Thank you very much.
As Dean has said, my name is Phyllis Mockler-Caissie. I am a provincial civil servant and I have been assigned the role of project manager for the poverty reduction initiative that currently is under way in New Brunswick.
I have worked with the department or with government for over 20 years. I do a lot of project management. I work in the planning, research, and evaluation branch of the Department of Social Development, but in this role I wear the hat of project manager for this very important initiative.
On October 17, 2008, Premier Shawn Graham announced that he was sponsoring a major public engagement initiative to develop a poverty reduction plan in New Brunswick. This collaborative approach to addressing a societal problem is being carried out in three phases.
The first phase, the public dialogues, ended on March 30 and resulted in the development of a “What was Said” report affirming the contribution of the participants. The participants included a cross-section of the population, who shared their stories and experiences related to poverty.
In addition to the face-to-face dialogue sessions held around the province, citizens participated online and by sending us e-mails and letters. Smaller face-to-face dialogue sessions were also held to allow those who were not comfortable at a public meeting a chance to be involved.
We heard some very emotional stories from nearly 2,500 New Brunswickers. The participants talked about what causes poverty and what can be done to reduce it.
We believe a public engagement initiative is a very innovative way of dealing with a very important problem. This is not the typical approach that governments use to find out what needs to be done to solve a problem that affects all of society. It goes beyond the traditional method of governing and seeks to involve the public in decision-making. It wasn't a consultation; it was an engagement process.
It is a way of bringing together citizens, community non-profit organizations, business leaders, and government leaders to talk about ways to solve a problem. I would like to share with you some of what was said. What I'm telling you represents the passionate voices of members of the public and does not represent the position of the leadership team, government, or any sector of society, nor does it represent the views of any one individual. It represents the views of many people. I will focus on the issues that fall under the mandate of the federal government and not on all the issues that were identified as the causes of poverty.
Frequently, people said that lack of education is the primary cause of poverty. Over and over, New Brunswickers said they are living in poverty due to high student loan debt. They indicated that the high interest rates charged on their loans and the exceptionally high monthly payments required by the National Student Loans Service Centre are causing them a great deal of financial hardship.
Given the lack of employment opportunities in New Brunswick, many graduates are forced to leave their home province to find meaningful employment. Even then, the cost of living is so high that they are struggling to meet their student loan repayment obligations, and many are defaulting. This is causing pressure on them as they are being sent to collection agencies and getting bad credit ratings. In one instance, we heard that it almost cost a young graduate a job when the employer, a financial institution, was alerted to problems related to repayment of the outstanding student loan.
We heard that eligibility rules for getting interest relief and debt reduction assistance are too stringent and are providing only temporary relief. Often, existing high student loan debt is causing students to drop out of post-secondary education before they finish their program of study. In other cases, the thought of incurring high student debt is preventing many from furthering their education. We heard from one New Brunswicker who stated that, at 40 years of age, he was still trying to pay off his student loan.
Many people said more has to be done to forgive student loan debt, because it causes them to live in poverty for years after they complete school and really prevents people from becoming self-sufficient.
New Brunswickers also said that the employment insurance system is causing financial hardship. They said the waiting period for EI is too long, and often, they said, even after being determined eligible for benefits, it was taking too long for them to receive a cheque. In the interim, they are struggling to meet their financial obligations.
Further, people said the benefits are too low. We also heard that it is difficult for some to accumulate enough weeks to be entitled to EI. In addition, many people who want to go back to school are having trouble accessing training funds under the EI program. Many said they were not aware that they could even get assistance through EI, and then, when they did seek help, they found the eligibility criteria too complex.
People said that disabled New Brunswickers usually live below the poverty line. It was stated that persons receiving a disability pension do not have enough resources to live on and are unable to buy the goods and services necessary for their comfort and mobility. It was raised many times that there needs to be a guaranteed annual income for persons with disabilities, similar to that provided to seniors.
Another cause of poverty is the lack of decent and affordable housing. People said that rents are so high there's not much left over to meet their other basic needs. Often, people said that families and individuals are sacrificing nutritious food in order to pay their shelter costs. We all know that safe, adequate, and affordable housing is a fundamental building block for societal well-being.
We heard that there is a lack of subsidized housing, a lack of housing options, particularly for persons with mental health issues and those with physical disabilities. It was said that social housing is too remote, too removed from other resources that low income people have to access, particularly for those living in the rural area who commute to the urban centres for doctors.
Participants said there was a lack of affordable housing in the rural areas. Many people indicated that grouping low-income housing units together doesn't work. It was said that it's difficult to raise children in neighbourhoods that are riddled with issues related to poverty. People said that kids who live in poverty are further marginalized by growing up in low-income housing that is collected in a single area. This type of housing perpetuates the generational cycle of poverty. The children living in these neighbourhoods are exposed to crime, drugs, alcohol, and teen pregnancies.
These are but a few of the causes of poverty as identified by New Brunswickers in this process. I want to thank you for allowing me to echo the voices of New Brunswickers in this public engagement initiative.
Poverty affects all of us and, therefore, it is recognized that it will take all of us to find ways to reduce it. Through new partnerships with community organizations, the business sector, and all levels of government, we hope we can improve the lives of those living in poverty in our province and across the nation.
Thank you.