(There are 3 pages in the original hard-copy letter)

Mr. Robert T. Chisholm

48 Anna Avenue

Ottawa, Ontario

KlZ 7T4

Dear Mr. Chisholm:

Thank you for your letter of March 21, 1994, which included a training and job creation proposal.

It is heartening to know that Canadians like you are looking for practical solutions to the employment challenges we face in this country. As you point out in your proposal, new approaches are needed to correspond with the changes that are occurring in industry, labour markets, and family structures.

You will be pleased to note, I believe that the government already has a number of initiatives in place similar to the ones you suggest in your brief. For example, the Sectoral Initiatives bring together employers and workers, along with educators and governments to work in partnership on the human resource challenges facing industry. The objective of these initiatives is to promote employment opportunities via the development of a highly skilled workforce. Sector councils will be overseeing research on future skills needs, carrying out skills upgrading, and studying issues related to national occupational/skills standards. Your proposal has been forwarded to Mr. John McWhinnie, Director General, Labour Market Services, for his information.

For youth, "Creating Opportunity" committed the government to establish work-based training alternatives for young Canadians in new and emerging occupations and sectors where few structured entry-level training opportunities currently exist. our primary objective is to facilitate the transition from school to work.

To accomplish this goal, I launched on April 15, the demonstration phase of a new youth internship program, to be undertaken in partnership with the provinces and the private sector, focusing on emerging areas such as environmental industries, electronics and the software industry. We will test new youth internship models during 1994-1995, so that full

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implementation of the program can occur in 1995-1996. The intent is that the program would focus initially on the 60% of young people who currently enter the labour market directly from high school without any further structured education or training.

Officials at Human Resources Development are engaged in discussions with a number of industrial sector councils concerning design options that could be tested. We are pleased by the enthusiasm of these private sector groups and will have demonstration projects in place soon.

These demonstration projects will not be directed to areas covered by the existing apprenticeship system. The federal government will, however, be supporting the work of the provinces to revitalize the existing apprenticeship system for the traditional trades.

Another important issue that you raise concerns labour mobility and the transferability of qualifications. In March 1993, federal, provincial and territorial governments launched a comprehensive negotiation process to develop a more open and efficient internal market within Canada. The objective of these talks is to reach a Comprehensive Agreement on Internal Trade by June 1994, for implementation by July 1995, that will allow goods, services, people and capital to be treated equally across Canada.

Finally, the suggestions you make in your brief on Unemployment Insurance and Social Assistance raise larger issues concerning the relationship between employment and Canada's income assistance programs. These issues will be dealt with in the context of the social security reform process, announced in the January Speech from the Throne.

The federal government will shortly issue a paper that will help people understand the issues surrounding social security reform and examine potential solutions. Additional consultations will follow, culminating in the tabling of a report in Parliament. Ultimately, legislation for a new social security system will be introduced that reflects the input of a broad cross-section of Canadians. Within two years, Canada will have in place a revitalized social safety net - one that offers Canadians hope and a renewed sense of security.

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Thank you once again for bringing your ideas to my attention.

Sincerely,

Lloyd Axworthy

cc: John McWhinnie

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