Mr. Speaker, I consider it a privilege to spend a few minutes discussing the provisions of Bill C-54 which deals with overpayment of old age security benefits and a time bar on the recovery of these overpayments.
This provision points out the challenges of administering our income security programs which comprise an extremely large enterprise, one which is vital to the well-being of more than six million Canadians.
To manage effectively a program that provides more than $20 billion a year to six million clients is challenging enough but the Government of Canada must also maintain the reputation of the income security programs as effective, efficient and equitable. After all the purpose of the old age security and other benefits is to help provide Canadians with a just reward for a lifetime of work and service to family, community and society.
The old age security program is designed to assist those whose retirement income is minimal or even non-existent. It is designed to contain elements that alleviate poverty among senior citizens. Inevitably with such an extremely large group of programs there will be anomalies. People may receive more than their entitlement. People may receive less than they are entitled to.
A vital part of administering these funds of such formidable size is to remedy abnormalities in a manner which is effective, equitable and, where appropriate, compassionate.
The Old Age Security Act contains restrictions which prohibit the recovery of substantial overpaid amounts and allow clients to retain unlawful gains. The act restricts the recovery of some overpayments aside from those arising from fraud or wilful misrepresentation. Collection can be made only for access moneys received in the current fiscal year plus the full previous fiscal year.
This is not the case with the Canada Pension Plan. It allows overpayments to be recovered regardless of the timeframe. The proposed amendment to the Old Age Security Act reads exactly this way: "Where a person has received or obtained a benefit payment to which the person is not entitled or a benefit payment in excess of the amount, the benefit payment to which the person is entitled, the amount of that benefit payment or the excess amount, as the case may be, constitutes a debt due to Her Majesty".
This provision amends the Old Age Security Act to remove timeframe restrictions for recovery of overpaid moneys including payments for guaranteed income security and spouse's allowance. The change will provide greater accountability to the taxpayer and allow equal treatment of clients of old age security and the Canada Pension Plan.
Under this change the minister will have the discretion to collect the entire amount overpaid to a client rather than a limited amount. However, in keeping with the policies and practices of the income security programs there would be no change to the existing authority to remit overpayments in various cases. These would include cases of hardship where administrative costs exceed the debt or where the debt cannot be collected within the foreseeable future.
Another new amendment incorporated in Bill C-54 will extend the minister's authority to remit overpayments where there was administrative error or erroneous advice. As a result of this amendment, recoveries of incorrectly paid funds are estimated to be approximately $1 million to $2 million every year.
I should mention that the time restriction has never applied in situations where charges of fraud were laid and proved but of course there are only a handful of cases of that type. Nevertheless, this amendment will enhance the ability of government to administer the old age security program in keeping with justice and equity.
No concerned Canadian wants to deny old age security benefits to a senior citizen who is deserving and in a difficult financial situation. Nothing in this proposed amendment will change that. The removal of this time restriction on recovery brings the old age security provisions into line with those of the Canada Pension Plan and the Unemployment Insurance Act.
Earlier in this debate the hon. member for Hochelaga-Maisonneuve commented that the government will collect debts incurred 15 years ago on the basis of erroneous advice from the department. This comment does not recognize the minister's ability expanded in this Bill C-54 to forgive overpayments incurred in such circumstances.
These amendments taken together will provide the minister with the flexibility to forgive overpayments where that is merited and to pursue the recovery of overpayments where that is merited. That is surely what is desired as opposed to the previous rules which were arbitrary and inconsistent with other government programs.
Where administrators have made errors, overpayments are to be forgiven. Where persons have made incorrect claims, overpayments are to be recovered. However, the government is determined to merit the reputation of the income security
programs as programs that respect both the taxpayer who provides these millions in benefits and the pensioner who deserves to be treated with sensitivity and dignity.
The old age security program is designed to help those who really need help. Through supplements, it is intended to help those senior citizens whose income is low. With more than six million people benefiting from all income security programs, there are bound to be anomalies.
I want to again stress that a vital part of administering these large sums of such formidable size is to remedy anomalies in a manner which is efficient, equitable and where appropriate compassionate. The amendment to remove time barriers to recover overpayments is an important provision and another reason why Bill C-54 merits the support of all members of this place.