My name is Helen Saravanamuttoo. I'm with Campaign 2000 as one of the partners and I am on the steering committee. I'm representing Laurel Rothman today. I thank you very much for the opportunity to talk to you today.
Campaign 2000 has three big recommendations, and I say big because they involve a lot of money.
First, increase the child tax benefit and the national child benefit supplement to a maximum of $5,200 over the next two budget years. It's a very effective measure. It's estimated that a 31% decline in child poverty will ensue if this is done, at an additional cost of five billion dollars.
Second, expand eligibility for employment insurance and improve the benefit levels to provide support for unemployed workers. In the midst of this recession, less than half--47%--of unemployed female workers and only one in five--that's 20%--of young workers are receiving EI. Eligibility requirements should be restored to 360 hours, with benefit levels based on the best 12 weeks of earnings, at 60% of earnings as a minimum.
Third, designate a new federal transfer fund for early childhood education and care services. Specify funds in the next two federal budgets for ECEC operating costs, beginning with one billion dollars in 2010, and capital expenses, including expansion and quality improvement. These plans must have measurable targets and timelines and approval from provincial and territorial legislatures to build a system of quality, affordable, inclusive public/non-profit child care services, which is essential to poverty reduction.
Why do we want to spend so much money? What is it about poverty that is so detrimental? In effect, what you're doing by putting in these investments is saving a lot of money in the long run and actually increasing productivity in the economy.
The correlations with poverty are bad health, poor levels of education, more police and court involvement, and more violence. When people grow up, they are unemployed longer and have low pay, and this means that we add to our unproductive economy.
I point out that the Nordic countries, where they spend a lot of money on social programs, have the best running economies in the world and have had for the last few years. That's not by chance. They spend a lot of money, but they reap good benefits from that.
The next point is to expand eligibility for employment insurance. This really increases demand in the economy. Moodys.com has figures for what the stimulus effect is. The biggest effect from stimulus comes from giving money to low-income people. Employment insurance is really important there. Henry Ford had the right idea: he created demand in the economy by paying his workers well, and then they bought his cars.
The last one is early childhood education and care services. This saves a great deal of money later. Research shows that every one dollar spent saves seven dollars in services later. People getting this early childhood education have productive jobs later and better health and they contribute better to the economy.
I urge you to really look at this seriously. Our choice is clear. We can pay now or we can pay later. It is expensive, but it gives very good dividends. Campaign 2000 believes that paying now to improve life chances and provide more opportunities for independence and success makes good sense.
Thank you.