Madam Speaker, the problem here is the whole issue of the investments. The problem began several years ago as the stock market boomed. We started allowing pension funds and other government entities to invest in equities when in fact they should have been sticking to GICs and government bonds, and if the return was not high enough for the required payout, they could simply increase the contributions to make up the difference. The government allowed the managers to start investing in equities, and of course, that is the root of the problem. Everyone can make money in good times, but problems occur in bad times.
I can recall a few years ago when a New York newspaper, I believe it was, set up a contest between a monkey and a number of stockbrokers. I think the member may recall this. Over several weeks the monkey and the stockbrokers picked a basket of stocks. Over the course of a month or so, the monkey won. Three or four years later, the process was repeated and the monkey won for a second time.
That shows what can happen when professional stockbrokers are hired with huge salaries and given extreme bonuses to get better results. Statistically, a monkey can do just as well.
We know that investing in just basic GICs might not provide great returns over the long haul, but at least the capital base will still be intact at the end of the day. That is the safest way to go.
We have a public insurance corporation in Manitoba. Just four or five years ago the Conservative government started allowing the corporation, for the first time in almost 30 years, to invest in equities. I guess right now they probably have some very bad results on their books because of that.