Mr. Speaker, I am standing in the House tonight to speak about an extremely important issue. It is an issue that affects not only the people in my home riding of Oshawa, but Canadians from coast to coast to coast. It is an issue that we dare not put off and cannot put off any longer.
Last May Canadians gave our Conservative government a strong mandate to continue its strong and stable policy of guiding Canada through this fragile economic recovery. Canada is leading the charge and is the envy of the world in terms of our economic and fiscal policy. One of the major reasons Canada is hailed as an economic leader is due to this government's forward thinking and long term approach to the economic challenges of the future. Nowhere is this more evident than the issue of retirement security for our seniors and for future generations of seniors. That is why I am speaking tonight.
I strongly disagree with the implications of the members across the way that this government is somehow failing seniors. To put it bluntly, they are plain wrong. The Conservative government has done more to put money back into the pockets of seniors than any other government in Canadian history. In 2006 we increased the age credit amount by $1,000 and we increased it another $1,000 in 2009. For the 2011 tax year, the age credit will provide up to $981 in tax relief for eligible seniors. Other significant tax relief provided since 2006 for seniors and pensioners includes doubling the maximum amount of income eligibility for pension income credit from $1,000 to $2,000, introducing pension income splitting and increasing the age limit for maturing pensions and RRSPs from 69 to 71.
While our government is extremely proud of these measures, we are still faced with an even more pressing challenge of ensuring retirement security for seniors and future generations of seniors. What we will not do is what the opposition plans to do, and that is put its head in the sand and ignore the issue until a crisis is thrust upon us. We will not play on the emotions and fears of seniors and pensioners for political gain, as the NDP did with Bill C-501. Furthermore, the NDP is so focused on expanding CPP as a means of strengthening retirement security that it is preventing it from making real positive changes and improvements today.
I do agree with the opposition that the CPP is important. Federal, provincial and territorial ministers of finance have discussed a CPP expansion. However, the changes that the NDP would want would not only threaten our economic recovery, it would also require the support of two-thirds of the provinces. There is no current consensus or agreement among the provinces at this time. Where does that leave us? Do we just wait until the provinces come to a consensus? Waiting is not an option.
I am proud to say that over the past two years our government's commitment to a stronger retirement income system has taken my colleague, the Minister of State for Finance, to communities across the country. He has been consulting with Canadians, meeting with his provincial and territorial counterparts, discussing key considerations with small and medium-sized businesses and receiving valuable input from some of the most respected experts in the retirement income field. In response to these extensive consultations, the minister has come up with a viable and sustainable plan to help people prepare for their future retirement.
I would like to thank the Minister of State for Finance for helping the government unveil its pooled registered pension plan, or what we are calling PRPPs. I am proud to say that the PRPPs would mark a significant step forward in advancing our retirement income agenda.
PRPPs are a low cost and accessible option that would help more Canadians meet their retirement goals. The introduction of PRPPs marks a particularly significant advancement in supporting the retirement needs of small businesses and their employees, who up until now have not had access to a large scale low cost pension option.
As a chiropractor who used to be a small business owner, I can attest to the benefits that PRPPs would provide the self-employed and their employees. PRPPs would improve the range of retirement savings options to Canadians by: first, providing a new accessible, straightforward and administratively low cost retirement option for employers to offer their employees; second, allowing individuals who currently may not participate in a pension plan, such as the self-employed and employees of companies that do not offer a pension plan, to make use of this new type of pension plan; third, enabling more people to benefit from the lower investment management costs that result from membership in a large pooled pension plan; fourth, allowing for accumulated benefits to move with people from job to job; and fifth, ensuring that funds are invested in the best interest of plan members.
Some of the retirement income system proposals that were presented in our consultations would have significantly raised costs for employers and employees. Introducing them would have been unacceptable during a very tentative and fragile economic recovery. On the other hand, PRPPs would be efficiently managed, privately administered pension arrangements that would provide greater choice for employers and individuals, thereby promoting pension coverage and retirement savings.
The Government of Canada recently introduced legislation to put in place the federal requirements supporting the framework for PRPPs. In addition, the Minister of State for Finance met with the provinces to encourage and assist them in making the same necessary changes from their side. Unlike the NDP's ideas, PRPPs have the support of all of the provinces. Furthermore, PRPPs would also complement and support the Government of Canada's overarching objective of creating and sustaining jobs, leveraging business investments and securing our economic recovery and sustainable private sector driven growth.
Again, unlike the NDP, support for this program is coming from the small business community as well. Dan Kelly, vice-president, Canadian Federation of Independent Business, stated in a press release:
We believe that, if properly implemented by provinces, PRPPs have the potential to expand the retirement savings options for thousands of Canadian small businesses and their employees.
Chris, a small business owner from my own riding of Oshawa, told me:
The Pooled Retirement Pension Plan is of critical import given the great upcoming increase of retired persons and their need for balanced retirement income. As a small business owner since 1995 I consider the pooled pension program a commendable, voluntary, and low-cost means to effectively address a major gap in retirement income disparity.
Not only are PRPPs receiving support from the provinces and the business community but they are receiving support from the academics as well. Robert Pozen, a senior lecturer at Harvard Business School and senior fellow at the Brookings Institution, stated in the October 23, 2011 edition of the Financial Times:
Like many developed nations, Canada continues to refine its retirement system. As part of that effort, the provincial governments will soon authorise a new savings vehicle – Pooled Registered Pension Plans (PRPPs). With the right policy decisions, PRPPs will go a long way towards increasing retirement security for millions of Canadians.
In short, PRPPs have the potential to increase significantly retirement savings in Canada....
That is what it is all about. The institution of PRPPs is a tangible and excellent step for enhancing income and retirement security for seniors. The broad support from the provinces, small business owners and academics and this government's initiative are something that the opposition has yet to build.
Working together with the provinces and small businesses, I am confident we can get these important new retirement vehicles up and running for Canadians in a timely manner. I ask the hon. members of the opposition to join us in helping seniors instead of voting against everything that we bring forward for seniors and people on pensions. Our record of support for seniors and strengthening retirement security for seniors remains strong and has been so since day one. Any claims to the contrary by members of the opposition simply cannot stand up when we look at the facts.