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Montreal’s Concordia University reports big drop in enrolment following tuition hike

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MONTREAL – One of Quebec’s three English-language universities is reporting a nearly 30 per cent drop in enrolment of out-of-province students following a controversial tuition hike announced last year by the provincial government.

The president of Concordia University said Wednesday that the decline in new registrations will have a major impact on the institution, and is “clearly” related to the government’s decision to increase tuition for out-of-province students by 30 per cent.

“We’ve never seen anything like it,” Graham Carr said in an interview. “Obviously for the university it’s very problematic in terms of its impact on our financing.”

Concordia says out-of-province enrolment is down 28 per cent this year, while new registrations of international students have dropped by 11 per cent. The decline “will cost us approximately $15 million in revenue that we would otherwise have expected to get,” Carr said.

That hit will be felt for the next several years, Carr added, since students typically spend four years completing an undergraduate degree.

Last October, the province’s Coalition Avenir Québec government announced plans to nearly double tuition for out-of-province students, from $9,000 to $17,000, framing it as an attempt to protect the French language in Quebec. The province assumed that by hiking tuition, fewer students would enrol — and as a result there would be fewer English speakers in downtown Montreal.

The increase was later reduced to $12,000. The government also decided that international students’ tuition would be set at a minimum of $20,000.

Concordia has seen declines in enrolment since the pandemic, but Carr said the major drop in out-of-province students this year is “clearly uniquely related to the government of Quebec increasing tuition for rest-of-Canada students.” He said prospective students were confused about how much they were going to have to pay, given the government’s changing plans. Last fall, the university reported a 27 per cent drop in applications from Canadian students outside Quebec.

Carr said overall enrolment at the university is down four per cent this year. Out-of-province students typically make up nine or 10 per cent of the student body, while 21 to 24 per cent are international students, he said.

Last spring, Concordia reported a $30.9-million deficit for its 2023-24 fiscal year, and said it would need to cut costs by nearly $36 million in 2024-25. The university has an ongoing hiring freeze. “But clearly the added burden of trying to make up a $15-million loss is significant, and it’s not something that you can address overnight,” Carr said.

He said students may see fewer sections offered for certain courses and strict thresholds for the number of students that must be registered in a course for it to be held.

Carr said the university is looking at ways to boost its enrolment in future years, including by recruiting international students from francophone countries who are eligible to pay lower tuition than other international students in Quebec.

Concordia and McGill University, Quebec’s two largest English-language universities, have both fought the tuition hike since it was announced last year. Bishop’s University in the Eastern Townships region has been exempted from the increase.

The two Montreal universities are suing the Quebec government over the new tuition policy, which they say constitutes discrimination under the Canadian Charter of Rights and Freedoms. Concordia’s court hearing will take place in December, Carr said.

A spokesperson for McGill said the institution won’t have its final enrolment numbers until October, but the university said last December it was seeing a 20 per cent drop in out-of-province applicants.

Higher Education Minister Pascale Déry told reporters in Quebec City Wednesday, “These were decisions that we took. They were difficult decisions, but they were necessary.” As the matter is before the courts, she added, “I’ll avoid further comment.”

This report by The Canadian Press was first published Aug. 28, 2024.

The Canadian Press. All rights reserved.

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Saskatchewan NDP’s Beck holds first caucus meeting after election, outlines plans

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REGINA – Saskatchewan Opposition NDP Leader Carla Beck says she wants to prove to residents her party is the government in waiting as she heads into the incoming legislative session.

Beck held her first caucus meeting with 27 members, nearly double than what she had before the Oct. 28 election but short of the 31 required to form a majority in the 61-seat legislature.

She says her priorities will be health care and cost-of-living issues.

Beck says people need affordability help right now and will press Premier Scott Moe’s Saskatchewan Party government to cut the gas tax and the provincial sales tax on children’s clothing and some grocery items.

Beck’s NDP is Saskatchewan’s largest Opposition in nearly two decades after sweeping Regina and winning all but one seat in Saskatoon.

The Saskatchewan Party won 34 seats, retaining its hold on all of the rural ridings and smaller cities.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.



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Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

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Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

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Canada Post to launch chequing and savings account with Koho

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Two years after the failed launch of a lending program, Canada Post is making another foray into banking services.

The postal service confirmed Friday that it will be offering a chequing and savings account in partnership with Koho Financial Inc.

The accounts will be launched nationally next year, though Canada Post employees will be offered early access as the product is tested.

Canada Post spokeswoman Lisa Liu said in a statement that there are gaps in the banking and savings products available that the Crown corporation looks to fill.

“Canada Post is uniquely positioned to fill some of these demands. Many of our existing financial products help meet the needs of new Canadians and those living in rural, remote and Indigenous communities, but we believe more is required.”

The MyMoney offering will be a spending and savings account where customers will be able to choose between features like high interest rates, cashback rewards and credit-building tools.

A document briefly posted to the Canadian Union of Postal Workers website said it would use a prepaid, reloadable Mastercard that will use money from the account like a debit card but offer the features of a Mastercard.

It said there will be a range of account tiers, including no-fee accounts and paid accounts with more features.

The plans comes after Canada Post launched a lending program with TD Bank Group in late 2022, only to shut it down weeks later because of what it said were processing issues.

Liu said the postal service has since been exploring other possible financial service offerings.

“Utilizing what we’ve learned, we are making a strategic shift from loans toward products more aligned with our core financial service products.”

The new account will be delivered with financial technology company Koho. A few months ago the company paired with Canada Post to allow its customers to deposit cash into their account through post offices.

Koho is also working to secure a Canadian banking license to expand its services.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.



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