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On March 28, 2014, Ontario signed the Canada-Ontario Job Fund Agreement with the federal government, which will provide Ontario with $192 million per year for the next six years.
The Agreement is a key source of funding for new employer-led training through the Canada-Ontario Job Grant.
Turning the federal government's job grant program into a tax credit may be the most effective way of ending a stalemate between Ottawa and the provinces.
Their might be a better alternative to the current Canada Job Grant shown in the TV commecial. But we should not ignore the evidence that employers in Canada are not investing enough in training when compared to our major competitors. One idea would be for the federal government to create a Canada Job Training Tax Credit — a federal corporate income tax credit for verifiable investments in employer-sponsored skills training. Employment Minister Jason Kenney speaks about the federal government’s job strategy at the Economic Club of Canada in Toronto on Oct.

The Conservative government is offering to waive the requirement that provinces match federal contributions toward a new Canada Job Grant – a key concession that is part of a behind-the-scenes push to get the program off the ground.The Canada Job Grant was a centrepiece announcement in the 2013 budget and Ottawa wants to have the program in place by April 1. The original premise of the job grant was that Canadians could apply for $15,000 toward job training, with the cost split evenly among Ottawa, a province and a business looking to hire.Ottawa is also indicating in the discussions that small businesses could cover part of their contribution through wages in a work placement. An employer-driven Canada Job Grant, they argued, would provide a better way to prepare Canadians for available jobs. The federal government says the Canada Job Grant would provide an incentive for employers to invest in training that bridges the skills gap between workers and workplace needs. Ottawa’s latest offer involves a pledge to cover the provincial contribution, meaning the maximum $15,000 grant would include up to $10,000 from Ottawa and up to $5,000 from an employer.
Given Canada's persistent underinvestment in skills training that improve productivity, this is a worthy goal. A federal tax credit could increase productivity, labour market supply and workers' incomes without hurting more vulnerable Canadians.

No new federal money is included as part of the offer, meaning the original number of grants to be offered would be reduced.Ottawa originally projected that about 130,000 Canadians a year would receive the grants once the program is fully implemented. Negotiations appear to be at a sensitive phase, with some provinces more supportive of the grant than others. He confirmed Ottawa has made a new concession around matching funds, but declined to be specific.“The initial design of the job grant required provinces and territories to cost match and that would create some new pressure on provincial budgets. So while a deal has not yet been reached, it’s fair to say that discussions are ongoing and the government of Saskatchewan is hopeful that an agreement can be concluded before the end of March.”Private training schools and some labour groups that initially supported the grant had argued they could provide training for the grant.

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