Mr. Speaker, at the outset, I support the motion, however, when the government implements it, I want it to look at it as a comprehensive strategy involving other issues related to the matter. I assume the motion will pass because, as I indicated in a previous question, a very similar motion was debated by the House on June 9, 2005, and all parties unanimously supported it. I would be shocked and surprised if all members did not support the motion today.
However, there are two aspects about which I want to talk. We have to be very careful in implementing the motion. I suggest and urge the government not to add an additional disincentive to our support system, to a workforce attachment right now.
First, I urge the government, in its implementation process, to look carefully at the income support measures. This matter will require very close consultation with the provinces. I see a real gap in the income support measure for those people between 55 and 65 years of age.
I neglected to say, Mr. Speaker, that I will be splitting my time with the member of Parliament for West Nova.
I believe the government, as part of this process, should look at the income support measures for those between 55 and 65 years of age. I see a very large gap there. Currently, when people attain the age of 65, they are eligible for the guaranteed income supplement. It is not perfect. One does not live in any kind of luxury, but it is an awful lot better than the income support measures for those people between 55 and 65. A lot of them do not have pensions, they are not eligible for the Canada pension plan and they are unable to work for a whole host of reasons. It may be for health reasons or they may be unable to find a job. This is one issue that has to be looked at very closely as the motion is implemented.
Another issue has to be aligned with the motion, and that is a very comprehensive older worker strategy for Canada. We are looking at, and it has been referred to I believe by the minister, a demographic time bomb in Canada. We are looking at an acute worker shortage.
This whole debate has been turned upside down over the last 15 years. Fifteen years ago I would have been in Parliament urging people in public policy to implement programs to perhaps take some of our older workers out of the workforce to make way for the 21 and 22 year olds who were looking for jobs. That is not the case now, especially in the skilled worker sector.
All sector councils across Canada have the big issue of a skilled worker shortage. The construction industry is looking for 150,000 new workers over the next 10 years. The mining industry is looking for 81,000 new workers; trucking, 40,000; and tourism, 333,000. The manufacturing industry is also looking for new workers. The list goes on and on.
This is very serious issue for governments at all levels. It will cause problems with our productivity and for our industries. It will result in workforce instability and it will drive up wage costs. In turn that will drive up the costs of projects and manufacturing goods. That will aid in an element of inflation in our system if it is not there already. Once we have that, interest rates will rise. As everyone knows, that will have a very cumulative negative effect in our economy. It will be good in the short term, but in the long term it will have very severe and negative consequences for us as a society. We can see that going on right now in certain areas of Canada. If it is allowed to continue, it will have negative repercussions.
If a country wants to deal with this issue, there are only certain strategies. Immigration is one of those strategies. I believe the previous government was trying to increase the number of skilled workers coming to the country. There have been some successes, but again we are competing in a world where a lot of other countries, especially the European countries, are having the very same problems we are having. It is a very competitive field out there, looking for skilled and educated immigrants.
We could attempt to increase the participation rate, but again this country's participation rate is reasonably high in international comparison. The birth rate, as everyone here knows, is approximately 1.41%. That is considerably below the replacement rate, probably two-thirds of the replacement rate. Again, as the demographics suggest, at a certain point in time, I believe 2011, there will be no further increase in the local labour market and in the year 2016 we start to drop. Once it starts to drop, it will be a very serious drop year after year. This is something that those in public policy have to be aware of and have to plan for because it is very serious.
However, my point is there has to be attached to the motion an older worker strategy. We have to develop a strategy to encourage older workers to stay in the workplace, if they want. We certainly are not going to legislate that people work. However, if they want to, we have to make it more attractive. To give an example, in Sweden and Japan approximately 90% of their workers between the ages of 55 and 65 work. In Canada it is close to 50%. That gives us an idea of what we are faced with.
Some of the issues I would look at would be training for workers in that cohort. Elimination of any suggestion of mandatory retirement has to come. There have to be changes in our tax policy. We have to make it more beneficial and attractive for older workers, especially older workers of lower income, to stay in the workplace. Probably one of the most important public policy initiatives a government should look at is some of the benefit policies.
If I may give an example, right now probably many people over 65 years of age are receiving the guaranteed income supplement. They probably have no interest in working full time, but may be interested in working part time. They may be interested in working 10 hours a week and making $100 or $200. However, the way our system is, they would be almost penalized dollar for dollar, which is a very strong disincentive for them to work. That has to be looked at part of an older worker strategy.
Another area that has to be looked at is our collective agreements to accommodate certain older workers who want to get back into a unionized environment. Right now it does not lend itself to that shift.
Again, I mentioned about five or six different items and this has to form part of a strategy and it has to be a culture shift. It was not there 15 years ago, but it has to be here now. I should point that if it were successfully implemented, even that would only postpone a problem. It will not solve a problem because it would eventually catch up to us.
Some of the points I have raised are peripheral to the issue, but I support the motion. I believe and urge the government to implement the motion, but it should do so as part of the larger package involving income support for those citizens between 55 and 65 years of age. It should be a very comprehensive well thought out older worker strategy.