PM MEETS WATERLOO: Prime Minister Kim Campbell brought her campaign-style tour to the University of Waterloo Monday a few hours after saying in a major speech that Canada's education system doesn't measure up. In her speech, Campbell had words of praise for UW, saying the university's "excellence is based on both the quality of its teaching and the quality of the partnership that exists between that institution and the private sector." She told the Confederation Club in Kitchener that the problems of performance facing the education system can't be solved by government alone. "This is much more than a matter for governments," Campbell said in her text. "It is an issue for schools, parents, for the private sector, for unions. We won't address the challenge by standing apart, as governments, or as a society. We can solve it by moving forward together." She then went on to cite UW as a shining example among several in Canada of an institution joining forces with groups in society to deal with the education challenge. At a news conference, Campbell said that Canadians have to understand that a sea-change has occurred in the economy. "Most jobs that are being created require a minimum of 12 to 17 years of education - so you have to finish school," she said. "If we can change the way people think about training, we can do a lot." At UW, about 650 people gathering inside and outside the Davis Centre greeted the prime minister enthusiastically as she did a walkout much like a reigning monarch. She viewed research displays as well as experimental cars designed by engineering students. Aside from meeting senior UW officials, including president James Downey, Campbell tirelessly signed autographs for both adults and youngsters - the latter brought in from the Engineering Science Quest and Arts Computer day camps held on campus. After the walkout, which lasted nearly 45 minutes, Campbell held a closed-door, round-table discussion with co-op and graduate students. One student attending that discussion was Catherine Coleman, president of the UW Federation of Students. She said later that students "did their best to enlighten" the prime minister about the co-op program. "She was a very attentive listener and she asked a lot of questions." In her speech, Campbell announced a series of initiatives to improve learning in a rapidly changing society, including commitments to donate the federal government's old computer systems and software to schools as well as expand a computer network linking schools. For post-secondary education, the prime minister promised a reform of the Canada Student Loans program. "Speaking simply as a former student, I know that I could not have gone on to university without a student loan." But the current program, largely unchanged since 1964, is not working well enough, Campbell said, adding that the cost of living has risen by 30 per cent in the last five years while the amount students can borrow has not changed. She promised that full-time students will be able to borrow $5,100 each academic year, up from $3,500, and part-time students $4,000, up from $2,500. "We will provide deferred grants and interest relief to those students most in need," she said. The current federal loans program, the prime minister stressed, costs "hundreds of millions of dollars through inefficiency and defaulted loans - money that does not go into the pockets of students." She said changes will be made to cut costs and "allow successful pursuit of defaulters." Also, Campbell said the government plans a new education tax credit that increases the deduction for full-time study (the current one provides $80 a month) and extends the tax credit to part-time students. Finally, she targetted the "chronic and severe" under- representation of women in university doctoral programs, especially in the areas of science, mathematics and engineering. Campbell promised unspecified action to deal with the problem. Earlier, at the news conference, Campbell said that no new money will be spent on her education measures. "There will be a re-allocation of current spending. There will be no hit on the deficit." John Morris, UW News Bureau Information and Public Affairs (519) 885-1211, ext. 6047 jmorris@mc1adm.uwaterloo.ca