Madam Speaker, I welcome the opportunity to correct the record on what is a misguided, misleading opposition motion.
I can state with certainty that the changes being contemplated for the old age security have nothing to do with deficit reduction. Because of the long notice period and the gradual phase-in period, any changes to the OAS will happen long after Canada's return to balanced budgets. For opposition members to suggest otherwise is reckless, misleading and speaks ill of their understanding of this issue.
To avoid the rhetorical excess that appears to have consumed this debate, I will add some facts to this discussion.
We will provide a lengthy notice period before any changes occur. As the minister has stated, seniors who are currently receiving benefits will not lose a penny by the changes being contemplated. The old age security program is an important feature of our retirement income system. Together with the guaranteed income supplement, it helps alleviate poverty among seniors by providing a modest base upon which they can build. This is a universal program for all people over age 65 who have resided at least 10 years in Canada.
I stress from the outset that the survival of the OAS is a priority for this government. That is why we are acting now to ensure this critical social program that Canadians have come to rely on is and will be affordable for current and future generations. We will not turn a blind eye to the numbers that illustrate this looming crisis. We will not continue the unfortunate trend of past governments in ignoring this pending challenge until it is too late to act. Instead, our government will take action.
We have a proven record of balancing the economic interests of Canada with the compassion Canadians expect from their government. That is why Canadians gave us a strong majority mandate in the last election to guide Canada through these fragile economic times. Thanks to the strong leadership of our Prime Minister and the Minister of Finance, Canada can approach this democratic challenge from a position of relative strength. Many of our OECD counterparts do not have the flexibility afforded to Canada because of the strength of our fiscal picture.
We have also been consistent over the past six years of our mandate in our support for our most vulnerable seniors, providing fiscal support, such a GIS top-up announced in budget 2011 and implemented over the summer months. I say that to drive home the point that we are committed to ensuring that social programs remain sustainable for future generations and continue to be available for the most vulnerable individuals. We are ready to take action now and make the tough decisions that are necessary for Canada's future because it is the right thing to do.
On January 26, at the World Economic Forum, the Prime Minister once again demonstrated Canada's economic leadership on the world stage. In his speech, which outlined how Canada would make the transformations necessary to sustain economic growth, job creation and prosperity, he demonstrated a vision that stretches beyond the next election cycle and the immediacy of politics in this place.
It is my hope that all members of the House will see the need to ensure that Canada makes the necessary economic choices now to prepare for the demographic pressures we will face in the future. The issue of the demographic shift is one that is well-known to world leaders. Unfortunately, it is evident that some countries have been unable to avoid their own crisis, sometimes through lack of leadership or political courage, for which their populations are now paying a very heavy price. That will not be the case here.
Thankfully, our Prime Minister has the foresight to explore changes now well in advance of any future crisis. In less than two decades, close to one in four Canadians will be over the age of 65, a drop from one in seven today. Meanwhile, the number of Canadians below age 65 will remain almost flat. The result is that by 2030 we will be living in a country with the same number of workers but with twice as many seniors.
Furthermore, the number of Canadians over the age of 65 will increase from 4.7 million to 9.3 million over the next 20 years. By 2030, OAS program expenditures will triple to $108 billion from $35.6 billion in 2010. Here it is important to remember that OAS is the largest statutory program in the federal government. Finally, by 2030 the number of taxpayers for every senior will be two, down from four in 2010.
This is not a short-term problem: it will affect many generations to come. As a government, it is our responsibility to future generations to ensure that this type of growth is addressed. At the same time, we will ensure that any changes will not affect current recipients. Therefore, any seniors currently receiving benefits as well as those nearing retirement will not be affected.
We are raising these issues now to be transparent and open with Canadians about the road ahead. We are considering these important steps now to ensure the viability of OAS for future Canadians. It is the right thing to do.
We are currently engaging the public on this issue through our debate here, at the kitchen tables of the nation and across the airwaves. We cannot bury our heads in the sand. We cannot misinform Canadians for our narrow political gain. Unfortunately, this has not been the case to date.
There may be some misunderstanding as to how the OAS system works. All OAS benefits are paid from taxes collected that year. This means that any benefits that cannot be paid from taxes collected that year will have to be borrowed.
Canadians understand that continued deficit spending is not a viable alternative. Beyond our own history, the economic crisis in Europe serves as a fresh reminder of the dangers of debt financing.
By acting responsibly now we can address this issue of intergenerational fairness and ensure that our children and their leaders are not forced into unacceptable financial choices because of our actions. We want to ensure that the OAS will be there for future generations. We have a responsibility to future generations to take action now to secure their future as well as our own.
The situation, thankfully, is not the same with the Canada pension plan. The chief actuary recently reviewed the CPP and pronounced it actuarially sound for the next 75 years.
Some confuse the CPP with OAS when they are talking about retirement. Many people are familiar with the CPP simply because of the deductions off their paycheques every month. They do not realize that hidden in the income tax deductions is another pension contribution.
Let us be clear in this debate that when we are talking about sustainability, we are only talking about the OAS system and not the CPP.
Demographic changes are putting pressure on our retirement income system and on many other programs. This has been clearly documented by many experts.
All of us, young and old, cherish our future and want to grow old knowing that we have a secure one. It is this security that this government is committed to providing to every Canadian at every stage of life. This government will act to ensure that our programs are viable for generations to come. Sadly, we are not seeing the same foresight from the opposition. Instead, we see the tired politics of fear and misinformation. Such wilful ignorance of the facts in the face of demographic trends that have been known for decades is disappointing to say the least.
We have an opportunity here to look beyond this sitting, to look beyond this session and this Parliament to the future of our nation. The trends are clear; the facts are unmistakable. Now is the time.
The opposition motion before us here today is sadly misinformed. It does not provide a solution to the demographic challenges our nation faces. For these reasons, our government cannot support it. I would ask that all members of the House do likewise.