The government has articulated the precepts of integrity but has failed to deliver the substance of its bravado. Canadians are right to be disappointed.
We were promised a new approach to accountability and ethics. Instead, we have received well rehearsed rhetoric and woeful policy from that side of the House.
I would like to turn my attention now to the issue of pensions. Bill C-96 will create the department responsible for administering the Canada pension plan. Given the importance of the program to all Canadians, it is only fair that we spend some time reviewing what the department has been doing. My review will be brief because in truth the department has done virtually nothing to address what the government has deemed unsustainable.
The government, in refusing to confront the issue, has said to Canadians that it is not concerned about their futures. There is widespread consensus that the Canada pension plan is in trouble. In October of this year the chief actuary for the Office of the Superintendent of Financial Institutions stated: "The CPP's projected costs are considerably higher than previously expected. If the existing schedule of contribution rates is not increased and benefits continue as now legislated, the CPP fund is expected to be exhausted by the year 2015".
Other evidence suggests that prevalent fear and concern exists among Canadians regarding CPP. A Bank of Nova Scotia poll released last month stated that 75 per cent of Canadians distrust the security and sustainability of the Canada pension plan. The survey also showed that of those people aged 30 to 49, fully 81 per cent reported that they are not confident about the ability of CPP to provide them with income when they retire. When so many are in agreement that changes are overdue it is incomprehensible why the government has failed to make changes in its promise in 1993 to do just that.
Not long ago the Minister of Human Resources Development responded to my question in the House of Commons by stating: "The best way in which the hon. member can make a contribution is to start putting forward her own proposals on behalf of her party". If the department that Bill C-96 creates will not put forward its ideas to address our enfeebled Canada pension plan, it is only fair that I present Reform's vision for renewing CPP.
Reform believes that the Canada pension plan is under considerable financial strain, a strain which if not addressed will jeopardize the pension benefits of today's seniors, those baby boomers edging toward retirement and our children who are beginning or who will soon enter the workforce. This evaluation of the Canada pension plan is not fearmongering or partisan politicking. It represents the opinions of the governments and of ordinary Canadians.
Through access to information I obtained a briefing note prepared for the Minister of Human Resources Development written by one of his senior policy analysts. She writes of CPP that "the costs of the Canada pension plan are rising faster than the actuarial assumptions predicted". She continued in the note to say that "amendments may be required to Canada pension plan benefits or to restrict the cost of the benefits". The senior policy analyst recommends therefore that the government increase contribution rates for CPP or implement cost cutting measures in the Canada pension plan.
The only proposals for changing CPP the government is considering are cutting seniors' pensions or raising taxes for CPP contributions. We already have evidence that the government prefers the easy yet reckless tax grab option. On November 2 the government announced a payroll tax increase to support a faltering pension system. The Liberal penchant for tax increases, which is already legendary, once again rears its ugly head.
Unlike the government, Reform believes we can renew the Canada pension plan without cutting seniors' pensions and without relying on contribution rate increases. Our plan would gradually convert CPP into individualized, privately invested accounts similar to RRSPs. The total investment income in these millions of accounts will greatly exceed the total income that is possible under CPP's current restrictive investment parameters. This increase in total investment wealth is key to our plan for making possible a renewed CPP that is generous to all age and income groups.
The first point of our four-point plan to renew the Canada pension plan is a guarantee to seniors. The first step in CPP reform must be to provide a protected status for all benefits being paid to the current generation of seniors. Reform believes that when there are any changes to CPP, no matter what they may be, no matter who proposes them, those changes must never touch any benefits that we as a society have promised our seniors.
If the Liberals implement cuts to seniors' pensions, as suggested in the briefing note to which I referred earlier, we can expect a seniors' uprising like no one has ever seen. Reform will help in every way possible to take that uprising to the House of Commons and even to the front doors of 24 Sussex Drive. We will not allow anyone to tamper with promises we have made to our seniors.
The second point provides for recognition bonds. Because people over a certain age, say around 40, will not be able to build up enough savings in their super RRSPs to compensate fully for the loss of their Canada pension plan benefits, special bonds will be issued guaranteeing the redemption upon retirement of all previously made contributions to CPP. Once we have guaranteed seniors' benefits in point one, this point guarantees benefits for those who are quickly edging toward their retirement but will not be able to fully benefit from their new super RRSPs.
This brings me to my third point, the creation of super RRSPs. Who should Canadians trust to manage their retirement savings, themselves or a government saddled with a $560 billion debt? Instead of contributing to the Canada pension plan to provide for their retirement, individuals would contribute into what we call super RRSPs. The conversion process from CPP to super RRSPs would gradually reduce the financial demands on the CPP system while keeping payroll deductions at reasonable levels. The excess revenues would be diverted into each worker's RRSP.
The fourth point of our plan for renewing the Canada pension plan is to improve benefits for elderly widows. The avaricious benefits given to elderly widows of deceased CPP contributors would gradually be replaced by a system under which full ownership of the spouse's super RRSP would be transferred to the widow without tax implications.
Here are constructive ideas for addressing an issue about which most Canadians feel deeply. We have initiated the debate. Reform is prepared to discuss real options and is open to innovative ideas.
Reform has a vision. Where is the Liberal vision? Where are the Liberals as we navigate the rough waters of complex policy?