The federal government is cutting the number of international students who can come to Ontario in half, putting pressure on the provincial government to increase funding for post-secondary education.
Marc Miller took a shot at the provinces when he announced the cap on Monday outside of a federal cabinet meeting in Montreal.
"I'm not the minister of post-secondary education underfunding, I'm the minister of immigration," Miller quipped when a reporter asked if he was concerned about the impact the cap will have on post-secondary institutions' budgets. "Clearly, in the last decade or so or even longer, post-secondary institutions in Canada have been underfunded by provinces."
Miller's announcement comes amid mounting concern about the impact of rapidly increasing numbers of international students on Canadians' cost of living and the rental market in particular. Some of the big banks' chief economists sounded the alarm earlier this month, with one, CIBC's economist Avery Shenfeld, explicitly pointing the finger at the provincial government for cutting back on post-secondary funding, prompting schools to rely on international students.
"Many of these people are not going to end up being able to stay in Canada, but while they're here, they need housing," Shenfeld said in a panel discussion on the economy. "So, I think there's some urgency here, if they want to get progress on bringing rent inflation down, I do think we have to dial this down."
As a result of that provincial underfunding and Ontario's 2019 move to freeze domestic tuition, institutions have turned to international students, whom they charge many more times the tuition they charge domestic students, "but haven't necessarily provided the student experience that was promised to these people they've brought in," he said.
Miller and Sean Fraser, the federal housing minister, also expressed concern about the quality of education some schools offer. Miller has likened some to "puppy mills" and on Monday described institutions offering "sham commerce degrees" in office space above massage parlours that no one actually goes to, with their students driving Ubers instead.
Fraser, who served as immigration minister before Miller, said that, in his time, he'd been asking the provinces and institutions to act on the issue that was "squarely within their control," but they did not, forcing Miller to use the "blunt instrument" of a cap to deal with the issue. Fraser said he expects some institutions will shut down as a result of the cap, but it will be those that should never have become designated learning institutions by the province in the first place.
The move alarmed reputable institutions as well, with the Council of Ontario Universities warning it "may have unintended consequences for the sector and for international students" as their finances "were already at a breaking point" prior to the announcement.
"Declining operating grants, a cut and freeze to tuition and now the threat of a substantial cut to international student enrolment is undermining a key pillar of our economy. Before today’s announcement, there were at least 10 universities facing sizeable operating deficits, totaling $175 million this year and growing to $273 million next year," said president and CEO Steve Orsini in a statement.
"We believe the federal government must take the time to target those who do not provide supports to students, as well as those that have seen incredible growth over the past two years."
In a statement, Ontario Colleges and Universities Minister Jill Dunlop said the province knows that "some bad actors are taking advantage of these students with false promises of guaranteed employment, residency, and Canadian citizenship."
"We’ve been engaging with the federal government on ways to crack down on these practices, like predatory recruitment. We also need to work together to ensure the students coming to Canada receive an education that is responsive to Ontario’s labour needs, especially in the skilled trades. As we do, we have a joint responsibility to ensure the stability of the post-secondary sector and the success of its students," Dunlop said.
She did not answer questions about post-secondary funding nor any about how the province will allocate its share of the visas.
Ontario's public colleges and universities have been calling on the provincial government to follow the advice of a blue-ribbon panel it struck, including by immediately increasing funding for post-secondary education by 10 per cent and putting an end to the tuition freeze for Canadian students.
The cap — 360,000 approvals for 2024, divvied up between provinces on the basis of population — will result in a 50 per cent decrease in permits in Ontario, which accepts by far the most international students, compared to 35 per cent overall. Current permit holders and those seeking master’s and doctoral degrees, will not be included in the cap.
It will be up to the provinces to distribute their allocation among their designated learning institutions. The cap will last for two years, at which point the federal government plans to have a new recognized institution framework up and running,
The federal government is also changing how post-graduation work permits are issued, favouring master’s and doctoral graduates over college and undergraduate students.
As of this fall, international students at a school taking part in a curriculum licensing arrangement — attending a private institution licensed by a public one to deliver a program — will not be eligible for a post-graduation work permit upon graduation, but graduates of master’s and other short graduate-level programs will soon be eligible to apply for a 3-year work permit.
And soon, open work permits will only be available to spouses of international students in master’s and doctoral programs, the federal government announced.
