Mr. Speaker, there have been many amendments brought before the House over the past two days and many more to come that wish to improve this plan the government has developed to change the Canada pension plan.
Many of the amendments that are before the House in Group No. 6 would jeopardize the Canada pension plan because they refuse to admit that there is a problem with the CPP. They refuse to see that it is in a crisis situation. The sad fact is that if we do not fix the CPP, it will not be there for our children and our grandchildren. If we spend blindly now, we will be playing with the money of future generations. This is simply not acceptable.
Young people today are already facing huge student debts and fewer job prospects. Let us not saddle them with the responsibility of paying for our retirement. I know that this is not the legacy I want to leave to my children.
Canada's population is aging rapidly. This will put great stress on seniors programs in the years ahead. Today for every person of retirement age there are five persons of working age. In 20 years there will be one person of retirement age for every four persons of working age. When today's youth retire in 40 years, the ratio will be just one to three.
The strain on the CPP results from an aging population, a lower birth rate, increased life expectancy and a sharp rise in disability claims.
The CPP was set up as a pay as you go plan in 1966. Premiums were set at a rate that provided the fund with investments equal to at least two years of benefits. There is $40 billion in the fund. However, the cost of its promised future benefits totals $600 billion. Under the present Canada pension plan the premiums are expected to rise to 14.2% in the year 2030.
For Progressive Conservatives the CPP is a fundamental part of the Canadian social safety net, an obligation that government must honour. Let us make it clear, the CPP is worth saving. We believe that there is an urgent need to restore public confidence in the Canada pension plan so that Canadians will continue to participate in saving for their future retirement. Many of the amendments we are debating now will not restore the public confidence in the CPP. Far from it.
The CPP contribution rates will have to rise to levels adequate to ensure the long term viability of the plan, but these increased contributions must be more than offset by substantial reductions in our taxes.