What were the Canadian people saying in that election? We want democracy. We want to be heard. We want fairness, accountability, transparency, and above all else we want honesty from our elected officials. We want our elected officials to represent the people and we want to do for ourselves what we do unto others.
The single most objectionable thing that typifies the last government and in some ways applies to this government is the MP pension plan, this gold plated plan, which is unlike those in the private sector.
In response to the dogged efforts of the Reform Party, the government has finally buckled under and decided to revamp the plan. Is that what it truly did? Not at all. It brought out a plan that is mere it window dressing. We have seen a lot of it.
Yesterday when we spoke in the House on the OAS and CPP bill we saw much the same thing. Let me explain why. What happens with the new plan? The accrual rate decreases, but it only decreases from 5 per cent to 4 per cent. This is still double the rate in the private sector.
Furthermore, the Income Tax Act says that there can only be a maximum of 2 per cent. Therefore, the plan put forth by the government and the preceding plan are illegal.
The new plan is fully indexed to inflation. Do we see that in the private sector? Not at all. In the private sector, 80 per cent of plans are not indexed to inflation.
What is the new minimum age? It is 55, not 60. That is fine to an extent. However there is no decrease in the payments that are down if anybody collects before the age of 60. Again I bring your attention to the Income Tax Act.
The Income Tax Act says that pensions must be reduced by at least 3 per cent per year if collected before age 60. Does this occur in the plan before us?