Mr. Speaker, it is a pleasure to take part in this debate on the child benefit. It is an issue that is very important for children and families in this country. I would like to congratulate the member for Shefford on her decision to move this motion. On behalf of all my colleagues in the New Democratic Party, I would like to indicate our support for the motion as amended by the Bloc Quebecois.
This motion is clearly an important one for all of us to be debating in this House. It calls for a review of the indexing of the child tax benefit. It is a very important initiative that should be part—and I add, a part—of a number of changes to the child tax benefit and to a whole range of initiatives dealing with children's needs and children's poverty in this country.
It is clear that the child tax benefit will erode over time if it remains partially indexed. A portion of its gains will be lost to inflation each year. The inflation over 3% formula, in operation for more than a decade, means that the value of child benefit declines in real terms by 3% each year as well.
As the member for the Reform just mentioned, it is in fact “social policy by stealth”, as so aptly put by Ken Battle of the Caledon Institute. As my colleague from the Bloc pointed out, the origin of this problem does rest with the Progressive Conservatives. Let us keep in mind that the Tories introduced this negative feature into federal benefits, into the personal income tax system and the refundable GST credit, and it is the Liberals who have continued this policy.
Without a doubt in our mind, this government, the Liberal government today, must move quickly to reindex benefits to inflation to stop this decline.
As I said at the outset, this is about one benefit, one initiative important to our goal, a goal I believe we all hold in common: to reduce child poverty, but it should be recognized as only a beginning. We must have in this country a comprehensive strategy to reduce child poverty that includes specifically setting targets for reducing unemployment.
How can we have a strategy to reduce child poverty unless we reduce unemployment? In fact, no strategy to reduce child poverty can be complete without a real target for reducing unemployment and a will to meet those targets.
Statistically speaking, it should be noted that for every 1% drop in the unemployment rate, 72,000 children can be lifted out of poverty.
There is another element that must be part of any strategy to address child poverty in this country today. That initiative is something that has been promised so many times over by Progressive Conservatives and Liberals in this country in election after election after election and then put on the back burner. That must be raised again to the forefront of our political agenda, and that of course is affordable child care.
The child tax benefit is structured to impel low income mothers into the workforce without providing funding for quality child care options.
The federal government should be ashamed of its decision time and time again to keep this issue on the back burner despite clear commitments, especially in the 1993 election, to ensure that this country would have a national child care plan to provide quality, affordable, accessible spaces for families right across this country.
There is no discussion initiated at present by the federal government around this issue at all. There is no hint of any plans from the Liberal government to strengthen child care as a complement to the child benefit.
How can we address child poverty? How can we assist families cope in these very difficult times unless we make very serious inroads in the provision of such a valuable service for this country?
The statistics speak for themselves. For all the time the Liberals have been in power and failed to keep their promise on a national child care plan, failed in providing a meaningful social assistance program in this country and failed in so many other respects, in that time 200,000 more children have fallen below the poverty line.
More and more families, especially single parent families headed by women with small children, are struggling on a day to day basis and falling further and further behind.
It is absolutely imperative for this House, for this Parliament to look at the child benefit in a much bigger context. The $600 million in new federal spending announced in the 1997 budget is only a drop in the bucket compared to the billions of dollars the federal government spends on other programs, the additional billions the federal government hands out in tax expenditures and the $7 billion Ottawa has cut from federal social transfers to the provinces under the CHST.
The national child benefit, however important, does not really offer any new gains. It merely substitutes ground already lost. As a result of a decision in the late 1980s to partly remove inflation protection from the existing child tax benefit, its value has been eroding by up to $150 million a year.
The government's announcement of $850 million down payment or $600 million in the new federal spending will only serve to bring poor families closer to where they were when the Liberals took power in 1993.
Many of the provinces today are pushing for a further commitment of $2.5 billion into the fund by the year 2000. Certainly it is our hope and I hope the hope of many other members in this House that this government, the Liberal government, will move ahead with such a commitment.
Without a commitment to a comprehensive anti-poverty agenda, the child benefit is but a band-aid solution that actually acts to depress wages and further marginalize poor people.
Children are poor because their parents are poor. Eliminating child and family poverty will require a concerted effort on all our parts. It will require and demand a comprehensive strategy from the federal Liberal government that would include many essentials, that would include job creation, housing, child care, training and post-secondary education.
We have no hesitation in supporting the motion today, particularly as amended by the Bloc to ensure full indexation of the national child benefit. However, we want to register our concerns about the absence of a comprehensive strategy from the Liberal government and use this opportunity to call on the government to come forward with a meaningful comprehensive strategy.
We must act now in order to put Canada back on track to meeting the all-party goal, members will remember, introduced in this House in 1989 by the then NDP leader Ed Broadbent, a goal that said we must end child poverty by the year 2000.
Well, we are awfully close to the year 2000 and we have only seen child poverty worsen in this country. It is getting more serious with each day that passes because of a failure on the part of our national government to take up this issue and put in place a comprehensive strategy that gets at the roots of the problem.
Let us use this opportunity today to recommit ourselves to that goal to eliminate child poverty from this country as quickly as we can.