Mr. Speaker, I am pleased to speak today to the bill introduced by my colleague from Laval—Les Îles, Bill C-480, which would help reduce poverty among seniors.
My NDP colleague has a huge heart, but he is also a man of action. This bill before us proves it, because he is trying to fix a problem that primarily affects our seniors. I commend him for trying to bring in a measure to reduce poverty among seniors.
This bill would amend the Old Age Security Act with respect to funeral arrangements. Old age security recipients who have an RRSP could withdraw the taxable amount of $2,500 from their RRSP to make funeral arrangements in advance. This amount would be excluded from their income for their guaranteed income supplement calculation the following year. As a result, their guaranteed income supplement benefits would not be cut or decreased the following year.
All members know that many Canadian families are struggling to make ends meet, and having to cope with funeral costs only makes their existing financial burden worse. This is a tangible measure to combat poverty among seniors and improve their financial security.
We know that low-income seniors typically spend 60% of their monthly budget on housing and food. Their already tight budgets are further consumed by health care necessities, such as medication. They often have to go without essential care because they cannot afford it, and then on top of that, they have to cope with the cost of funeral arrangements, which is a considerable expense for these families.
This bill is in line with our social democratic values and our dedication to social justice. We believe that all seniors should have the right to a comfortable retirement. We want to reduce poverty among seniors, and this bill is part of the philosophy that inspires us as New Democrats. We should enable our seniors to grow old with dignity, and we should guarantee them financial and moral peace of mind. That is the goal of this bill. Seniors should not have to put themselves in a difficult financial position to pay for funeral arrangements in advance.
This bill would take care of that because the guaranteed income supplement would not be affected during the following fiscal year. It is unacceptable that families should have to bear such a huge financial and moral burden alone. Why give them another problem to deal with when they are already grieving the loss of a loved one? This measure will help our neediest seniors, those who receive the guaranteed income supplement.
We are working hard to fight poverty among seniors, but the Conservatives are doing just the opposite with their reforms. We know that two-thirds of the population does not have a private retirement fund and has to depend on public money after the age of 65. Need I remind the House that state support for seniors is minimal indeed?
Unfortunately, the Conservative government is not coming up with any concrete solutions to address poverty among seniors. On the contrary, it is proposing delaying access to old age security for two years. Raising the legal retirement age from 65 to 67 will only increase poverty for many people. It will only add to the number of seniors already living below the poverty line in Canada. According to a recent study by the Center for Interuniversity Research and Analysis of Organizations, or CIRANO, this increase will raise the proportion of people aged 65 and 66 living under the low income cutoff from 6% to 17%.
This bill proposes the exact opposite. It would help those who are the least fortunate in our society, and more specifically, it would help reduce poverty among our seniors. By supporting this bill, we can eliminate a huge financial burden for our seniors and their families. Fighting poverty among seniors was one of our campaign promises, and clearly, we are keeping our word.
We want to come up with real solutions to the problems facing Canadians, instead of making irresponsible cuts to old age security. The government should not be going after Canadian workers like this.
We in the NDP are committed to lifting seniors out of poverty and guaranteeing a comfortable retirement for all Canadians. We want to reduce social inequality and help those less fortunate so they can live in better conditions.
My colleague's bill has the support of many stakeholders. According to Janet Gray, certified financial planner and elder planning counsellor, everyone wants to help needy seniors. This bill is a good way to do that.
The Canada pension plan provides $2,500 to cover funeral expenses. However, Ms. Gray believes that today's seniors, especially older seniors, are less likely to have worked full time for most of their career and therefore may not be eligible for CPP. She also noted that the CPP benefit cannot be used to pay for funeral arrangements in advance. It can only be used to pay for funeral arrangements made after the death of the beneficiary.
It is true that the Canada pension plan and the Quebec pension plan have similar benefits. However, the purpose of this bill is to establish a complementary measure not a competing one. It will help those most in need, our seniors who receive the guaranteed income supplement.
This bill shows that we are listening to our constituents and that, as MPs, resolving their problems should be our priority.
However, that is not all. This bill will also boost sales for co-operatives and stimulate the local economy. It will serve as an added incentive for people who are thinking about making funeral arrangements in advance. In the end, the sales of funeral co-operatives will increase, which will in turn stimulate the local economy.
That is the essence of this bill. It seeks to implement a practical measure to reduce poverty among seniors while allowing them to continue to have a respectable financial situation after paying for funeral arrangements in advance. Their guaranteed income supplement will not be affected in the following fiscal year. They will therefore have peace of mind and financial security, knowing that they will not be leaving their family with the burden of paying for their funeral.
It is high time we provided financial help to the most vulnerable members of our society. This bill does just that.
Given that the income gap between the rich and the poor has only grown over the years, it is time to take action. The income gap is the biggest it has been in 30 years. Given that financial status is one of the primary determinants of health, poverty should not be taken lightly.
Socio-economic inequalities are getting worse every day. This has a significant impact on people's health and on a growing number of older people, many of whom have barely enough money to house and feed themselves adequately, let alone pay for other essential resources.
Poverty is costly, and we have to do something about it. That goes double for vulnerable people. Seniors, who are at greater risk of living in poverty, are among those most vulnerable.
According to a study by the Institut de recherche et d'informations socio-économique, the number of low-income seniors climbed dramatically from 4.6% in 1996 to 12.3% in 2008.
We must take steps to improve our seniors' financial health. That is why I am asking all members to support this bill at second reading.
I would like to add that this is not about money. Those who support this bill will demonstrate good will, empathy and humanity. I urge them to listen to their hearts and realize that, because they cannot be against what is right, they cannot be against this bill.