Mr. Speaker, I am happy to join this debate. I cannot help but make the comparison between what our Conservative government is doing and the same approach that the American Republicans have taken with their interventions abroad. With the $10 billion price tag on this piece of legislation, I think the government wants to “shock and awe” my Bloc colleague into pulling the bill out of the House. I do not think that is going to work in this House.
This is a very important issue. Certainly it is important to make sure that seniors, Canadians who have worked their entire lives, are able to retire with some degree of health, support and dignity. I want to commend my colleague from Richmond—Arthabaska for bringing this legislation forward.
As has been brought up in previous interventions and in the parliamentary secretary's speech, there are aspects of the bill that are of much concern. Certainly, our finance critic is not comfortable with a couple of areas of the bill, and I would like to bring them forward later on in my address. Finance officials also have concerns with how the bill reads and if it is as focused as it should be.
Nonetheless, I want to state on the record that I think it is important to bring this bill forward to committee so that these issues are addressed in committee. That is where we will able to have a full hearing. That is where we will be able to tap into the advice and recommendations from expert witnesses. We think that is where the bill belongs. We will be supporting that.
As I understand it, the bill deals with defined benefit pensions. When seniors retire, they anticipate that the defined package is going to be there for them, but let us say that they are not able to have the income they anticipated, for whatever reason. That certainly would have an impact on lifestyle and on people's ability to provide for themselves and their families.
The bill provides for a 22% tax credit for any lost income. If a person thought he or she was going to be drawing $35,000 and was only able to draw $30,000, then that 22% tax credit would be applied to the $5,000 difference, for about $1,100.
I think this bill deserves to be brought forward and looked at in committee. The member for Burlington made his intervention and talked about all the great tax room that has been given by the government since it came to power, but I will give the government just a little reminder.
I will use this opportunity in debate to remind the government of one tax increase, and that would be the tax increase on income trusts. We all remember income trusts. We remember the Prime Minister, through the 2005 election campaign, looking into the eyes of Canadians and promising outright that there would be no increase in the tax applied on income trusts. Therefore, Canadians felt confident and very comfortable in putting their money into those income trusts, but we know what happened.
On Halloween 2006, the Conservatives pulled the plug. They put the tax on the income trusts. Within two days, $25 billion of money earned by and invested by Canadians was lost from the markets.
Probably thousands of people were directly impacted by this broken promise, by this intervention of a 37.5% tax placed on income trusts. Thousands of Canadians were impacted, and probably millions indirectly, because most pension plans were invested in income trusts. Certainly CPP, which impacts or will impact every Canadian, was heavily invested in income trusts, so it did have an impact on all Canadians. We want to remind the government of that tax increase and the broken promise.
The Saskatoon StarPhoenix summed it up for me with regard to the reality of the income trust tax when it stated: “It's a huge impact for seniors. If you worked 40 years to create that nest egg and in a short time you lose one-quarter of that wealth, it's like going back to work for 10 more years”.
That is what was said: “like going back to work for 10 more years”. I know seniors, the people who contributed to this country, the people who paid taxes all the way through, the people who are looking to retire with a little dignity. They deserve better. They deserve more.
Here we are talking about Canadians who have pension plans or who have had the opportunity to contribute to RRSPs and prepare a little for their retirement, but I want to remind the government about something else, too, because its members go to great lengths about some of the steps they have taken to help seniors.
The Minister of Human Resources was at committee the other day and he almost separated his shoulder from patting himself on the back. He talked about increasing the amount for someone who receives the guaranteed income supplement. He talked about raising the ceiling as to how much he or she can earn. He thought this would be good for the labour market.
It may have a minimal impact on the labour market, but he talked about how great it is for seniors. How many people who receive the guaranteed income supplement will that have an impact on? Some 4% of Canadians who receive the guaranteed income supplement are able to go to work. So really what the government has done is fail the 96% of Canadians who receive the guaranteed income supplement. They will receive no benefit whatsoever from that intervention.
What really scares me and my colleagues on this side of the House is the rise in food prices and the rise in gasoline prices. We see the cost of living going up, but we do not see any action on the other side to help those seniors who are most vulnerable. We have seen that this measure fails 96% of the seniors receiving GIS.
Mr. Speaker, this coming fall--and mark my words, you will go back and refer to this in Hansard--we are going to have seniors in this country who will be up against it. We are going to see seniors who will have to decide if they will fill their fuel tank, fill their cupboards or fill their prescriptions. It is going to become that stark. The government has to do something.
Certainly I believe we will be able to bring these issues forward when the bill goes to committee for study. We do have some concerns. We will see what the bill looks like coming out of committee.
There are concerns that were shared with me by the critic and members on this side. We want to know if through this bill the government will guarantee all pension funds. Will this act as a disincentive for employers or employees to properly and fully contribute to and manage their funds? That is an important question. Hopefully the expert witnesses will be able to shed some light on that.
For Canadians who do not have a defined benefit package or pension plan, we want to ask if it is fair for them to subsidize this. This is a question that has to be asked.
We want to find out if the bill is worded properly. Does it ensure that it targets only retirees with these pensions?
We do not know if this bill is a proper solution, but it does merit further consideration. We have every confidence that the standing committee will bring forward the appropriate witnesses. We will get answers to these questions and hopefully from those answers we will find out whether or not the bill deserves further support.