That's why we want to use student population as the basis for assigning scholarship quotas.
I was saying that scholarships are awarded on merit, but I should point out that Canadian universities are doing this already when they manage the master's scholarship quota, or the Canada graduate scholarships quota. Universities receive scholarship quotas and distribute them internally in keeping with strict standards of academic merit.
By changing the distribution formula and setting a scholarship quota based on student population, I think we would better serve the population by spreading scholarships across Canada. The granting councils and the federal government could trust the universities to award these scholarships in an exemplary manner, based on merit, within the institution.