The Common Front for Social Justice is a coalition of about 30 organizations and has over 200 members.
I will present in French.
We applaud your committee's initiative because one of any government's important roles is to ensure the well-being of its population. During the last decade, Canada has had the largest increase in poverty among developed countries. In 1996, when the federal government cut transfers of funds to provinces for health and social services by close to 3 billion dollars, New Brunswick lost 115 million dollars annually. The federal government should restore the Canada Assistance Plan. New Brunswick would thus be reimbursed by the federal government for 50% of its social assistance costs.
Approximately 14% of New Brunswickers live below the poverty line. In May 2009, we had 33,274 social assistance recipients. Our social assistance rates are the lowest in the country. Furthermore, many of our workers are poor. Approximately 12% of them earn less than $8 per hour.
We would like to make six recommendations to you.
1) Minimum wage. A person working full time should not have to live below the poverty line. We recommend that the federal government establish, for all federal jurisprudence, a living wage, indexed to the cost of living.
2) Employment insurance. Thousands of New Brunswickers have lost their job. We recommend: that the federal government modify the Employment Insurance Program so that workers are able to receive regular benefits after 360 hours of work, no matter where they live or work in Canada; benefits are increased to 60% of income, based on the best 12 weeks of the worker; the period for receiving employment insurance is increased to 50 weeks; the 2-week waiting period is abolished; and a part of the employment insurance surplus is used for training and labour adjustment programs.
3) Child care. In 2007, our licensed child care facilities could only have accommodated 14% of children aged 12 years or under. For a lone parent wishing to return to work, it is practically impossible to pay child care costs. We recommend that the federal government invest funds towards creating and maintaining a national, universally acceptable, quality child care and early education system.
4) Support for seniors. Approximately 7% of seniors live in poverty. This proportion is even higher in the case of single women. The Canada Pension Plan is not sufficient. It was designed to replace 25% of the average industrial wage. Today, it ought to represent 50% of the average industrial salary. CPP contributions should be gradually increased. The Old Age Security pension should be increased by 15% in order to lift seniors above the low income cut-off. We recommend that the Canada Pension Plan be gradually increased until it reaches 50% of the average industrial salary. We also recommend that the Old Age Security pension be increased by 15%.
5) Housing. In 2008, there were 4,200 people on the provincial waiting list for subsidized housing. To bridge the gap between the supply and demand of affordable housing, the federal government should invest more. We recommend that the federal government transfer to the provinces the funds necessary to meet the needs in the area of affordable, adequate housing.
6) Pay equity. In 2008, in New Brunswick, the wage gap between men and women was $2.70 per hour, which feminizes poverty. We recommend the adoption of pay equity legislation for all sectors falling under federal jurisdiction.
In conclusion, I would like to quote Armine Yalnizyan, an economist, who stated that when public policy fails to balance the needs of the powerless against the appetite of the powerful, the promise of democracy is shaken. The ideal of a government of the people, by the people, for the people starts to look like government of the elite, by the elite, for the elite. Such a system may last for a time, but its days are numbered.