Mr. Speaker, it is a pleasure to participate in the debate on the issue of MPs pensions. It is certainly one issue that raises the blood pressure of the majority of Canadians and one time slot on the parliamentary channel that receives attention.
I dare say there is not a single MP who has not been dogged by constituents on the issue. The obscenity of the bloated pension scheme for MPs raised the hackles of the majority of Canadians. If I were not to opt out of the plan my face would be as red as the Liberal red ink book. It is the ultimate in Liberal spin doctoring to call it pension reform. I do not know how MPs could face their constituents.
I remember during the campaign being told by the incumbent when I complained about the MP pension scheme that once I got here I would certainly change my mind. I have not changed my mind.
I challenge any government member to look in the face of a struggling overtaxed and overextended constituent and defend the ultra-luxurious pension plan. I further challenge government members to defend Bill C-85 and the so-called amendments contained in the legislation.
The member for Glengarry-Prescott-Russell can obfuscate, twist and distort the Reform position on MP remuneration. I challenge him to tell a dairy farmer in Cumberland why he deserves the gold plated pension. I bet he hopes no one is watching the theatre of the absurd practised by the member on the issue of pensions.
We are witnessing a serious double standard characterized by greed and complete disrespect for the taxpayer's dollar. On the one hand the government preaches deficit reduction and debt control. On the other hand it introduces Bill C-85 under the guise of reforming the obscene pension plan. In other words, do what I say and not what I do. This is not the kind of leadership Canada needs at this time. It shows a lack of leadership.
The Reform Party supports a pension plan that brings MPs pensions into line with private sector pensions. In my view if the Liberal government vacillates on the issue it will vacillate on every issue. There is a major principle involved and the government has fumbled the ball. Where is its conscience? What does Bill C-85 give us and the taxpayers?
The bill lowers the rate at which benefits accrue. At 4 per cent they are still double the rate allowed for registered plans under the Income Tax Act. The so-called reforms include provisions for virtually full compensation for inflation which certainly does not parallel private sector pension plans. Over 78 per cent of private sector plans have no automatic adjustment for inflation.
The bill's minimum age provision of 55 does not go far enough. Under the Income Tax Act pension benefits must be reduced by at least 3 per cent per year if collected prior to attaining the age of 60 or alternately has 30 years of eligibility or attaining age and years of service totalling 80 years. This avoids that provision of the Income Tax Act.
The legislation before us today will still use the special arrangement called an RCA account to pay members' benefits that are twice as generous as private sector norms. Until this is addressed, the whole bill is just window dressing. I want to see the member for Glengarry-Prescott-Russell sell this to a hard working farmer in his riding who has to save and administer a plan of his own. I have hard working loggers, miners, mill workers, fishermen and business people in my riding. I would not envy trying to sell it to them.
We estimate that long run costs for the new pension plan will be close to 50 per cent of the payroll costs for currently sitting members. A plan the Reform Party could have supported would have had a maximum cost to taxpayers of 9 per cent of payroll.
Again the government is bleeding the taxpayer dry and at the same time selling snake oil to cure the illness. It is deceitful and unfair, especially given that it will not allow opting out for members elected in the next election. The pension scheme will be an issue in three years. We guarantee it.
Many Reform MPs ran their election campaigns promising to come to this Alice in Wonderland place and reform MPs' pensions. It was a solemn commitment to weary Canadians bled dry by greedy governments. The government's response has been to raise MPs' take home salary by reducing the MPs' contribution rate to the pension plan.