There are three. I'm sorry. Why don't you jump in here? It's good to see you, my friend.
It truly is challenging.
I actually want to go back to provide some foundation. My team found a great article written around the time of the inception of the Canada pension plan. I'll read some of it and make some comments as I go:
A major landmark in the development of Canada's social security system was reached in April 1965, when the new Canada Pension Plan was enacted. The law establishes, for the first time, a contributory system of earnings-related old-age, disability, and survivor insurance benefits in Canada. It was assented to on April 3, 1965, and...proclaimed on May 5. The collection of contributions under the new program will commence in January 1966, and retirement benefits will first become payable in January 1967.
The effect of this new legislation is, in general, to superimpose a system of contributory wage-related retirement pensions on top of [an] existing system of universal flat-rate old-age pensions, which is retained and, in fact, expanded. The new retirement pensions will be equal to about 25 percent of earnings at the end of an initial transitional period of 10 years.
In addition, contributory disability and survivor pensions are introduced; such pensions have previously been provided in Canada only to needy persons on an assistance basis.
All the new insurance benefits will be financed from contributions paid by insured persons and employers. The new Canadian social insurance program is similar in significant respects to the Federal old-age, survivors, and disability insurance (OASDI) program of the United States. There are, however, a number of important and interesting differences between the two systems. Some of the similarities and differences are pointed out in the course of the discussion below.
Previous Legislation.
Canada has had Federal legislation dealing with old-age assistance since 1927. Similar legislation providing assistance for blind persons was adopted in 1937 and revised in 1951, and assistance to permanently and totally disabled persons was first provided in 1955. These assistance programs are similar in many ways to those in the United States. They are, in effect, cooperative Federal-Provincial programs, under which the Canadian Government makes grants to the Provinces covering a part of the cost of the Provincial programs. These programs were established and are administered by each Province separately.
At present the Federal Government pays 50 percent of the payments up to $75 a month to persons with limited means aged 65-69. It also shares in the cost of payments of up to the same amount under the programs for permanently and totally disabled persons and blind persons who pass a means test. In addition, the individual Provinces often make supplementary payments under their general assistance programs, the costs of which are shared by the Federal Government under the Unemployment Assistance Act of 1956. All of these assistance expenditures are financed from general revenues of the Federal and Provincial governments.
The Provinces, for a number of decades, have also been providing assistance pensions to needy widowed mothers. The Federal Government does not participate in the cost of these pensions, but proposals to do so have been made under the Canada Assistance Plan now being developed. The new assistance plan, which would consolidate and improve existing programs, has already been the subject of formal Federal-Provincial discussions.
That's interesting. Even in 1965, they saw the merit of having discussions with the provinces, not dictating to the provinces. There was a collaborative or co-operative approach. The article continues:
The Old Age Security Act, passed in 1951, established a national system of universal flat-rate old-age pensions, administered entirely by the Federal Government. Before the 1965 legislation, this program provided for payment of a flat pension to every person who reached age 70 and who satisfied certain minimum requirements regarding length of residence in Canada. The amount of the old-age pension was originally fixed at $40 a month.
I did have discussions with interpreters that sometimes they found it hard when members were reading text. I'm aware I'm reading text. Am I doing all right, interpreters? Am I good, yes? Do I need to slow down? Are we good? Maybe thumbs up, yes? I want to make sure we're okay. If I need to slow down, let me know. Again, the article continues:
The program of universal old-age pensions is financed out of a special old-age security fund set up in the general consolidated revenue fund of the Federal Government. The old-age fund receives its income from the earmarked yields of three taxes—a 4-percent tax on taxable income up to $3,000 a year for all individuals; a 3-percent tax on all corporate income subject to the corporate income tax; and a 3-percent tax on manufacturers' sales.
I assume my NDP colleague would like that. Manufacturing sales have been replaced by the GST. It's amazing it's still around, because the Liberals said that they were going to get rid of it. It continues:
The universal flat-pension program provided for by the Old Age Security Act will continue in force concurrently with the social insurance program enacted in 1965. The basic nature of the flat pension remains essentially unchanged, but certain modifications have been made in the age at which it is payable, in its adjustment to price changes, and in its residence requirements.
The subtitle is:
LEGISLATIVE HISTORY OF CANADA PENSION PLAN
The Canadian Government had been studying the possibility of introducing a contributory pension insurance program for a number of years. In 1950 a Joint Committee of the Senate and the House of Commons on old-age security was formed to review the existing old-age pension program, which operated with a means test and was subject to widespread criticism. After hearing testimony on a contributory and earnings-related insurance program, the Committee unanimously recommended a universal flat-rate pension beginning at age 70, as well as a Federal-Provincial old-age assistance program for persons aged 65-69 with limited means. The Old Age Security Act and the Old Age Assistance Act of 1951, both of which became effective in January 1952, followed closely the Committee’s recommendations.
The Federal Government in 1958 engaged Dr. R. M. Clark “to conduct an inquiry into facts relating to old-age security systems in effect in Canada and the United States.” His report—Economic Security for the Aged in the United States and Canada—contained no recommendations. It was presented to the Government early in 1959.
In July 1963 the Government submitted a resolution in the House of Commons and issued a supporting statement indicating its intention of enacting a contributory pension plan. The plan originally provided only for retirement pensions and pensions for aged survivors, in recognition of doubts that had been expressed about the constitutional competence of the Federal Government, under the British North America Act, to provide disability benefits and benefits for survivors under age 65. The plan thus limited was incorporated in a bill (C-75) that was given first reading in March 1964.
The Province of Ontario meanwhile had adopted a law in April 1963 requiring every private employer in the Province who employed 15 or more workers to maintain for them a pension with certain vesting provisions. (Under amendments adopted in 1964, maintenance of such a plan is no longer mandatory.) The Province was also studying the possibility of establishing a public pension for Ontario.
The Province of Quebec began developing a pension plan in August 1963, and in April 1964 it announced the details of its own pension insurance program.
So you see, provinces starting their own pension plan is neither new or novel. In fact, this is a dialogue that's been going on for over 60 years. The article continues:
Other Provinces also evidenced considerable interest in pensions—a subject of concern to them not only for itself but because of its implications for savings and capital accumulation.
The various developments at both the Federal and Provincial levels made necessary extensive consultation, therefore, between the Federal Government and the Provincial governments on the subject of pension planning. Four formal Federal-Provincial conferences were held during 1963 and 1964 at which the subject was discussed, including the proposals made by the Federal Government.
In June 1964, agreement was reached with the Provinces for amendment of section 94-A of the British North America Act to empower both the Canadian Parliament and the Provincial legislatures to enact legislation concerning survivor and disability [benefits] as well as.... The Canadian Constitution now authorizes the Federal Parliament to legislate concerning all three types of pensions, but it also provides that Federal legislation shall not affect the operation of any present or future Provincial legislation dealing with pensions.
On the...Federal-Provincial negotiations...the Department of National Health and Welfare of the Federal Government in August 1964...a White Paper—The Canada Pension Plan. This document outlined and explained the pension insurance program that the Government was advancing.
The substance of the White Paper proposals was incorporated in a bill (C-136), which was introduced in the House of Commons for first reading on November 9, 1964. After second reading on November 18, the bill was referred to a Joint Committee of the Senate and the House of Commons. The Committee recommended certain substantive changes, as well as a number of technical changes. The Government approved and took action on most of these recommendations. The revised Canada Pension Plan...was subsequently passed in the House of Commons on March 29...on April 2. It received Royal Assent on April 3, 1965.
I'm starting with the history here. You can see that, in the formation of the CPP, it was not simply a federal government dictating to the provinces. In fact, it was occurring organically across the nation in various provinces, including Ontario and Quebec. Once again, it wasn't just the federal government dictating to the provinces, “This is how we're going to go.” A spirit of collaboration and co-operation built the CPP into being the trusted source of retirement income Canadians can rely on. The Prime Minister's divisive rhetoric on this is quite a departure from the history of the CPP.
I stand ready to continue, but I understand that my colleagues also want to talk. I often tell my son when he's playing minor hockey that it's important to pass the puck to make sure that other people have their opportunity to shine as well.
With that, I cede my time, but I would like to be put back on the list, Mr. Chair.