Mr. Speaker, it should come as no surprise that I disagree profoundly with my colleague from Brandon—Souris, as I disagree with his party on the policy direction they are taking. I even disagree with just about everything the Parliamentary Secretary to the Minister of Finance said. I think those guys are going down the wrong road and are doing the dirty work for corporate Canada once again.
Here are the origins of the bill. Thomas d'Aquino, when he was the head of the Business Council on National Issues, and then John Manley, when he became the president of the chief executive officers, or whatever they call themselves—the Grand High Poobahs of, really, the unelected Prime Minister of Canada, which is essentially what he is--declared that what was really holding back Canadian productivity was “legacy costs”. That is a nice way of saying those dirty pensions that our predecessors got into in the 1930s, 1940s, 1950s, 1960s and 1970s. That was back when we used to negotiate fair wages for working people, back when working people and their employers would sit down and put together a sensible benefit package with a real benefit plan for their retirement years. All of a sudden, the corporate world has declared that unaffordable and it does not like having the burden of legacy costs.
We can even look at what happened in 2008 with the economic downturn. As soon as the auto industry got into trouble, what did the executives of the auto industry say? It had nothing to do with the cars they were producing or their management skills or the way that they had dropped the ball and made products that nobody wanted to buy anymore. Right away they said that the reason they were not productive was because of the legacy costs. They said that it was the pension plans that were dragging them down. They said that something needed to be done about the pension plans so they trooped down here to their friends, the guys who they bought and paid for and put into power, and complained to them that they had to do something about these pensions.
Mr. Speaker, I forgot to say that I will be splitting my time with the member for Châteauguay—Saint-Constant.
The Conservatives put it in fine print so the world can see. They put in place this disingenuous bill with a title that actually uses the words “registered pension plan” in the title. This is another example of the creative writing class that takes place somewhere down in the bowels of the Conservative Party's black operations department. They develop these names that have nothing to do with the bill. In fact, they are 180 degrees opposite to the true intent.
There is nothing about this that is a pension plan. It does not bear any resemblance to a pension plan. It is a savings scheme that, frankly, is no different from what ordinary workers could do today if they were lucky enough to make enough to set money aside in an RRSP. They could put a little more money aside in an RRSP and have the same net effect as this, except that they would be gouged even further by the financial sector that also stands in the wings waiting to benefit from this huge shift of money that should normally be going into a pension vehicle such as a proper registered retirement pension plan or, the best retirement vehicle that we have, the Canada pension plan.
And you wonder, Mr. Speaker, why I have strongly held views on this issue?
I represent the riding of Winnipeg Centre and that, frankly, has been the home of two of the greatest champions of social justice that our country has ever known. In 1919, the Government of Canada wanted to send J.S. Woodsworth to prison for his role as a leader of the 1919 general strike. The good people of Winnipeg Centre sent him to Parliament instead where he became the founder and first leader of the CCF. He served there until 1942 when he died. Then the good people of Winnipeg Centre elected the person who came to be known as the father of the Canada pension plan, Stanley Knowles.
J.S. Woodsworth, while he was here, managed to wrestle old age security out of the Liberal government of the day. William Lyon Mackenzie King had a minority government. J.S. Woodsworth had two members, A.A. Heaps and J.S. Woodsworth were called the Ginger group. They were the Independent Labour Party, predating the CCF. They went to Mackenzie King and told him that they would support his government and prop it up if he would introduce old age security.
We have a letter on file at the NDP headquarters today that is signed by William Lyon Mackenzie King agreeing to that. It took him seven years to do it. It was 1926 by the time he actually fulfilled that promise. However, William Lyon Mackenzie King yielded to the pressure of the ginger group. The member of Parliament for Winnipeg Centre managed to negotiate some semblance of pension.
When Stanley Knowles was elected, he not only brought in the Canada pension plan, the second initiative was the indexing of the Canada pension plan. Now, at a 1% operating cost, the Canada pension plan with a small amount of contribution yields a guaranteed benefit to Canadians in the neighbourhood of $900 or $1,000 a month. That is a good return. That is in the best interests of Canadians.
I am worried that as the government puts in phony bills like this and phony diversions like this, it will siphon off attention to, contributions in and participation in vehicles that work, like the Canada pension plan. It is as if it is throttling down the emphasis on the Canada pension plan.
We, when we form government in 2015, intend to undertake a comprehensive overhaul of the Canada pension plan, which will be meaningful support in old age security for Canadians. It has been charted out and it is part of our platform. It will be the most effective investment vehicle ever. Even if the Canadian pension plan as we know it were doubled, as being proposed by the NDP, the total old age security coming from that would still be less than social security in the United States. Social security in the United States has a maximum benefit of about $30,000 a year. If we take the CPP as it is today, even adding on the old age security of under $7,000 a year, that still only comes up to about $19,000 a year. We are well behind other countries, even the United States, in our social security benefits for seniors.
It frustrates me how disingenuous the Conservatives are when they introduce a bill that purports to be a pension plan for ordinary Canadians. I just heard the member for Don Valley West saying that his employees could never have a pension plan if it were not for this. He said that he had worked for years and all his employees never had any benefits. Maybe if he had given them a raise in pay they would have been able to buy some old age security. Why did the member not put a pension plan in his company? That is what we used to do in the old days, we had corporate social responsibility. We had capitalists with a social conscience. That seems to be gone.
Capital has no conscience. If it were not for the NDP here to impose some conscience into that party, it would just be following loyally and faithfully behind the Business Council on National Issues, the Canadian Taxpayers Federation and all the other dummy outfits that undermine the basic needs of Canadians for their own selfish self-interest.
We can look at the handout this is to the financial sector. We can look at the dough they will make by managing all this dough again. It is appalling, frankly, how they gouge, and the percentages they take for moving money around. The best bargain is the Canada pension plan with an operating cost of less than 1%.
This bill diminishes and undermines the systems that work and would put in place a system that will not be effective and will be no better than issuing a piggy bank. The Conservatives might as well give every Canadian a piggy bank and say, “I know you have not had a raise for seven or eight years but here is a piggy bank. Put more money into it and you will have more money to spend when you retire.”
That is not creative. There are no financial geniuses over there. That is like pulling a sedated rabbit out of a tattered old top hat and trying to convince people it is magic. It is not magic.