Madam Speaker, I am pleased to have the opportunity to speak today on this important motion. I would like to take the opportunity to congratulate the hon. member for Nepean for bringing forward this issue to the House of Commons.
The motion before us addresses the changing social and economic nature of Canadian society, namely the increasing number of single parent families and the difficulty these parents face in providing for their children. I support the motion because I believe that by addressing the issue of child support payments we are also addressing the broader fundamental problem of child poverty.
Our government has made a commitment to invest in people and to create opportunities for all Canadians. All our economic and social policies have aimed to achieve this objective. I believe the motion before us is consistent with that goal. It gives us the opportunity to ensure that children of lone parent families are provided with the resources necessary to live successful and productive lives.
The level of child poverty in Canada is unacceptably high. Recent statistics show us that 1.2 million children in our country are living in poverty. Canada's poor children live extremely disadvantaged lives. These children often live in poor housing conditions. They have a greater likelihood of experiencing unemployment in their families and have far less access to quality child care.
Further, according to Campaign 2000 of the Child Poverty Organization with which I met this morning, poor children can expect to have a shorter life span, suffer from illness, require an increasing amount of emergency food assistance and are more likely to drop out of school.
The rate of child poverty in single parent families in 1991 was about 61 per cent. In other words, three of every five children living in a single parent family lived in poverty. On average poor single parent families need an extra $9,000 a year just to reach the poverty line. These figures are particularly true for female custodial parents. After divorce, custodial mothers experience a dramatic increase in the economic burdens and income earning limitations linked to child rearing responsibilities.
Close to about 60 per cent of all female lone parents live in poverty. Although this group represents only 3 per cent of all Canadian households they bear 17 per cent of Canada's total poverty burden. This problem must be addressed by all members of the House.
In my riding of Annapolis Valley-Hants there are approximately 2,300 female lone parent households. I have had the opportunity to speak with many of these parents. They have raised many of the same arguments placed before the House today. It has become increasingly difficult over time for single parents to provide adequately for their children. For custodial parents, a single portion of the support payment is lost to taxes. As a result support payments often do not meet the needs of children the payments are intended to assist.
In light of these statistics we must ensure that children of lone parent families do not suffer the consequences of inadequate levels of child support. Unless we address the problem the same children will continue to suffer the consequences of a system that is not providing the effects it was designed to produce.
When the inclusion-exclusion tax policy was developed in 1942 its purpose was to ensure that as much money as possible was going to children of single parent families. By taxing the custodial parent who is generally in a lower tax bracket rather than the child support payer, more money was left over in those times to meet the needs of the children.
However much has changed since 1942. We must ensure that our laws reflect these new social and economic realities. There are more single parent families now than we had in the past. The majority of these single parents are women who after divorce suffer a decline in their standard of living.
Presently there are only three tax brackets as opposed to ten in 1942 as we heard earlier. There is a greater likelihood therefore that both parents earn the same tax bracket. This negates any tax savings that would have been generated in the earlier years.
Upon divorce, family resources are often inadequate to continue to meet the needs of the children or the two households that must be maintained. Therefore by taxing already low child support payments we are in effect taking money away from the families and the children who need it the most.
As the motion indicates child support payments should not be taxed. Instead these payments should be seen simply as a continuation of the obligation of support payers toward their children. By adopting the motion we could help ensure that single parents and their children are not unfairly targeted by a system that is no longer working as it should.
In 1989 an all-party resolution was unanimously adopted calling for the elimination of child poverty by the year 2000. While many faces in the House may have changed since then we must continue to support this commitment. I believe the motion offers all members of the House an opportunity to renew our fight against child poverty.
In closing the motion alone will not bring an end to child poverty, but I believe that by supporting the proposed change we can take concrete steps to ensure more money is being directed to those children who need it the most.