Mr. Speaker, I rise reluctantly to participate in the debate today on Bill C-28, an act to amend the Parliament of Canada Act, the Members of Parliament Retiring Allowances Act and the Salaries Act. I say reluctantly because I believe there are many other things that we should be dealing with today and in the days left in this session that are more important to Canadians than this issue.
Ostensibly the bill is meant to implement the recommendations that were made by the Lumley commission, which was an independent commission led by former cabinet minister Ed Lumley and charged with setting MPs salaries, benefits and pensions. Very few will actually dispute the need to review the salaries of MPs. I do not dispute that. We do not dispute that.
We were actually in a bizarre situation where MPs got a basic salary of $68,000, plus a tax free expense allowance of something around $40,000, plus additional living allowances, with the result that when asked the basic question of how much an MP made the answer was not a simple one.
There is pretty much unanimous consent out there that people should be able to know how much politicians make. That is basic. If we are to be truly accountable to our electorate, part of that accountability involves being transparent where taxpayers dollars are being spent.
Transparency is not something for which the present Liberal government is known. The very idea that the salaries of MPs should be transparent and comparable with private sector standards is actually one which is deeply held by most Canadians and by most members of the Canadian Alliance. It should come as no surprise that the first line of article 70 of the Canadian Alliance declaration of policy reads:
Parliamentary compensation will be recommended by an independent commission according to private sector standards.
It is something we believe in and that our grassroots members across the country have endorsed. On the face of it Bill C-28 is straight out of Canadian Alliance policy. The Lumley commission was an independent commission. Its recommendations certainly go in the direction of basing parliamentary compensation on private sector standards.
The bill uses the salary of the Chief Justice of the Supreme Court of Canada as its reference point and that the salaries of MPs should be a percentage of that. We could argue about whether or not that amount is appropriate. Indeed it was actually argued by the government House leader on Wednesday that it was appropriate the Prime Minister make the same salary as the chief justice.
That may or may not be a point agreed upon by all Canadians, but the fact is that it was out there and a reference point was sought. The only possible concern is that the chief justice's salary is determined by the judicial compensation commission whose recommendations must be passed by parliament. In a somewhat oblique fashion the Liberals have ensured, if they wanted to, a stealthy way of continuing to give MPs regular increases. This is the spend portion of the tax and spend policies which constitute the ongoing Liberal assault on the beleaguered Canadian taxpayer.
The Lumley commission did a great service in getting rid of the tax free expense allowances as we had recommended. This was appropriate. Just as people cannot understand why the federal Liberals do not feel that the cost of a mechanic's tools should be partially deductible if needed for his or her employment, and that is something we endorse as the Canadian Alliance, most taxpayers could not understand how our food, clothing, drycleaning and taxis would come out of a taxpayer funded non-taxable expense allowance. By making this amount taxable the Lumley commission has ended the secrecy and put politicians on a similar footing with other Canadians. We endorse that.
The commission also recognized the need to make the MP pension plan comparable with public and private sector norms, especially given that salaries are being raised to private sector levels. It suggested that the MP pension should be equal to 2.5% of an MP salary multiplied by the number of years served. It should be noted that this is actually higher than the 2% rate per year of service which public servants actually get from a plan that is administered through the Treasury Board.
Sadly, even the independent commission's recommended above average rate was not enough for the federal Liberals who jacked that rate up to 3%. Now we give them half a point out of ten for lowering it, but it is still not where it would be if and when the Canadian Alliance government has the opportunity to do that after the next election.
While it seems that our pay has been recommended by an independent commission, the reality is that the Liberals have actually used the Lumley commission's recommendation to jack up and justify their own pay raises. They have exceeded the pension amounts and retained the ability to continue to give themselves pay increases by linking their salaries to the base amount, the salary of the chief justice, and then actually being the ones who have the ability to control that. Like most things the Liberals do, it is too clever by half.
I will be voting against the bill for the principal reason that I do not think I should set my own salary. It is as simple as that.
The second sentence of article 70 of the Canadian Alliance declaration of policy specifically states “The decision of parliament will be implemented after a subsequent election”. That is a point of principle of our own policy declaration.
We always believed that we should run any salary increase by the voters first. We should not get elected and then vote ourselves a huge salary increase. We are not talking about the legitimacy of the current salary, but about the principle. Voters should know before the election what salary we will be getting throughout our mandate. This is why the Canadian Alliance proposed amendments whereby this increase would take effect only after the next election.
It just makes sense. On the CBC news last night there was an interview with a fellow at a racetrack who just could not figure out how MPs could vote themselves a pay increase. He said that the increase should be for the next guy. That encapsulates the spirit of our policy. Like most Canadians, the person being interviewed did not think MPs should set their own salaries.
I will be voting against the bill and encouraging others to do the same. If we defeat the bill, the Liberals could bring back an amended bill that would contain many of the same positive recommendations of the Lumley commission and would add a clause stating that the increase would only take effect after the next election. They would also ensure that the base amount would not be linked to any salary that parliament may control.
I appeal to the federal Liberal MPs to defeat the bill. It would send a message to taxpayers across the country that they and not us are the ones who should set our salaries. I would encourage our federal Liberal MPs to agree with us on this. It is Canadian tax dollars and they should be the ones determining what is fair compensation.
The bill has some other nasty features. Section 54.1 makes the increase retroactive to January 1. In my view that is totally unconscionable. There is no way on earth we should be voting ourselves a windfall, especially when taxes are so high for the rest of our citizens. That is absolutely unacceptable in my view. The government gave no hint during the last election that it would be doing such a thing.
The other objectionable clause in the bill is the one which requires an MP to opt in to benefit from the pay increase. This is one of the most troubling concepts that we have seen in any type of legislation. It puts MPs in a situation whereby two MPs from the same party or from across the floor who do the same job, or maybe work harder, as some would suggest opposition members do, but I will not necessarily claim that, would earn two different salaries. That is in direct violation of the spirit of equality in our charter of rights and freedoms and is 100% opposed to the spirit of the October 19, 1999 federal court decision on pay equity. It is totally inappropriate for that particular clause to be there.
It also requires an MP to opt in in order to make his or her salary transparent to taxpayers. We believe that should be happening but that we should not have to opt in to do that. It should be part of the legislation that we are getting rid of the tax free expense allowance, which some people find so troubling.
Finally, the bill says that the opt in or opt out clause, whichever we want to call it, is irrevocable. This is astonishing. If MPs opt out in order to defray their increases until after the next election, to follow our own policy, it would mean that as long as they continue to be elected they would forever be operating at a different level of compensation than other MPs.
It is absolutely unconscionable that such a clause should be in the bill. It is probably unconstitutional. It is definitely against the spirit of equality and surely against democracy itself.
It is interesting to note that at the Quebec summit in April the government was calling on a democracy clause to be inserted into the text for the free trade area of the Americas. The government was of the view that the emerging democracies of the world would learn from us. We can be honoured to say that many times they do look to us.
I recently met with President Fox of Mexico. I can say that the type of democracy being proposed by the federal Liberal government in this bill is not something I believe that Mr. Fox's government would follow. I suspect he will be looking for another role model and that is unfortunate.
There is also a suggestion being made that if members vote against the bill it would be inappropriate for them to live with the effects of the bill. I find that a specious argument. I would make note of the fact that many times MPs on either side of the House vote against legislation which then becomes law and they then have to live with it whether they like it or not.
The government proposed certain tax measures only hours before the last election. We opposed those particular measures because we did not think they were good tax measures. We are living with the tax decreases that were passed on and nobody is suggesting that is inappropriate.