Madam Speaker, I rise to debate this particular legislation. I noticed my colleague in his speech pretty well stuck with the topic of the economy rather than actually speaking to this rather insignificant and poorly designed bill that the government put forward. I do not blame him for doing that, because that is the case.
The Conservatives will say that, by bringing forward the bill, they have created something seniors. That is a very minor element and much of what is proposed in the bill can already be accomplished.
When I was mayor of a little town, Fort Smith, we did not have a pension plan for our employees, but we did have a plan by which they could have a certain amount deducted from their paycheque to go into RRSPs for their use once they had finished their working careers.
These types of arrangement can be made by companies. They were made by the community government I represented as mayor, and they carried forward. Were they successful? They were reasonably successful in some ways, but in other ways, because they were not mandatory but voluntary, they did not include a lot of issues. The municipality itself took the time to even enhance the value of these RRSPs, but still we found that many of the employees simply did not have the facility. They needed the money for their everyday life and did not participate in the program to the extent that we would have thought would have been appropriate.
When we have these voluntary programs for employees who, in this day of Conservative economics, are getting less and less in their pay pocket at the end of the day, a voluntary program to encourage them to save for retirement seems rather difficult for them in many cases because they simply need the money to survive in this world.
What we have is a program that may work for some people, but it is not a nation-building program that deserves the recognition of Parliament, that deserves the time and effort the government has put on Parliament to create. If this is the best it can do, it is certainly not adequate for Canadians, and that is what we see.
We compare this pooled program to other programs around the world that do the same thing. Is there mandatory participation by employers? In Canada, there is not; in New Zealand, yes; in the United Kingdom, yes; in Australia, yes.
Is there auto enrolment by employees? In the case of Canada, provided the employer chooses to offer a plan to that class of employees, there is an auto enrolment, but the employee has an opting out opportunity within 60 days for notifications for new PRPPs.
Is there mandatory employer contribution? There is not; but in all three other programs we are looking at, yes, yes, yes. Is there a minimum employer contribution? In Canada there is none; in New Zealand, 2%; in the United Kingdom, 3%; in Australia, 9%. Is there a minimum employee contribution? In Canada there is none; in New Zealand, 2%; in the United Kingdom, 4%; in Australia, none.
The government contribution is tax relief. In other cases, in Australia they top up by $1,000; there is an annual tax credit in New Zealand of $1,000. Are there provisions to allow employees to suspend contributions? Yes, and that is similar within the programs. Are employees restricted to a single lifetime savings plan? This is important, because in Canada the answer is no, in New Zealand, yes, and in the other two countries, no. However, we found with Australia's not having a single program and not having the ability to transfer programs that this causes a mushrooming number of savings accounts, and it emerged as a significant problem in Australia's superannuation program.
By June 2010, there were 32.9 million super pension accounts in Australia, an average of three accounts per employee and almost double the number 15 years before. Many of them are inactive or are lost member accounts. It is a program that really does not work all that well when there are seasonal employees or employees moving from one business to another.
We have seen voluntary pension pairing plans and pooled registered pension plans around the world and the one that is proposed by the Conservative government seems very weak. It seems to be mostly window dressing on things that could be accomplished and carried forward in a good fashion with the existing legislation and pension opportunities.
We want to see something that is more universal and expands opportunities for the universal Canada pension plan, that raises contribution levels and creates greater defined benefits so people will know they have surety in their retirement and that they can work to the age of 65 and retire with dignity. Now the Conservatives are changing that as well by raising the age of retirement, not for those who are seniors now but for young people who will be entering the system. By young, I mean people under 50 years old, not really young, but they will see that change come about.
What is the reaction within the population? We are seeing that seniors are moving to the NDP in greater and greater numbers across the country because seniors understand what it means when the age of retirement is changed from 65 to 67. They do not want to burden their children and grandchildren with that additional cost when the additional cost to the government turns out to be not that bad. It turns out that the Conservatives are overinflating the costs and creating panic in the system when the panic in the system does not need to happen. The Conservatives are once again living to their name: cons. They are working the Canadian public like we are rubes but seniors are not buying it. They are moving away from the Conservatives in droves right now because they understand the reality of what the government is doing.