Mr. Speaker, today we are discussing a motion that asks the government to introduce a series of measures aimed at correcting the growing income inequality in Canada.
Among those measures, we have this one specifically:
(d) making the Registered Disability Savings Plan available to sufferers of chronic diseases such as Multiple Sclerosis;
Naturally, this is the initiative I am going to focus on.
I support a measure like this without question since it deals with one of the problems with the registered disability savings plan. Although the plan clearly has other problems, I will focus on the one addressed by this initiative. At the moment, the registered disability savings plan is available only to those who are eligible for the disability tax credit.
To be eligible for that tax credit, a person must have a severe and prolonged impairment in physical or mental functions for at least 12 months. This condition is difficult to fulfill for people suffering from chronic or recurrent conditions like multiple sclerosis or chronic fatigue syndrome.
They have a different kind of impairment. For example, people suffering from these impairments may be able to carry out daily activities and even to work for a certain amount of time. Then, suddenly, it becomes impossible for them to do anything. Unfortunately, because of the cyclical nature of these illnesses, those individuals are very exposed in terms of most programs for those with functional impairments.
In fact, most of these programs are designed with the idea that the disability is permanent and does not change significantly. So it is high time to change this program, whose injustices are just going to get worse over time. We know for a fact that the number of Canadians with episodic impairment is on the rise.
The government must include those Canadians in this income support program. We know that 55,000 people suffer from multiple sclerosis, that 63,000 have HIV and that 330,000 people have chronic fatigue syndrome. If the program works well for those who are eligible for it, but too many people are excluded, then it is not very effective.
It goes without saying that it is worthwhile enhancing and extending this plan. Yes, the registered disability savings plan could be considered as an innovative tool for reducing poverty in the long term because it targets low- to modest-income workers living with a disability. However, as I said earlier, the eligibility criteria for the registered disability savings plan is much too restrictive.
By applying the same eligibility criteria as for the disability tax credit, hundreds of thousands of people with functional limitations are ineligible for the plan. This is very worrisome, especially for people suffering from multiple sclerosis, given that their condition fluctuates. These fluctuations can last months, even years.
Despite the undeniable benefits of the plan for the people who are eligible, the government's account of its record leads us to believe that it is spouting this rhetoric in order to divert attention away from the valid criticisms of its response to the income security challenges faced by Canadians living with functional limitations.
As we know, it is not in the Conservatives' nature to tackle income inequality. Their vision of equal opportunity is vastly different than that of the NDP. However, they should give serious consideration to the most recent report of the Canadian Human Rights Commission released this summer.
This report points out the significant gaps in equality of opportunity for people with disabilities. In other words, it reports on how disabilities affect equality of opportunity in daily life and the barriers that deny people living with a functional limitation the full opportunity to make for themselves the lives they wish to have. This includes graduating from university, having a full-time job, and having an annual salary, although it is often lower of course.
This is the case for people affected by mental illness and episodic illnesses, who are more likely to participate sporadically in the labour force, which is the reason for their significantly smaller income. People with disabilities were negatively affected in all categories examined.
Persons with disabilities are the poorest in Canada and they represent the highest number of unemployed workers.
According to Statistics Canada's last Participation and Activity Limitation Survey in 2006, 14.3% of the Canadian population, or 4.4 million people, had a form of activity limitation. That rate has been going up since 2001. This trend will only increase with time, since that rate increases with age. The problem related to the openness of the system, and to eligibility for tax credits for persons with disabilities, must be dealt with head on.
This is the biggest obstacle to opening a registered disability savings plan, and it undermines the long-term effectiveness of the program at the same time. We quickly realize, through many examples, that the definition used as an eligibility criterion is much too strict, very poorly understood, and not applied consistently. Furthermore, we also discovered problems regarding the criteria and the assessment method, the development of the formula and the qualification process by a qualified practitioner.
Access to the tax credit is extremely problematic. Some people with serious functional limitations cannot take advantage of this opportunity. The worst part is that many are those whose applications were rejected and who do not want to appeal the decision because they do not want to waste their time, energy and resources on what they see as a losing battle against government bureaucracy.
Others simply decided not to apply because they did not think they were eligible based on the criteria, in spite of their condition. Others were told by a doctor, without assessment or objective explanation, that they were not eligible. People with certain types of mental health issues are also often excluded from the tax credit. That is the case for people with schizophrenia and bipolar disorder.
There is obviously a serious problem with respect to assessments for eligibility for the tax credit. A good assessment tool is needed to determine eligibility, and at the end of the day Canadians are paying the price.
This issue is not new. In March 2002, the Standing Committee on Human Resources Development and the Status of Persons with Disabilities presented a report recommending that the definition be changed to include people who have a serious impairment that is recurrent, but not necessarily lasting for a continuous period of 12 months.
The committee recognized that many Canadians with episodic disabilities were unable to access the tax credit despite their condition and the costs associated with it. However, the government at the time did not provide a direct response to the committee's recommendation and merely reiterated that the criteria were key in determining eligibility. I need not remind you that this was a Liberal government.
Unfortunately, after all these years, the problem still exists. The application is still too complex. The terminology and definitions used in the disability tax credit certificate are too restrictive, which ultimately leads to inconsistency and discrimination.
It is time to assess whether the disability tax credit is truly effective in terms of the support it provides to the registered disability savings plan. The tax credit must not be an obstacle to these savings plan. We must therefore relax the eligibility criteria for the tax credit and make the definition much more inclusive. If not, the registered disability savings plan is simply not fulfilling its purpose properly.
The NDP wants a Canada that is truly accessible and inclusive with a federal government that takes its responsibilities seriously, demonstrates leadership and works to combat poverty among people with functional limitations. In order to achieve this goal, there is an imminent need to reform existing income support programs. That is what we want, and that is what we are going to do.