Thank you, Mr. Chair.
I am pleased to present today on the topic of a basic income guarantee.
I would like to acknowledge MP Dzerowicz’s private member's bill, Bill C-273 and MP Gazan's motion 46.
Mr. Chair, if a basic income support system had already been in place, a more effective mechanism would have been available for responding to the financial needs of people affected by COVID-19.
I will begin with a summary of the benefits of a guaranteed basic income. It will help people meet their basic needs. It will improve physical and mental health outcomes. It will provide a more effective way of supporting seasonal and gig workers. It can help transition jobs from, for example, fossil fuels to renewables.
Basic income is an effective income support partner to a streamlined employment insurance program. For people living in poverty, this program gives them back their dignity and personal empowerment.
In recent decades, basic income has been supported by representatives from all parties in Canada. For example, all provincial political parties in P.E.I. unanimously support a basic income implementation project and are asking the federal government to work with them.
I have been working with basic income advocates for more than six years and have heard various concerns about a basic income. These fall into three groups: misconceptions about the details of basic income, attachment to the status quo and skepticism about changing our current systems of income support.
There are several misconceptions about basic income. Most Canadian advocates are seeking an income-targeted, not means-tested, basic income delivered to people living on low incomes. This replaces certain transfers and works in tandem with employment insurance and social support programs.
The latest PBO report estimates that basic income will lead to a substantial reduction to the poverty rate at a gross cost of $85 billion in the first year and a net cost of near zero after accounting for specific tax credits. The PBO report does not include the downstream savings a basic income could create in sectors such as health care and criminal justice.
On the second concern, attachment to the status quo, we can only hope that arises from a belief in the efficacy of the current system and not from personal or professional vested interests.
To the third concern, skepticism, I say that I respect this stance. In the face of major changes, this belief contributes to good governance when accompanied by openness to evidence-based new practices.
Mr. Chair, issues of cost are primary to your work and, for the question of a basic income guarantee, the evidence indicates that the benefits to Canada are worth the cost. Our current mechanisms of income supports are outdated, overly complicated and expensive.
The current income support system prevents low-income Canadians from developing financial independence, reduces financial incentives to work, contributes to poor educational outcomes and also adds to health care costs. As well, the evidence indicates that the existing system contributes to people remaining in abusive situations, weakens our arts and cultural industry and hinders capacity building in our farming communities.
I can make these statements because evidence supports them. Mental health problems, physical health problems and food and security are all tied to low income. The overrepresentation at all stages of the criminal justice system of indigenous peoples and those of African ancestry reflects their overrepresentation among impoverished people.
The evidence of these effects of low income and poverty come from institutions such as the National Farmers Union, the Canadian Public Health Association, the Canadian Association of Social Workers, Ontario Dietitians in Public Health, CUPE PEI and the Service Employees International Union, together with other labour unions, the Elizabeth Fry Society, social planning and research councils, municipalities and many more. These institutions support a basic income.
Mr. Chair, I am asking that FINA study the evidence about basic income in order to understand its financial and social implications with the goal of implementation.
I believe the evidence will lead this committee to recognize that a guaranteed basic income will give Canadians better value for their tax dollars and a more resilient society going forward.
Thank you, Mr. Chair.