Thanks for the opportunity. Bonjour.
I think some of you may know we're a broad coalition of more than 120 organizations. We sometimes say we're one of the few that includes auto workers, psychiatrists, faith communities, low-income people, and many others who see the eradication of poverty as a public interest issue that affects us all.
This morning I want to say a couple of words about the situation, although I know you're all quite well briefed. We're particularly concerned about the persistence of poverty, especially among children and families. From the beginning our key issues have been the eradication of poverty and growing income inequality. As you probably know, the OECD unfortunately singled out Canada as one of the most unequal societies last year in its review, and it cited major tax cuts and reductions in transfers to provinces and individuals as key sources.
I would be remiss if I didn't remind people that one in nine children lives in poverty in this country--that's the most recent statistic, and we expect a more recent one this week from Statistics Canada--and that's two decades after the House of Commons unanimously committed to end child poverty by 2000.
We strongly believe that eradicating poverty is an all-party issue, a non-partisan issue, so we're looking for strong leadership at the federal level with clear vision, bold action, dedicated resources, and a long-range commitment. We know this will not go away in a short time. The situation is quite complex.
Most people are familiar with the demographic issues, the human rights issues, and the moral issues of why we need to eradicate poverty, but I'd like to say a couple of words about the economic rationale. There is strong evidence--and I know you'll hear this later from other presenters--that poverty leads to sickness and ill health. A number of economists for the Ontario Association of Food Banks recently did a study of income, health care usage, and health costs, and showed that if we brought the lowest 20% of our population up in income to the level of the next 20%--what we might call modest income--we would save $7.6 billion a year in health care expenditures. That is the most concrete way of saying it that I've ever seen.
The costs to the justice system--including direct expenditures on police, courts, legal aid, and victims' costs--are very high and estimated at between $22 billion and $48 billion. It's also estimated that the strongest predictor--some of my colleagues may know better than I--of being involved in criminal activity is literacy. Poverty is key, but so is literacy. So if we increased the literacy rates of the bottom 20% to those of the next 20%, it's estimated that we'd save $1 billion to $2 billion. Those are some thoughtful cost-benefit analyses we could look at.
I think we all know that as the global recession has taken hold, unemployment has gone up. As job opportunities disappear, many of the supports that still exist--and many have been eroded and are not there--are strained, and low-income people are often driven further into poverty. The person on social assistance who might have been ready to take a part-time job at the local retail outlet is often not finding that job. That's what we're hearing on the ground in this area.
We're urging you to adopt a comprehensive poverty reduction strategy with targets, timelines, dedicated human resources, accountability through public reporting, at least, and consultation, but we would also suggest that there are things that can be done in the first year of a commitment and that need not wait for a full consultation.
In coordination with first nations and aboriginal communities, we also urge that appropriate targets, timelines, and indicators be developed. There's no question that with one in four children in first nations communities living in poverty, and with many of the other situations, there are additional specific and I think historic issues that figure into the strategy to end child and family poverty in first nations communities.
I can't resist adding that we don't have to wait to make sure we have proper elementary schools in first nations communities. Some of us were at the Calgary social forum last week and heard Cindy Blackstock, from the First Nations Child and Family Caring Society, give an extremely detailed and moving presentation. There's just no question: we must have our elementary kids in first nations communities in proper schools.
Let me go on to say a couple of things about what we recommend in a poverty reduction strategy. There are four key principles. First is sustaining employment. You may be surprised to hear us say that. What we should say is that four out of ten children in this country who live in poverty have at least one parent who does work full time throughout the year. They might not work at the same job, but they're working, so always relying on the labour market only will not do it.
We need an assurance that any parent or adult working full time, and I believe that's 1,500 hours a year according to HRSDC and Statistics Canada.... That's only 30 to 32 hours a week. I shouldn't say “only”, as that's 30 to 32 hours a week, some of which is hard to get these days. We need an assurance that this person working full time can live out of poverty. We're arguing that we need the labour market salary at a living wage of at least $10 an hour and we need a $5,200 child benefit, because of course, as you know, labour markets don't distinguish between individuals who live on their own and individuals who support families.
So we need to raise the living wage and we need to support and recognize the cost of raising children. As part of that, I think, we're recommending that we have to also look carefully at what we're already spending, which includes a reconciliation of what's called the universal child care benefit but really is a flat income transfer to families with children under six.
Let me just say one more thing. The national child benefit has a good track record. Over 10 years, it has been increased to what is now a maximum of $3,271, I believe. There have been problems, certainly, with some of the lowest-income families, those on social assistance, not benefiting as greatly, but those problems are being worked out. Let us remind you from HRSDC's own evaluation that the NCB prevented 59,000 families with 125 children from living in poverty. This evaluation was done in 2004. That's a 12% decrease.
We did a simulation in 2007 about what it would look like to raise the child benefit up to, at that time, $5,100, but we're adjusting our numbers for the cost of living. Our simulation estimates that it would reduce child and family poverty by 31%. It would probably bring it down to single digits, which is what UNICEF has challenged Canada and other wealthy nations to do.
In addition to the income side, there's no question that we have to look at what we're calling essential resources: available, affordable, high-quality early childhood education and care services, and of course affordable housing. I'm sure you'll hear much about that from many of the panellists.
I want to add one other key strategy that we feel is needed in southern Ontario in particular, I would suggest: we need a strong equity plan. We need to know that there will be equitable outcomes for children, families, and individuals from racialized backgrounds.
We just took a look at the census data, and there is no question. We all know our patterns of immigration have changed. We also know, as my colleagues in the community reminded us, that many of our colleagues and neighbours from racialized communities, colleagues and neighbours who were born and raised in Canada, are not succeeding as many of them hope and want to do, so we need that additional strategy as part of the consideration.
What I will say in closing, and I hope we'll have time to talk later, is that we certainly will.... I omitted one important thing: the other thing we absolutely must do in the short term is reform employment insurance.
I did a little bit of work. It is interesting that in its previous incarnation, before 2002, EI was indeed estimated to have a poverty reduction dimension to it, particularly for families. We are beginning to see and hear in Oshawa, where workers from the auto parts sector in particular live, and in lots of other areas where lots of workers live, that some families have no choice but to turn to welfare, or else expect that if they don't get a job in six months, they will have to do that. There are a whole series of issues that make that complicated.
I think reforming employment insurance is really poverty prevention, and that needs to be a significant issue and an immediate issue.
We are looking for a comprehensive multi-year commitment, but there is also an expectation that in the beginning, even if you aren't able to adopt a comprehensive strategy, you could reform EI, raise the child benefit, and get started on early childhood education and care services. The federal government, we would suggest, has an important convening role there, and a similar one with affordable housing.