Mr. Speaker, I rise in response to the member for Hamilton Mountain on the issue of providing good stewardship to Canada's pension plan for seniors. I thank her for drawing this issue to the attention of the House.
As has been reported in the media, Statistics Canada understated Canada's overall consumer price index by, on average, one-tenth of one percentage point between July 2001 and March 2006, that is, over a five year period.
The error related specifically to cost estimates associated with hotel and motel rooms, one of 600 components that are tracked in the calculation of this index. Statistics Canada had reported that room rates fell 16% when they actually rose 32%. We understand that Statistics Canada has now corrected the consumer price index, effective June 2006.
The Department of Human Resources and Social Development is required by law to use the published CPI data in the indexation of the Canada pension plan and old age security benefits. Human Resources and Social Development Canada acted correctly and according to the law.
In terms of the old age security benefits, these were adjusted in October, as these benefits are adjusted on a quarterly basis. Effective January 2007, the rate increase for CPP benefits will reflect the correct consumer price index as CPP benefit adjustments are made on an annual basis. These benefit adjustments are being made pursuant to the regulations set out in the CPP and OAS acts based on the consumer price indexes published by Statistics Canada during the period of the issue.
I wish to assure the member for Hamilton Mountain that Canada's new government is keenly aware of the contributions made by seniors to our country. We are making it a priority to ensure the Canada pension plan, the old age security program and the guaranteed income supplement remain the foundation of basic income security for seniors in their retirement years.
Retirement pensions under the Canada pension plan are received by over three million seniors, while benefits under old age security are received by four million. Together these programs put over $50 billion in the hands of Canada's seniors every year. In addition, the guaranteed income supplement helps over 1.5 million low income seniors. Last year these seniors received supplement payments totalling over $6.5 billion.
Thanks to these solid cornerstones of Canada's retirement income system, we have witnessed a gratifying trend. The incidence of poverty among seniors has been dramatically falling, from almost 21% in 1980 to less than 6% in 2004. This government, working with the member opposite, wants to continue on this momentum.