Mr. Speaker, I would like to thank the hon. member for her excellent question.
I want her to know that our government understands the importance of a secure and dignified retirement for people who have spent their entire lives building a better and more prosperous Canada for us all. That is why I am proud of this government's record toward ensuring the financial well-being of Canada's seniors.
By introducing the pooled registered pension plan, or PRPP, our government is taking the next steps forward in helping Canadians save for their retirement so they can achieve their retirement goals. Incredibly, just over 60% of Canadians do not have access to a workplace pension plan, many of whom work for small- and medium-size businesses or are self-employed. PRPPs are an innovative, broad-based, privately administered low-cost pension option that will play a critical role in allowing millions of Canadians to access a low-cost workplace pension plan for the first time ever.
By pooling pension savings, PRPPs will give Canadians greater purchasing power. Essentially, Canadians will be doing what we call bulk buying. This means that more money will be left in their pockets when they retire. If the NDP had its way, it would actually abandon the PRPP framework altogether. Rather than provide Canadians with a broad-based, low-cost pension option, New Democrats would actually jeopardize Canada's economic recovery by trying to expand the CPP and QPP. However, in order to expand CPP and QPP, contribution rates would have to be increased and that would mean higher payroll costs for small- and medium-size businesses and higher premiums for workers and the self-employed.
Our government's top priority remains the economy and that means focusing on job creation and economic growth. That is why our government does not believe that now is the time to impose a job-killing tax on job creators. The provinces agree with us.
In December 2010, the provinces unanimously agreed to pursue the development of the PRPP framework. There was not a consensus on expanding CPP and QPP. Not only is this the economically prudent decision but is also the decision that Canada's finance ministers believe will be an effective way to help modest and middle-income individuals save for their retirement.
PRPPs will help these individuals in a variety of ways. They will be able to save by providing a new, accessible, straightforward and administratively low-cost retirement option for employers to offer their employees; by 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 option by enabling more people to benefit from the lower investment management costs resulting from membership in a large pooled pension plan; by allowing for the portability of benefits that will facilitate an easy transfer between plans; and by ensuring that funds are invested in the best interests of plan members.
By adding PRPPs to Canada's retirement system, we will be making a system that is already strong much stronger. Why does the NDP not support a framework that will help millions of Canadians save for their retirement?
Why does the hon. member not encourage the Province of Quebec in its efforts to support this plan. I encourage the hon. member and her party to support us. All the other provinces are on the verge of lending us their support in this regard, and I am asking the hon. member to reconsider her position.