Mr. Speaker, a number of times during my speech I referred to Bill S-3, the Pension Benefits Standards Act, which sets out guidelines for the negotiations relative to pension surpluses.
There are guidelines that clearly lay out the role for negotiations with the contributors to the pension over the period of time, the employees and former employees, and with the employers as well.
I would suggest that the government engage in that kind of negotiation and discussion over a longer term and work through that process, as any private sector corporation would, with the employers and the contributors to achieve an agreement as to how that surplus should be divided.
While the size of the surplus seems huge, up to 50% of that money will be invested in the private equities markets. It is very important to note how unprecedentedly high the equities markets are right now. Some economists are even pointing to threats of potential deflation and that our equities markets may be overvalued. Although some members may disagree, the price earnings ratios for our stocks are very high now. I believe they are the highest they have been since just before the Great Depression in 1929.
I do not want to be morbid nor do I want members to rush from the House to call their brokers or anything like that, but I would suggest that a large pension surplus is a good level of security against market fluctuations.
I do support the government moving toward investing this money privately in the equities markets. In the long term, that will maximize the return for public servants. However, in view of the increased risk and the commensurate increased returns, it would be prudent for the government to maintain a large surplus within the public service pension. I think that would benefit not just the government but also the employees and contributors over the long term.