moved that Bill C-28, an act to amend the Parliament of Canada Act, the Members of Parliament Retiring Allowances Act and the Salaries Act, be read the second time and referred to committee of the whole.
Mr. Speaker, I am pleased to rise today to speak to Bill C-28, which I had the honour to introduce yesterday.
As members of parliament, we have a responsibility for fairness and accountability in all of our work in this House as representatives of Canadian taxpayers. This is particularly true for the matter of parliamentary compensation.
The Parliament of Canada Act requires that an independent commission be set up after each election to review the allowances of parliamentarians. A commission, chaired this time by the hon. Ed Lumley, was appointed on January 12 of this year. The Lumley commission's report was tabled last Tuesday, May 29, in the House.
The Lumley commission concluded that the current compensation for parliamentarians needed to be made more transparent and brought into line with compensation for other similar professions.
The commission remarked:
Parliamentarians' salaries are important, not just to the members of parliament themselves, but to all citizens; certainly, how we compensate members of parliament can influence the ability to attract good candidates.
The bill before us today is straightforward. It implements the Lumley commission's recommendations.
Let me outline the key provisions of the bill. First, the current tax free allowance is eliminated. Many people had asked for that. It is to be converted into a taxable amount and added to the base salary of parliamentarians. This will increase the transparency in parliamentary compensation.
Second, the base salary of members is to be increased by 20%.
Third, a new allowance is provided for committee chairs and vice-chairs. This recognizes the valuable contribution and the responsibilities of such workloads. It also builds on the commitment the government made in the throne speech to increase Library of Parliament research and support parliamentary committees. Together these measures will strengthen our committee system as part of our ongoing work on parliamentary reform.
Fourth, parliamentary compensation would be based from here on in on the compensation of the supreme court chief justice. This is not a new idea. Officers of parliament, such as the information commissioner and the chief electoral officer, already receive the same compensation as a federal court judge, so the precedent is there for officers of the House. What we are proposing here is to do the same for parliamentarians.
Under Bill C-28, the prime minister would receive the same compensation as the Chief Justice of the Supreme Court, not one dollar more but the same compensation. Most Canadians probably believe that was already the case. Ministers would receive 74% of the salary of the chief justice; parliamentary secretaries, 55%; and members of the House, 50%. Senators would receive 50% of the salary of the chief justice, minus $25,000, which is the difference between the current tax free allowance between the House and the senate.
This would restore parliamentary compensation closer to the levels we used to have. For example, members may be interested to note that in 1963, when the Deputy Prime Minister was first elected to parliament, or thereabouts, a member of the House of Commons earned at the time 12% more than a federal court judge. Today a member earns 54% less than the same judge.
Even if the bill were to pass, which I hope it will, a member would still earn 36% less than a judge when the same person would have earned more a few decades ago.
In 1980 the prime minister earned 28% more than the chief justice of the supreme court. Today, as we speak, the Prime Minister earns 42% less than the chief justice. Under the bill the Prime Minister would earn the same salary, not more but the same.
In the future, changes to the compensation of the chief justice would be applied to parliamentarians. This means that the current political process for parliamentary compensation will end. Under Bill C-28 parliamentary compensation would apply to results of the completely independent and non-partisan process established for judicial compensation. If it is any consolation, if we adopt the bill hopefully we will not have to go through this exercise again.
Members will not have to be placed in the sometimes difficult position, and I acknowledge that it is for some, of having to decide their own compensation level. It makes parliamentary compensation more accountable to Canadian taxpayers because from here on in it will be strictly based on this independent commission that also acts for the judiciary.
The Lumley commission recommended that parliamentary pensions be adjusted to limit the cost impact of higher compensation levels I have just outlined. To this end, Bill C-28 reduces the accrual rate from 4% to 3% for members of the House. It would remain the same for members of the Senate. They are already at 3%. This is a 25% reduction in the accrual rate which would reduce the pension costs that would have resulted from the higher parliamentary compensation. At the same time, it is to be noted that the premiums of members of parliament to the compensation, and this was not raised yesterday by the so-called taxpayers foundation, would be increased by $2,900 a year. This makes the plan more sound. I think everyone who is an objective observer will recognize that.
The lower accrual would mean that the number of years to accumulate a pension equal to 75% compensation, in other words the maximum pension, would now be 25 years. Surely no one can claim that it is the wrong approach. That is the correct approach. Only 5 out of 301 members sitting in the House today have 25 years of service. The average tenure in the House, for the information of Canadians, is about eight years. When I was re-elected as a government member in 1993, it had dropped down at that point to some six years.
Most people are not here for a very long time and certainly would not collect that full pension that it was alleged yesterday we would. In addition, the number of years for a member's pension would be made the same as it is in the public service.
The bill would also extend the current disability allowance, which is available to members up to age 65 right now, to age 75 or the date of the next election. Again, this is keeping in conformity with what is done in the Judge's Act. Although this provision is not specifically mentioned in the Lumley commission report, it is based on representations made by parliamentarians.
Bill C-28 would also adjust the designation of Parliament Hill by moving the boundary from Bank Street to Kent Street to take account of recent changes and for the new justice building which will now form part of the parliamentary precinct.
In conclusion, I would like to thank all the members of the commission for their work: the commission chair, the hon. Ed Lumley, and the other members of the commission, the hon. Jake Epp and Dr. Huguette Labelle.
The commission's work reflects their consultations with all parties, with outside experts in the area of compensation, and with other interested Canadians.
I also wish to thank all members of the House for their approach to this very important issue.
The support of members on both sides of this House for the recommendations of the Lumley commission is evidence that the commission's recommendations are reasonable.
The praise of many commentators from the private sector and many members on both sides of the House also indicates the fairness of the bill before us today.
The broad support of Canadians for the Lumley report shows that the provisions of this bill are fair. I would therefore invite all members to support this bill.
I hope that all members will sign the form in order to be part of this bill and adhere to it.
Finally, should some members not wish to vote for the bill, I still hope they will adhere to the bill and sign up for the benefits. I sincerely believe that all members of parliament are equally worthy of the high task asked of us all, and I hope they will not only support the bill but adhere to the clause of being part of it.