Mr. Speaker, just to pick up on the comments of my colleague who was just up speaking and addressing this House, the motion is clearly inconsistent with the public's wish to stop the practice of lending CPP funds to the provinces at below their own market rates of interest.
I refer to the report on the Canada pension plan consultation that was put out in June 1996. It says that there was widespread support across the country for achieving a higher rate of return by investing CPP funds in market securities. Participants said a higher rate of return on investment is a prerequisite for the changes to the benefits and contributions. Without it the rationale for fuller funding disappears. There was agreement that the inevitable increases in contribution rates must be kept in check through diversified investments that will earn a higher rate of return.
This is reflective of what Canadians have said throughout consultations. The NDP this morning consistently gets up and talks about how any of the changes that are put forward with respect to Bill C-2 are not progressive enough or are not reflecting what Canadians are saying.
I offer to this House the opportunity to put aside the rhetoric the member for Qu'Appelle has put forward this morning, and some of the other members of the NDP, and look at the facts.
They talk about the reasons why British Columbia and Saskatchewan did not sign on to this agreement. Let us be quite clear that during the consultations both those provinces never said that provincial access to funds was an issue. They had other issues.
British Columbia put forward toward the latter part of the consultations and the negotiations between the province and the federal government the proposal to expand coverage up the income scale to $50,000 or $55,000 from where it is with the present plan. That is fair enough, but it also needs to be stated that particular issue is on track two.
The discussion with respect to that proposal from British Columbia will be reviewed on track two when the provinces and the federal government come together once again to review the Canada pension plan.
There were no issues related to the investment board or the investment board principles. In fact, both those provinces signed on to the information paper that included the investment board principles. The investment board principles stated quite clearly that it will perform its function in the best interest of the plan members. The best interest of the plan members is an attempt to receive the best rate of return, and the best rate of return is not achieved if we have this motion go forward.
The provinces agreed that the CPP fund should be invested in the best interest of the plan member, just like other pension funds. I think it is important to emphasize like other pension funds. Another member of the NDP was up earlier this morning talking about the limited access to the funds. The regulations included in Bill C-2 quite clearly state that the bill guarantees provincial access to funds at market rates.
There is a transition period. It was part of the negotiation. The provinces wanted to ensure the amendments to the Canada pension plan provided the opportunity for the provinces to continue to receive access to those funds, and Bill C-2 does that while at the same time providing the highest possible rate of return to the plan members by ensuring the provinces are able to have access to those provincial moneys at market rates.
I also want to state that this morning we heard the NDP get up and say that the amendments are not progressive enough with respect to Bill C-2. Yet here we have a motion that continues to put forward the status quo. Let's not change it. What they are doing is mixing all kinds of different motivations for these changes. They talk about regional development. They talk about labour participating and different types of initiatives.
Regional economic development is an issue that is being dealt with outside the Canada pension plan. Canadians have said unequivocally that they want the pension plan to survive. As my colleague from the Reform Party stated quite clearly, it is Canadians' money. They are asking for the highest rate of return with prudent management and investment of the money. That is what we are doing. This motion would not speak to the concerns of Canadians or support what they want.
Let us be quite clear that nothing would put benefits at risk in the long run more than the failure to deal with the fiscal realities of the program.
The higher rate of return the actuary has indicated the plan will receive speaks to the contribution level. If we take away provisions from the bill that do not allow the board to achieve the highest possible rate of return in a prudent fashion, which reflects what Canadians have said then, as my hon. colleague from the Reform Party said, the money has to come from somewhere, either from higher contributions or reduced benefits.
On the one hand the NDP continually says that the benefits are being slashed in the program. At the same time it is saying that we should not allow Canadians to receive the highest rate of return on their money. The NDP cannot have it both ways. Bill C-2 strikes a very good balance in achieving the sustainability of the plan financially while still providing crucially important benefits to Canadians.
I close by saying that we should oppose this amendment for the reasons stated by me and by members of the Reform Party, the Conservative Party and the Bloc who all stated quite eloquently reasons why we should not support the motion.
The provisions in Bill C-2 reflect what Canadians have been saying throughout the consultations. It allows for a higher rate of return than is presently there. It also continues to allow provincial access to funds, which is part of the federal-provincial agreement.