Mr. Speaker, I appreciate having an opportunity to say a few words. I have been listening to the debate all day, however, I have yet to hear how the $30 billion surplus accumulated. There has been some acknowledgement that the employer and the employees have paid into it, but so far very little has been said about the interest that is earned on the investment, and there is a significant amount of money earned in that manner.
This was debated back in 1992 under Bill C-55, and I am not speaking about the split-run magazine bill. The current minister responsible for the Treasury Board makes a great fetish of how this is taxpayers' money and it must go back to them. However, if we look over the last 40 odd years, in 1955-56 the employer contributed 33.9% to pensions while the interest earned at that point was 36.8%. It peaked in 1975-76 when the employer contributed 37.4%, although the interest earned was up to 49.4%. By 1993-94 the employers' contribution was only 14% and 75.1% of the money came from interest earned. All of this has been documented.
The previous auditor general criticized the plan and noted, for example, that in 1991 there was a pension holiday. The government did not contribute any money in that year, a saving of some $760 million dollars.
Treasury Board projections to the parliamentary committee that looked at it at that time forecast a reduction in employer contributions of $5 billion over 10 years, or $500 million a year. Once upon a time the Liberals even saw through this perspective. Not any more of course.
The Treasury Board study of 1986 concluded that the Public Sector Superannuation Act would likely earn an additional 2% interest if the government had stopped borrowing money while determining unilaterally what tiny bit, if any, interest it would repay to the plan.
Who has been affected is another question. It has been documented that the 20 year average for people at the low end of the wage scale, especially women, employees who endured wage freezes and did not receive pay equity, is about $9,600 per year in pension.
It is no wonder that the Professional Institute of the Public Service says that people are amazingly upset at what the government is about to do with this $30 billion surplus. The president says it does not seem to matter how much we discuss anything, because if the government does not get its way it just writes legislation and imposes its will on us.
In 1992, here is what the Liberals proposed on Bill C-55. They proposed binding arbitration to resolve disputes, including disputes around the disposition of pension plan surpluses. They also proposed that there be minimum employer contributions of 10% to the Public Sector Superannuation Act, 12% to the Canadian Forces Act and 14% to the RCMP Act. All three plans would be subject to the Pension Benefits Standards Act with right of access to data estimates and projections by all interested parties.
What has happened between 1992 and 1999 is the complete reversal? Obviously in 1992 the Liberals were on this side of the House and in 1999 they are on the government side of the House. It reminds one of the old Irish proverb which I have used before: You can vote for whichever party you like but the government always gets elected. It is certainly true and nowhere more true than in this country where for 132 years Canadians have switched back and forth between Liberals and Conservatives.
In opposition we hear nothing but promises, promises, promises: promises on pension reform, electoral reform; tax reform, health reform, and reform of committees to give MPs more power and influence. Once they get on that side of the House how quickly they forget. They even promised parliamentary reform when they sat on this side of the House. What do we get today? We get a few hours to debate a very important piece of legislation, a document of more than an inch thick. It is a total sham.
In this case it is even more odious because hundreds of thousands of retirees probably do not even know what this latest smash and grab is by the government. It reminds all of us of the former prime minister's admonition that the boys are cutting up the cash in the back room.