Mr. Speaker, unlike the previous speaker, I will confine my remarks to the bill before us. His comments show the obvious lack of confidence in his own party's bill.
It gives me great pleasure to address Bill C-85 which deals with the issue of MPs pensions. This issue is of great concern to myself, the Reform Party and to all Canadians. This plan was indefensible even in the good times when Ottawa's vaults were overflowing and the public was feeling generous toward its politicians. However, in bad times such as we are now experiencing, when many Canadians are suffering and the government is hard pressed to fund basic programs, the MP pension plan amounts to little more than the great Canadian ripoff.
When I say I know Canadians truly do want the MP pension plan reformed, I am speaking for those individuals who live in my constituency of Edmonton-Strathcona. I asked my constituents for some feedback on this issue in my first householder. The results were overwhelmingly in favour of pension reform. I cannot help but believe if the Liberals were to ask their constituents the same question, they would find the same result.
Constituents were asked at what age should an outgoing MP be able to collect a pension. Seventy-five per cent of my
constituents felt an outgoing MP should not be able to collect until after his or her 60th birthday.
The second question asked regarding MP pensions was how many years should an MP serve before being eligible for a pension. The results again are staggering in favour of pension reform. One hundred per cent of respondents said the number of years should be no less than eight. Eighty-one per cent felt the minimum number of years of service should be no less than 16.
Answers to these questions are a far cry from the present situation in place today and also a far cry from the pension reforms the government has introduced. It is important to illustrate a few facts about MP pension plans, as they will clearly illustrate why the constituents of Edmonton-Strathcona and Canadians as a whole feel there is great need for the present pension plan to be reformed.
First, pensions are payable immediately upon retirement and only after six years of service no matter at what age the MP retires or is not re-elected. Second, payments continue even if the ex-MP holds another permanent job, which would be defined as double dipping.
Third, pensions begin at $23,390 per year and increase 5 per cent per year of service to a maximum of 75 per cent average salary. Fourth, inflation indexing kicks in after age 60 but is retroactive to retirement day.
Fifth, MPs pay 11 per cent of their base salary into the pension fund. The government matches this amount and covers shortfalls, an unfunded liability which cost Canadian taxpayers nearly $160 million last year.
By no means is this list inclusive. There are, however, a few items of concern to me. I have stated in the House repeatedly that Reformers have come to Ottawa to make a difference. I ran for Parliament to serve my constituents. I did not run for a pension.
The Liberals state in their red ink book: "A Liberal government will reform the pension plan of members of Parliament and put an end to double dipping". Bill C-85 is a poor attempt at addressing the issue of pension reform.
We have been sitting in the House for over 18 months and we are discussing still the pension issue. Obviously it was not as important a commitment to the Liberals. It is also interesting to note the current Prime Minister challenged the former Prime Minister to recall Parliament if she were was truly serious about pension reform. This was just before the last election. I quote the present Prime Minister: "Reforms would pass in a day". It has been over 500 days since he became Prime Minister and still no reforms have been passed. I find it ironic the only member of the House whose benefits are not reduced by this bill is the Prime Minister.
Canadians will not tolerate political injustices. The evidence lies with the now defunct Conservative Party. We on this side of the House know the government has delayed on the issue of pension reform. Perhaps it is because the Liberals are concerned about having to adapt to another of the Reform Party's policies such as they have done in the past on issues such as the Young Offenders Act, parole reform, criminal justice reform, debt and deficit reduction, and let us not forget immigration.
All this is doing nothing but costing the taxpayer more and more money each day. As we know, the National Citizens Coalition set aside a day this year and called it national trough day in which another group of 52 MPs of all political stripes became eligible for this outlandish of extravagant pension plan. These new members of the trough club could collectively receive $53 million if all of these 52 MPs quit today and lived to the age of 75, while at the same time the average Canadian citizen must work 35 years to accumulate a pension which is not nearly as gold plated as this.
This gold plated MP pension plan should be renamed from pension plan to cash for life rip off of the Canadian taxpayer. This plan is perhaps one of the federal government's most offensive examples of waste. What strikes to the core of the issue is we as parliamentarians have to set an example for all Canadians and delaying issues such as pension reform is no way to lead by example.
I can stand in the House and state unequivocally that the Reform Party is different. We want to see changes in the pension plan; not just superficial changes, substantial changes.
These changes would include a pension plan brought in line with pension plans offered in the private sector, an end to full indexation, postponing eligibility until at least age 60, ensuring the MP pension plan is adequately funded by MPs for the benefits they will receive so there will be no shortfalls, allow MPs the option to opt out of the pension program and allow the flexibility to invest in a private pension plan such as an RRSP with a maximum contribution in accordance with the Income Tax Act.
Let us now look specifically at what the Liberals have introduced. They have decreased the contribution and benefit rates, but only marginally. They have raised the minimum age to 55 for benefit eligibility. I refer to a survey of my riding in which 81 per cent of constituents feel the minimum age should be 60. The Liberals claim to have ended double dipping and yet benefits will continue to grow under the generous inflation indexing provisions. They offer an opting out clause but it is a one time deal, as coverage will be compulsory for members of future Parliaments. The benefits will continue to be fully
indexed to inflation from the date they retire. This has not changed and that is no big surprise to me or to the Reform Party.
We must stop this insanity. We must make real changes and real reforms to the MP pension plan now.