Mr. Speaker, I want to make a few comments on each of the motions that form part of this group.
With respect to Motion No. 11, I think it is important to point out that essentially this motion puts the financial sustainability of the CPP at risk, the very thing that the bill addresses. The motion in fact would mean that instead of rising to 9.9% by 2003 and then levelling off, contribution rates would in fact rise to 10.1% and then to 14.2%, a 140% increase over current contribution levels. That is in fact the motion put forward by the NDP. This motion would impose an unfair burden on our children and grandchildren and never in fact make the CPP sustainable.
I ask the question, does the NDP want to kill the CPP by neglect? Let us do nothing. We have heard a lot of rhetoric from the NDP today which is in full flight. We did not hear anything of substance unfortunately.
With respect to Motions Nos. 13 and 14, the federal-provincial governments have put the plan on a sustainable track through their negotiations after consulting with Canadians. Freezing the YBE was part of the changes required to balance the cost of the program. Despite the freeze, the low income workers will still pay contributions on a smaller portion of their earnings than higher income earners.
In fact the amendment put forward by the NDP and the Conservatives would remove an essential element of the federal-provincial package and would require a significantly higher long term contribution rate than the 9.9% provided for in this legislation.
It also may be of interest to hon. members of the House to know that further examination of the basic exemption will occur in the next phase of the Canada pension plan reform studies. More specifically, the federal and provincial governments have agreed to study Quebec's proposal for graduated removal of the exemption as income rises. In fact there is a commitment on the part of the federal government and the provincial governments to the changes to the YBE in the next review.
Motion No. 16, essentially the measure that is the five year average of earnings, is similar in concept to how most private pension plans adjust for wage growth over a pensioner's working life. The reduction again helps the costs over time and strengthens the sustainability of the CPP. Again, I think it is very important to ensure that Canadians know that current pensioners and persons age 65 or older in 1997 will not be affected by any of the changes.
Changes to the benefits that had to be made were in fact balanced. This particular change is the only measure in Bill C-2 which affects retirement pensions and it is therefore not only essential to the overall goal of sustainability but also to achieving an overall balance in the impact to the benefit changes.
The effect of the motion as worded is somewhat flawed and in fact would make the legislation unworkable. It would not be acceptable to take away this critical element to ensuring the long term security of the program.
Motion No. 17 essentially talks about the labour force attachment rule. The current provisions require very little participation in the workforce, in fact as little as a few months over the course of two years. I think this is important because members of the NDP have been getting up all day and making comments that in fact what the government is intending to do does not reflect what Canadians have been saying. During the consultations many Canadians have said that the current requirements of labour force attachment were not strong enough.
Now, with the changes put forward in Bill C-2, workers do have to demonstrate a slightly stronger attachment to the workforce to be eligible for the disability benefits. The measure will not affect current recipients of the CPP disability benefits. Under the proposed changes, workers must have made contributions in four of the last six years compared to the current requirement to work in two of the past three or in five of the past ten.
Again, it is also very important to make note of this. The new coverage rules are still more generous than the original rules of the plan.
Prior to 1987, workers had to contribute in five of the past ten years and also in at least one-third of the years from their 18th birthday in order to be eligible for disability benefits. We have seen the progressivity of the plan. The new coverage rules are still more generous than the original rules of the plan.
The NDP has continued to focus on the disability aspect of the plan. Persons with disabilities are not being singled out. The CPP changes are only one aspect of the government's broad agenda focusing on persons with disabilities. It is also important to note that the federal and provincial governments are moving forward on a number of other strategies that will enable persons with disabilities to participate more fully in the economy and society.
With respect to the CPP disability, the chief actuary analysis also points out that 75% of the proposed changes to keep the contributions to 9.9% are on the financing side and only 25% are on the benefits side. It reflects the message from Canadians during consultations to go easy on the benefits side when fixing the CPP.
With respect to Motion No. 18 put forward by the NDP, as worded the provision would be temporary in nature and would only be helping contributors who receive a benefit beginning in the period from 1999 to 2003. This would be entirely unfair to other contributors, especially the future generations who will be paying for these pensions through their contributions.
We hear contradictions in the House where the NDP continues to put forward the intergenerational argument and how it is unfair to future generations. Here we have an amendment put forward by the NDP which would in fact do the exact opposite and put a greater burden on future generations.
If it was made a permanent feature of the program, the doubling of benefits as the NDP is asking for would also require an approximate doubling of contributions. This would be unacceptable to the governments that are the stewards of the program, both federal and provincial governments, and also to Canadians who have asked us to ensure that the plan remains financially sustainable.
The point has been made over and over again by various members of the opposition parties other than the NDP that if we want more benefits, premiums have to go up. The NDP have not formed any sort of argument that would deal with the premium side of the program. Canadians have said to deal with the plan, ensure that it is sustainable, ensure that we go easy on the benefits side and ensure that it is balanced off with the premiums.
With respect to Motion No. 19, I must stress that the proposed changes will not affect those who currently receive combined disability-survivor or retirement-survivor benefits. The CPP has always had limits to restrict the stacking of benefits. The proposed changes bring the limits on combined benefits more in line with their original intent.
It is also important to understand that the combined benefit provisions will have no effect on survivor recipients who are not also receiving another CPP benefit, that being a retirement or a disability pension in their own right.
It also may be of interest for hon. members of this House to know that there will be further examination of the role of the CPP survivor benefits in the next round of the federal-provincial review of the plan. The object is to ensure as far as possible that all CPP premiums remain relevant to the needs of Canadians.
I have one final motion to comment on in the time remaining. Motion No. 22 put forward by the NDP asks that we delete the requirement for increased contribution rates to cover the costs of new or increased benefits. It is an important statement of principle and something that Canadians have continued. It has certainly been very effectively communicated during the consultation process that the federal and provincial governments agree that any future benefit enrichments must be paid for, that we should never again put the security of the Canada pension plan at risk by enriching benefits without being willing to pay for them.
On the intergenerational issue, we must ensure the sustainability of the plan. We must do so not only for the seniors who are receiving the benefit now, the near seniors, the middle age Canadians, but for young Canadians. The changes we have made to the CPP will ensure that young people are not saddled with an unbearable burden.