Thank you very much, Mr. Chairman.
On behalf of the 8,500 members of the Northern Territories Federation of Labour, thank you for providing this opportunity to present our recommendations for the 2010 budget.
The Northern Territories Federation of Labour comprises many different unions that represent workers in a vast number of occupations in both the Northwest Territories and Nunavut.
Given the restriction to limit our submission to three recommendations, the Northern Territories Federation of Labour will call on the government to create an EI board of referees for the Northwest Territories and Nunavut, to increase the northern residents tax deduction, and to improve our national pension system to provide retirement income security.
Workers and employers in the Northwest Territories and Nunavut contribute significantly to a federal unemployment insurance system that is virtually inaccessible to them. When EI board of referees centres were established over 25 years ago, Whitehorse, Yukon, was chosen as the only location in the north. Residents of the Northwest Territories, and now Nunavut as well, have been forced to have their appeals heard by the board of referees in Edmonton, Alberta.
In 2000, members of the Edmonton EI board of referees wrote to the commission to express their concerns and their frustration with conducting telephone hearings between Edmonton and the Northwest Territories. Despite their urging to pursue an EI board of referees in the territories, nine years later we are still without one. There are 83 boards across the country, and it is unconscionable that residents of the Northwest Territories and Nunavut must have their appeals heard in Edmonton.
The Northern Territories Federation of Labour has made inquiries as to why this disparity continues, but the only response we've received is that the north does not meet the appeal volume criteria. Unfortunately, these criteria are not clearly defined. For example, according to the statistics published for the NWT and Nunavut up to February 5, 2009, both the number of appeals processed and the number of appeals sent to the board exceeded those received and processed by the Yukon's board.
The number of appeals is far lower than it would be if we had an EI board of referees within our own region. The requirement to file an appeal in writing within 30 days of a decision prevents many unemployed workers from accessing the system. Due to the higher cost of living in the north, we suspect that many are not accessing the system and are giving up and moving out of the north. This has contributed to the out-migration of a much needed workforce here, especially during this economic crisis.
It is imperative that the 2010 budget allocate the necessary funds to create an EI board of referees for the Northern Territories.
Second, the northern residents tax deduction is a fair tax credit for assisting working families to live and work in Canada's north. It was established in 1988 and remained at the same actual value for 19 years. Finally, after extensive lobbying for a 50% increase, the government raised the northern residents tax deduction by a mere 10% in the 2008-09 budget. This falls far short of addressing the high cost of energy, food, housing, and almost all goods and services. Many northern communities have a cost of living double that of urban southern Canada. Because the cost of goods and services is so high for northerners, we pay more GST on essentials. Most of what is saved with the northern residents tax deduction is taken back with the GST.
In the Northwest Territories, where the economy has been fairly healthy for the last few years, there has been a net out-migration of between 1% to 2% per year. This is the only jurisdiction in the country to not have had an increase in population, while Canada has just realized a 1.2% increase.
The escalating cost of energy hits the north particularly hard, as the only source of heat and electricity for most communities is heating oil. Northerners are struggling to afford the high cost of living. The 2010 budget must include a 50% increase in the northern residents tax deduction.
On retirement income security, the implementation of registered retirement savings plans has proven to be a dismal failure. More than half of Canadians do not own any RRSPs, and those who do own them have nowhere near enough live on in retirement. Canadians should not live in fear of retiring. Northern residents should not have to leave their homes and families when they retire because they cannot afford to live where they have worked all their lives. The current benefits under the Canada Pension Plan are inadequate, and even when coupled with old age security and the guaranteed income supplement, they leave Canadians in poverty.
Living in poverty after a lifetime of working is not something that we as a society should accept. The Government of Canada has an opportunity in the 2010 budget to start making improvements to our national pension system.
The Northern Territories Federation of Labour calls on the government to phase in a doubling of the benefits under CPP over the next 7 to 10 years. This could be financed by modestly increasing both employee and employer premiums.
The Northern Territories Federation of Labour also calls for an immediate increase in the guaranteed income supplement. We suggest that the maximum GIS should be increased by $110 per month. The goal of this should be to eliminate poverty among elderly Canadians. The estimated annual cost of this would be about $1 billion. Marginally reducing the high limits on RRSP contributions could cover this cost.
Those Canadians who are fortunate enough to participate in a pension plan should be guaranteed their benefits. The federal government should institute a system funded by contributions from pension plan sponsors to provide a maximum guarantee of $2,500 per month. This system could start by covering federally regulated pension plans with a view to creating a national system with the provinces and territories.
The Northern Territories Federation of Labour supports the Canadian Labour Congress' call for a national summit on pensions. Government, employers, labour, and other interested parties should meet and bring forth a concrete plan to rebuild and reform our pension system.
Thank you for your time.