Mr. Speaker, before I start my remarks on this very important subject matter, I want to take this opportunity to pay tribute to the men and women who have served our country with bravery, dignity, and honour and to those who have paid the ultimate sacrifice at home and abroad to protect our freedoms and the way of life that Canadians enjoy.
On Remembrance Day, I will be home in my riding, as I am guessing most members here will be, to pay my respects to all the veterans who have served this country well. The people of the Kenora riding will never forget their sacrifices, nor will I. Sometimes, as wars get further and further away, it is easy to forget, but I think it is important for all of us to play a role in making sure that this does not happen.
I am pleased to rise in the House today as the representative for the Kenora riding to speak to the enhanced Canada pension plan. Over a year ago, we committed to helping Canadians secure financial stability in retirement, and we are now making that promise a reality.
For the first time in a generation, we are making changes to the Canada pension plan, which will greater reward those who have worked hard throughout their lives. I am very proud of how we have worked to fulfill this promise, because those of us who were completing the last campaign will know that it was a very important part of our discussion during the election campaign.
The Minister of Finance and his provincial counterparts have worked diligently and collaboratively to see this project through. They should be enthusiastically commended for their work.
Sometimes we forget the importance of pension plans, because we get busy in this place, and we assume that Canadians are wealthy. It is one of the wealthiest countries on earth, quite frankly, with a great quality of life and a great standard of living. However, we forget that this was from the previous generation's work. This generation has to continue to focus its attention on the importance of making sure that when people retire in their old age, they have the quality of life and security this country values so much.
I will give examples of why this is important economically, because people tend to see this, at least on the other side of the House, on occasion, as an attack. They expect that it has an impact on Canada's economy.
Here is an example from a study by the Boston Consulting Group. It is a little dated, it was done in 2012, but it is a good example.
The study found that on average, 14¢ of every dollar of income in Ontario and in Ontario's communities comes from pensions. It found that in northern communities, in places like Elliot Lake, pension benefits are 37% of the economy. In Ontario, 7% of all income in our towns and cities, or $27 billion, is derived from defined benefit pensions.
This is just an example of why this is such an important debate. Not only is it security for seniors, it is also a very large part of our economy. We forget sometimes that in places like the city of Kenora, the city of Dryden, and the community of Sioux Lookout, there is a large economy that is generated by the pensions that people in the previous generation receive.
We are making great strides. In early October, we saw British Columbia sign on, making a total of nine provinces in this agreement. From coast to coast to coast, the provinces are realizing what an asset this will be for the over 11 million Canadians who currently do not have a workplace pension plan.
I want to speak today about pensions, because I am concerned about the looming crisis that is going to occur in this country if we continue to let the private sector erode pension plans in the private sector to the point that the next generation may have virtually no pension except for CPP. In the previous generation, it seemed that they understood the importance of that process in the private sector. Now it is moving away from it.
Everyone talks about defined benefits in a certain way and about reducing the risk for business, but nobody seems to talk about the effects on that man or that woman who is a blue collar worker who expects that at the end of a lifetime of work, he or she will have the opportunity to live a good quality of life.
We need to broaden the discussion not just about the role of the Government of Canada but about the role of the private sector.
I come from a region where pulp mills, paper mills, sawmills, railroads, and mining companies all had decent pensions for their retiring workforce. We are now starting to see that erode. I am concerned about what that may look like 20 or 30 years down the road. We have to think about the long-term future of our young people and what that would mean for Canadian society.
When people have instability, risk, and concerns not just about where the next job will come from but about the ability to live out their retirement years, they tend to be a lot more aggressive about how their government should react. They tend to swing far to the right or far to the left. We have been successful as a nation because we have given that kind of security to men and women right across this country. I want people to think about that as we work through this as the government and other governments right across the country.
I am very pleased that the Government of Canada, through the Minister of Finance, and the provincial governments see the importance of enhancing the Canada pension plan. There is a lot more to it than that. Dignity is about security. We have to keep in mind that this is what this is all about.
In my riding of Kenora, I have heard from many of my constituents, both young and old, who fear that they may not have enough savings to retire in dignity. I think this debate is going to continue election after election until we deal with this issue in a comprehensive way.
I want to commend the minister and the government . I also want to encourage the government to send the message to the private sector that it has a role to play. We signalled, by taxing the rich, as we put it in the last election, that they could give more. The people we are speaking about are those who have major corporations and major businesses and are doing quite well in society. They have to give back. Part of that is a pension plan Canadians can rely on. Having a decent pension at the end of our careers is something we should guarantee not just in the public sector but in the private sector as well.
Canadians are compassionate, but at the same time as we are watching the discussions internationally about trade deals, we are not thinking about what that may mean eventually in Canada if the benefits of trade deals do not move through the system to the blue collar worker and the average Canadian.
I want to remind the federal government and other governments that Canada has always led the way in making sure that Canadians have a good quality of life.
There is overwhelming support for public pensions. It is about 75%. When we think about that, Canadians are ahead of us in their views on what exactly should be done compared to what we hear sometimes from others. The effects of these enhancements will not only be felt by seniors and families but by young Canadians who are and will in the future be entering the workforce.
In closing, simply put, I believe that after a lifetime of hard work, all Canadians deserve a secure and dignified retirement. It is because of these types of programs, developed throughout our history, and our continuing commitment to social fairness, that we have helped to make Canada what it is today, one of the best places to live in the world. I hope we can keep it that way.