House of Commons Hansard #120 of the 36th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was judges.

Topics

Parliament Of Canada ActGovernment Orders

4:35 p.m.

Reform

Jason Kenney Reform Calgary Southeast, AB

Mr. Chairman, the government House leader in response to an earlier question said that MPs in the current standard defined benefit plan make financial contributions of up to $10,000 a year. That is true. I am one of the people to whom he refers who in the past has written articles about this. I have never denied the fact that contributions are paid and that they are substantial.

The problem with the plan as continued through lack of amendment in this bill is that it provides benefits much, much greater than the contributions. In fact the benefits paid to an average member out of the defined benefit plan are some 3.8 times greater than the total average member's contributions.

The government House leader also spoke about a recommendation of the Blais commission which would have eliminated the provision in the Income Tax Act which allows members of parliament to shelter a third of their de facto income from taxation. I think this is an outrageous double standard that we impose on Canadians.

The government House leader also said that the committee which discussed the report of the Blais commission decided that this would be inequitable in terms of its treatment of people in different provinces. I take a rather different view of why the Blais commission's recommendations were not adopted.

I refer in particular to a statement made by the hon. member for Mississauga Centre, the government caucus chair, who on February 9 was quoted by the Hill Times as saying with respect to the recommendation to gross up the salary and replacement of the tax-free expense allowance that “if we are going to get nailed at least we want to get nailed for a reason and see it in the wallet”. She furthermore said that the government should “screw the Blais report”.

Does the hon. government House leader think that portrays a constructive attitude to the report of an independent commission? Does he not think that the bill before us today would be more credible with the public were it to have reflected the binding recommendations of an independent commission? Does he not in other words think that this process should be changed so that it is an independent one and that we are not put into a possible conflict of interest position?

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4:35 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

Mr. Chairman, I think there are basically three questions in there. The first one is the statement that benefits are greater than the contributions. Of course. It is a pension. The benefits coming out of the plan are by definition and that is true of any pension plan.

What is different with this case is there is no assumed income on the matched employer-employee contributions and that is why it is not calculated. Take the matched employer-employee contribution and assume to it a normal form of income and as far back as 1990 the chief actuary said it was sound. But we have to make that assumption because most investments do bring in income.

Some of the largest owners of shares in banks today are pension plans. The Ontario teachers pension plan for instance owns a lot of shares of many of the large banks in this country and the pension fund is doing quite well. That is true. I recognize that.

On the issue of what an hon. member may or many not have said about the Blais commission report, I have not cast stones on anyone in this House for any element of what is in this bill, across the way to my own colleagues or otherwise. I will not do so. I think this package is reasonable overall. Even if there is some provocation, I will not participate in that. I want to end this debate in the tone which I think is right and which I believe I have demonstrated through the process. I will not take part in that.

I am against the issue of binding recommendation. I am against saying to my electors “I got a salary increase but it is not my fault. It was a binding recommendation”. That is wrong in my opinion. I am going to St. Isidore de Prescott in my riding this weekend. They will say that I voted myself a 2% increase and I will say yes. That is what I want to say. Yes. It is called accountability. Not my fault is not my way of doing things. Eventually I will be judged for what I do. There will be that judgment day and I will accept the judgment of my electors. But I will not chicken out. I will never say that it is not my fault.

Parliament Of Canada ActGovernment Orders

4:40 p.m.

The Chairman

The 30 minutes having been taken up in committee of the whole, pursuant to order made on Wednesday, June 10, 1998, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the committee stage of the bill now before the House.

(Clauses 6 to 16 inclusive agreed to)

(Title agreed to)

(Bill reported)

Parliament Of Canada ActGovernment Orders

4:40 p.m.

Glengarry—Prescott—Russell Ontario

Liberal

Don Boudria LiberalLeader of the Government in the House of Commons

moved that the bill be concurred in.

Parliament Of Canada ActGovernment Orders

4:40 p.m.

The Deputy Speaker

Is it the pleasure of the House to adopt the motion?

Parliament Of Canada ActGovernment Orders

4:40 p.m.

Some hon. members

Agreed.

Parliament Of Canada ActGovernment Orders

4:40 p.m.

The Deputy Speaker

Pursuant to order made on Wednesday, June 10, 1998 the motion is deemed carried on division.

(Motion agreed to)

Parliament Of Canada ActGovernment Orders

4:40 p.m.

The Deputy Speaker

When shall the bill be read the third time? Now.

Parliament Of Canada ActGovernment Orders

4:40 p.m.

Some hon. members

Agreed.

Parliament Of Canada ActGovernment Orders

4:40 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

moved that the bill be read the third time and passed.

Parliament Of Canada ActGovernment Orders

4:40 p.m.

The Deputy Speaker

It is my duty pursuant to Standing Order 38 to inform the House that the question to be raised tonight at the time of adjournment is as follows: the hon. member for Jonquière, National Highway System.

Parliament Of Canada ActGovernment Orders

4:40 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

Mr. Speaker, I would like you to indicate to me when I have spoken about six or seven minutes so that the time allotted can be divided among all parties. I want everyone to have an opportunity to speak.

I want to make the third reading remarks brief first because we have the half hour limitation for all parties and second because I believe that this issue has been thoroughly debated.

We have had the report from the Blais commission which I was offered to appoint. Ultimately the Prime Minister appoints all commissions but I was asked to appoint such a commission immediately after I became Minister of State and Leader of the Government in the House of Commons. It was my duty to do so pursuant to the Parliament of Canada Act.

I believe the people who served on the Blais Commission did a very good job. I thank Commissioner Blais, Dr. Jérôme-Forget and Mr. Ray Speaker. All three of them have worked very hard at producing this document. The bill we have before us today in large measure, although not exactly, reflects the recommendations they provided to us. Again I thank them. I believe they did a good job.

As I have indicated in speeches in the House before, I have been around Parliament Hill for a very long time. I came here on October 25, 1966. I started from the most junior ranks of this place and have had the opportunity of meeting truly great Canadians who were called upon by their constituents to serve in this place. I probably had the occasion of meeting more than perhaps many in this room. I have had the opportunity of knowing members of parliament both as a staffer looking upon those almighty and powerful people who are parliamentarians and as a parliamentarian myself.

Parliament Of Canada ActGovernment Orders

4:45 p.m.

An hon. member

And learned the truth.

Parliament Of Canada ActGovernment Orders

4:45 p.m.

Liberal

Don Boudria Liberal Glengarry—Prescott—Russell, ON

Yes, I have learned the truth. We are the leaders of the country. That is the truth and I make no apologies for it. This is a very noble profession and outside of being called to represent one's fellow people in religious offices it is the highest calling in the land. This is what I believe.

Mr. John Diefenbaker, I happen to think, was a great Canadian. He was not of my party but a great Canadian nonetheless. I met him on many occasions as a staffer on the Hill. He said it well when he said that there was in his view no greater honour and no greater privilege, and let us not forget the second part, than to serve in the House. I believe that to be true.

I also believe the House should be designed and should function in such a way as to attract people from all across the country and all walks of life. A doctor should be able to be a MP. Some are. People from the agricultural community should be MPs. Some are. People from finance and people from the teaching profession should be able to be MPs. Yes, a busboy in the parliamentary restaurant should also aspire some day to be a member of parliament, and one did. As a matter of fact I believe I am the only servant of the House of Commons ever to have been elected in the history of Canada. That is okay. Every Canadian should be able to aspire to come here. That is a principle of democracy.

One of my pet hobbies is the study of history. The great Reform Act of 1832 in Great Britain talked about the shortcomings of democracy in Britain at the time. Let me summarize what the two main ones were. One was that the franchise was too small. Not enough people in Britain had the right to vote. That was undemocratic. It had to be widened so people could participate. A second thing was wrong at the time. Daniel Patrick O'Connell, the liberator of Ireland, had been elected to the British House of Commons, the first Roman Catholic ever to get there. The only reason he got there was that he was rich. No one else could. Members of parliament were not paid.

The second element of the great Reform Act that is important to me and that I want to bring to the attention of the House is that people were demonstrating for their members of parliament to have a salary so that people like themselves could serve in the highest court of their land, the parliament of their country. I am proud that I am able to do that in this country in spite of the fact that I am not rich and probably never will be. I am proud of the fact that people who are rich can also be here along with me, all of us together.

I agree with the articles that say that one does not come here in order to get rich. That is true. However one does not come here to come out of here broke as so many people have. That is not right. Both those propositions are wrong.

There is a middle ground we should all believe in even if sometimes we have to take a bit of heat when we go in front of the media. I will do that because I believe that it is right. I recommend the bill to the House of Commons.

Mr. Speaker, I thank you and all my colleagues in the House of Commons. As this is perhaps the last bill I will be introducing before the summer recess, I would also like to thank my colleagues, particularly the House leaders of the other parties for their support during the session. Together, we have all contributed to the operation of what Mr. Diefenbaker called the highest court in our land, the Parliament of Canada.

Parliament Of Canada ActGovernment Orders

4:50 p.m.

The Acting Speaker (Mr. McClelland)

Before we resume the debate I have a couple of announcements to make.

Colleagues, as some of you may know there has been a rumour concerning the health of the hon. member for Wild Rose. To put members' minds at ease he is alive and well and looking forward to coming back and resuming his duties here. His illness was a figment of imagination.

Again, before we get to debate, I want to explain to our visitors that I will now make an announcement that we will be leaving the Chamber in about half an hour to go to the Senate for royal assent. What I am doing now is giving notice, in both official languages, that we will be leaving the Chamber.

Parliament Of Canada ActThe Royal Assent

4:50 p.m.

The Acting Speaker (Mr. McClelland)

Order, please. I have the honour to inform the House that a communication has been received as follows:

June 11, 1998

Mr. Speaker,

I have the honour to inform you that the Honourable Charles Gonthier, Puisne Judge of the Supreme Court of Canada, in his capacity as Deputy Governor General, will proceed to the Senate chamber today, the 11th day of June, 1998 at 7.15 p.m. for the purpose of giving royal assent to certain bills.

Yours sincerely,

The House resumed consideration of the motion that Bill C-47, an act to amend the Parliament of Canada Act, the Members of Parliament Retiring Allowance Act and the Salaries Act, be read the third time and passed.

Parliament Of Canada ActGovernment Orders

4:50 p.m.

Reform

Randy White Reform Langley—Abbotsford, BC

Mr. Speaker, I must say I am a bit at a loss. I thought we had interpretation here for everybody. The notice was read in English and French.

Parliament Of Canada ActGovernment Orders

4:50 p.m.

The Acting Speaker (Mr. McClelland)

For the information of the hon. member, there are certain historical things that must be done in both languages. That was one of them.

Parliament Of Canada ActGovernment Orders

4:50 p.m.

Reform

Randy White Reform Langley—Abbotsford, BC

Mr. Speaker, that was well done.

I am going to try to convince my colleagues in the House, those on the other side in particular, to have a look at the current MP pension plan. I listened to government House leader who was getting a little excited about the fact that he has the right to stand and encourage pay raises and that sort of thing.

Others in the House have an equal amount of passion in why pay raises should not be. The fact that they are in an omnibus bill we have to vote for one thing and another. They may not like one thing that is in there for one party or another and we may equally not like some other things. I think all of us in the House understand that.

I want to tell members opposite that if they want to heckle I am in a good mood for it. I think they had better keep peace over there.

I want to talk about the current MP pension plan. I would like my colleagues to listen for a few minutes about why I believe that what has to occur in the House is some form of independent actuary or some consulting firm, not a full-blown inquiry but some form of assessment of the plan.

The reason this is required is that there are about 263 members currently involved in the plan. There are those who were elected prior to 1993 who have 5% of their salary each year going into the fund. There were some changes relevant to that plan in 1994.

What happened was at that time in 1994 a number of members from all three parties opted out of the plan because they did not like it. Also at that time more changes were made to the plan, that is those elected subsequent to 1993 now receive 4% of their salary a year, and some other changes. That gives pre-1993, post-1993 and those who have opted out.

There are also others in the House—and one of my colleagues is involved in that regard—who are elected at this time and had been members of parliament at some other time in the past. They have broken service for which basically there has not been any arrangements made. There have to be some rules for that as well. That is the fourth kind. Then there are those MPs who are less than age 55, may retire under the post-1993 plan and now are able to get a severance. That is different from the other plan.

We have five situations. As one of my colleagues said we have another situation where we have severance which will ultimately end up in an RRSP.

We are talking about a total of 301 people with the most convoluted pension plan I have ever seen in my life, and I can tell the House I have seen a lot of them. For the benefit of all concerned I am not asking at this point that members opt out of the plan. I am asking that the House consider some kind of avenue where a real actuarial firm—no political appointments but real people out there—looks at the plan and makes some recommendations that maybe everybody can live with: the taxpayer, the general public, the average worker, those who have opted out and those who want to opt out.

It is such a convoluted exercise that something must be done. It will not go away. It is true we have established something here today. For my colleagues to have RRSPs to get them through later life is a good idea.

If we look at the concept that the B.C. government has come up with, it is quite similar to what we have designed today except that the government says it is taking 9% of the pay and putting it into RRSPs and the member contributes equally. That is exactly where we are headed.

I think it is a natural process to go through. What we are looking at here is an evolution of a pension plan that just got under the back side of the taxpayers so much that it forces change.

Now we have seen an acceptance by others in this House to understand that a pension of some form is needed. Perhaps with the wishes of my colleagues we acknowledge that it is not needed to the extent that it is given to some.

A number of people have given up dollars out of this. We accept that on this side. I take exception to the Conservative member who took shots at us for this.

We need something reasonable. We do not expect to gorge off the public. If this were just a flash in the pan from 1993, that would be different but it is not. Our members who were elected in 1997 want the plan changed as well. They are sitting here hoping that there is some agreement ultimately to change this plan. They are embarrassed by being in it.

Ultimately something has to give. I think the members of this House would be well advised before we turn this into another fight again to at least have a look at it. We are not asking them to opt out. We are asking them to have a look at it.

That is our position. That is where we are at. From here on in we hope we look at a government and an institution that look after their members in the same way private industry looks after its members.

Parliament Of Canada ActGovernment Orders

5 p.m.

Bloc

Stéphane Bergeron Bloc Verchères, QC

Mr. Speaker, first of all, I would like to join with the government House leader in thanking the members of the Blais commission for the work they did and the report they produced to guide parliamentarians in the proposed legislation, which we now have before us, that is, Bill C-47.

I think that my colleague, the member for Rimouski—Mitis, expressed very eloquently the Bloc Quebecois' position with respect to the bill on MPs' remuneration. She put the reasons very clearly.

They boil down to the following two points: Bloc Quebecois members are opposed to the 2% salary increase for MPs and to any increase in senators' pay, given our view that the Senate is an institution that is already wasting close to $50 million of Canadian taxpayers' money. There is therefore no need to throw good money after bad.

But so that there is no misunderstanding about the Bloc Quebecois' position, I would like to refer to an article by Pierre Gravel that appeared in the June 8 edition of La Presse under a very insidious, in my view, heading: “Pretendin”.

I see this right off as a psychological projection, since Mr. Gravel takes the liberty of expressing several opinions on what parliamentarians really think, without bothering to find out what truly motivates them.

The Bloc's opposition to this bill is real. While we agree with many of the provisions, there are two we cannot agree with. My colleague made this point earlier very well. It is not because we do not think parliamentarians do not deserve a decent salary or a pay increase. It is simply that, at the start of our mandate, recently elected, knowing the conditions of the position we wanted to occupy, it is a bit strange for us to be arranging for such an increase.

I have two quotes from Mr. Gravel:

Some members, when they sit in opposition, make the pretence of opposing an increase, knowing full well that they will get it anyway.

He concluded by saying:

They would better serve their cause by stopping the pretence of not wanting it, when they are all dreaming of it.

This is what I meant when I talked about psychological projection.

I was saying, at the beginning of my speech, that this opposition is real. Mr. Gravel's quote, however, refers to something else. He basically said “They oppose it, knowing full well it will apply to everyone”. The bill before us also allows us to correct something we did a few months ago, when we allowed some members to withdraw from the MP pension plan and others to remain within.

Naturally, and logically, when Parliament passes legislation concerning the remuneration of MPs, if it passes, it applies to all.

I find Mr. Gravel's allusion rather insidious. In the same vein, he refers to our colleague from Abitibi as follows:

Liberal Guy St-Julien, from Abitibi, refused to cash the cheque for a tiny salary increase of under 1% last January, and promises to do the same again.

Mr. Gravel holds our colleague from Abitibi up as a sort of model MP, probably forgetting that, on several occasions, our colleague from Abitibi exhibited behaviour and actions that were somewhat unworthy of this venerable institution in which we sit.

Moreover, he refers to “this case which at least has the merit of consistency”—our colleague from Abitibi with the merit of consistency! Does Mr. Gravel recall that the hon. member for Abitibi sat with Brian Mulroney, under the Conservative banner, at the time of Meech and Charlottetown, a period of great conciliation with Quebec, and now sits under the Liberal banner with Jean Chrétien and his plan B, which is all about a hard line with Quebec? As far as consistency is concerned, he could find a better example!

Reference was also made to a minority report by the parties in opposition. He writes, and I quote:

—a House of Commons committee report recommending improved pay for MPs stirred up protest from representatives of the Reform Party, the Bloc, the NDP and the Conservative Party. The opposition spokespersons deemed it indecent to vote raises like this for themselves when what was more important was to “look out for Canadians first”, starting with the public servants, whose salaries are lagging far behind.

I do not know what minority report Mr. Gravel is referring to, as far as the Bloc Quebecois is concerned, because the Bloc's minority reported stated:

In keeping with its public position on this, the Bloc Quebecois is opposed to recommendations 1 and 3 in the report with respect to the 2% raise in the parliamentary allowance, the expense allowance and the additional special duty allowance for MPs, where applicable.

Over all, then, this is a report I would describe as modest, very succinct and to-the-point, very moderate in its wording. This does not correspond at all with the impression Mr. Gravel has of the Bloc Quebecois position. He continues by lumping together issues such as the 2% increase, the increase from $6,000 to $12,000, and so on. I repeat that the Bloc Quebecois' opposition applies only to the 2% increase.

As for the $6,000 to $12,000, which is not part of the legislation before us and which was already approved by the Board of Internal Economy, I would point out that the Bloc Quebecois did not oppose this increase, because it is normal that the housing allowance, which was set some years ago and never amended, should be increased at this time.

Any enterprise that requires its representatives to travel provides a housing allowance and per diems. It is entirely normal that parliamentarians be entitled to such an allowance and that it be indexed.

The same goes for the pension plan. As I said earlier, we agree that members who opted out in recent years should now be allowed to opt back in under conditions set out in the bill. We also agree with the provision regarding the departure allowance. It is well known that the minimum standards for any professional job include a departure allowance. We are therefore in favour of this allowance.

I will simply say that, in my view, and with all due respect for Mr. Gravel, whom I generally find to be a completely professional editorial writer, this editorial was based on incomplete and erroneous information. I think I have made that clear today.

I would like to pick up on Mr. Gravel's conclusion, and then I will conclude myself with a paraphrase of his introduction. Is there anything more annoying than journalists and editorial writers who shed crocodile tears over the bad reputation MPs enjoy with the public, when they often contribute to that bad reputation through their writing?

I therefore invite Mr. Gravel to reflect on this conclusion and I also invite parliamentarians to acknowledge that, of course, the job needs to be properly paid, not just on its own merits, but also in order to attract quality candidates for the good of the institution, as has already been said. But we must not lose sight of the fact that this increase was proposed just after we were elected to this House, that we were aware of the conditions when we decided to run in the election, and that we felt the salary was quite appropriate at the time. Consequently, in our opinion, there is no need to change it.

It must also be kept in mind, as far as the Bloc Quebecois position is concerned, that we feel it is most inappropriate to increase the pay of the members of the other place.

Parliament Of Canada ActGovernment Orders

5:10 p.m.

NDP

Bill Blaikie NDP Winnipeg—Transcona, MB

Mr. Speaker, the debate this afternoon has been conducted with appropriate the tone and in the appropriate manner. As I said earlier, this is a difficult thing. I wish it did not go with the territory. I wish we could have a process in which these kinds of decisions were removed from us. I do not agree with the government House leader that there would be something wrong with taking this out of our hands, but that is a legitimate point of view.

When I say it goes with the territory I am reminded of once being in a bookstore and looking through a collection of old newspaper stories somebody had put together on the occasion of the anniversary of something. When I was flipping through I noticed that in 1905 the headlines read “MPs give themselves—”. So we might take some comfort from the fact that plus ça change, plus c'est la même chose and that this has always been a matter of some controversy, at least as far back as 93 years ago and probably before that.

I want to say something with respect to something the House leader of the official opposition said about the fact that there are so many different categories. I understand his concern but if the House leader of the official opposition were to get his way surely, and I do not speak against this in principle, there would be more categories. Unless all the people who are in the plan now in various stages were to be dealt with in an incredibly unfair way, the investment that they have made in the particular plans would somehow have to be recognized. We would then have another category.

Even if the Reform Party were to form the government and bring in its own plan, unless it was going to act in a way that it would otherwise condemn in every other aspect of human life it would have to take some account of the reality of individuals and their participation in the existing plans.

All I am saying is that there is no way to escape complexities. If an entirely new plan were brought in and you were to recognize, as you should in some way, the participation of people in the past and in the present in pre-existing plans, you would have to wait until everybody in all those other plans died off and then presumably you would only have one plan for everyone. That would take a long time.

I do not think we should be against complexity in principle. I think that where fairness demands complexity then complexity it is. Simplicity in itself is not a virtue when it comes to these kinds of things.

Parliament Of Canada ActGovernment Orders

5:15 p.m.

The Acting Speaker (Mr. McClelland)

It being 5.18 p.m., pursuant to order made Wednesday, June 10, 1998, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the third reading stage of the bill now before the House.

Pursuant to order made Wednesday, June 10, 1998, the motion is deemed carried on division.

(Motion agreed to, bill read the third time and passed)

Message From The SenateGovernment Orders

5:15 p.m.

The Acting Speaker (Mr. McClelland)

I have the honour to inform the House that a message has been received from the Senate informing this House that the Senate has passed a bill to which the concurrence of this House is desired.

Message From The SenateGovernment Orders

5:15 p.m.

Reform

Randy White Reform Langley—Abbotsford, BC

Mr. Speaker, I rise on a point of order. Does this still apply now that the government has flown in the face of Canadians and appointed five more senators just now? Are we still going to go through with this?