Moody's "very comfortable" with top Canada rating

By Claire Sibonney and Andrea Hopkins | Reuters – Thu, Jun 14, 2012

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TORONTO (Reuters) - Moody's Investors Service is "very comfortable" with its top Aaa credit rating for Canada because the country's fiscal and banking strength give it room to react to risks arising from the European debt crisis and Canada's hot housing market, Moody's chief analyst for Canada said on Thursday.

Steven Hess said he did not believe the risk from Canada's booming real estate sector was very great, but that he would not be surprised if there was some price correction. External risks from Europe would mainly flow to Canada from the United States, Canada's largest trading partner, he said.

"We still have a stable outlook on Canada and don't see any reason why that would change anytime soon," Hess said in an interview with Reuters.

"The fiscal situation being pretty good relative to other countries and ... our bank financial strength ratings for the Canadian banking system as a whole are the highest really of any banking system in the world."

Hess said if one is looking for risks to Canada they would come from high household debt and the heated housing market, but that Canada's strong banks and economic strengths would likely limit the fallout of a housing correction.

The Bank of Canada, in its semi-annual Financial System Review on Thursday, said the country's financial system remains highly vulnerable to a further escalation in the European debt crisis and the possibility of a correction in the housing market.

But even if a severe housing correction resulted in problem loans, Hess said Canada's big banks would be able to manage without having to resort to government help.

"It wouldn't be surprising if there was some correction in the housing market," Hess said. "Now will that cause a financial problem, system-wide? In the end we don't think that that risk is very great because of the lending standards that are in the banks, because the economy is still doing relatively well and employment is all right.

"You don't have the same thing that you had in the United States of people losing jobs before losing their houses. And also the legal framework surrounding foreclosures and whatever is different in Canada, and is more conducive to people continuing to service their loans."

Canada's federal housing agency said in a report on Thursday that the country's hot housing market will likely cool toward the end of 2012.

SAFE-HAVEN STATUS

Canada and Germany are alone among G7 countries in having Moody's highest credit rating with a stable outlook. Canada's prudent fiscal management and sound banking sector have been credited with helping it survive the global recession better than many countries.

Hess said Canada's strength - including the relatively positive budget positions of the federal and provincial governments and the prospect of eventual official interest rate increases - is turning Canada into a safe haven for foreign investment.

"In some sense, the Canadian government bond and Canadian dollar assets in general are taking on some characteristics of a haven currency internationally (with) investors who are wanting to diversify away from Europe because of the situation there," Hess said.

"And with the debt-limit question coming back to the fore in the United States, maybe some diversification away from the U.S. dollar is also desirable and Canada looks like a place you could put your money."

The emergence of Canada as an alternative safe haven for foreign investment is benefiting the government in terms of low bond yields. Hess said the proportion of Canadian government debt held by nonresidents has risen in the last couple of years to about 20 percent.

That is low compared with the United States, where nonresidents hold about 50 percent of U.S. Treasury bonds, and compared with France and Germany, where it is more than 60 percent.

"In Canada it is still relatively low so there is a lot of room, if you want to put it that way, for foreign investment coming into not just the federal government but the provinces as well," Hess said. "And this means that their borrowing costs are lower than they would be otherwise. Even if the Bank of Canada raises the short-term rates, the longer-term bond market is going to benefit from foreign demand."

Last month, the federal government announced a smaller-than-expected budget deficit for 2011-12, giving Finance Minister Jim Flaherty some leeway to react if needed to what he called an "unstable" situation in Europe, and keeping Ottawa on track in its plan to balance the budget by 2015-16.

Hess said Canada can't escape feeling the effect of any return to fiscal crisis in the United States or a knock-on effect of the euro zone debt crisis or breakup.

"It's not something we are predicting, but the risk to the financial system coming from Europe, for example, is there. And that would obviously have some spillover effects on Canada because of the close association of Canada and the U.S.," Hess said.

(Reporting By Andrea Hopkins and Claire Sibonney; Editing by Peter Galloway)

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Immigrant Underemployment is Costly for Canada, CIBC Says

English: Tour CIBC in Montreal. (Photo credit: Wikipedia)

By Nirmala Menon


Bloomberg
A worker at an auto-parts plant in Ontario. A CIBC economist argues that changes to Canada’s immigration model could help productivity.
Immigrants in Canada are underemployed and paid less than Canadian-born workers, a phenomenon that’s costing the economy over 20 billion Canadian dollars in forgone earnings, and is probably  a significant factor in Canada’s productivity gap with the U.S., according to a report from CIBC World Markets.

Newcomers to Canada may be more educated now, but they only earn about 60 cents on the dollar relative to their Canadian-born counterparts. That compares with 80 cents on the dollar earned by those who arrived in the 1970s, the report says. The earnings gap is also narrowing at a much slower pace.

The crux of the issue is a mismatch between the skills that an immigrant brings and those the country needs, according to the report’s author, Benjamin Tal. Furthermore, immigrants are arriving with less proficiency in English or French, Canada’s official languages.

“This is not an efficient market,” Mr. Tal, who is deputy chief economist of CIBC World Markets, said in an interview.

He says Australia is doing a better job of narrowing the discrepancy between its native-born and immigrant populations, noting that the earnings gap is 50% smaller than in Canada. He says mandatory pre-immigration English language testing introduced in the 1990s is probably the key factor for the advantage that Australian immigrants enjoy. There’s also more coordination between government and the professional bodies responsible for licensing, so immigrants have a greater chance of success in their fields, he says.

Although many recent changes in Canadian immigration rules are modeled on Australia, Mr. Tal worries that Canada may be focusing too much on short-term needs.

“We should be taking a long term view,” he says.

The earnings disparity between immigrants and those born in Canada doesn’t bode well for the country’s lackluster productivity. Mr. Tal points to estimates that suggest some 20% of the increase in the productivity gap with the U.S. over the last decade can be attributed to immigration.

“Without a significant increase in immigration-based productivity, the aging profile of the Canadian population will work to reduce the standard of living all Canadians,” Mr. Tal writes.

http://blogs.wsj.com/canadarealtime/2012/08/13/immigrant-underemployment-is-costly-for-canada-cibc-says/

Government of Canada Helps Internationally Trained Professionals in Alberta Get Good Jobs

CALGARY, ALBERTA, Aug 01, 2012 (MARKETWIRE via COMTEX) -- More than 300 internationally trained professionals in Alberta will receive financial assistance to help them have their education and experience recognized, thanks to the Government of Canada's Foreign Credential Recognition Loans Pilot. The Honourable Diane Finley, Minister of Human Resources and Skills Development, made the announcement today.

"Our Government's top priorities are job creation and economic growth and we recognize that internationally trained workers help fill skills shortages in key occupations," said Minister Finley. "By partnering with organizations like the Immigrant Access Fund Society of Alberta to help internationally trained professionals find meaningful work, we are working together for Canada's long-term prosperity."

"We want skilled professionals who come to Canada to work and contribute to their full extent as soon as possible, instead of facing underemployment and being underutilized," said Jason Kenney, Minister of Citizenship, Immigration and Multiculturalism. "That is why we are committed to not only attracting bright, hard-working people from all over the world but also making sure that they get every opportunity to succeed in Canada."

Under the Foreign Credential Recognition (FCR) Loans Pilot, the Immigrant Access Fund Society of Alberta (IAF Alberta) is receiving over $3.3 million to provide loans to internationally trained professionals so they can become licensed to work in their fields. This funding will enable IAF Alberta to provide over 300 more loans over the next two years and to expand its employment counseling and credential assessment services to smaller and rural communities.

"The Immigrant Access Fund applauds the Government of Canada for its vision and commitment to investing in the potential of new Canadians," said Kerry Longpre, President of the IAF. "This aligns with the mission of the Immigrant Access Fund Micro Loan Program, which strives to ensure the equitable integration of internationally trained immigrants. It is critical for the economic and social success of our communities to maximize the expertise of new Canadians and celebrate their contributions."

For many internationally trained professionals, the cost of licensing exams, training and skills upgrading can present a significant barrier to credential recognition and getting work in their fields. The FCR Loans Pilot is implementing projects across Canada that provide financial assistance to internationally trained professionals to lessen some of these financial burdens. Delivered in partnership with community organizations, these micro-loans will make it easier for internationally trained professionals to find jobs that best suit their skills and experience.

IAF Alberta is the fourth organization to receive funding under the FCR Loans Pilot. Similar projects under the pilot have been announced with IAF Saskatchewan, WIL Employment Connections of Ontario, and S.U.C.C.E.S.S British Columbia. This innovative, community-based initiative is another example of how the federal government is working with partners to help internationally trained professionals put their knowledge and skills to work sooner.

The FCR Loans Pilot complements the significant investments that the Government of Canada has made in recent years to help new Canadians succeed.

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IF THERE IS A DISCREPANCY BETWEEN ANY PRINTED VERSION AND THE ELECTRONIC VERSION OF THIS NEWS RELEASE, THE ELECTRONIC VERSION WILL PREVAIL.

This news release is available online at: www.actionplan.gc.ca .

BACKGROUNDER

The Foreign Credential Recognition Loans Pilot

Following a commitment made in Budget 2011, the Honourable Diane Finley, Minister of Human Resources and Skills Development, and the Honourable Jason Kenney, Minister of Citizenship, Immigration and Multiculturalism, launched on February 22, 2012, the Foreign Credential Recognition Loans Pilot to test innovative and sustainable ways to help internationally trained professionals cover costs associated with the foreign credential recognition process. Until March 31, 2014, the Pilot will provide $18 million in funding to community-based partners-such as non-government and non-profit organizations-to increase their capacity to deliver financial assistance to eligible professionals.

The funding announced today will help internationally trained professionals in Alberta find meaningful work by enabling the Immigrant Access Fund Society of Alberta to provide over 300 more loans over the next two years, and to expand its employment counseling and credential assessment services to smaller and rural communities.

The Immigrant Access Fund (IAF) provides internationally trained professionals and tradespeople with loans of up to $10,000, repayable within four years, to help with tuition fees, books and course materials, qualification assessment, or other costs related to obtaining the Canadian accreditation to successfully integrate into the job market. Since 2005, IAF has approved 675 micro loans to internationally trained professionals in over 60 different occupations.

The Pan-Canadian Framework for the Assessment and Recognition of Foreign Qualifications

Canada's Economic Action Plan invested $50 million to work with the provinces and territories and other stakeholders to improve foreign credential recognition. This partnership led to the development of the Pan-Canadian Framework for the Assessment and Recognition of Foreign Qualifications, which was announced in November 2009.

Under the Framework, foreign credential and experience recognition is being streamlined for key occupations, including engineers and nurses. In 2010, service standards were established so that internationally trained professionals in the first eight priority occupations can have their qualifications assessed within one year, anywhere in Canada. We are currently improving foreign qualification recognition for six more target occupations, including physicians and dentists.

In Budget 2012, the Government of Canada announced support for further improvements to foreign credential recognition and will continue to work in partnership to identify the next set of target occupations under the Framework.

To learn more about Canada's Economic Action Plan, visit www.actionplan.gc.ca .

The Government of Canada's Foreign Credential Recognition Program and Services

The Foreign Credential Recognition Program aims to improve the integration of internationally trained workers into the workforce. The Program provides funding and works with the provinces and territories and other stakeholders-including regulatory bodies, post-secondary institutions, sector councils and employers-to implement projects that facilitate the assessment and recognition of qualifications acquired in other countries.

Established in May 2007, the Foreign Credentials Referral Office (FCRO) provides information and path-finding and referral services, both in Canada and overseas, to help internationally trained workers have their credentials assessed quickly so they can find work faster in the fields in which they have been trained.

The FCRO works with federal, provincial and territorial partners, as well as with credential assessment and recognition bodies, to strengthen foreign credential recognition processes across the country. Internet-based services for internationally trained workers can be found on the FCRO website at www.credentials.gc.ca .

Established in 2005, the Internationally Educated Health Professionals Initiative works with provinces, territories and stakeholders to help more internationally educated health professionals put their skills to work in Canada's health system.

        
        Contacts:
        Marian Ngo
        Office of Minister Finley
                    819-994-2482      
        
        Media Relations Office
        Human Resources and Skills Development Canada
                    819-994-5559      
        
        
        

SOURCE: Canada's Economic Action Plan

Copyright 2012 Marketwire, Inc., All rights reserved. 

Stats confirm 'bogus' refugee claimants from 'safe' countries abusing Canadian health care: Kenney

By Tobi Cohen, Postmedia News July 31, 2012

OTTAWA — Mexican, Hungarian, Colombian and American refugee claimants used Canadian health care services more than any other asylum claimants, according to new figures obtained by Postmedia News which the government argues supports its claim that so-called "bogus refugees" are abusing the system.

Between Jan. 17 and Dec. 31, 2011, 8,819 Mexicans racked up nearly $7 million in health care costs under the Interim Federal Health Program. Some 6,749 Hungarians charged more than $4.4 million, while 4,583 Columbians racked up more than $2.6 million in costs. Meanwhile, 3,790 Americans received more than $1.4 million in free health care. Jamaican claimants round out the top five with 809 health care users receiving more than $808,000 worth of health services.

Given the high rejection, abandonment and withdrawal rates for refugee claimants from some of these countries, Immigration Minister Jason Kenney argued this is proof the government was right to crack down on the breadth of health services that are available to refugee claimants.

"That does underscore the reasons why we've reformed the Interim Federal Health Program. There's no doubt that it has been a draw factor for many false asylum claims," he said.

"I think it demonstrates why we've made what are, I think, very fair and balanced changes."

The government announced in April that it was cutting a variety of health care services, including pharmaceutical, vision and dental care, provided to refugee claimants under the Interim Federal Health Program. The cuts, which took effect June 30, were meant to ensure potential fraudsters were not receiving "gold-plated" extras average Canadians don't get, according to Kenney.

The move led to a backlash by a number of physicians across the country who have taken to the streets to protest the cuts, which they say go a lot deeper than the government is letting on and create additional barriers for an already vulnerable population.

There are also concerns that under Bill C-31, the controversial tough-on-refugees bill that became law in June, claimants will face even more hurdles in obtaining health care. The bill creates a list of so-called "safe" democratic countries that are thought not to produce bona fide refugees. Claimants from those countries will have their cases fast-tracked, they'll have no right to appeal a negative decision and they'll be barred from receiving ongoing health care services except in cases where public safety is at risk.

According to Immigration and Refugee Board figures, last year 83 per cent of Mexican refugee applications were rejected, abandoned or withdrawn. The same could be said for 91 per cent of Hungarian claims, 98 per cent of American claims, 63 per cent of Columbian claims and 62 per cent of Jamaican claims.

While Kenney has yet to release his "safe" country list, according to the criteria, Mexico, Hungary and the United States are certain to be on it.

Kenney said Tuesday that he's heard stories from Canada Border Service agents who've interviewed Hungarians about why they withdrew their applications. Some were quite honest, he said, noting they came to get free dental care for their kids and planned to leave after they got it.

Many Columbian claimants, he added, apply for refugee status in Canada, not after arriving from Bogota but after spending a decade in the United States with no health coverage.

"It's hard for us to quantify exactly how many false asylum claimants have come because of pull factors like the Interim Federal Health Program, but we shouldn't be naive. When you're offering people free gold-plated medical services they can't get in their country of origin, it's just human nature," Kenney said.

"We hope the changes we've made to the Interim Federal Health Program, combined with the fast asylum system and other measures we're taking to restrict access to federal benefits, will significantly reduce the pull factors . . ."

tcohen@postmedia.com

Twitter.com/tobicohen

© Copyright (c) Postmedia News

Original source article: Stats confirm 'bogus' refugee claimants from 'safe' countries abusing Canadian health care: Kenney

Read more: http://www.canada.com/news/Stats+confirm+bogus+refugee+claimants+from+safe+countries+abusing+Canadian+health+care+Kenney/7019922/story.html#ixzz22JWSHK2B 

Read more: http://www.canada.com/news/Stats+confirm+bogus+refugee+claimants+from+safe+countries+abusing+Canadian+health+care+Kenney/7019922/story.html#ixzz22JWKnQSR

CIC Launches National Consultations on Immigration Levels and Mix

TORONTO, ONTARIO, Jul 31, 2012 (MARKETWIRE via COMTEX) -- Citizenship and Immigration Canada (CIC)'s Parliamentary Secretaries Chungsen Leung and Rick Dykstra have launched a series of cross-country consultations on immigration issues, beginning today in Toronto.

The two Parliamentary Secretaries will be meeting with stakeholders and the public to discuss the appropriate level and mix of immigration for Canada in the coming years. Since 2006, the Government of Canada has welcomed the highest sustained levels of immigration in Canadian history.

Following the Toronto session today hosted by Parliamentary Secretary Leung, meetings with stakeholders will take place in Windsor, Vancouver, Halifax and Ottawa. As of today, online consultations are also open to the public and stakeholders for input.

The purpose of the consultations is to seek feedback on immigration issues, including the appropriate level of immigration for Canada, and the most suitable mix among economic, family, and refugee and humanitarian classes. Discussions with the Parliamentary Secretaries will also touch on CIC's transition towards a faster and more flexible immigration system, as well as the growing importance of immigration to Canada's economic growth and long-term prosperity.

In planning for the total number of people to admit as permanent residents, CIC must not only balance the Government of Canada's immigration objectives, but also consider broader government commitments, input from provinces and territories, and current and future economic conditions. The Department must also take into account its operational ability to process applications in a timely manner, as well as the capacity of communities to welcome newcomers.

These consultations present an important opportunity to generate greater public understanding of the difficult decisions involved in managing a global immigration system. There are competing visions and diverging goals for the future of the immigration program, and there are no easy answers. Engaging stakeholders and the broader public is key to CIC's development of an overall strategy for Canada moving forward.

Invited stakeholders represent a variety of perspectives, including those of employers, labour, academia, learning institutions, professional organizations, business organizations, regulatory bodies, municipalities, Aboriginal groups, settlement provider organizations and ethnocultural organizations.

The online consultations are open for input until August 31, 2012. Interested participants can find more information at: http://www.cic.gc.ca/english/department/consultations/index.asp .

A summary report of the stakeholder and public consultations will be available on the CIC website once completed.

Backgrounder

        
        --  2013 Levels Planning: Public and Stakeholder Consultations
        
        

Follow us on Twitter at www.twitter.com/CitImmCanada .

        
        Contacts:
        Citizenship and Immigration Canada
        Minister's Office
        Alexis Pavlich
                    613-954-1064      
        
        Citizenship and Immigration Canada
        Communications Branch
        Media Relations
                    613-952-1650      
        CIC-Media-Relations@cic.gc.ca
        
        
        

SOURCE: Citizenship and Immigration Canada

        mailto:CIC-Media-Relations@cic.gc.ca
        

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