moved that Bill C-314, an act to amend the Parliament of Canada Act (other pension income), be read the second time and referred to a committee.
Mr. Speaker, I am pleased today to say a few words at second reading of my private member's bill, Bill C-314. I made a few comments when I introduced it but for members in the House today I want to remind them that this bill is an act to amend the Parliament of Canada Act (other pension income). The bill requires all pension or retiring allowance payments received by a member of Parliament which are paid from public funds to be deducted from the member of Parliament's sessional allowance payments.
The following occupations fall under the definition of a public or retiring allowance paid from the public purse: a member of the legislative assembly of a province or a provincial parliament; a member of the public service of Canada or a province; a judge of any court in Canada; a member of the Canadian forces; a peace officer; an employee or officer of a crown corporation of the crown in right of Canada or of a province; an employee or officer of a board, bureau, commission, council, institute or agency of the crown in right of Canada, the crown in right of a province or a municipality; an employee or officer of a publicly funded school, school board, college, university or hospital; an employee or officer of an organization that the board by law orders to be an equivalent organization, crown corporation, agency of the crown, or college, university or hospital.
The bill is a reverse double dipping bill. There are two definitions of double dipping. The first is members of Parliament with
pensions taking government jobs while still drawing their parliamentary pension. This definition has been primarily dealt with in Bill C-85. The President of the Treasury Board introduced the bill and it was passed. It was part of the pension adjustment bill.
The second definition of double dipping, which this bill addresses, is MPs elected while collecting a public pension. They are receiving in essence a pension from a position which I made reference to plus receiving their member of Parliament allowance.
For example, there is a former MLA in this assembly who receives a pension of approximately $61,000 annually. He was elected to the House and receives a full salary as a member of Parliament as well. Therefore he is earning something in the order of $165,000 for serving the public. This bill would take the $61,000 pension and subtract it from the $64,400 which is due to a member of Parliament, thereby only paying this person to continue to serve the public at the federal level his $61,000 pension and $3,400.
I will take the House through a bit of the history of double dipping in Canada. Prior to 1976 pensions of the Royal Canadian Mounted Police, members of Parliament, the military and public servants were regulated by Parliament and the regulations were quite uneven. A former member of the military could not keep their pension if elected to Parliament, yet a civil servant could. It was also not possible for a former member of Parliament to join the public service and collect their pension. The rules did not allow for a level playing field. Certain occupations were eligible to collect pensions while working in another occupation, while others were not.
This was updated in 1976 but instead of preventing all public pensioners from drawing a salary and a public pension, the process was opened up to allow them to collect both. In hindsight this was a costly, unfair and unacceptable practice, as it is now, in light of our fiscal situation and in light of a significant increase in unemployment, in particular with young Canadians.
The purpose of a pension is to provide income to an individual in recognition of years of service. In essence it is a deferred income or a deferred benefit earned while working to be paid when one retires. It is meant to sustain retirees in a satisfactory manner during retirement. A public pension is provided by the taxpayers so that the retiree has a source of income.
The proposal I am putting forward through Bill C-314 is seen in other jurisdictions. For example, it is a policy with many school boards to deduct salaried earnings from retirees who go back to the classroom to teach so they are not double dipping, receiving a pension from the school board as well as receiving a full time salary-doing two things; double dipping in terms of getting double revenue for doing one job and also taking the job away from somebody who needs it much more than the person who is receiving a substantial pension.
This policy was established because school boards could not justify to the taxpayer that a teacher should be able to earn a salary from teaching when they claim to be retired from the very profession in which they are working.
The bill would save the House of Commons literally millions of dollars annually because the payroll would be reduced. As well, there are currently at least 60 members of Parliament who could be affected by the bill. The numbers are approximate, we do not know for sure. A number of Liberals, Bloc members and Reform members are currently receiving pensions from previous public service and collecting a full salary as members of Parliament. They fall into the categories of MLAs, MPPs, municipal politicians, teachers, military officers, peace officers and various and sundry civil servants.
Some are receiving generous pensions and others will be eligible soon for benefits while still serving as a member of Parliament. The bill reflects the fact that these individuals are continuing in their role of serving the public and should not be paid twice. They should not be considered retired from public life and then pursue a career as a member of Parliament and be paid twice to serve that very same public.
Many members of Parliament in most veins agree that serving Canada is an honour and a privilege. We should not abuse that privilege. All we do by receiving a public pension while being a member of Parliament receiving a full salary is add to the cynicism of the public by abusing the goodwill of the Canadian taxpayer.
Bill C-314 recognizes that despite the level of government there is only one taxpayer paying the salaries of MPs, retired municipal politicians and retired civil servants. If a retired person becomes a member of Parliament, that person should no longer be considered retired.
The government does not allow persons who are collecting unemployment insurance benefits to collect welfare benefits at the same time. We have this in other jurisdictions such as school boards and unemployment insurance. UI does not allow persons to collect unemployment insurance while holding a job either. If a person does this they are considered to be cheating the system. Why are members of Parliament exempt from this form of double dipping? In essence those of us who are receiving pensions could be considered cheaters on the taxpayers.
We cannot expect Canadians to tighten their belts with massive cutbacks to government programs while we receive a public pension and a public salary at the same time. Contributions members of Parliament would make in terms of savings could go toward a special fund.
For example, consider a member who makes $61,000 in pension income. That $61,000 could go to this fund which could be used on
an annual basis to be paid directly on the deficit. This could provide very significant leadership to Canadians in the sense that the members who receive these pensions with this deduction from their MPs salary could use this fund annually toward reducing the deficit while telling Canadians we are making some very difficult choices and that we also believe as members of Parliament we are to make some difficult choices ourselves which will address the deficit issue.
We also see an opportunity to save money for taxpayers. However, we have seen governments in the past, and particularly this Liberal government, make some significant cuts to transfer payments in the health, education and social service areas. It is not really saving money. It says it is saving money by cutting back $7 billion this year with respect to health, education and social services costs but all it is really doing is transferring this to other levels of government, the provincial governments and the municipalities across the country. The taxpayer has to make up the difference of the $7 billion.
We are also seeing a government making cutbacks to unemployment insurance. In Saskatchewan's circumstance we have seen the unemployment insurance program cutback so dramatically in the last two years that over 15,000 people have been taken off UI as a result of the new cutbacks by the Liberal government. They are now being put on the Saskatchewan assistance plan case load, which costs an extra $63 million a year.
In addition to the unemployment insurance reductions, the Liberal government has transferred responsibility for providing assistance to off reserve status Indians, adding another 10,000 people to the welfare case load of Saskatchewan alone at an estimated cost of $37 million. We have seen $63 million, $37 million, $100 million on those two initiatives under the unemployment insurance benefit scheme alone.
The Liberal government was elected on the platform of providing jobs and of course it has thrown more people out of work and on to welfare rolls in Saskatchewan than ever before, adding to the burden of the Saskatchewan taxpayer.
Bill C-314, which I am proposing, would assist in a very minor way but illustrates the Liberals have no new ways of trying to save money. All they want to do is pass off the expense of running our country to another level of government.
I will say a few words now about double dipping in the Reform Party. If the Reform Party is concerned about double dipping, it would support the bill. The bill creates a level playing field. Members of Parliament would see retirement income deducted from their paycheque during their tenures as members of Parliament.
Members of the Reform Party have stated they would not accept the parliamentary pension before age 60. Yet there are Reform MPs who gladly accept publicly paid pension benefits from the provincial governments they have served in other public sector jobs, be it teaching, municipal governments or other provincial government sectors.
This in my view is hypocrisy on the part of the Reform Party. The Reform Party is insulting the intelligence of Canadian taxpayers. If it is wrong for a former member of Parliament to accept his pension and take a public sector job, then why can a former MLA now in the Reform Party receiving a $61,000 a year pension not do the same thing when he becomes a member of Parliament?
Reform Party members must lead by example and voluntarily deduct their pension incomes from their salaries and give the difference back to the House of Commons or to the deficit.
I have some very profound arguments and a great deal of support for the bill. Barbara Yaffe of British Columbia wrote in the Ottawa Citizen on April 20:
Now that the diabolical double dip has been addressed, the Chrétien government might want to take action on the reverse dip.
Double dipping is to be forbidden under the reforms to the MPs' pension plan announced in February by Treasury Board President Art Eggleton. But the reverse dip was not mentioned in those reforms.
The column was quite laudatory for me and with respect to this bill. She does quote a number of members of Parliament who are serving in the Reform and Liberal parties: the member for Bonavista-Trinity Conception, a retired naval rear admiral; the member for Lethbridge; the member for Nanaimo-Cowichan; the member for Saanich-Gulf Islands, a former armed forces officer, and it goes on and on. I would like to read the whole article but I do not think it would be appropriate at this time. However, the bottom line is there is a great deal of support for the bill.
I am not doing this out of mischievousness. I am doing this because it is a serious issue for Canadians and for Parliament. I am doing it with sincerity. As a former member of the Saskatchewan legislature, I have gone on record before and after the election that if I was serving my country in the House of Commons I would never take a pension for my former service as a member of the Saskatchewan Legislative Assembly. I will stick by that regardless of whether the bill is passed.
I reaffirm my position that as a former member I will not take a public pension, my legislative pension or my pension as a corporate planner with Saskatchewan Telecommunications because I believe it is a privilege to serve my constituents, my province and my country. Regardless of what position I am in, I will take only
the salary due to me and disregard and postpone taking any pensions I am entitled to.
In this regard I am putting the bill forward in a serious manner. I hope that members of the Reform Party and the Liberal Party will join with me in supporting the bill.
There are a few more things I would like to add with respect to some of the impacts on the bill but I note that the Liberal member opposite is anxious to say a few words on it.
I will end by saying there have been some comments in the House today concerning the MPs pension plan. There are members of Parliament who will argue that members should not receive any pension whatsoever. For those who argue for no pensions, one has to question their motives. Is it because they already have a pension, or is it because they are representing interests which will pay them handsomely for doing other things? Or is it simply an attempt to falsely bribe the electorate into believing that if the MPs are not worthy of pensions or MPs should not take pensions they might be more worthy of support by the electorate?
I think those arguments are false. People will support honest, hardworking politicians who are fair, who work to build our country and who raise taxpayers' money fairly and spend it even more fairly and wisely in a very accountable fashion. People will agree that if we are not doing a good job or if we are corrupt or dishonest, we deserve nothing. In fact, nothing is still too much for some in people's minds because of the lack of work they have done or the corruption they have been involved with.
No one disagrees with that but it does not mean because there are some bad apples in a profession that all are bad, or in the case of members of Parliament that none deserve or are entitled to pensions. I do not subscribe to that.
I believe if taxpayers treat their members of Parliament satisfactorily in terms of pay and benefits, be they current or deferred or both, that the members of Parliament will be responsible and accountable to those who pay their salaries and benefits. If members of Parliament or any other elected official are not paid satisfactorily, they will receive income from other sources. Perhaps they will be accountable to those other sources more so than those people they are representing in this wonderful institution called the House of Commons.
I do not take for one second the argument that members of Parliament should not take a pension if they deserve it, if they have earned it and if they have served their country well. There is some room to manoeuvre in terms of the possibility of not having served the country in an honourable or honest fashion. Then perhaps some penalties might arise. However, I certainly believe Canadians would agree that if a member has worked and earned his or her pension then the member is entitled to it.
There will always be a debate on how much the pension should be, but the point is that the concept of a pension is realistic. If a member of Parliament receives a pension, the member will work hard in this House of Commons to ensure that all Canadians receive a fair pension.