Vol. 148, No. 24 — November 19, 2014


SI/2014-100 November 19, 2014


Order Fixing January 2, 2015 as the Day on which Division 30 of Part 6 of the Act Comes into Force

P.C. 2014-1242 November 6, 2014

His Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development, pursuant to section 486 of the Economic Action Plan 2014 Act, No. 1, chapter 20 of the Statutes of Canada, 2014, fixes January 2, 2015 as the day on which Division 30 of Part 6 of that Act comes into force.


(This note is not part of the Order.)


This Order fixes January 2, 2015, as the day on which sections 483, 484 and 485 of Economic Action Plan 2014 Act, No. 1, come into force, thereby giving effect to the new Apprentice Loans Act (the Act), as well as amendments to section 178 of the Bankruptcy and Insolvency Act and section 70.1 of the Department of Employment and Social Development Act.


The objective of the Order is to bring into force the legislative framework for the administration and enforcement of Canada Apprentice Loans (CAL). The proposed timing for the Order is required to begin disbursement of CAL funding to eligible apprentices at the beginning of January 2015.


Economic Action Plan 2014 Act, No. 1 received Royal Assent on June 19, 2014. The Act provides the necessary authorities for the Governor in Council to make the Regulations, which are required to facilitate CAL implementation and administration.


In the last five years, vacancy rates in the skilled trades have risen sharply, largely on account of a growing mismatch between labour supply and demand. Evidence shows that despite steady increases to new apprenticeship registrations, the rate of successful completion of apprenticeship programs has been declining over recent years. Financial issues, including the costs of apprenticeship technical training, are a key contributing factor. This lack of completion results in lower wages for discontinuers and represents a loss to the economy and individuals alike.

CALs will provide up to $4,000 in repayable loans to apprentices registered in a Red Seal trade (see footnote 1) during periods of block release technical training. The loan will be interest-free until an apprentice completes or terminates their apprenticeship program. CAL funding will complement other financial measures available to apprentices aimed at increasing the completion rate of apprenticeship programs. It could also lead to a higher rate of participation in apprenticeship programs and encourage Canadians to consider a career in the skilled trades. The completion of apprenticeship training increases employment opportunities, the availability of skilled workers, and salaries. Apprenticeship programs are a key provider of the vital skills and knowledge necessary to power and grow the Canadian economy.


Consultations with all provincial and territorial apprenticeship authorities and industry stakeholders took place to assist in the development of Canada Apprentice Loan program parameters. No adverse or significant issues were raised during these consultations. Stakeholders, provinces and territories provided positive feedback and confirmed that they are supportive of CAL funding.

Departmental contact

Atiq Rahman
Policy and Research
Canada Student Loans Program
Employment and Social Development Canada
200 Montcalm Street
Gatineau, Quebec
K1A 0J9
Telephone: 819-994-4518
Fax: 819-953-6661
Email: atiqur.rahman@hrsdc-rhdcc.gc.ca