January 8, 2015 – Winnipeg, Manitoba – Employment and Social Development Canada
The Honourable Shelly Glover, Minister of Canadian Heritage and Official Languages, on behalf of the Honourable Jason Kenney, Minister of Employment and Social Development, today while on a tour of Red River College announced the launch of the new Canada Apprentice Loan, an Economic Action Plan 2014 commitment that provides apprentices in Red Seal trades access to interest-free loans of up to $4,000 per period of technical training.
During her tour of Red River College, Minister Glover reiterated that enhanced support for apprentices and apprenticeship training are key to power and grow the Canadian economy. That is why, in addition to the Canada Apprentice Loan, the Government also supports apprentices through several other initiatives, including Grants and Tax Credits. Since 2006, the Government of Canada has also provided apprenticeship grants and Tax credits for both apprentices and employers to encourage apprenticeships and careers in the skilled trades. To date, the Government has issued over 500,000 apprenticeship grants to Canadians worth nearly $700 million to help them get the skills and training they need to get well-paying jobs.
Minister Glover emphasized the value of skilled trades and underlined the pressing demand for skilled tradespeople, particularly in areas such as infrastructure projects like the Government’s New Building Canada Plan, which commits $53 billion in funding, including over $476 million to projects in Manitoba under the New Building Canada Fund.
“Since 2006, our Government has recognized the important role that apprentices play in Canada’s economy and, to this end, has made significant investments to help apprentices and the employers that hire them. Now, thanks to the Canada Apprentice Loan, more Canadians are able to complete their training and become skilled journeypeople and fill in-demand jobs.”
– The Honourable Shelly Glover, Minister of Canadian Heritage and Official Languages
“Our Government’s top priorities are creating jobs, economic growth, and long-term prosperity. Jobs in the skilled trades are in-demand in many sectors and regions across the country. We are taking concrete action to address this challenge by providing even more support for apprentices. This includes the introduction of the Canada Apprentice Loan, which will help more apprentices complete their training and encourage more Canadians to pursue a career in the skilled trades.”
– The Honourable Jason Kenney, Minister of Employment and Social Development
“In 2015, Red River College and the Province of Manitoba will break ground on a new 100,000 square foot state-of-the-art Skilled Trades and Technology Centre. Jobs in the skilled trades are in high demand and one of our strategic priorities is to fuel Manitoba’s economy. We applaud the Government of Canada on today’s announcement to help our apprentices achieve success and their commitment to provide additional opportunities that further support the work being done by Apprenticeship Manitoba and our industry partners.”
– David Rew, Interim President and CEO, Red River College
Alexandra Fortier
Office of Minister Kenney
819-994-2482
Media Relations Office
Employment and Social Development Canada
819-994-5559
media@hrsdc-rhdcc.gc.ca
Follow us on Twitter
Since 2006, our Government has recognized the importance of apprentices to Canada’s economy and to this end has made significant investments to help apprentices and the employers that hire them.
To help registered apprentices with the cost of their training and encourage more Canadians to consider a career in the skilled trades, the Canada Apprentice Loan will offer interest-free loans of up to $4,000 per period of technical training and will defer interest charges and loan repayment until the recipients complete or cancel their study program. It is estimated that at least 26 000 apprentices per year will apply for over $100 million in loans.
A second new Economic Action Plan 2014 initiative, the Flexibility and Innovation in Apprenticeship Technical Training pilot project, will help reduce non-financial barriers to completing training and obtaining certification by using new learning tools such as in-class simulators, e-learning modules, remote learning sites and video conferencing. This will help apprentices continue working and earning while fulfilling the technical training requirements of their study program. This project could potentially support up to 12 multi-year projects through reallocations of $13 million over four years starting in 2014-15.
The Government will ensure increased awareness of existing financial supports available through Employment Insurance (EI) so apprentices can start to receive benefits more quickly while on technical training. Through EI’s Supplemental Unemployment Benefit plan, employers can also invest more in apprenticeship training by choosing to top up an apprentice’s benefits by up to 95 per cent of his or her normal wage.
The Government of Canada has provided $4.3 million and the governments of the Atlantic provinces over $3.5 million to harmonize training, certification and standards, leading to increased availability of training, higher apprenticeship completion rates and more labour mobility for apprentices across Atlantic Canada. In turn, these actions mean more jobs and opportunities for workers in the skilled trades and a step forward in addressing the skills shortage faced in certain regions and sectors in Canada.
The Apprenticeship Incentive Grant and Apprenticeship Completion Grant are taxable cash grants that encourage Canadians to pursue and complete apprenticeship training in designated Red Seal trades. As a result of these grants, apprentices could be eligible to receive up to $4,000, which can be used to pay for tuition, tools or other expenses. Since 2007, the Government has issued over 500,000 apprenticeship grants.
The Government of Canada also offers a tax credit to employers to encourage them to hire apprentices and a tax deduction for apprentices and tradesmen to help cover the cost of new tools.
Also through Economic Action Plan 2013, the Government proposed to provide more information on job prospects and the benefits of working in the skilled trades, science, technology, engineering and mathematics to promote education in these high-demand fields.
The Government of Canada also provides a range of support—including Canada Student Loans, Canada Student Grants, the Canada Learning Bond and the Canada Education Savings Grant—to help young Canadians pursue and save for their post-secondary education, so that they can acquire the skills and training they need to succeed in the job market and in the future economy.
