Madam Speaker, it is my pleasure to speak to Bill C-428. I believe it is a bill that opens the door to talk about an important issue for Canadians. Pensions are something we invest in at a very young age when entering the workforce.
The Canada pension plan has a lifelong contribution. Individuals start to become aware of the fact that they have to retire at some point in time and plan for that. The CPP is a useful tool and important social program. It is not only sustaining the ability for people to have an income and security, but it teaches people along the way to save for their future, and to ensure that they develop the habits that are necessary to put money aside in the actual retirement setting.
Bill C-428 looks at the whole issue of pensions. I commend the member for bringing it forward; however, I disagree with the nature of the bill and what it would eventually do. Nevertheless, I think it is important to recognize that we should start talking about the issue.
Specific to the bill itself, we are concerned that it would eventually undermine our universal pension plan. We have had a strong tradition of creating some social programs that have some sense of vibrancy and security for individuals from coast to coast to coast.
We know that there has been a discussion about the sustainability of the Canada pension plan. There is a great debate about this but regardless of that, we know, and it was acknowledged, that we can sustain this program should we choose to do so, and we can do it in an affordable way that makes sense.
One of the things with which we do have a problem is that the CPP benefits under the system would become income tested. We believe it should be paid to workers in a way that would be fair. This complicates that element.
It would effectively also raise the retirement age and eliminate the mandatory age of retirement which we have yet to really discuss as a nation. I feel that it is something that we could discuss some more. The bill introduces that notion, but there are some good points that have been added.
People are choosing to work longer in life for a variety of reasons. Some people are also choosing to retire earlier if they can afford to do so. That is a personal decision and we should allow that freedom. That is what we should work toward. It should not be a crutch, which this system could become, for individuals to supplement their income because there is not a good solid pension system that the country can afford.
I can give a good example. A number of people have witnessed their income depreciate through cost of living and they have had to take on additional responsibilities and jobs. If they want to do so, and they can do so, that is a very positive thing, but other people are forced into that during the latter years of their lives. That creates some significant problems for them and their families. That is something that the country must address.
One of the pension issues that we should start talking more about in the future or at least discussing it, is what is happening with young people. We are going to see further problems if we do not address it. We are seeing people entering the workforce later in life and having fewer pensionable earning years. At the same time, they are transferring their pension as they move along through private sector jobs ensuring that they are going to have the maximum benefits that they can put in. But their pensionable years are going to be condensed because they will have fewer earning years and that is going to create some problems. That is why we need to start discussing the issue.
We are also very concerned about one aspect of the bill that deals with foreign investment. It is one of the things with which we have great difficulty. We believe that raising the level of foreign investment to 50% would be a wrong way to go about building Canada and building the confidence in our current pensionable investments that we do have.
We have a situation right now where the Canada pension plan itself has 30% of its investment overseas. It has no forms of control, no green screen, no ethic screen, none of those things. We do not know where that money is being invested. We do not have any control over it and that is the wrong way to do business.
As we invest our tax paying dollars and our personal income, we should ensure, for example, that we are not investing in tobacco companies which we know the Canada pension plan does.
For those reasons, we oppose the bill. I want to commend the member for at least bringing this forward. Pension issues should be discussed, but at a more opportune time.