Mr. Speaker, I would like to thank the member for Charlottetown for bringing this important issue to the House of Commons. Old age security is a vital tool in the fight to prevent poverty among seniors. The suggestion by the Prime Minister to raise the age of qualification for OAS to 67 years would have a direct impact not on the wealthy but on the poorest seniors. That reality has not been lost on current seniors nor the seniors of the future. In essence, the government is saying that it wants the poor to pay for the financial mismanagement of the Conservatives. Not only is this unacceptable, but it is absolutely unfathomable.
Let us not forget that the House has passed unanimously several NDP opposition day motions all in support of seniors' financial security, yet the government threatens changes to the OAS in blatant disregard of the will of the House and in contempt of the seniors who built our nation. For the life of me I do not understand why the government is trying to create more challenges for seniors, who deserve our respect.
As the NDP seniors critic, over the last couple of months I have had the chance to talk to people. I also have received many emails and letters from seniors across Canada, all reacting to the Prime Minister's suggestion that there may be changes to old age security. People are outraged, insulted and scared, and rightly so. Canadians have carefully planned for retirement at age 65. They cannot manage the difficult struggle that would be required for them to wait until age 67.
If the government really cared about seniors and retirement security, it would make substantive changes to the GIS right now that would have a significant impact on the lives of retirees. Instead of giving less than half of what is needed to increase the GIS, the government would have listened to New Democrats and made the full GIS contribution increase needed to lift every senior out of poverty.
Now the government suggests that changes will not affect current seniors or those approaching retirement. The Conservatives have said that those affected will have time to plan. No mention was made of those still paying mortgages, the cost of post-secondary education for their kids, and the real cost of increases to the cost of living.
What Conservatives do not say is that the poorest seniors are the ones who will be affected. The truth is that many low-paying jobs require substantial physical labour. That makes it far more difficult to work past age 65. Unfortunately, I do not expect the government will be sensitive to that reality. The same hard-working Canadians, the ones who rely on the OAS, are for the most part people who have struggled their entire lives. The reason they have not saved is that there is no money to save. As I have already said, every penny was spent on the necessities of life.
The scramble which the Prime Minister incited after his announcement at Davos about the suggested changes that would occur a few years down the road was a calculated tactic to divide future and current seniors. The government is pitting today's young people who are struggling to find work against seniors relieved that their retirement is secure.
We know that young people today are struggling to find work. They are forced to enter into the workforce later in life than their parents and grandparents did. Taking inflation into account, the truth of the situation is that people are earning less now than in the past. Too many young people cannot find work to their full potential and consequently are going to be forced to work longer and retire later than their parents did. Apparently, that will be at age 67. All of this is because the Conservative government wants to build new prisons, give huge tax breaks to profitable corporations and purchase expensive fighter jets.
I have been travelling across the country listening to what seniors have to say. What I have been hearing is that seniors are not buying the government line. They are worried about their children and grandchildren. They want the best for them. They want to make sure they are well looked after and refuse to accept anything less than what they want for themselves.
Seniors are very wise. They know a bait and switch when they see one. They also know that the OAS is an investment, not just for themselves, but for all of our society. Seniors on OAS spend all of their money in their neighbourhoods. That money is reinvested in our economy, in local businesses and in community jobs. OAS is not a burden on the economy. It is an investment. Our seniors make an investment. They are not pulling down our economy.
From a crass monetary perspective, it is significantly cheaper to keep people out of poverty than to deal with the ramifications of poverty, including an increased burden on our medical and judicial systems.
I want to be very clear. The money we invest in OAS is readily available. We have the money to lift seniors out of poverty in the present and to address the additional expenses that the government will face in the future. We have heard from the Parliamentary Budget Officer that the money is there now and in the future. We have heard it from the OECD. Right now, it costs about 2.3% of GDP to provide services and pensions for seniors. By 2030, it will be about 3.2% of GDP. Thereafter, it will fall rapidly to 1.4%.
However, instead of investing in Canada and in our social safety net, the Conservatives have chosen to saddle the treasury and Canadians with corporate tax giveaways that do not guarantee a single new job. No one knows better than Londoners, who remember what happened to the Electro-Motive Diesel workers.
Seniors represent one of the fastest-growing populations in Canada today. The number of seniors in Canada is projected to increase from about 4.2 million in 2005 to 9.8 million in 2036. Many more seniors will be retiring in the years to come. Therefore, we need to have a social safety net in place to avoid dramatic increases in the rate of poverty.
It is about intelligent, thoughtful planning, which is something that we have not seen from the government. In fact, the Conservatives are clearly making the wrong decisions on how to care for the increased number of seniors by 2036. They have failed the plan and they have fallen short of what is really needed: investment in home care, investment in long-term care, investment in pharmacare and increased access to resources. All of these will save us money in the long run.
We also need appropriate, affordable housing and investment in geriatric studies and in our communities. That is what is important. Tragically, the Conservatives do not seem to know that. They do not know how to be government.
The concerns of the future are very real. Today, only 38.5% of Canadian workers have workplace pensions. Nearly one-third have no retirement savings at all. More than 3.5 million Canadians are not saving enough in RRSPs for what used to be called their “golden years” and 75% of workers are not even participating in a registered pension plan. Clearly, the notion that retirement savings can be adequately accounted for through purchases of RRSPs does not work.
Urgent government action is needed. Pension reform is needed.
It should further be noted that private retirement savings are concentrated in a small percentage of families. According to Statistics Canada, 25% of families hold 84% of those pension assets, while 3 out of 10 families have no private pension at all.
Seniors have worked hard all their lives. They have played by the rules. Now, they simply want access to the programs and services that their hard-earned tax dollars helped to make. One soon-to-be senior told me, “I made the sacrifices. I raised honest, responsible children. Now I want to rest, to retire and to enjoy the contributions I've made to my community. I earned a secure retirement. Please don't allow anyone to steal it from me. I will not be cheated of the retirement that I deserve.”
New Democrats will not allow the government to cheat the seniors of the present, nor the seniors of the future. They deserve that security.