . . .

In the other seven provinces, funding is largely historically-driven: that is to say that what a school receives in any given year for core funding is largely a function of what it received the previous year . . . .

(1750)

This does not negate the point Senator Moncion is making with her bill: the need for stable funding. But it does illustrate how complicated the situation is, especially when you understand that education is the exclusive purview of each province, as we all know.

So we are getting into jurisdictional issues as well. While there are similarities in the education systems across each province and territory, there are also many differences in legislation, policies and programs, not to mention geography, history, language, culture and the unique needs of the population in each province.

Again, this does not take anything away from Senator Moncion’s bill. It may, in fact, reinforce it. But it also hints at the fact that the way forward may not be straightforward.

I would suspect that, at the outset, a federal government initiative in this area might be viewed suspiciously by the provinces and territories who — once the feds start down this road — may well, at the very least, want to add their own particular issues to the agenda based upon those issues I just cited.

Finally, I want to say a word about the specific situation of Laurentian University. As I mentioned before, Senator Moncion was quick to point out the Ontario government’s tardy and half-hearted reaction to the university’s dire financial situation. This may be true. But the situation was also not so cut and dried, at least according to what I have read.

University World News, for instance, reported that Laurentian was plagued by mismanagement for years prior to seeking creditor protection. Also, as a former professor at the university commented, “The university had been so non-transparent with their finances for so long, that it was like crying wolf.” As a result of that mismanagement, the university had accumulated a debt of $322 million.

Furthermore, it did not do itself any favours in this debacle. For instance, in May of last year, according to the University World News article, Laurentian requested a loan of $100 million from the government which, in turn, requested an independent third-party review of Laurentian’s finances. The university refused. That obstinacy continues today.

The provincial Public Accounts Committee called upon the Office of the Auditor General of Ontario to look at the university’s finances, and its report is less than flattering. After noting that given the level of government funding the university received, there was an expectation of transparency and accountability. The report said:

Unfortunately, our office has been denied access by Laurentian to information we consider absolutely necessary for the conduct of our audit work . . . In many instances, it has also declined to provide non-privileged information on the basis that to review documents to determine if information is privileged would be too resource intensive . . . Such a pervasive restriction of our audit work is unprecedented.

The report further noted that the university had created a culture of fear among university staff around interactions with their office.

I do not think the situation of Laurentian University is the best test case of the need for a bill like this. However, as stated earlier, I do worry that some will get their backs up about the jurisdictional issues that a bill like this may raise.

[Translation]

Honourable senators, I don’t doubt the difficult financial situation in which our universities find themselves, especially in the last two years, because of the pandemic and the drop in international student enrolment. I support the idea of sending this bill to committee where it can be studied in depth. Thank you.

The Hon. the Speaker: We will suspend for one hour.

Senator Clement, when we return, you will have the balance of your time. Thank you.

(The sitting of the Senate was suspended.)

[Translation]

(The sitting of the Senate was resumed.)

On the Order:

Resuming debate on the motion of the Honourable Senator Moncion, seconded by the Honourable Senator Dean, for the second reading of Bill S-215, An Act respecting measures in relation to the financial stability of post-secondary institutions.

The Hon. the Speaker: I’m sorry, Senator Clement, but I must interrupt.

It is now six o’clock and pursuant to rule 3-3(1), I’m required to leave the chair and suspend for one hour, unless it’s the wish of the Senate to not see the clock.

If honourable senators wish to suspend, please say “suspend.”

Senator Plett: Suspend.

Hon. Senators: Hear, hear.

(On motion of Senator Martin, debate adjourned.)

On Other Business, Senate Public Bills, Second Reading, Order No. 12, by the Honourable Terry M. Mercer:

Second reading of Bill S-226, An Act to amend the Constitution Act, 1867 and the Parliament of Canada Act (Speaker of the Senate).

Hon. Bernadette Clement: As I grew up in Montreal and was fluent in our two official languages, I was able to study law in French, which made it possible for me to serve vulnerable clients in both languages.

This skill also allowed me to become established in the vibrant city of Cornwall, which solidified my identity as a bilingual legal aid lawyer and proud Franco-Ontarian.

I rise today to support Bill S-215 and also to highlight the importance of French-language post-secondary education. The institutions in this sector must receive equitable funding given the importance of the service they provide. In times of crisis, they must be supported by all levels of government, which must collaborate to find solutions and the way forward.

I support Bill S-215 because I want many generations of Canadian students to have the same opportunity I had, namely to be able to choose quality education in the language of their choice provided by a financially stable institution that inspires confidence.

[English]

The linguistic history of our country is rich and complex with more than 70 Indigenous languages spoken across Canada. There are eight Calls to Action from the Truth and Reconciliation Commission that address Indigenous languages. The Government of Canada must prioritize its commitment to fulfilling these promises.

Post-secondary education can play a leading role in preserving Indigenous languages, but these institutions must be financially supported and viable. Laurentian University’s financial crisis and ensuing restructuring weakened its tricultural mandate. This has had a negative impact on Indigenous students and languages.

In the spirit of reconciliation, we must keep Canada’s linguistic commitments in mind when considering this bill. Bill S-215, An Act respecting measures in relation to the financial stability of post-secondary institutions, aims to do two things.

First, it removes publicly funded universities from the list of those companies that can make use of the Companies’ Creditors Arrangement Act, and from the list of those corporations that can make use of the Bankruptcy and Insolvency Act.

Second, it puts a federal minister in charge of finding solutions. Namely, they are to consult and report back to Parliament with a proposal for federal initiatives that would reduce the risk of post-secondary institutions becoming bankrupt or insolvent. This proposal would aim to protect students, staff and faculty from the effects of bankruptcy or insolvency. It would also seek to support the communities that would be impacted by such a dire situation.

[Translation]

I congratulate my colleague, Senator Moncion, on introducing this bill. We agree that post-secondary institutions play an essential role in maintaining the economic, cultural and social health of a region. Francophone communities, and indeed, all communities, benefit from the presence of these institutions, which contribute energy, development and inspiration. A thriving university can help a community thrive, and the federal government seems to understand that. Bill C-13, which would amend the Official Languages Act, was introduced in the other place and states quite clearly that the Government of Canada:

 . . . is committed to protecting and promoting the French language, recognizing that French is in a minority situation in Canada and North America due to the predominant use of English;

[English]

Bill C-13 also states:

The Government of Canada is committed to advancing opportunities for members of English and French linguistic minority communities to pursue quality learning in their own language throughout their lives, including from early childhood to post-secondary education.

So this is the first question that I faced when reviewing Bill S-215: What is the federal government’s role in this provincial jurisdiction? The answer: In addition to official languages obligations, the federal government also contributes via transfer payments to the provinces.

The second question is more complicated. How could the federal government help? One Ontario college official suggested that when post-secondary institutions run into trouble, it’s up to both the province and the federal government to collaboratively find solutions.

[Translation]

Another official I spoke with, Lise Bourgeois, the innovative and dynamic president and CEO of La Cité college, explained that colleges may be less likely to experience a financial crisis because they have to comply with strict provincial requirements for financial reporting and compliance. Even though they have less independence, colleges are still agile and are essential to the development of a workforce that reflects Canada’s needs.

[English]

Yet, funding for francophone colleges and universities isn’t as secure as we need it to be. Base funding from the Official Languages in Education Program hasn’t increased in years, despite growing enrolment.

Instructing in French tends to be more expensive as there are fewer colleges in the French sector to collaborate on curriculum development and to capitalize on economies of scale. Francophone colleges also fund intense recruitment programs to compete for students who have the choice to study in either language.

[Translation]

Bill S-215 calls on the federal government to ensure the financial stability of all post-secondary institutions in Canada.

The bill is an attempt to respond not only to the recent crisis at Laurentian University, but to the very real possibility that other institutions will face a financial crisis of their own. Once again, the aim is to protect students, faculty, staff and communities.

On April 13, the Auditor General of Ontario released a preliminary perspective on Laurentian University. The province’s Standing Committee on Public Accounts has requested a special audit to determine what led the institution to resort to the Companies’ Creditors Arrangement Act, or CCAA. The report notes that Laurentian was the first public university in Canada to use a legal process designed as a last resort for private sector entities, and the impact could be significant. The report reads as follows:

The use of CCAA proceedings might make it more difficult for other universities to acquire debt, or to hire and retain faculty.

If we decide to ignore how Bill S-215 can help resolve this problem, consider the alternative. If another institution faces a crisis, it will cut programs, fewer Canadian and international students will attend, and the community will be deprived of the potential that institution brings.

[English]

I want to zero in on international students as an example.

In 2021, StatCan published a projected financial impact of the pandemic on Canadian universities. With costs rising, universities are relying more and more on tuition fees. The report says that international student fees are higher and increase at a faster rate.

COVID-19 impacted the number of international students enrolling in Canadian universities.

StatCan assessed enrolment numbers and research funding amounts and estimated the possible revenue loss for Canadian Universities in 2020–21 at anywhere between $438 million and $2.5 billion.

Let’s not forget that international students aren’t simply a source of revenue. If they choose to stay, and are able to, they contribute to the renewal and vitality of our country, of course, but they also contribute to minority language communities. We are having that conversation right now at the Official Languages Committee, especially as we study francophone immigration to these communities.

More important, we can’t rely on tuition fees alone to fund universities. They must be resilient when enrolment levels change or when there is an international crisis like the COVID-19 pandemic. Students, both those enrolled and potential students, should be able to trust the stability of these institutions. Can they currently do so? Is the status quo sustainable? Is this the best we can do?

[Translation]

The French Language Services Unit of the Ontario Ombudsman’s office investigated complaints about cuts to French programs at Laurentian University. In March, the office released its findings and recommendations. The report indicates the following.

Several of the complainants were students at the Sudbury-based university who were left with no other option but to relocate or continue their studies in English. Some, like those in the midwifery program, pointed out that the loss of their programs would also impact the Franco-Ontarian community at large — for example, no other school in the province trains midwives to provide services in French.

It is clear that stable access to post-secondary education in French deserves our immediate attention and decisive action. Bill S-215 should be referred to the Standing Senate Committee on Official Languages, where we will be able to study how the federal government can support universities such as Laurentian University.

As my colleague Senator Moncion stated, and I quote:

Transparency and accountability are part of the solutions that can significantly help the financial viability of post‑secondary institutions, and the federal government is fully aware of this. There is a way for the government to respect provincial jurisdictions while ensuring that its investments on behalf of the francophonie get to the right place, in accordance with its constitutional obligations.

[English]

There is a way forward, there is a role for the federal government and there are solutions to ensure that Canadian universities and colleges are sustainable. Like Senator Moncion, I have benefitted from a quality, stable education in the language of my choice — a language that has been vital to my daily life and that has supported me in some of my most vulnerable moments.

Education in French is the gateway to a life fully lived in French. It needs our care and attention, and not just on the part of francophones; la Francophonie is an asset to all Canadians, and we must all take responsibility for it to not only survive but thrive. Thank you.

The Hon. the Speaker: We will suspend for one hour.

Senator Clement, when we return, you will have the balance of your time. Thank you.

(The sitting of the Senate was suspended.)

[Translation]

(The sitting of the Senate was resumed.)

(1900)

On the Order:

Resuming debate on the motion of the Honourable Senator Moncion, seconded by the Honourable Senator Dean, for the second reading of Bill S-215, An Act respecting measures in relation to the financial stability of post-secondary institutions.

The Hon. the Speaker: I’m sorry, Senator Clement, but I must interrupt.

It is now six o’clock and pursuant to rule 3-3(1), I’m required to leave the chair and suspend for one hour, unless it’s the wish of the Senate to not see the clock.

If honourable senators wish to suspend, please say “suspend.”

Senator Plett: Suspend.

Hon. Bernadette Clement: Honourable senators, several decades ago, I was able to make a choice that would have an impact on the rest of my life: I chose to study in French at the University of Ottawa. Having grown up in Montreal and being fluent in both official languages, I was able to study law in French, which allowed me to serve vulnerable clients in both languages. All of this enabled me to put down roots in the lively town of Cornwall, cementing my identity as a bilingual legal aid lawyer and a proud Franco-Ontarian.

I rise today to speak in favour of Bill S-215, but beyond that, I want to note the importance of post-secondary education in French. Institutions in this sector have to be funded equitably, given the vital service they provide. In times of crisis, they ought to be supported by every level of government, which should collaborate to find solutions and a way forward.

I support Bill S-215 because I want generations of Canadian students to have the same opportunity that I did, to choose a top‑quality education, provided by a financially stable institution that inspires confidence, in the official language of their choice.

[English]

The linguistic history of our country is rich and complex, with more than 70 Indigenous languages spoken across Canada. There are eight Calls to Action from the Truth and Reconciliation Commission report that address Indigenous languages. The Government of Canada must prioritize its commitment to fulfilling these promises.

Post-secondary education can play a leading role in preserving Indigenous languages, but those institutions must —