I believe the finance minister should write a comic book. He likes to give answers quite often in a comedic fashion.
If he is going to tax RRSPs for all Canadians across this land, then he should also consider taxing those funds the government puts into MP pension plans, that portion which is a seven to one ratio that we put in as MPs. That government portion should be taxed in all the public service pension plans as well.
We like to pride ourselves as not only listening to people and looking at what the problems are, but coming up with solutions based on what causes the problem. What causes the problem in both OAS and in CPP is that there are insufficient funds to look after future generations. Why not consider combining OAS and the GIS, the guaranteed income supplement, with the CPP into a single guaranteed annual income program for the elderly? It would be phased in gradually to preserve benefits for the current generation of pensioners. This would pay more to the poorer seniors and less to the wealthy seniors.
The principle and problem I am trying to resolve is the fact that what I pay into CPP today and what I have paid into it is less than what future generations are going to have to pay when they
have to pay for me. That is because it is only funded by current premiums. It is not set up on an actuarially sound basis. That is what we should be looking at to solve that problem.
Let us look at OAS. OAS is a universal pension scheme. It pays a pension to all but the wealthiest seniors with benefits up to $4,547 per person and is taxed back at 15 cents per dollar of income above $53,000. The annual cost is $14.4 billion.
There is also a guaranteed income supplement for those seniors who truly need it. This particular program has to be preserved. This program must continue. We must make cuts elsewhere in the budget so as not to affect the seniors guaranteed income supplement. It is imperative that the $4.3 billion subsidy in this area is protected and guaranteed. Those are the seniors who truly need it. Not only do they need their OAS but they need their GIS.
What we should do is perhaps combine OAS with the CPP, a solution to ensuring there is something left for those seniors who really need it and for those who need extra over and above their CPP there is a guaranteed annual income. Their income levels are topped up based on whatever level we define as the bare minimum required for food, shelter and clothing.
We should develop our social programs, design and target them to those people who truly need them. If the funding could come from the government to those people through the raising of funds directly for those people rather than through the various complex methods we are now using through the Income Tax Act it would be more clear and obvious and less costly administratively. It would also be more effective and efficient. More money would go into the hands and pockets of those people who truly need it.
Earlier today I debated under questions and comments with the Parliamentary Secretary to the Solicitor General. He stated that he was a Liberal and I agreed; I figure I have learned that much. He also said he felt there would be enough money in the Canada pension plan for him despite the fact that the contributions he is currently making do not allow for the unfunded liability. With that extra great incremental cost that will be there he still believes he does not have to worry.
I understand he is only 32 years old and he is not worried. I know 60 year olds who are five years away from collecting it who are worried. I know 63 year olds who are worried. I think the parliamentary secretary should be a little bit worried.
He also stated that as a Liberal he believes in the principle of universality. This was a great concept the Liberals subscribed to even back in 1968. I remember that when I was in university. Universality had a purpose then. Universality had a reason for the majority of Canadians to follow it. There was nothing wrong when the principle of universality was introduced at the time that it was. However this is 1994, not the 1960s. Although the principle of universality has a lot of merits and would be great if we could afford it, that is the point: we cannot afford it.
We must look at and develop programs that help the seniors and students. Once they are developed what we need to do is not adhere to a principle of universality but adhere to a principle of universal access for those people who need to tap into these great programs. These great programs the government spends hours, days, months and years developing should be available and accessible universally, and portable all across this land. That is the way to address our social programs.
As long as this government continues to believe in the principle of universality and thinks we can live the life of Riley at the expense of future generations, then it will never solve the problems that face this country. It will never really address them with an action plan. One or two years from now the government will be coming up with another book of another colour looking for further discussion and further consultation.
I also debated with the government whip on a TV program. He told me that this plan of the Minister of Human Resources Development would be one that would help solve the problems of our social programs. I told him on television-and he can look at the tape-that it would just be a discussion paper, that there was no action plan at all. He disagreed and I said I would eat my words. Well, I do not have to. Now we know.
Not even the government members know what the senior cabinet ministers are doing. They are just tinkering with the system. It is a complex system, but rather than addressing the big major problems, they are avoiding them.
In conclusion, I have a seventh point, if I could find it here. My fellow members are saying to end, to finish, but I still have a couple of minutes. Do I have anything left to say? If I had another 15 minutes I would repeat it all because the members opposite as usual do not listen.
We know what the purpose of their bill is; we know they are not addressing the problem. But the purpose of my speech is so that hon. members across the way can accept some constructive criticism and perhaps solve the problems that truly face this nation and we can get on with an action plan for this country, not a discussion plan.