This is an example of a member of the Reform Party trying to make a travesty of democracy in Canada. I am not angered, I am saddened that it would be evinced by the member opposite.
The duty of government to this pension plan is not only that the federal government will match the contribution of federal employees, but as well it must be noted very clearly that the government will assume all the risk.
There are two points. The government matches the contribution of the employees and at the same time it makes up for any short fall.
What is the issue before us? I will read from the editorial which I mentioned previously:
Today, the plan is estimated to have a $30 billion surplus, meaning that if the future pension entitlements for all employees and retirees were paid out today, the pension fund would have $30 billion to spare.
Two weeks ago Ottawa introduced legislation....
Complicating the debate is the fact that the pension fund and the surplus exist only on paper. In reality, the government has always used the employee contributions to help finance its programs. The benefits are funded on a pay-as-you-go basis from budget revenues....
So if the employees were to win the battle for even richer pension benefits, government spending would automatically go up.
I hope the Reform Party would agree with that. That would leave less money for social programs like health care and less money to reduce the personal income taxes of all Canadians.
I think it only follows that the surplus truly belongs to the Canadian people. Because we assume all the risk, it only follows that it belongs to the Canadian people. According to the Toronto Star , “The government is on solid ground”.
I am surprised the Reform Party, which tries to say that it is about a cut to income tax, would miss the opportunity to find a source for the reduction of income taxes; that a party which would like to see a reduction in our debt would lose the opportunity to find a social fund so we could reduce our debt. More important, we can have a social fund to allocate expenditures for our health care program.
I think I have made the basic points on the issue. With the permission of the Speaker, I will answer any questions that members opposite would like to pose.