The Commons Finance Committee has focused an important part of its annual report on the concerns of the university community. For the third consecutive year the committee urged the minister of finance to give priority to increasing the funds of the granting councils.

The committee recognizes that unless universities can compete on the world stage they will be unable to attract and retain the researchers and graduate students Canada needs to compete in a knowledge-intensive world economy. In practice, international competitiveness requires effective financial support by the federal government for the three granting councils.

The committee recommends the renewal of the Networks of Centres of Excellence for an additional five-year period at the original level of $60 million a year. This has been the subject of intensive lobbying by the centres themselves and by CAUT, AUCC and NCESS.

The finance committee also took up the issue of infrastructure. CAUT, AUCC and the National Consortium have been lobbying together this summer and fall to ensure that any new infrastructure program will have a significant university component.

The committee recommends an infrastructure program more modest than the one originally launched by the Liberals at the beginning of their mandate. It suggests a segment of the funds be directed to modernizing the research infrastructure of universities and affiliated institutions.

The committee also made some recommendations that would benefit students. It suggests students be permitted to carry forward the tuition fees credit as a deduction against future income, and that the $500 exemption for scholarship, fellowship and bursary income be doubled.

It also recommends the creation of a special opportunity grant for students with parental responsibilities. CAUT has long recommended the creation of grants for single parents. CAUT, AUCC and NCESS all welcomed these proposals but cautioned the government that they will not solve the problem of student indebtedness.

The committee argues that the government should not proceed with its plans to eliminate the Canada Scholarships Program. The program is currently being phased out.

And the committee gave its support to recommendations from AUCC and others concerning the tax treatment of various forms of donations which, if adopted, would facilitate fundraising by the university and college communities.

CAUT, AUCC and NCESS have written a joint letter to the committee Chair Jim Peterson welcoming these proposals and thanking the committee for its interest and support.