Fisher: Canada should target talented, unemployed Europeans

BY MATTHEW FISHER

BARCELONA — Canada must not be shy about taking advantage of Europe's financial distress. The Harper government should target some of the continent's best and brightest as immigrants and prospective future citizens.

Spain is a case in point. According to data from the European Union, it had an unemployment rate of 22.9 per cent last fall, followed by Greece with 18.8 per cent.

Take away the few European countries which are still prospering, such as Germany, Austria, Holland and Finland, and the unemployment rate across the EU was more than double that of Canada, which announced an unemployment rate of 7.5 per cent last week.

The figures in Europe were far worse for those under the age of 25. Spain again led the way with a staggering youth unemployment rate of 49.6 per cent, followed by Greece with 45.6 per cent, compared to a rate of about 15 per cent in Canada.

Given those appalling European numbers and Immigration Minister Jason Kenney's stated goal of taking in 250,000 immigrants this year, it is in Canada's national interest to modify existing programs or create a new program to specifically headhunt tens of thousands of highly educated but unemployed or underemployed Europeans. Of special importance should be the large number of young Europeans who already speak English and/or French well and who possess sophisticated computer skills or have solid mechanical, engineering and scientific backgrounds.

Again and again as I travelled last month by train from Italy through France, Spain, Belgium, Germany and Poland, checking the continent's feeble economic pulse, sometimes desperate and always despairing Europeans complained to me about how, despite top notch schooling, their job prospects were extremely limited or non-existent.

A few of those I spoke with, such as a 21-year-old female apprentice car mechanic from Perpignan, in southern France, had friends who had emigrated to Canada and were encouraging her to join them. A 25-year-old quadrilingual hotel clerk in Belgium with a graduate degree in international relations who aspired to become a teacher complained that Ottawa did not seem to want Europeans. He and others questioned why, from where they sat, Canada seemed to give preferential treatment to Asian and Middle Eastern migrants.

As the result of policies established during by Liberal governments in the 1960s, which greatly diversified the pool of immigrants eligible to settle in Canada and actively sought them from new places, it takes far fewer immigrants from Europe today. In 2010, the most recent year for which Citizenship and Immigration Canada as well as Statistics Canada have published data, the country took in 135,000 Asians and 41,320 Europeans. Another 67,000 Africans and Middle Easterners were also granted landed immigrant status.

It was not always like this, of course. Canada took in 257,141 European immigrants and only 3,371 from Asia in 1957. As late as 1967, Canada welcomed 159,491 newcomers from Europe compared to 21,451 from Asia. However, only 12 years later, the balance had shifted dramatically in Asia's favour, with about 30,000 more immigrants from the Far East and South Asia than from Europe.

Europeans represented 90 per cent of Canada's intake of immigrants in 1957. Half a century later, the percentage of European immigrants to Canada had plummeted to about 15 per cent of the total. Looked at another way, Canada has taken in almost 1.5 million more immigrants from Asia than from Europe since 1991.

Over the past 25 years, the number of immigrants from Africa and the Middle East has also greatly surpassed immigration from Europe, growing nearly sixfold to nearly 67,000 last year. During this same period, the intake of immigrants from Central America and South America grew, although not by as much.

Anecdotal reports from Canadian posts overseas suggest the number of Europeans emigrating to Canada is now growing slightly. But there are no figures yet to support this contention.

Canada did well when it encouraged immigration from Europe, just as it has done well recently by encouraging immigrants from elsewhere. However, factors that propel immigration change over time. It would be a boon to Canada if it were to redirect a few of its heavily Asia-centric immigration resources to Europe and, for the first time in decades, actively seek more immigrants from among the deep pool of highly capable Europeans who are in an economic pickle and are keen to take their talents elsewhere.

fisherrmatthew@hotmail.com

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Read more: http://www.canada.com/business/Fisher+Canada+should+target+talented+unemployed+Europeans/5979410/story.html#ixzz1jD3NFuOU

Canada seeks thousands of Irish immigrants urgently

By 

DARA KELLY,

 

IrishCentral.com Staff Writer

Published Sunday, November 20, 2011, 7:39 AM

Updated Sunday, November 20, 2011, 9:41 AM

Canada is seeking tens of thousands of Irish worker to fill a wide range of jobs, the Canadian Ambassador to Ireland announced last week.

The country is seeking to fill a labor shortage caused by a strong economy, massive infrastructure projects and booming fisheries, mining, oil and natural gas industries.

"I'm hearing numbers like between 30,000 and 40,000 in construction alone," Ambassador Loyola Hearn told the Irish Independent.

This year, all 5,000 holiday work visas open to anyone between the ages of 18 and 35, were quickly snapped up. Immigration officials have increased the quota to 5,350 for 2012.

The Canadian embassy held a jobs fair at Croke Park in Dublin last weekend focusing on job opportunities in the four Atlantic provinces of New Brunswick, Nova Scotia, Newfoundland and Prince Edward Island. There is also a huge demand for workers in the western provinces, including British Columbia, Alberta and Saskatchewan.

Hearn says there will be more job fairs to come.

"We've surpassed the US now with emigration and are second behind Australia," he said.

The level of emigration and business between Canada and Ireland is such that the embassy is spearheading a campaign to establish regular direct flights between the two countries, he added.

The embassy -- along with the Dublin Airport Authority, Failte Ireland, Dublin City Council and Irish-Canadian business and community organizations -- is developing a business plan it hopes will result in one of the major airlines opening up a direct link in the near future.

It is estimated that around 10,000 Irish have already relocated to Canada over the past two years.

Read more: http://www.irishcentral.com/news/Canada-seeks-thousands-of-Irish-immigrants-urgently-134201468.html#ixzz1j77YXXWK

America's losing out to Canadaon luring ambitious Irish people

The government of Saskatchewan is planning a mission to Ireland to recruit workers to come work in the central Canadian province. Saskatchewan isn't the only Canadian province interested in recruiting Irish workers either. Nova Scotia and a few others are also keen. Western Australia and other Australian states are of similar minds.

Canada and Australia are both actively seeking Irish workers.Given the high unemployment and dismal projections of years of economic stagnation, Irish people are responding. They're heading to both places in their tens of thousands. Definitely, Ireland's loss is Canada and Australia's gain.

When it comes to Irish immigration to America it's always about 'the undocumented' – campaigners pleading for clemency for those who have gone to live and work in America without the papers being in order. I'm not belittling that. There's real human suffering there. I wouldn't want to undermine the efforts of those hoping to ease the plight of the people caught in that legal limbo.

I suppose it's just that if I were in Washington meeting members of Congress I'd show them the Canadian and Australian recruiting campaigns and ask, "What is it those two countries see that we don't? Why are they making such an effort to entice Irish workers while we have erected almost insurmountable barriers to the same people?"

The fact we're talking about Canada and Australia is important. Those two countries are the two nations on Earth most like America in terms of population and attitude. What is it about the Irish that has the Canadians and the Australians so focused on recruiting them? I'll tell you: the Irish emigrants of 2012 are essentially the same people who flooded into America in the years leading up to WWI.


I know that today's young Irish generation has had a different up-bringing to that of our parents, grandparents and great-grandparents. They've been raised in a different Ireland, had different experiences and have different political and religious views than those who went to America in the past. Yet, in many ways - especially those that matter to the United States of America - the young Irish of 2012 are the same decent, hard-working people who went to America seeking new opportunities in 1912. 

Just as too often in the past, today's Ireland has nothing for a large proportion of the Irish people. Many of those people are not content to sit around waiting for something to happen. They want to make it happen for themselves even if it's outside Ireland. Those are the people heading to Canada and Australia.

What makes this generation of disenfranchised Irish different from those in the past is today's potential emigrants are very well educated. A large percentage have top-notch degrees. Also many have already had a brief taste of success, they've acquired the kind of skills that will benefit employers in a forward-looking economy. They're hungry and talented. And they have more confidence in themselves than those who've gone before. They're also more entrepreneurial.

These Irish people will be a real benefit to whichever country they move to. That many would love to go to the United States is beyond question, but they cannot. They are unwelcome. They won't worry about it too much, though, because if America doesn't want them someone else does. 

The loss is America's more than it's these quality Irish people. Barring such people when they're in such demand elsewhere is so breathtakingly stupid it hurts.

Yes, of course, the American economy is down now and not really looking for new workers, but now is is the time to correct this so that when US companies are again looking for skilled workers the Irish are available to them.

Now is the time for America to prepare to compete with Australia and Canada. Irish emigrants have so much to offer America, but America has to want them, has to open the door to them. If not, they'll simply pass on by to the next-door neighbors who have the door opened and cake baked ready to welcome them.

Read more: http://www.irishcentral.com/story/roots/the_american_in_ireland/americas-losing-out-to-canada-australia-on-luring-ambitious-irish-people-137016233.html#ixzz1j774cC4L

Five trends in Canadian immigration

The common wisdom, from Italy to the United States, is that resistance to immigration magnifies in direct correlation to how much a country’s citizens struggle economically.

There are increasing signs that hard thinking is beginning to play out in Canada, which has the highest immigration rate per capita in the world – and which is now, along with the rest of the globe, undergoing financial strains.

Polls have long shown that Canadians, more than residents of any other country, believe that high immigration is “good for the economy.”

But signs of wariness are appearing. A recent Nanos poll found four out of five Canadians either want immigration levels to stay the same or decrease.

Immigration Minister Jason Kenney, since the May election, has been responding by acting tougher. He’s banned face-covering veils during citizenship ceremonies, required more thorough knowledge of English or French among prospective immigrants, spoken out against marriages of convenience and frozen immigration applications from parents and grandparents.

What’s behind the shift in the social wind? Numerous surveys are showing average Canadian families are taking a financial hit. It now takes two parents to match the pay packet of a single working person three decades ago. The gap between rich and poor keeps expanding, with young B.C. couples especially seeing a drop in their incomes since 1976.

In this context, Canadians, especially Metro residents, can expect to see certain immigration issues gain extra attention in the next year and beyond. Just as Europeans and Americans are becoming more outspoken about immigration issues, expect Canadians to become openly animated about the five following topics:

1. Ethnic enclaves expanding

The history of Canadian immigration is predominantly urban. The vast majority of immigrants move to Toronto, Vancouver and Montreal, in that order.

In each of these major cities immigrants have increasingly been creating ethnic enclaves, which Statistics Canada defines as neighbourhoods in which more than 30 per cent of the population is a visible minority.

Tens of thousands of Metro Vancouver residents are among those who each year quietly make their housing choices based in part on whether they will feel comfortable with the cultural and ethnic makeup of a particular neighbourhood.

Canada had only six ethnic enclaves in 1976. Now Metro Vancouver alone has more than 110. Many neighbour-hoods in Richmond are more than 70 per cent Chinese, while others in north Surrey are 70 per cent South Asian. Meanwhile, many neighbour-hoods in Tsawwassen, south Surrey and the North Shore remain predominantly white.

Ethnic map shows concentrations of Chinese in dark and yellow. Yellow means more than 70 per cent ethnic Chinese.

Metro Vancouver residents continue for the most part to get along. But the noted Harvard sociologist Robert Putnam is among many researchers who are finding, to their regret, that trust levels tend to decline when a city is composed of enclaves.

Optimists, however, maintain that mono-ethnic neighbourhoods break down over generations, as the off-spring of immigrants gain the emotional strength to move into more diverse areas.

Whatever the case, expect the subject of ethnic enclaves, once only whispered about, to be discussed more overtly in coming years.

RELATED: As Metro’s ethnic enclaves grow, will trust fade?

2. Canadians will heighten debate over the “limits of tolerance”

When Canada’s immigration minister heard in December that some Muslim women were refusing to take off their niqabs or burkas at citizenship ceremonies, he immediately declared they must reveal their faces if they want to become Canadians.

Except for some Muslim activists, few Canadians complained. Even though Kenney has spent years wooing Canadian immigrants to vote Conservative by attending hundreds of ethnic and religious banquets, the devout Catholic was likely aware his move would be applauded in a country where polls show Muslims are not as popular as Christians, Jews or Buddhists.

Similarly, many Canadians are suspicious about some forms of arranged international marriages. Kenney is being praised for taking a rhetorical hard-line against marriages of convenience, those difficult-to-prosecute frauds in which would-be immigrants jump to the front of the queue by pre-tending to be committed to a Canadian citizen.

Although arranged marriages often stand the test of time, expect Canadians to become more critical of immigrants who try to bring certain illiberal customs to this northern nation – including in some cases institutionalized homophobia, genital mutilation, domestic abuse, polygamy and gender inequality.

3. More economic anxieties will boil to the surface

Kenney is not the only politician publicly worrying about immigration. Vancouver Mayor Gregor Robertson this year openly lamented how wealthy new immigrants were making city housing unaffordable for his children and countless others.

But housing prices are responsible for only one of many immigrant-related economic problems. For instance, studies show new immigrants are, on average, not doing as well as they were two decades ago.

University of B.C. economist Thomas Lemieux is among those warning that the declining financial fortunes of new immigrants are spilling over to the entire population.

For all Canadians, says Lemieux, the gap is growing between the financially well-off and those with low incomes. The wealthiest Canadians, Lemieux says, “have doubled their share of the pie” in the past 15 years.

Both new Canadians, and home-grown ones, would most benefit from easier access to education, Lemieux maintains. But that will require major policy reforms.

“What’s getting the most expensive in Canada?” Lemieux asks rhetorically.

“In the past 15 years it has not been TVs or cars. It’s actually education. It may be discouraging lots of people from going to school.”

4. Temporary foreign workers will be spotlighted

Metro Vancouver’s 80,000 diligent Filipinos form the centre of a growing concern over temporary foreign workers. Since taking office in 2005, the Conservative government has hiked the numbers of these short-term foreign workers from 160,000 in 2006 to 283,000 in 2010.

Although temporary foreign workers have traditionally been brought into fill short-term skills shortages, they are increasingly being welcomed into the country to do unskilled, low-wage jobs as fast-food workers, nannies, farm labour and security guards.

In a rare display of agreement, economists from both the centre-left Canadian Centre for Policy Alternatives and centre-right Fraser Institute have come out against the rise in temporary foreign workers, many of whom are from the Philippines.

Both sides of the spectrum say the over-use of temporary foreign workers is lowering overall wages, hurting productivity and, perhaps most importantly, discouraging Canadians and landed immigrants from upgrading their skills.

University of B.C. planning specialist Prod Laquian, who has Filipino heritage, adds another dimension to this thorny issue. He is among those who points out it is often devastating for developing countries to lose their more industrious citizens to richer countries such as Canada.

5. Inter-ethnic relationships will grow

Ending on a positive note, it is becoming ever more common to see couples of mixed ethnicity holding hands, dining out or playing with their offspring in Vancouver, Toronto and Montreal.

Canadians’ boast of building a true multicultural society – characterized by creative dialogue and a new synthesis of cultures – will not occur through just our legendary niceness, which can sometimes mask distance and superficiality.

Authentic inter-ethnic bonding occurs when people can honestly face real social tensions, including some of those outlined here. Inter-ethnic relationships, which continue to be on the rise, may be the best way to help us cross these cultural boundaries.

As Harvard sociologist Robert Putnam has discovered, fondness between people of different backgrounds, religions and world views is most likely to swell when we take the risk of getting to know others – as friends, lovers, teammates or family.

RELATED: Everyone ‘loves’ three people of another faith

Trans-Atlantic poll shows Canadians have much to learn about immigration

Why is Vancouver so bad for immigrants’ health?

Blog: www.vancouversun.com/thesearch

Twitter: @douglastodd

TAX PLANNING FOR BUSINESS IMMIGRANTS

When my friend from the private banking division called to refer a new immigration tax client to me and said it was important to make time to see him within 24 hours because he was only here a short time before returning home, I sensed an upcoming formidable challenge.

I met with Ricardo and his wife, Maria, that afternoon to discuss their desire to immigrate to Canada from Europe. Ricardo was concerned about the high taxes in Canada and how to minimize them, while still being free to return to run his European business. Maria had misgivings about the risks, both financial and personal, facing the family on immigration to a new country.

I started by explaining that with proper planning these concerns could be met and the exposure to taxes and other costs minimized. I recommended that before leaving Europe, Ricardo and Maria should consult with a tax expert in their home country regarding exit taxes. Just as in Canada, some countries like the U.S., France and the Netherlands impose departure taxes of one kind or another. It may also be important to time the departure and any asset transfers after the tax return filing date, such as in the case of the U.K. to minimize inheritance tax.

Next, I pointed out that acquiring residence in Canada for tax purposes has important implications for the new immigrant, including the requirement to become taxable on worldwide income regardless of citizenship. While that prospect can be daunting, I explained that with tax holidays and taking advantage of lawful opportunities, the tax burden can be significantly minimized.

For example, because Ricardo and Maria’s home country has a tax treaty with Canada for the avoidance of double taxation (under which both countries agree that if an immigrant develops closer ties with the new country of residence and eliminates or, at least significantly reduces, ties with the country of departure) only the new country of residence, in this case Canada, will have taxing jurisdiction over the immigrants. This news came as a relief to Ricardo, but I cautioned he should confirm with my immigration law partner that he would not thereby jeopardize his Canadian immigration status.

I then introduced the jewel of Canadian tax holidays: the five-year immigration trust.

By establishing a discretionary, family trust in a tax-favoured jurisdiction, an immigrant to Canada can avoid tax on investment income and capital gains from trust assets for up to 60 months after immigration. The following considerations should be made before proceeding:

• timing so as to maximize the tax holiday;
• structure so as to avoid unintended consequences; and
• proper choice of assets to be held in the trust (which generally means liquid assets).

I suggested Ricardo and Maria weigh the costs of set up and maintenance against the benefits of the tax holiday.

Once Ricardo and Maria become Canadian residents, I stressed to them the importance of proper planning for domestic and international assets and income. A key tax consideration for an immigrant while he or she lives in Canada is that there will be a deemed acquisition of assets on acquiring Canadian residence – this resets the cost of assets for Canadian tax purposes.

The immigrant should become familiar with Canadian rules, and seek opportunities to minimize tax lawfully, for example:

• Claiming a corporate tax credit for the Small Business Deduction. A Canadian-controlled private corporation may claim a tax credit on income up to $500,000 to reduce the regular corporate rate from 26.5% to 15.5% (for example, in Ontario);
• Claiming tax deductions and credits for Scientific Research and Experimental Development Expenditures. Eligible R&D expenses can be deducted currently in computing income and generate tax credits of 35% for Canadian-controlled private corporations, including refundable cash credits of up to $3,000,000;
• Participating in lawful tax shelters. For example, individuals can contribute tax-deductible funds for retirement to a registered retirement savings plan. Companies can make tax deductible contributions to registered pension plans for employees, including plans for the owner/manager. In addition, a Canadian resident taxpayer can deduct the cost of his/her investment in certain common shares of resource companies and companies incurring renewable energy and conservation expenses;
• Family discretionary trusts can be used to own shares of business corporations and lawfully defer tax on capital gains. On the sale of certain qualified small business corporation shares, an individual can shelter up to $750,000 from capital gains tax, and through using the family trust can multiply the foregoing exemption. Capital gains generally are only taxed to the extent of one-half; thus, at the top personal marginal tax rate of 46% the net tax rate on capital gains is 23%; and
• Consideration should be given to holding shares of foreign corporations, including those in the country of departure, through a Canadian holding company to minimize Canadian tax on international income.

At the end of the meeting, Ricardo and Maria seemed relieved but somewhat fatigued from the volume of facts and figures. I put all this advice into a written planning memorandum for which they expressed their gratitude as they headed off to pack their bags for the flight home.

Lorne Saltman is a tax partner with the Toronto-based law firm, Cassels Brock & Blackwell LLP. Lorne has been an instructor in the Taxation Section of the Bar Admission Course for the Law Society of Upper Canada. He is a past member of the Executive of the Taxation Committee of the International Bar Association and is currently a member of the Fellows of the American Bar Foundation. He is the Canadian contributor to the book “International Taxation of Electronic Commerce”, published by Kluwer Law International. Lorne has advised clients on, and frequently spoken and published papers on, diverse tax matters, including wealth preservation for high-net worth clients, corporate tax planning, corporate mergers and acquisitions, cross-border financing, captive insurance companies, real estate taxation and the establishment of offshore trusts and private foundations for the Law Society of Upper Canada, the Canadian Bar Association, the American Bar Association, the International Bar Association and other continuing education institutions.