Dean Allison

[Pooled Registered Pension Plans Act, June 4th, 2012]

Mr. Speaker, I am not sure where the question was. There was some talk there about health care, large corporations, pensions and mismanagement.

As we look at the bill, Canadians, who normally would not have a chance to contribute to a pension plan because of the size of the companies for which they work, would now have the opportunity to do so. As I said, small businesses are the largest employers around our country. For small businesses that hire six, seven, eight or ten people, it is cost prohibitive to set up any kind of pension plan. This legislation aims to pool pensions so that individuals can not only contribute to a pension plan, where otherwise they could not, but they can also take it with them. It is also locked in so that they would not have access to it until retirement age.

[Pooled Registered Pension Plans Act, June 4th, 2012]

Mr. Speaker, I would like to take this opportunity to explain to the House and the people of Canada how our government's new low-cost and accessible pooled registered pension plan will help millions of Canadians save for retirement. More specific, I would like to touch on how pooled pensions will benefit small businesses, which are the backbone of the economy, not only in my riding of Niagara West—Glanbrook but across this great land.

As a former small business owner, I know first hand how difficult it is to save for retirement. There is simply so much else to focus on. Small business owners wear many hats and often the most menial tasks take priority over thinking of retirement or how to save for it. Therefore, by pooling pension plans together, small business owners can pass on the burden of planning for retirement to a qualified and reliable body, freeing them up to focus on improving other aspects of their business, such as improving customer service or, more important, ensuring their survival in the world of free enterprise.

As a small business owner, I was very committed to providing financial assistance to my employees. For my part-timers, I offered thousands of dollars in scholarships. However, for my full-time and my key employees, who had already graduated or were no longer interested in attending university, I had to find other incentives. Unfortunately, pooled pension plans were not available back then, which would have provided me and fellow small business owners the opportunity to provide our employees with a pension package comparable to any large corporation.

I looked for ways to try and incentivize my staff to try and keep them around, because small business is very competitive. The only thing I could come up with was registered retirement savings plans, which were not a bad thing. The challenge was that they were very complicated to set up. As members can imagine, with a small business owner, with only five or six employees, trying to meet with financial investors and setting them up with staff is not always the easiest thing to do. Therefore, as a business owner, I really would have appreciated having something like this to take away some of the burden on me by being able to lock these funds in for employees who would use them at a later point in time.

What I did was set up some registered retirement savings plans wherein I matched some of the dollars that my key employees put in. The challenge was that they were not locked in for pensions. The money could be taken out at any time. The second issue was it was difficult to manage. Members can imagine having 10, 20, 30 or 40 employees all trying to figure out, with a financial adviser, what was happening and trying to make their own decisions when, quite frankly, a pension plan or some kind of professional management would have been helpful. Therefore, from experience, I understand how important a plan like this would be.

Until Bill C-25 is passed, small business owners will continue to worry about the possibility of their employees being attracted to a larger corporation that offers a more attractive pension plan. This is worrisome to small business owners whose employees form the core of their small business, much more so than the case of large corporations. Small businesses of 5, 6 to 10 people cannot afford the costs of employee turnover. When they lose key employees, it hurts in a big way. In this regard, pooled pensions will benefit small business owners by increasing employee dependability, thereby decreasing the time, burden and costs associated with hiring.

Equally beneficial to small business, pooled pensions will allow millions of Canadians access to a workplace pension for the first time in their lives.

Pooled pensions will improve the range of retirement savings options to Canadians by allowing individuals who are not currently participating in a pension plan, such as the self-employed, to make use of this new type of pension plan. Pooled pensions will enable more people to benefit from the lower investment management costs that result from membership in a large pooled pension plan. Further, pooled pensions will allow for people's accumulated benefits to move with them from job to job, all the while ensuring that their funds are invested in the best interests of plan members.

With our baby-boomer generation nearing the age of retirement, coupled with the ongoing global financial crisis, our government has deemed this time appropriate for the development of pooled pensions. The issue of retirement income security is very important to our government. It is for this reason that the joint federal-provincial working group was established in May 2009 to undertake an in-depth examination of retirement income adequacy in Canada.

The working group found that overall the Canadian retirement income system was performing well and providing Canadians with an adequate standard of living upon retirement. However, some Canadian households, especially modest and middle-income households, were living with the risk of not saving enough for retirement.

After over a year of exhaustive research, led by our finance ministers, our government agreed to pursue a framework for pooled registered pension plans.

Pooled pensions are designed to address the lack of low-cost, large-scale retirement savings options available to many Canadians. Many Canadians continue to struggle taking advantage of the savings opportunities offered to them through individual structures like RRSPs. For example, the average Canadian has over $18,000 in unused RRSP room.

In addition, many Canadians can only access a workplace pension plan if their employer offers one. Many employers, especially small and medium-sized businesses, do not want the legal administrative burden of offering a pension plan. As a result, over 60% of Canadians do not have a workplace pension. There is not only the legal issues. The fact remains that it is almost impossible for small businesses to join a pension.

The design features of pooled pensions remove a lot of the traditional barriers that might have kept some employers from offering pension plans to their employees.

The design of these plans would be straightforward to allow for simple enrolment and management. A third-party pooled pension administrator will take on most of the responsibilities that employers bear in the existing pension plans, including the administrative and legal duties associated with administering a pension plan.

Pooled pensions will offer Canadians greater purchasing power, allowing them the opportunity to benefit from greater economies of scale. Achieving lower prices means that Canadians will benefit from greater returns on their savings and put more money in their pockets when they retire. Pooled pensions are intended to be largely harmonized from province to province, which also lowers administrative costs.

Pooled pensions will result in large pooled funds that will enable plan members to benefit from lower investment management cost associated with such funds. The design of these plans will be straightforward and are intended to be largely harmonized across jurisdictions, which would facilitate lower administrative costs.

Pooled pensions will assist Canadians in meeting their retirement savings objectives by providing access to the new low cost pension option. Through the pooled nature of pooled pension investments and the auto enrolment of employees, it is expected that members will be able to benefit from greater economies of scale and lower costs compared to small, singular employee group RRSPs. Since pooled pensions will be subject to pension standard rules, unlike group RRSPs, the management will be held to a higher standard.

Our government decided not to expand the Canadian pension plan because changes to the CPP would require the agreement of least two-thirds of the provinces with at least two-thirds of the population. Federal, provincial and territorial ministers have discussed a CPP expansion, but there has been no agreement. Our government understands that the fragile economic recovery is not the right time to increase CPP contributions, which would be required if CPP were expanded.

That being said, moving forward on pooled pensions does not preclude future changes to CPP.

Our government continues to improve Canada's retirement income system. Budget 2011 announced a new guaranteed income supplement top-up benefit for our valuable seniors. Seniors with low or no income other than the old age security and the GIS would receive additional annual benefits of up to $600 for single seniors and $840 for couples.

In particular, since 2006, our government has increased the age credit amount by $1,000 in 2006 and by another $1,000 in 2009. We have doubled the maximum amount of income eligible for the pension income credit to $2,000, introduced pension income splitting and increased the age limit for the maturing pensions in registered retirement savings plans to 71 from 69 years of age.

Overall, our government has provided about $2.3 billion in additional annual targeted tax relief to seniors and pensioners through measures such as pension income splitting, increases in the age credit amount and the doubling of the maximum amount of income eligible for the pension income credit.

In addition, budget 2008 introduced a tax-free savings account, which is of particular benefit to seniors because it helps them to meet their ongoing savings needs with a tax efficient way after they are no longer able to contribute to an RRSP.

We have also made several other important improvements to specific retirement income supports. Budget 2008 increased the amount that could be earned before the GIS would be reduced to $3,500, so GIS recipients would be able to keep more of their hard-earned money without any reduction in GIS benefits. Budget 2008 also increased flexibility for seniors and older workers with federally-regulated pension assets that were held in life income funds.

We all win if we make it easier to plan for our future. Pooled pensions would remove the barriers that make it impossible for my business and other small businesses like it to offer the ability to be part of the pension plan for their employees. This is a significant and timeless solution. I am proud of our government for taking steps to provide this opportunity for Canadians.

[Petitions, May 31st, 2012]

Madam Speaker, I rise today to bring attention to the House a petition that I received from my constituents in my riding of Niagara West—Glanbrook. The petitioners call upon the House of Commons and Parliament to vote in favour of Bill C-311, an act to amend the importation of intoxicating liquors act (interprovincial importation of wine for personal use).

With over 40 wineries in my riding of Niagara West—Glanbrook, this piece of legislation is near and dear to me and my constituents. I echo the sentiments of these petitioners and urge all of my hon. colleagues to vote in favour of the bill.

There is a pressing need to modernize the 1928 federal Importation of Intoxicating Liquors Act with a personal exemption for the purchase and shipment of wine across provincial borders. Allowing interprovincial importation of wine for personal use would greatly benefit not only the hard-working men and women of my riding but also Canadians from coast to coast who would soon be able to experience the extravagant array of wines grown not only in Niagara Peninsula but across our great nation.

[Petitions, May 10th, 2012]

Madam Speaker, the second petition points out that 72% of Canadians would like there to be some legal protection for pre-born children. Petitioners call upon Parliament to open up a respectful dialogue on abortion in an effort to determine what sort of protection should be granted to children before they are born.

[Petitions, May 10th, 2012]

Madam Speaker, I rise today to bring to the attention of the House two petitions I received which call upon Parliament to confirm that every human being, even pre-born children, are recognized by Canadian law. Currently, Canada's 400 year-old definition of a human being says a child does not become a human being until the moment of complete birth, contrary to 21st century medical evidence. Therefore, children in the womb receive absolutely no legal protection in Canada.

The first petition calls on Parliament to confirm that every human being is recognized by Canadian law as human by amending section 223 of our Criminal Code in such a way as to reflect 21st century medical evidence.

[Interparliamentary Delegations, May 10th, 2012]

Mr. Speaker, pursuant to Standing Order 34(1) I have the honour to present, in both official languages, the report of the Canadian Delegation to the Organization for Security and Co-operation in Europe Parliamentary Assembly respecting its participation at the 11th Winter meeting held in Vienna, Austria, February 23 and 24, 2012.

[Jobs, Growth and Long-term Prosperity Act, May 7th, 2012]

Mr. Speaker, in economic action plan 2012, our government is looking ahead, not only over the next few years but for the next generation. The reforms presented are substantial, responsible and necessary. They would ensure we remain focused on enabling and sustaining Canada's long-term economic growth.

More specifically, economic action plan 2012 would help create high-value and well-paying jobs by investing into entrepreneurship, innovation and world-class research. It would support jobs and growth by investing in training, infrastructure and responsible resource development, thereby providing new opportunities for young Canadians, first nations, newcomers and unemployed Canadians.

We believe in sustainable public finances, which is why we have found fair, balanced and moderate savings in government spending. Budget 2012 would take important steps to address the challenges and help take advantage of the opportunities in the global economy, while ensuring sustainable social programs and sound public finances for future generations here in Canada.

Our government recognizes that Canada's seniors have contributed enormously to our country and continue to do so. This is why we introduced new measures to improve their quality of life and expand their financial opportunities.

The ThirdQuarter project is an innovative online approach to help employers find experienced workers over 50 who want to keep using their skills in the workforce. We propose $6 million to extend and expand this successful project across the country.

Our government is also committed to improving the flexibility in choice for senior workers. For those wishing to work longer, we would provide them with an opportunity to voluntarily defer taking up the old age security benefit, starting in July 2013. Those who wish to do so would, of course, receive a higher annual adjusted pension.

With regard to OAS, our government is committed to sustaining our social programs and to securing retirement for Canadians. However, to ensure the sustainability of OAS, the age of eligibility must be raised. As a result, we would be gradually raising the age of eligibility from 65 to 67, starting in April 2023 and being at full implementation by January 2029. This is nothing new, as 22 of 34 OECD countries have increased or are planning to increase pension ages in their own public pension programs. Australia, Denmark, Germany, Italy, Spain and the United States are increasing their statutory pension age to 67. The United Kingdom and Ireland are raising it to 68. The Netherlands will raise it to 67 and then link it to life expectancy.

Canada is linked to the global economy now more than ever. Increasing our age of eligibility for OAS from 65 to 67 is no longer a choice but a necessity.

The facts on OAS speak for themselves. The number of Canadians over the age of 65 will increase from 4.7 million to 9.3 million over the next 20 years. The OAS program is dated from a time when Canadians were not living that long. Canadians who are privileged to live today have healthier lives. Consequently, the cost of the OAS program would increase from $36 billion per year in 2010 to $108 billion per year in 2030. Meanwhile, by 2030, the number of taxpayers for every senior would be down to two, from four in 2010.

To ensure sustainability of OAS, the age of eligibility must be raised from 65 to 67. We have ensured that the changes are made with substantial notice and with an adjustment period and that they would not affect current retirees or those close to retirement and would give others plenty of time to adjust to the changes and plan for their retirement.

Along with supporting our seniors, we must support our students. We all want Canada's students to succeed in the global economy with the help the best education possible. That is why since 2006 our government has provided the much-needed support for our students.

However, in budget 2012, we would be doing even more to ensure Canadians are better equipped and better integrated into the workforce. We would be increasing support for youth employment opportunities with an additional $50 million spending on improving skills links and career focuses for students, through the youth employment strategy. We would also be doubling graduate interns in innovative firms by investing an additional $14 million, to double the resources of the industrial research and development intern program. This would place even more students into practical hands-on research internships in Canadian companies.

The goal is to have as many Canadians working as possible. Budget 2012 would take action to create jobs now and provide more opportunities to Canadians.

To create jobs now, we will be extending for one year the hiring credit for small businesses, a practical, proven measure that encourages businesses to hire more workers. We will provide new funding to improve border infrastructure and we will make new investments in local infrastructure through the community infrastructure improvement fund.

To provide more opportunities for Canadians, we will make it much easier for Canadians who are out of work to identify new opportunities and for employers to find workers they need. For EI recipients in areas of sporadic employment, we will initiate modest changes to the program to better focus our support for Canadians who are eager to work.

We will provide new incentives and opportunities for members of the first nations living on reserve to participate fully in our economy and to gain greater self-sufficiency.

Finally, we will take action to build a fast and flexible economic immigration system that will be better able to fill gaps in our labour force while at the same time attracting more of the entrepreneurs we need.

As a member of the Red Tape Reduction Commission, I am very pleased to speak on our government's continuing commitment to reducing regulatory burdens faced by businesses of all sizes. In January 2011, our government created the commission, fulfilling a budget 2010 promise. After a year of extensive Canada-wide consultations, the commission brought forth recommendations to reduce irritants to businesses that impede growth, competitiveness and innovation. One of our findings was implemented by the government earlier in the year: the one-for-one rule requiring the government to eliminate an existing regulation whenever it adopts a new one. This assures that at the very least, red tape will cease to increase.

As a former small business owner, I appreciate first-hand the vital role small businesses can have in creating jobs. Our government recognizes this too. That is why in budget 2012 we are committed to helping them grow and to succeed. We have concluded a number of key measures to support the growth of small businesses, including the extension of the hiring credit for small businesses, a temporary credit of up to $1,000 against a small firm's increase in its 2011 EI premiums over those paid in 2012. This temporary credit will help about 536,000 employers defray the costs of additional hiring.

We will be increasing direct support for business innovation by providing $110 million per year to the National Research Council. This in turn will double support to small businesses through the industrial research assistance program and expand the services provided to businesses through the program's industrial technology advisers.

There will be $95 million spent over three years and $40 million per year ongoing to make the Canadian innovation commercialization program permanent, which will help Canadian businesses demonstrate their innovative products and services through federal procurement.

Finally, $14 million will be spent to expand the industrial research and development internship program in order to place more Ph.D. students into practical research internships in businesses.

Speaking of Ph.D.s, situated very close to my riding of Niagara West—Glanbrook is McMaster University. I was delighted to see that it will be receiving $6.5 million over three years for research projects to evaluate ways to achieve better health outcomes for patients while also making the health care system more cost-effective. Having met with a number of constituents attending McMaster University, I am sure they will be pleased with our government's commitment to this sound institution.

The global economy is changing, and the competition for the brightest minds is intensifying. The pace of technological change is creating new opportunities while making older business practices obsolete. Canada's long-term economic competitiveness in this emerging knowledge economy demands globally competitive businesses that innovate and create high-quality jobs. Budget 2012 announces a commitment of over $1.1 billion over five years to support research and development and $500 million for venture capital. These investments and actions will keep our economy strong, create high-quality jobs and ensure that Canada is a premier destination for the world's brightest minds.

In closing, let me say that I believe this budget delivers our promise to maintain a steady course toward both economic recovery and deficit reduction. I applaud the Minister of Finance and I urge all of my colleagues to support Canada and support this budget.

[Committees of the House, April 25th, 2012]

Mr. Speaker, I have the honour to present, in both official languages, the second report of the Standing Committee on Foreign Affairs and International Development concerning human rights in North Korea, in particular the fate of Ms. Shin Sook-ja and her two daughters.

[Foreign Affairs, April 24th, 2012]

Mr. Speaker, Canada has long called for democratic reform in Burma. We have over the years imposed some of the world's toughest sanctions against Burma and its military leaders.

Our government has followed events closely, and in March the Minister of Foreign Affairs was the first Canadian foreign minister to ever visit Burma and see first-hand progress.

Would the minister please update the House on the steps Canada is taking to support democratic reform efforts in Burma?

[Purolator, April 24th, 2012]

Mr. Speaker, I rise today to recognize and commend the hard work of the over 12,000 employees of Purolator for their contribution to economic development in Canada. Purolator employs over 250 in my riding and has its main hub at Hamilton airport, which ties into its delivery network for facilities in 111 ridings all across Canada. The partnership of Purolator and Hamilton airport in this economic activity has been vital for Canadian and international businesses that rely on integrated distribution services.

Since his arrival at Purolator in September 2010, Mr. Tom Schmitt has been an exceptional president and CEO who has worked hard to develop sustaining and mutually beneficial partnerships.

Mr. Schmitt and, indeed, all employees have made Purolator a fine example of a Canadian business that puts Canada first. I know all members of Parliament will want to join me today in congratulating Purolator on its more than 50 years of commitment to Canada.