Liberals consider covering all refugees' travel costs as 1st budget nears

Privately sponsored refugees from Syria have to start paying their own airfare now that government-organized flights out of the Middle East have ceased, but Immigration Minister John McCallum says the government is considering paying the travel costs of all refugees Canada will resettle in the future.

The last governmentflightsarrived in Canadaon Monday marking the end of the first phase in a plan to resettle 25,000 Syrian refugees a mix of government-assisted and privately sponsored refugees by the end of February.The Liberals havepledged to resettle another 10,000 government-assistedSyrian refugees by the end of 2016.

• Liberals' waiving of travel costs for Syrian refugees created 2-tier system
• Canada's 'cruel' refugee loans leave non-Syrian newcomers with growing debt
• Liberal government fully restores refugee health care program

Canada has been providing refugees and other newcomers with loans to help them pay for the costs of making their way here and required medical exams, but that decades-old practice could be changed by the upcoming budget.

McCallum, who has been reviewing the Immigration Loan Program, said that cancelling the loans is one of theoptions the Liberals are considering ahead of their first budget on March 22.

"There are many things that we, as a government,want to do in the budget," McCallum said in a phone interview with CBC News on Tuesday.

"So whether the full amount of that money is included remains to be seen, but that is certainly one option."

According to a 2015 government analysis, some$13 million immigration loans areissued on averageeachyear, with newcomers receiving an average loan of $3,090. The Immigration Loan Program isfunded through an advance of $110 millionfrom the government's Consolidated Revenue Fund.

"The extreme optionwould be for the government to pay for all travel in the future," McCallum said. "Of course, that's the most expensive option."

"I think that will be in the budget one way or another," he said.

Themost recent forecast showslarger than expected deficitsof $18.4 billion in 2016-17 and $15.5 billion in 2017-18, even before adding billions in promised spending.

2-tiered system

Canadians who are sponsoring Syrian refugees complained that the Liberal government created a two-tier system when it decided to waive the travel costs for privately sponsored refugees who arrived in Canadaafter Nov. 4, after the Liberals were sworn into power.

"We were covering the travel costs for privately sponsored refugees from Nov. 4 to Feb. 29, because most of those came on the [government-organized] flights so we didn't charge them for that," McCallum said.

"But as of March 1, they will have to pay their travel costs."

While a final decision about scrappingthe loan program has yet to be made, McCallum said the government is exploring other options.

Typically, refugees have to start repaying the loans30 days after arriving in Canada, with interest kicking in afterone to three years.

But thegovernment assessment of the 65-year-old program found that refugees are having a difficult time repaying the loans and recommended that the Department of Immigration make some adjustments, including providing interest relief and debt forgiveness where necessary.

"Another option would be to make it easier to pay it back either through lower interest or more deferral in repaying the loan," McCallum said.

1st phase within budget

Whenthe government rolled out the details of its plantofast-trackthe resettlement of Syrian refugees last November, itestimated the cost of resettling migrants at $678million. That was nearly three times more the $250 million over two years the Liberals had budgeted for in their electionplatform.

To date, the government has asked Parliament for a total of $609.2 million over the next two years.

McCallumsaid the first phase of the resettlement plan came in within budget.

"We are under budget in the sense that we have not had to draw on any of our contingency reserves," the immigration ministersaid on Tuesday.

"Part of the reason for that is that we have not had to use the military bases which would have been an additional cost."

The government had initiallymade plans to temporarily lodge Syrian refugees at military bases in Ontario and Quebec, but decidedthey would be used as "a last resort," McCallum said.

"But that only covers up until Feb. 29 and there will be more funds coming soon, subject to budget approval for the remaining 10,000 [government-assisted refugees]or so," McCallum said.

The supplementary estimates for 2015-16 show the government asked Parliament for $429.8 million, which includes a $100 million grant to the United Nations High Commissioner for Refugees to help those affected by the Syrian crisis.

The government is also waiting for Parliament to approve some $179.3 million for 2016-17.

It is unclear whether the department will ask for more funding beyond that. McCallum's office did not respond to a request for clarification from CBC News.

McCallumwill be tabling the government's much-anticipated annual report to Parliamenton immigration before March 9.

The report will tellCanadians how many newcomers thegovernment will welcomein 2016-17.