Monthly Archives: January 2013

Canadian Government to Provide $400 Million to Bolster Domestic Venture Capital Industry

Posted on by
Reply

The headquarters of Shopify, one of Canada’s rising tech stars, in the ByWard Market district of Ottawa. The federal government hopes to see more high-growth technology companies like Shopify being started in Canada (GOOGLE MAPS)

The Harper government announced on Monday that it will inject $400 million in Canada’s venture capital industry as part of the Venture Capital Action Plan.

The goal of the plan is to encourage the creation of large venture capital funds that specialize in investing in early-stage, high-growth startup companies in Canada.

“Our Government understands that Canada’s long-term economic competitiveness in the emerging knowledge economy needs to be driven by globally competitive, high-growth businesses that innovate and create high-quality jobs,” said Prime Minister Stephen Harper in announcing the initiative.

$250 million of the $400 million of federal funding will be used to create a “fund of funds” for Canada’s venture capital industry, which will invest in Canada-focused venture capital funds.

$100 million will be invested into a private-sector counter-part to the government-run ‘fund of funds’, which will have a similar role as the government-administered fund, but with private and provincial co-funders.

The remaining $50 million will be invested into “three to five” existing high-performance Canadian venture capital funds.

The federal government has made several efforts over the past year to support Canada’s venture capital and startup industry, including providing publicity for the volunteer-led and funded Startup Canada project, and beginning consultations on creating a new ‘startup visa’ to provide a route for entrepreneurs with venture capital funding to immigrate to Canada.

With top marginal personal income tax rates that are among the highest in the world though, the government could face an uphill battle in fostering an entrepreneurial culture in Canada according to some analysts.

A study released by Canadian economist Ergete Ferede last year shows a negative correlation between the extent of redistribution and progressivity in the personal income tax and the rate of self-employment.

Federal Immigrant Investor Program to Launch Early This Year

Posted on by
Reply

Wealthy foreign nationals from places like Dubai are keen to apply for Canadian permanent residency through the Federal Immigrant Investor Program when the program starts up again this year (Ranjit Laxman)

In an interview in late December, Canadian Citizenship and Immigration Minister Jason Kenney said that he expected his department to launch the Federal Immigrant Investor Program sometime in the first half of this year.

The program, which grants permanent residency to those with assets worth over $1,600,000 in exchange for a no-interest five-year loan of $800,000, is currently not accepting any new applications as the Department of Citizenship and Immigration decides on new, more demanding selection rules for the program.

The department says the 700 applicant annual quota for the program was filled in 30 minutes in 2011, as wealthy foreigners chartered private planes to be the first to submit their application to the Nova Scotia intake office.

In the interview with Postmedia News (via immigration news site workpermit.com) Kenney said that the government would like to raise the amount of money applicants are required by the program to invest and require the investment to be an active one where the applicant assumes some risk rather than a passive loan with a guaranteed return like under current rules.

Asked about the investor program’s 25,000 application backlog, Kenney said he doesn’t contemplate wiping it out like his department did with the Federal Skilled Worker Program (FSWP) backlog.

He said they are considering offering a fast-track option to those whose applications are in the backlog in exchange for the applicant meeting the program’s new requirements.

Visitors and Students to Canada From India Booming According to Immigration Department

Posted on by
Reply

The Canadian High Commission in Chandigarh. The visa office has seen rapid growth in the number of study permits and visitor visas issued to Indian nationals in the region (GOOGLE MAPS)

The number of visitor visas the Canadian government issues in India’s Punjab region has increased by 300 percent from 2005 levels according to Citizenship and Immigration Canada (CIC).

CIC says that approximately 17,608 visitor visas were issued in 2012 by its Chandigarh office, which serves the Punjab region.

The growth in the number of Indian visitors to Canada has corresponded with the rapid growth of India’s economy and the emergence of an increasingly sizeable Indian middle class with the disposable income to travel abroad.

The number of student visas issued has seen an even more dramatic increase. According to CIC, 5,200 student permits were issued by the Chandigarh office in 2012, a more than 3000 percent increase from the 173 issued by the office in 2004 when it first opened.

At Friday’s press conference, Citizenship and Immigration Minister Jason Kenney lauded his department’s achievements in reducing processing times for visitor visas for Indian visitors, from 12-days for 80 percent of cases in 2011, to 5-days in 2012 for the same portion of cases.

He also celebrated an 80 percent approval rate for applications it received through the office for its new Parent and Grandparent Super Visa, which CIC introduced in December 2011 as a replacement for the parent and grand-parent sponsorship stream of the Family Class permanent residence immigration program.

The Super Visa grants parents and grand-parents of Canadian citizens and permanent residents permission to stay in Canada for up to ten years without the need to apply for extensions to their visa.

Report Projects Oil Sands to Contribute Trillions to the Canadian Economy

Posted on by
Reply

The Deloitte report says pipelines are the most efficient way to transport oil produced in Western Canada

A comprehensive report on the challenges and opportunities of Canada’s oil sands by auditing giant Deloitte projects that the hydrocarbon deposits will contribute an estimated $2.1 trillion to Canada’s GDP over the next 25 years.

The economic benefits of the added wealth include up to $783 billion in extra tax revenues over the period, which will provide a significant boost to local, provincial and federal governments and help them meet the growing costs of providing social services to an ageing population.

In addition to tax revenue, the export revenue generated from oil sands production will fund up to 905,000 jobs a year according to the Deloitte report.

The report cites lack of pipeline infrastructure as a potential limiting factor in the growth of Canada’s energy exports, as oil production is expected to reach current pipeline capacity by 2017.

Oil producers are currently look to use alternative transportation methods, in particular rail transport, to move the oil to international markets once pipeline capacity has been reached, but these solutions are expensive and inefficient in the long run, and the report says more efficient pipeline transportation will be required to fully realize the oil sands’ potential.

The report mentions the Northern Gateway pipeline, the Keystone XL pipeline and the Trans Mountain Expansion (TMX) as three pending infrastructure projects that are critical for providing sufficient conduits for getting Canada’s oil sands production to world markets.

According to Deloitte, the benefits of completing these projects include: 1) reducing up to $131 billions in losses that are currently incurred from Canadian oil being sold at below market prices due to lack of access to world markets, 2) reducing over-reliance on the US market, and 3) getting access to the fastest growing oil consuming regions of the world in India and China.

The biggest challenge in the oil sands development according to the report is the poor public perception of the oil industry in Canada and the hyperbolic nature of the debate surrounding the potential environmental harm of oil pipelines. The report urges a more fact-based debate on the costs and benefits of pipeline construction that avoids broad generalizations and sweeping judgements about environmental criticism, the oil industry, and energy projects.

Chinese Immigrants to Canada Call for Beefed up Math/Science Curriculum in B.C.

Posted on by
Reply

Canada placed 10th in the mathematics portion of the 2009 Programme for International Student Assessment (PISA) while East Asian jurisdictions like Shanghai, China topped the rankings (CICS News)

The Vancouver Sun reports that a group of Chinese-educated tutors are calling for British Columbia’s Education Ministry to raise math and science standards in the province’s public schools.

The group of private tutors say that B.C. students are slipping compared to their Canadian counterparts and to students in other countries in international assessments of math and science aptitude, and this will harm the province’s children in the future unless there’s a change.

The tutors, who include Sharon Shen, Jason Gao, Yong Yuan and John Yuan, have formed the Educational Quest Society to promote their cause of raising B.C.’s education standards. They are concerned by the poor showing of the province’s students in a recent national assessment, as noted by the Vancouver Sun story:

For proof of a performance decline, the society points to the latest results from the Pan-Canadian Assessment Program, which tested the math skills of 32,000 Grade 8 students from across the country in 2010. While those in Quebec, Ontario and Alberta had results equal to or above the Canadian average, B.C. participants fell below.

Students in East Asian countries, including China, have in recent years developed a reputation for excellence in science and mathematics. In the math portion of the recent Programme for International Student Assessment (PISA) for example, the top five performing jurisdictions were all East Asian, with Shanghai students topping the rankings.

Chinese students have achieved these results despite the fact that education spending in China, at $1,593 US per pupil per year at Purchasing Power Parity (PPP), measures only a fraction of the OECD average of $9,860 (PPP).

Given the apparently superior efficiency and performance of education in China, the tutors’ insights into their country of origin’s education system is being given consideration in Canada and attention from Canadian news media like the Vancouver Sun.

It remains to be seen if Canada’s culture and education policy will transform in coming years as a growing immigrant population adds an international perspective to the way of doing things.

B.C. Government Unveils New Website For International Students

Posted on by
Reply

Over a dozen English language schools in downtown Vancouver cater to international students. The government of B.C. is seeking to increase the number of foreign students who choose to study in the province (CICS News)

On Monday, the provincial government of British Columbia, Canada’s westernmost province, unveiled an updated LearnLiveBC website to promote B.C.’s post-secondary institutions to international students and provide foreign students with information on the educational programs available in the province.

As part of the province’s efforts to build upon its strength as a top destination for international students and promote B.C.’s colleges and universities overseas, the LearnLiveBC website will be made available in several languages, including Korean, Portuguese, Japanese and Chinese, over the course of 2013.

The website includes links to resources like the educationplanner.ca site, which catalogues and allows users to digitally search thousands of programs available in B.C.’s post-secondary institutions.

The B.C. government says that there are currently 100,000 international students in the province, and that it will gain 1,800 jobs and increase its GDP by $100 million for every 10 per cent increase in the number of international students coming to the province.

The creation of the LearnLiveBC website is one part of British Columbia’s International Education Strategy which was unveiled in May 2012.

New Canadian Immigration Program for Skilled Trades Opens

Posted on by
7

The Federal Skilled Trades Program was launched on Wednesday to acclaim from construction industry leaders

Citizenship and Immigration Canada (CIC) officially launched the Federal Skilled Trades Program (FSTP) on Wednesday, and plans to admit up to 3,000 permanent residents through the program in 2013.

Applicants of the FSTP must meet three general requirements to be eligible for the program:

  • meet the minimum language requirements of the program,
  • have at least two years of full-time work experience (or an equivalent amount of part-time work experience) in an accepted skilled trade within five years of the date of the application,
  • have a Certificate of Qualification or a job offer(s) from up to two Canadian employers that totals at least one year of full time work

Construction industry leaders have welcomed the program, which they say could mitigate the pressing labour shortages they are facing in many of the trades.

“Today’s announcement is good news for the construction industry because the need for workers with trade skills will continue to grow as Alberta’s economy grows,” said Merit Contractors Association in Alberta vice-president Bill Stewart.

Canadian Construction Association president Michael Atkinson had similar praise for the program:

“The Canadian Construction Association is especially pleased to hear today’s announcement that the new federal Skilled Trades Program to be launched on January 2nd, 2013.”

In order to make it easier for skilled trades persons to immigrate to Canada, CIC created the FSTP with no post-secondary education requirements and lower language proficiency requirements than the well-known Federal Skilled Worker Program.

Toronto Tops CIBC’s Annual Metropolitan Economic Index for Canadian Cities

Posted on by
Reply

Toronto has ranked near the top of the Canadian Metropolitan Economic Activity Index for five of the last seven years (Paul Bica)

Toronto leads all Canadian cities with a score of 20.6 points in the most recent CWM Metropolitan Economic Activity Index, which rates the economic activity of Canadian cities according to nine economic variables selected by CIBC’s World Markets subsidiary.

The indicators used in formulating the Index score include a city’s unemployment rate, population growth, bankruptcy rate and housing starts growth rate.

While Toronto did not lead other major Canadian cities in any of the nine areas of economic activity, it consistently ranked near the top in most of the categories, providing it with the highest cumulative score.

Toronto’s manufacturing sector benefited from an increase in automobile purchases in the United States as that country experienced an economic recovery, and an expansion of its construction industry, as housing starts, led by condominium construction, unexpectedly grew in the city.

Trailing Toronto in the top six Canadian cities were the Prairie metropolises of Calgary, Regina, Winnipeg, Saskatoon, and Edmonton in descending rank.

Calgary, coming second with a score of 19.5 points, continued to benefit from having one of the lowest unemployment rates, highest home sales growth rates, and highest population growth rates of Canadian metropolises.

Canadian Government Proposes Limiting Student Visas to Attendees of Provincially Recognized Schools

Posted on by
Reply

International students in Vancouver, Canada. International students are estimated to contribute nearly $6 billion to the Canadian annually (CICS News)

In an effort to stop abuse of the International Student Program by those seeking to work illegally in Canada and stem the growth of a student-visa mill industry that harms the reputation of Canadian educational institutions, Citizenship and Immigration Canada (CIC) on Friday proposed to parliament new regulations that would limit student visas to enrollees of institutions recognized by provinces and territories.

In announcing the measures, Citizenship and Immigration Minister Jason Kenney extolled the benefits of international students for Canada and his department’s intention to maintain the high educational standards of Canadian post-secondary institutions.

“Attracting the best and brightest young minds from around the world is key to the continued success of Canada’s economy and long-term prosperity,” said Kenney.

“But there are too many stories of international students who pay a lot of money and leave their families back home to study in Canada, only to find out they have been misled. These changes will help us better protect international students and the reputation of Canada’s post-secondary education system by making sure that international students are coming to quality institutions that comply with basic standards of accountability.”

The proposed rules would require that a student visa holder’s primary intent in Canada is to study, and would grant CIC the authority to request evidence from study visa holders to prove they are complying with this condition and revoke their student visas if they fail to do so.

The proposed rules would enact recommendations of a 2011 review of the International Student Program.

Canadian Immigration Department Finalizes Occupation List for Federal Skilled Trades Program

Posted on by
8

Welders will be one of the occupations that will be accepted without a 100 application sub-cap under the new Federal Skilled Trade Program (Joe Mabel)

CICS News has learned that Citizenship and Immigration Canada (CIC) has made a final decision on which occupations will be eligible for the new Federal Skilled Trades Program (FSTP) that is scheduled to open on January 2nd.

CIC is expected to announce that the FSTP will give occupations one of two treatments; Group A occupations will be sub-capped at 100 applications per year for that particular occupation, and Group B occupations will have no sub-cap and will be accepted until the program’s total cap of 3,000 applications has been reached for the year.

Occupations within Group A will be:

  • Contractors and supervisors in electrical trades and
    telecommunications occupations
  • Contractors and supervisors in carpentry trades
  • Contractors and supervisors in other construction trades,
    installers, repairers and servicers
  • Carpenters
  • Contractors and supervisors in mechanic trades
  • Contractors and supervisors for heavy equipment operator
    crews
  • Supervisors in logging and forestry
  • Supervisors in mining and quarrying
  • Contractors and supervisors in oil and gas drilling services
  • Logging machinery operators
  • Agricultural service contractors, farm supervisors and
    specialized livestock workers
  • Supervisors, mineral and metal processing
  • Supervisors in petroleum, gas and chemical processing
    and utilities
  • Supervisors in plastic and rubber products manufacturing
  • Central control and process operators, mineral and metal
    processing
  • Power engineers and power systems operators
  • Water and waste treatment plant operators

Occupations within Group B will be:

  • Machinists and machining and tooling inspectors
  • Sheet metal workers
  • Structural metal and plate work fabricators and fitters
  • Ironworkers
  • Welders and related machine operators
  • Electricians (except industrial and power system)
  • Industrial electricians
  • Power system electricians
  • Electrical power line and cable workers
  • Telecommunications line and cable workers
  • Telecommunications installation and repair workers
  • Plumbers
  • Steamfitters, pipefitters and sprinkler system installers
  • Gas fitters
  • Construction millwrights and industrial mechanics
  • Heavy-duty equipment mechanics
  • Refrigeration and air conditioning mechanics
  • Railway carmen/women
  • Aircraft mechanics and aircraft inspectors
  • Elevator constructors and mechanics
  • Crane operators
  • Drillers and blasters — surface, mining, quarrying and
    construction
  • Water well drillers
  • Underground production and development miners
  • Oil and gas well drillers, servicers, testers and related
    workers
  • Petroleum, gas and chemical process operators

The FSTP is intended to meet labour shortages in Canada’s resource sectors by creating a path to immigration for foreign nationals skilled in high-demand trades like welding and drilling.