Finance Minister Jim Flaherty announced on Monday the appointment of a panel of health and physical-fitness experts to advise on programs of physical activity that should qualify for the children’s fitness tax credit proposed in Budget 2006.

“Studies show that regular physical activity has many positive effects on children, including balanced growth and development and improved physical fitness,” said Flaherty. “At the same time, the escalating costs of organized sports make it difficult for many parents to afford these activities.”

The tax credit is proposed to come into force on Jan. 1, 2007. It will apply to fees paid for an eligible program of physical activity for children under 16 years of age.

“The tax credit is an important element in the government’s ongoing investment in sport development and participation,” said Michael Chong, Minister for Sport. “This is good news for Canadian families.”

Panel members, who will receive a salary of $1, will provide advice on the working definition of an eligible program for this credit. This definition will need to take into account the many activities Canadian children pursue, while ensuring that eligible programs meaningfully contribute to children’s physical fitness. The terms of reference for the panel are provided in the attached backgrounder.

The panel will be chaired by Dr. Khristinn Kellie Leitch, chairwoman of paediatric surgery at the Children’s Hospital of Western Ontario/Schulich School of Medicine and Dentistry. The other two members are Michael Weil, president and CEO of YMCA Canada and David Bassett, senior investment executive at Scotia McLeod and co-chairman of Sports Break, an organization that promotes a tax credit for organized youth sports.

The panel will report to the minister by Oct. 6.