The federal Conservatives have ripped a page out of the Liberal campaign platform book by promising student loan relief for health professionals agreeing to work in rural Canada.In his 2011-12 federal budget tabled in Parliament today, finance minister Jim Flaherty announced that next year, family physicians will be eligible to have $8,000 per year forgiven from the federal portion of their student loan for a maximum five years.Nurses and nurse practitioners will be eligible for loan forgiveness of $4,000 annually for five years.The government will have to survive this week’s confidence votes and the budget implementation bill will have to pass through Parliament before the program takes effect.The federal portion of government student loans is 60 percent.The Liberals have made a similar promises and New Democratic Party leader Jack Layton made funding for more doctors one of his budget demands.“The number of doctors and nurses in Canada has increased in recent years but Canadians in some regions of the country continue to experience a shortage,” Flaherty said in his budget speech. “We will help address this problem by forgiving a portion of federal student loans for new doctors, nurses and nurse practitioners who agree to practice in under-served rural or remote areas.”He also announced a new tax credit available for rural firefighters who spend at least 200 hours a year in service. The government will offer them the choice of continuing with their current tax exemption on honoraria they receive to a maximum of $1,000 or claim a tax credit of 15 percent on $3,000 of their income.“We will recognize the importance of this noble, necessary work and help sustain volunteer fire departments,” said Flaherty.In a background budget briefing, a finance department official said details of how the medical professionals will guarantee that they will stay in rural Canada for the year in which they get a break on their loan has yet to be worked out.“There will be some sort of contract,” she said.She said the rules about eligibility have yet to be developed, particularly if only new graduates will be eligible or if established physicians with lingering debt could take advantage by moving to rural Canada. “But if they have been practicing for a few years, their portion of federal debt may not be that great.”The definition of “rural” also will have to be part of the program rules.
Conservative budget has plan for rural doctors
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