Evidence of meeting #23 for Human Resources, Skills and Social Development and the Status of Persons with Disabilities in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was poverty.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Frank Fedyk  Associate Assistant Deputy Minister, Strategic Policy and Research, Department of Human Resources and Social Development
Sylvie Michaud  Director, Income Statistics Division, Statistics Canada
Garnett Picot  Director General, Socio-Economic and Business Analysis Branch, Statistics Canada
Sheila Regehr  Director, National Council of Welfare
Doug Murphy  Assistant Director, Economic Security Policy, Department of Human Resources and Social Development
Shawn Tupper  Director General, Social Policy Development, Department of Human Resources and Social Development

10:30 a.m.

Shawn Tupper Director General, Social Policy Development, Department of Human Resources and Social Development

With respect to the outcomes for young kids, we're starting to see an increasing amount of research that is giving us a fairly accurate face of where investments are being made and what the outcomes are. Increasingly, our understanding is, the earlier you make those investments, the better the outcomes over time for young people. Indeed, it is a relatively new body of evidence. We're just starting to see good data that can give us some of the compelling argumentation in that regard.

10:30 a.m.

Liberal

Judy Sgro Liberal York West, ON

Can you provide us with anything?

10:30 a.m.

Director General, Social Policy Development, Department of Human Resources and Social Development

Shawn Tupper

Certainly. We have a number of studies we could provide.

10:30 a.m.

Assistant Director, Economic Security Policy, Department of Human Resources and Social Development

Doug Murphy

With respect to high school education, when you look at those high-risk groups, the biggest factor is attachment to the labour force. It really is dramatic. It doesn't have to be that much attachment to the labour force, but just having some attachment to the labour force puts those high-risk groups on a level of low income that is comparable to other Canadians.

That said--and this is related--not having high school graduation dramatically increases the chances that you live in persistent low income. So it is very important, and it is a compounding issue as well.

10:35 a.m.

Liberal

Judy Sgro Liberal York West, ON

On the issue of seniors, there is an ability for them to work to earn a certain amount of money before it would affect their GIS and so on. Have you looked at the impact that has had on people since that was introduced and allowed to happen?

10:35 a.m.

Associate Assistant Deputy Minister, Strategic Policy and Research, Department of Human Resources and Social Development

Frank Fedyk

Budget 2008 just increased the rate of earning exemptions from $500 to $3,500. To the best of my knowledge, we have not done any estimates on that, but we could check and see. We have estimates on what we hope the impact would be, but obviously we would have to wait for some time for that to work its way through the system.

10:35 a.m.

Liberal

Judy Sgro Liberal York West, ON

On this issue of the MBM, housing has a huge impact. You referred to it as cities of 500,000 or more. Where do these numbers come into effect when you're dealing with rural communities and people who don't live in cities?

10:35 a.m.

Assistant Director, Economic Security Policy, Department of Human Resources and Social Development

Doug Murphy

We were talking about the size of communities being 500,000 or more. That's the way the LICO is constructed. It has a standard low-income threshold no matter what the city. This is why, for example, Montreal had the same low-income threshold as Toronto when we knew that housing costs were much lower. The MBM actually breaks it down on a community level.

I will go back to an earlier question. When we look at the shelter costs within a community for the MBM, the heating costs are a component there of how that is factored in, so in that respect it's much more sensitive. If you look back to the StatsCan presentation, looking at the difference between a low-income threshold between the LICO and the MBM, particularly for Montreal, really is proof positive about how much housing costs affect that.

10:35 a.m.

Associate Assistant Deputy Minister, Strategic Policy and Research, Department of Human Resources and Social Development

Frank Fedyk

There are 48 cities or communities for which the MBM has been developed. We'll provide a report, through the researchers, that will describe in more detail each of the elements of the basket.

10:35 a.m.

Liberal

Judy Sgro Liberal York West, ON

Thank you very much.

10:35 a.m.

Liberal

The Vice-Chair Liberal Michael Savage

Thank you, Ms. Sgro.

I remind everybody that any information to the committee should go through the clerk so that everybody gets the information.

Thank you very much.

We'll move to the Conservatives.

Monsieur Gourde.

10:35 a.m.

Conservative

Jacques Gourde Conservative Lotbinière—Chutes-de-la-Chaudière, QC

Thank you, Mr. Chairman.

I'd like to thank the witnesses. I am very pleased with the quality of your testimony and with the information that you have provided.

I have a question for Ms. Michaud, from Statistics Canada. I took a lot of notes because we are proceeding quite quickly.

According to Statistics, Quebec has one of the lowest poverty rates in Canada. If that is true, then what is different in the way that the province manages to lower the cost of its basket of food so as to affect the level of poverty there, and make it one of the lowest in Canada?

10:35 a.m.

Director, Income Statistics Division, Statistics Canada

Sylvie Michaud

That is a good question, and somewhat complicated. It involves two separate methodologies. I will explain the main differences with Quebec. First, there are the thresholds, which along with the basket of food, as I explained, represent the housing cost. We know that housing is less expensive in Montreal and in Quebec city. If we use the low income cutoff, or LICO methodology, the threshold in Quebec would be about $7,000 lower.

I refer you to slide no 10 in our handout. Using the basket of food method, a family of four living in Montreal would need $24,325 while the low income threshold is $31,865. Therefore, if we use the basket of food measurement, which is based on the cost of living, the required threshold is much lower. There is obviously a difference there.

Another reason why Quebec is in a somewhat different position is because of the way in which we account for disposable income. Disposable income is after tax earnings, from which are deducted childcare expenses, out of pocket medical costs, social contribution and contribution to pension plans. Many families in Quebec benefit from subsidies daycare programs. The child care costs in that province are much lower than in most other provinces.

In a similar context, when it comes to disposable income, the difference with Quebec families is smaller as compared to families and other provinces where their out of pocket child care expenses are higher. Those are two factors.

Then there is the cost of transportation. In Quebec, urban transit costs about $1,000 less than it does in Toronto. There are a number of factors that come into play, but I would say that the difference is due mostly to the methodology that is used.

10:40 a.m.

Conservative

Jacques Gourde Conservative Lotbinière—Chutes-de-la-Chaudière, QC

We could probably compare each sector to the rest of Canada. This would allow us to benefit from some of the measures that have helped Quebec to come out ahead of the other provinces. It would be interesting. I would be happy to hear any other suggestion that you might have.

10:40 a.m.

Director, Income Statistics Division, Statistics Canada

Sylvie Michaud

The committee might be interested to know that Quebec has a law to measure social exclusion and poverty. Information on this legislation can be found on the CEPE, the Centre d'étude sur la pauvreté et l'exclusion du Québec Website. The Centre compared Quebec and Belgium. Committee members might find this strategy quite interesting.

10:40 a.m.

Conservative

Jacques Gourde Conservative Lotbinière—Chutes-de-la-Chaudière, QC

Do you have any Emploi-Québec statistics on the advanced programs that they have for getting people back to work? For example, people who are on social assistance are provided with more help and encouraged to find a job.

10:40 a.m.

Director, Income Statistics Division, Statistics Canada

Sylvie Michaud

I don't have that type of information.

10:40 a.m.

Assistant Director, Economic Security Policy, Department of Human Resources and Social Development

Doug Murphy

No. I think Quebec officials would be best placed to provide that type of information on their programming.

10:40 a.m.

Liberal

The Vice-Chair Liberal Michael Savage

Thank you, Mr. Gourde.

We're going to move to Monsieur Ménard.

10:40 a.m.

Bloc

Réal Ménard Bloc Hochelaga, QC

I am delighted to share this information, particularly since, for the last 10 years now, I have been tabling an antipoverty bill in the House of Commons. I am confident that this time it will work. I am no. 123 on the list; I am sure that my time has finally come.

I have three questions and a request. I would like you to give us an outline. We might have to join the statistics with your service. There would be two columns on the chart. Ms. Collin has already given us food for thought, but I think it might be interesting to hear the pros and cons for each one of the measures. For example, I know that the national council uses low income thresholds in its documents, but that you are very critical of these thresholds because one type of measurement takes into account one's real income while the other one only represents what people require to meet their needs.

My position is closely related to that of Mr. Gourde. For example, Quebec has adopted a rather special and ground-breaking approach. The two provinces with legislative strategies to combat poverty have dropped the low income thresholds. Report after report, the United Nations criticize Canada, which has signed the two comprehensive treaties relating to economic and cultural rights, because no measures have been forthcoming. It would be nice to have a chart to demonstrate the pros and cons, not only as they relate to policies, but rather to the statistical point of view. I think that would be useful.

Secondly, I liked what Ms. Sheila Regehr had to say when describing how the people who study income security are unable to explain how one arrives at the amount of $3,000 for a single person living in British Columbia and $6,000 for the same person living in Quebec, or vice versa.

In a document, you were able to determine how much it would cost to raise everyone above the poverty threshold. I remember reading a figure, and I would like you to remind me of what the amount is. I do not want to hazard a guess, even if one does come to mind. I would like you to repeat it before the members of this committee.

How are we going to solve this problem? For example, could we use the federal government's Canada Social Transfer — to which, of course, all taxpayers contribute — and make the transfer conditional on it being used specifically for income security? We are very jealous of the prerogatives that Quebec enjoys. With respect to the effort that will have to be made to raise workers above the low income threshold, could you provide us with the figure and tell us what you think would have to be done?

I will now move on to my second question, so that I will not have to come back to it later. I would like to ask either the people from HRDC or from the council to answer it. Two provinces have adopted legislation, and a third one is in the process of doing so. I would like you to tell us how you feel about these measures. It is my understanding that what has truly helped people to rise above the poverty level in recent years...

Canada has improved its lot. For example, in the 1980s, whenever we spoke of poverty, we thought of the elderly. In fact, that is what was on the first page of the Senate report. Now, the people who are having the hardest time are the heads of single-parent families. We also say that things are better for children in Canada now, mainly because of the Canada child tax benefit which has increased every year. I would like you to tell us if there is really a correlation between the increase in the Canada Child Tax Credit and the improved conditions for children.

Those are my three questions, and I would like to see that chart. Of course, I am not expecting it before we finish our work.

10:45 a.m.

Liberal

The Vice-Chair Liberal Michael Savage

Would the National Council of Welfare like to go first?

10:45 a.m.

Director, National Council of Welfare

Sheila Regehr

On how much it would take to raise people to the poverty line, I can't give you the figure, but it is regularly published in Poverty Profile. That's one of the things we do, and it's based on LICOs. I'm not sure if it's based on pre- and post-tax.... It's also important to look at both pre- and post-tax LICOs, because that gives you different information so you can see the effect of the tax system versus the labour market and some other things. It gives you additional information.

Your second question was more around delivery mechanisms, and if there were ever a political decision to give people enough money to get them up over the poverty line, how we would do that. That's interesting, because in a sense that is exactly what has happened for seniors. There is something that guarantees that they get up to a certain level no matter what. There are lots of debates about why that can't happen for working-age adults. It's much more complex, but it has worked for seniors.

You mentioned the issue of the child benefit. That's another element that's going in the same direction and seems to be having similar kinds of positive results. But I would stress again that part of that whole thing is not just the amount of money; it's the security of it. You know you're going to get a cheque this month, next month, and next year. It's predictable and stable. You can plan.

10:45 a.m.

Liberal

The Vice-Chair Liberal Michael Savage

I'm going to stop you at that. We're trying to see if can get Mr. Brown a question--he's the only member who hasn't had a question in the first two rounds.

I'm sorry, but we have to move to Mr. Cuzner, followed by Mr. Lake and Mr. Martin. Then we'll assess the time.

10:45 a.m.

Bloc

Réal Ménard Bloc Hochelaga, QC

You did not answer my question on the Child Tax Benefit. I would have liked to hear the department's answer. I would like a brief answer on the Child Tax Benefit.

10:45 a.m.

Liberal

The Vice-Chair Liberal Michael Savage

Does somebody have a quick answer?