Won't this just attract the slackers of the world to come live in Canada, or the part of Canada that tries this? If this is intended as a sort of experiment, it can only be done in a closed environment.
I imagine that our current immigration policies would be sufficient to prevent this. There are probably a large number of people who would want to become citizens solely for our health care or existing safety net.
Let me be frank: It seems to be like that already for Sweden, which is a welfare state with the most open borders in EU.
That said, most immigrants to Sweden do seem interested in working -- there just seems to be a strange glut of uneducated people, compared to the available jobs.
(Remember, it is a welfare state -- high minimum wages.)
Educated people that can choose country prefer places with lower taxes -- which are high in Sweden to pay for the welfare state.
Edit: The real problem is that Sweden might be on the way to ghettos, US-style in a few decades. :-( A sociologist might mutter something about a perfect storm to generate a criminal underclass, also US-style. :-(
Edit 2: Worst case, I could go to Canada... Would love to relearn my French, anyway. :-)