Mr. Speaker, the roots of this Chamber stem back to its namesake in London, Britain's own House of Commons. Those words "House of Commons" refer to the purpose of this institution; to represent the commons or the commoners within government.
We carry on that tradition today by representing grassroots Canadians from all walks of life. Or do we? It is a question each of us should ask before engaging in this debate over MPs' pensions. Are we representing the same Canadians who elected us to this Chamber?
Two years ago Canadians clearly demanded change. After the 1993 election the once Progressive Conservatives were pushed to the backbenches of Canadian history and these Chambers greeted two new parties. The party that I am proud to be a member of, the Reform Party of Canada, promised to think, work and act differently. We started by putting our policies on paper. First in the blue book and then economizing by putting
this on the blue sheet long before the Liberals came out with their own red ink book.
We promised to truly fulfil our role as representatives of the people, going against our own party's official positions if necessary to represent our local electorate. In contrast, Canadians have seen how the Liberals handle MPs who strive to represent their own constituents. They are tossed from committees and bombarded with veiled threats from their leader. May I add, the Canadians I have spoken to have been appalled by these actions. They do not want to be ruled by Parliament. They want to be heard by Parliament.
Reform has also promised to fight for real change in such areas as government waste, deficits and debt and the MPs pensions. Over the past year I have stood in the House on three separate occasions demanding change in the MP pension plan. Or as I have come to call it, the MP pension scam. When one compares the private sector pension plans with the MPs pension scam as I have, it is obvious change is needed.
Under current tax laws, contributions to a pension plan cannot exceed 20 per cent of a salary, that is for the average Canadian. According to the accounting company KPMG Chartered Accountants, most private sector corporations spend the equivalent of between 13 per cent and 18 per cent of their payroll on pension plans. Some are far below these levels.
For example, one of Canada's largest telecommunications companies is at a mere 10 per cent of their payroll. Yet government after government has allowed MPs and Senators to skate around these rules, exempting themselves to a level equal to 63 per cent of the payroll equivalent. This means that if the plan was fully subsidized by MP pay cheques, over two-thirds of our income would go into supporting the MP pension plan. Even under the new proposals, pensions would be at 57 per cent of payroll, well over half. This kind of extravagance only leads to contempt among grassroots Canadians.
Many of my constituents have spoken out against this sort of waste. The language has not been positive. It is has been downright unparliamentary. Let me take a moment to quote from a few letters and comments I have received.
One constituent writes: "The government has been asking we taxpayers to tighten our belt as we struggle to live on less as they take in more taxes. It is time for them to set the example in restraint. Don't just talk about it, do it". Is spending seven million tax dollars a year on the new pension scam restraint? Is it responsible spending in the eyes of average Canadians? Think about it.
Another quote: "I think I can speak for most Canadians. We are sick of government waste, especially government pensions and benefits. It is a total extravagance on the government's part. I am 29 years old, my husband is 33, we have three small children. My husband works 12 hours a day, six days a week. We are sick and tired of the amount of income tax he pays".
An hon. member recently spoke at length on how MPs work: "Twenty-four hours a day, sometimes seven days a week". Therefore, MPs deserve this kind of pension. How can we justify taking tax dollars for this sort of luxury pension when many of our fellow Canadians are barely getting by with no security for their future.
There are many more letters I could quote from. In one of my 1994 householders, over one in four respondents spontaneously singled out on their own the MP pension plan when asked where cuts could be made to put our country's financial house in order. That was one in four without prompting.
This plan has become a lightning rod for all that is wrong with government and drastic change is needed. Sadly, the change demanded is one thing the Liberals have left out of the bill.
What surprises me most about this new plan is how little has changed between it and the old plan. I received a question and answer pamphlet from the President of the Treasury Board, as did evey member of this House, and I was shocked at some of the responses to the questions asked. Let me quote some. "Will members still need six years of service to qualify for a pension?" The answer: "Yes. No changes are being made in this regard". "Will the maximum pension still be 75 per cent of a member's best years' sessional indemnity?" The answer: "Yes, but now it will take members of the House of Commons longer to earn their maximum pension". "Will the new pensionable age affect retired members?" Answer: "No." In all, it was lots of talk but not much walk.
There is one change, however, the one time opting out clause. By putting this clause in, members now have a choice: either accept an outrageous unacceptable pension or none at all. In my view, this is a blatantly political move designed to make the government look like it is acting when in reality not much has changed. In fact, after the next election every new MP will have to take the new and improved so-called MP pension scam whether they like it or not.
The Reform caucus, myself included, view these proposals as completely unacceptable, and if they remain as they are it is the intention of the Reform Party of Canada to opt out.
It is sad to see so few members on the government and Bloc sides honouring these same principles. This is not an issue of the pocketbook; this is an issue of the heart. This pension issue
points to how we perceive Canada. Is this a country where we express our ideals of hope and prosperity, how our country will be now and for our children and grandchildren, or do we just grab as much for ourselves as we can while the opportunity is here?
None of us in the House of Commons came to Ottawa for the benefits or for the pay. We came to serve our fellow constituents and bring about the kinds of changes needed.
As long as we draw a paycheque from the Commons or travel on an MP's allowance, we are living off the backs of the taxpayers of Canada. Let me repeat that: we are living off the backs of the taxpayers of Canada.
Canadians are not saying that MPs do not deserve a salary or that we do not deserve a pension. All they ask is that the salaries we earn and the pensions we collect be in line with what is in the private sector, what they might reasonably expect for themselves. This is a call the Liberals have ignored, to their shame.