The Reform Party wants the Chilean example, the right wing, neo-conservative, Neanderthal examples, just as they want people to opt out of the Canadian Wheat Board and destroy it. Well, that does not reflect what the people in their constituencies are saying or what the Canadian people want. The Canadian people want a strong, strong public plan, but a more progressive one.
As I said, we do have some problems with the plan. First, we believe that the contributions are going up too quickly and too steeply, 73% over the next six years. The economy of this country is not as strong as it should be. If we had a stronger economy and more people working and higher wages in this country, there would not be the need to raise the premiums so fast. That is why it is so important to concentrate on a job strategy, putting more money into research and development, more money into education and training and putting more people to work and looking at a better wage policy so that people will have a decent wage and a decent standard of living.
If that was the case, the increase in the Canada pension plan would not to be a steep as it is going to be under this bill. There will be a 73% increase in six years. In terms of our pocketbooks, it means that someone who is earning $35,800 a year or more will see an increase of $450 per year in premiums. For the self-employed it will be doubled because they will have to pay both the employee and the employer's premium which for a person in that income range would be a $900 per year increase for a self-employed person making $35,800 a year or more. Those are some of the real problems we have with the plan.
The government has taken a very pessimistic scenario in terms of income growth in the future. It has taken a very pessimistic scenario in terms of unemployment and employment growth in the future. It has based its projections on an actuary report that gives numbers which increase the premiums by 73% over six year. We maintain that we have more optimism in the future of Canada and in the economy. The increase does not have to be that steep or that regressive.
While this is happening the government is cutting back on benefits by about 10%. My main concern is that a cutback in the benefits of about 10% will hit those who can afford it the least, low income people.
A preponderance of those people are women, survivors and people obtaining the death benefit. All those things will be cut back and made more difficult to obtain. That is a real shame.
The NDP governments of B.C. and Saskatchewan are not supporting the initiative of the government as supported by the other provinces because of the cutback to low income people and because disability pensions will be more difficult to obtain and when obtained will be cutback. That is a shame. It is something that does not have to occur if we have a stronger economy and a more progressive way of paying into the Canada pension plan by raising that ceiling of $35,800 per year as a maximum.
These are some of my concerns. We should have a more progressive arrangement in terms of contributions and the reception of benefits from the Canada pension plan. If we do that there would be massive support right across the country.
That is the progressive way. That is what witnesses said before the committee. They did not want to privatize the plan. They did not want to get into super RRSPs. They did not want to go totally into the marketplace. They wanted a more progressive public pension plan. That is the argument we will make as we go into the next review in the year 2000.
There will be a partial privatization of the plan through the eventual accumulation of a fund of over $100 million and a private investment board. This will be pretty good for stock brokers, brokerage houses and banks because the fees for the fund will be about $500 million. That is being greeted with a great deal of glee by them.
We are concerned that the mandate of the pension board is only to maximize returns. It is important to maximize returns but like the Caisse de dépôt et placement du Quebec, the Quebec pension plan, there should also be a balance of maximizing returns, maximizing employment and maximizing income benefits so we have investment in accordance with public policy objectives as well. That is not part of the plan.
We are also concerned that all these changes were made before the government tabled the seniors benefits. It is difficult to consider one pension plan when we do not know when the other shoe will fall or what it will be when it does fall. The seniors benefit will end the universality of old age pensions. It is important to consider that in conjunction with the CPP.
My last comment is on the whole issue of democracy. I agree with the member of the Reform Party who said there were many amendments at committee stage. They were supported by all four opposition parties. Yet the government did not accept any of the amendments.
It is a rather sad commentary on the parliamentary system when the four opposition parties represent 62% of the Canadian people and the government represents 38% of the Canadian people but would not accept even two or three credible opposition amendments supported by all four political parties.
The next review is in the year 2000. We want a more progressive Canada pension plan. We want to maintain a public pension plan that is more progressive, with the talk now about how we make the economy stronger, how we put more people to work, and how we provide more decent wages so people can contribute to the plan and make sure it is a healthy plan.
I wave a flag of warning. We must not privatize the Canada pension plan and get into the scheme of super RRSPs. They would be good for the wealthy and the privileged, the people the Reform Party speaks for. It is no wonder that party speaks for them. Its tax critic said in the House a while ago that Conrad Black and millionaires were paying too much in taxes.
That is not the way to go. The way to go is to have a public plan that is strong and healthy.