Kellie Leitch

[Resumption and Continuation of Postal Services Legislation, June 21st, 2011]

Madam Speaker, with respect to the back-to-work legislation, Labour Canada has worked diligently, as has our minister.

Since January 31, Minister Raitt has supported the parties in their negotiations by appointing a conciliation officer and a mediator. Over the past five months, proposals and counter-proposals were exchanged. However, the parties are still far apart and no agreement has been achieved.

While a negotiated settlement is always preferred, the consequences of work stoppage extend far beyond the parties themselves and the economic impact of the dispute can no longer be tolerated. Canada has weathered a global economic crisis and it is the federal government's responsibility to intervene in these unique circumstances.

Given the lack of progress of these two parties, Minister Raitt tabled our back-to-work legislation which puts in a process to help ensure that this dispute is determined and that the dispute comes to an end so Canadians can get back to work.

[Resumption and Continuation of Postal Services Legislation, June 21st, 2011]

Madam Speaker, we are all disappointed that the parties have been unable to reach an agreement of their own, despite months of negotiation. Nothing in this proposed legislation precludes the employer and the union from entering into a new collective agreement before the legislation is passed. I strongly encourage the parties to return to the bargaining table and send those outstanding issues that they deem appropriate to voluntary arbitration in order to resolve this dispute now.

This is about Canadians. This is about ensuring Canadian businesses, charities and small businesses can get back to work.

[Resumption and Continuation of Postal Services Legislation, June 21st, 2011]

Madam Speaker, I think it is incumbent upon all members of the House to act in the interests of all Canadians.

With respect to the wage increases, the proposed legislation includes wage rate increases consistent with other federal public sector collective agreements. The wage rate increases are the result of concessions in the public sector negotiations that take into consideration the future economic viability of Canada Post.

Canada has weathered an economic crisis and it is the federal government's responsibility to intervene in this unique circumstance to ensure the effects of this strike do not cause further negative impact on the Canadian economy, including its consumers, its charities and its businesses.

[Resumption and Continuation of Postal Services Legislation, June 21st, 2011]

Madam Speaker, just weeks ago our government indicated in the Speech from the Throne that our priority remains focused on jobs and growth. We also noted that the global economy remains fragile and risks to our recovery persist.

After many months of collective bargaining and mediation, a labour dispute between Canada Post and more than 50,000 employees representing the Canadian Union of Postal Workers urban operations unit has resulted in work stoppage, an event that, if unresolved, could jeopardize Canada's economic prosperity.

Canadians gave this government a strong mandate to complete our economic recovery. It is my view that the Government of Canada must take decisive action now before further damage is done to our economy.

Our government introduced Bill C-6, An Act to provide for the resumption and continuation of postal services. The measures in this proposed legislation are in response to an extraordinary situation facing Canadian families, workers and businesses.

For many Canadians Canada Post remains a vital part of how we connect to each other, even in this digital age. It is also an important part of small and large businesses across Canada. Reliable postal services aid in putting money in the pockets of families and Canadians in need. They play a role in how bills get delivered and paid on time, and ensuring that parcels arrive at their destinations.

As we can see, there is far more at stake here than just mail delivery or good labour relations between Canada Post and its unionized workers. As a result of this long-simmering labour dispute, this has now become a matter that puts Canada's fragile economic recovery on the line. That is a risk that Canadians do not want to take, nor is it one that they should have to endure. They are counting on the Government of Canada to act and that is why we introduced this proposed legislation.

I will take a couple of minutes to outline the intent of this bill, along with the proposed economic risks entailed by this work stoppage. I will also explain why it is important that we take decisive action now rather than wait any longer.

This act would provide for the resumption and continuation of mail services at Canada Post. It would bring to an end the growing uncertainty that has characterized so much of this dispute for the last several months. The act would also impose a four year contract and new pay rate increases. It would mean a 1.75% increase as of February 1, 2011, 1.5% as of February 2012, 2% as of February 2013, and 2% as of February 2014. It would also provide a final offer selection, a binding mechanism on all outstanding matters.

Furthermore, in making the selection of a final offer, the arbitrator is to be guided by the need for terms and conditions of employment that are consistent with those in comparable postal industries and that will provide the necessary degree of flexibility to ensure the short and long-term economic viability and competitiveness of the Canada Post Corporation, maintain the health and safety of its workers, and ensure the sustainability of its pension plan.

The terms and conditions of employment must also take into account: first, that the solvency ratio of the pension plan must not decline as a direct result of the new collective agreement; and second, that the Canada Post Corporation must, without recourse to undue increases in postal rates, operate efficiently, improve productivity, and meet the acceptable standards of service. It is a decisive approach aimed at resolving this labour dispute. While the measures it calls for are not an ideal way of resolving this dispute, it would do what is necessary to safeguard Canadian families, businesses, seniors and workers.

Some might argue that we should wait, that we should let collective bargaining run its course no matter how long it takes. That is unwise. The risks to our economy are too great to ignore. Since talks between CUPW and their employer broke down, our country is now facing a potentially serious situation. Let us be clear about what has happened as a result of this labour dispute at Canada Post.

An integral part of what keeps Canada in business and what puts money in the pockets of many citizens is slowing to a standstill. Ask the small business owners who invoice and get paid through the mail. Ask a company that relies on the mail to issue bills, process orders and receive payments. Ask Canadian publishers and direct marketers whose livelihoods rely on the mail. Ask taxpayers who are waiting for their tax refunds and HST rebates to arrive. Ask citizens in the far north who rely on mail as an essential service of goods, such as prescription eyewear, dental products, drugs, legal documents, and still make payments by mail.

Our citizens cannot afford to be left waiting. They certainly should not be the ones who should bear the brunt of a labour dispute that shows no sign of being resolved through collective bargaining.

As of June 17, the minister received a total of 1,800 letters and email enquiries. Of those, 1,027 requested back-to-work legislation: 692 Canadian citizens; 328 businesses; and 7 charities. The remainder represents 561 employees and 212 citizens expressing concerns.

The Canadian National Institute for the Blind stated:

With 70 per cent of its funding coming from donations, more than half of which arrive through the mail, CNIB is now facing an estimated loss of $250,000 in much-needed funding for this time of the year.

The charity has also experienced $30,000 in unexpected costs associated with communicating its contingency plan to clients, donors and library users.

One stakeholder, a leading provider of integrated mail and document management systems, is requesting a rapid intervention of the government to ensure reliable postal services and supporting the view of Canada Post as an essential service.

Many Canadians are beginning to see the repercussions of a work stoppage and are requesting a government intervention for the resumption of postal services.

It has been nearly 14 years since Canada last had a work stoppage at Canada Post. The numbers speak for themselves. A work stoppage could result in losses to our economy of between $9 million and $31 million per week. The work stoppage at Canada Post is expected to have an immeasurable impact on our economy.

Canada's gross domestic product could shrink by up to 0.21% for every day of work stoppage. That means every day more jobs at risk, more productivity lost, more challenges for businesses and more uncertainty for consumers.

Every other avenue has been tried to help bring a full and lasting resolution to this dispute. Parliament must do the right thing and intervene.

The parties have negotiated for direct collective bargaining from October 2010 to January 2011. When those talks stayed at an impasse, a conciliation officer was appointed. The conciliation period was extended into early May and during that time, the conciliation officer met again with the parties. Throughout the month of May, a mediator from the labour program's Federal Mediation and Conciliation Service met frequently with the parties.

Unfortunately, despite all of these efforts, an agreement between the parties has yet to be reached.

While the best solution may have been the one that the parties reached themselves, we must do what is necessary to protect our recovering economy and safeguard Canadian families, workers and businesses. We must act now to keep the businesses of Canada moving. That is what this proposed legislation would do.

It is my hope that all members of the House will join me in meeting our shared responsibility to Canadians and give this proposed legislation the support it deserves.

[Business of Supply, June 20th, 2011]

Mr. Speaker, as I mentioned before, these seniors have built our country.

In addition to the GIS top-up that we have talked about, this government has made significant investments in seniors: $10 million to increase the funding to the new horizons seniors program; $50 million as a targeted initiative for older workers; and a pooled registered pension plan is a commitment on which the provinces and territories have been working together.

This government is committed to seniors. We have shown that in the past and we have shown it in budget 2011.

[Business of Supply, June 20th, 2011]

Mr. Speaker, as I have mentioned already, the government has been focused on supporting Canadian seniors, particularly low income seniors.

The additional GIS top-up is over $300 million annually and will benefit over 680,000 of our lowest income seniors. It is the most significant increase in a quarter century. When combined with the 2006 and 2007 GIS increases, the government has provided over a billion dollars per year in annual benefits to GIS recipients over and above the regular index.

The GIS top-up was designed to target the lowest income seniors who are the most in need. This includes approximately 460,000 women, many of whom have made a valuable contribution to their families, their communities and Canadian society.

Targeted benefits to the lowest income seniors allow resources to be used effectively. In the current fiscal environment, we believe this is fiscally responsible.

[Business of Supply, June 20th, 2011]

Mr. Speaker, again, this government has done a significant amount for those seniors who have helped build our country. Whether it be pension income splitting, or an increase in the GIS or the increase in the exemption from $500 to $3,500, the government has shown that it supports seniors and especially low income seniors.

In addition to that, we would like to see the true costing of the NDP plan. What are the details for the $700 million plan? We know that is unrealistic and could cost Canadians as much as $2 billion annually. In our current fiscal environment this is truly not realistic.

The top-up for the GIS is more than $300 million annually. It is the largest increase for our lowest income seniors in a quarter century. Will the members opposite support this?

Will the NDP please tell us the costing of its plan? We believe it is $2 billion.

[Business of Supply, June 20th, 2011]

Mr. Speaker, the government is committed to the well-being of low income seniors and we have taken several steps.

The government has increased the GIS by more than $1 billion per year over the last number of sessions. In 2006, we increased the GIS by $18 per month for single seniors and $29 per month for couples. In 2007, we increased it again by the same amount, an increase of approximately $700 million annually. Now, in 2011, we have introduced a GIS top up for those most in need, and I emphasize that, of $50 for single recipients and $35 for each member of a couple. In addition, we have increased GIS earnings exemptions from $500 to $3,500 before paying tax.

We have taken numerous other initiatives, whether that be income splitting for seniors on their pension incomes, or the tax free savings accounts. This government has moved forward on numerous other initiatives in order to support those people who built our country.

[Business of Supply, June 20th, 2011]

Mr. Speaker, again I ask about the NDP proposal and how it would lift seniors out of poverty. The NDP proposal is unrealistic. It would actually cost $2 billion annually, not $700 million as stated by the NDP. In our current fiscal environment this is not realistic.

The top up of the GIS of more than $300 million annually is the largest increase for the lowest income seniors in a quarter century. This will reduce the depth of poverty for seniors living in poverty by over $500 annually.

I would ask the member opposite to give us a specific costing plan so that we can understand how much this would cost Canadian taxpayers.

[Business of Supply, June 20th, 2011]

Mr. Speaker, I congratulate the member for London—Fanshawe on her recent re-election to the House of Commons.

Since this is my first speech since the election and the start of the new Parliament, I will take a moment to thank a few people.

First, I thank the Prime Minister for appointing me as the Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour. I truly appreciate being entrusted with this responsibility. It will be a pleasure and a privilege to work with these ministers.

I thank my family for their ongoing love and support, especially during the election campaign, my father, Kit Leitch, my siblings, Melanie and Michael, and our extended family who provided me with so much overwhelming support.

I also thank every person who worked on my campaign team, especially Ted Rowe, John Hethrington, Charlie Tatham, Sidney Stevenson, Ernie Purkis and Jacquie Noble. Their dedication and support will never be forgotten.

Last, but not least, I thank the people of Simcoe—Grey who put their trust in me to represent them in Ottawa.

The motion by the hon. member for London—Fanshawe calls on the government to take immediate action to increase the guaranteed income supplement, which is exactly what we have done and which is why we will be supporting this motion today.

In the Speech from the Throne, we announced that the low tax plan that our government is committed to implement will include:

A permanent increase in the guaranteed income supplement for some 680,000 of the most vulnerable seniors.

In budget 2011, we have clearly demonstrated that we are determined to contribute to the security of seniors who have worked all their lives to build a better Canada and to be able to retire with dignity. It should come as no surprise to members opposite as this Conservative government announced we would do this in the first budget 2011.

On the campaign trail, the Prime Minister said:

Although Canada has a strong system of support for retired seniors, there are still too many Canadian seniors who experience financial difficulties. A re-elected Conservative Government will ensure that we provide assistance to those seniors most in need, in recognition of the contributions they have made to our country.

That is a promise kept.

In the next phase of Canada's economic action plan, we will enhance the guaranteed income supplement for seniors who depend almost exclusively on old age security and the supplement. As of July 2011, eligible seniors will receive up to $600 a year in extra benefits in the case of seniors living alone, or up to $840 in the case of couples.

This increase will help the most vulnerable seniors, especially widows and single women with low incomes, to make ends meet.

We are talking about the greatest increase in the GIS for the lowest income seniors in 25 years. That is not nothing. Let me also point out that, because of the measures we adopted soon after we took power in 2006, seniors and pensioners have now benefited from almost $1 billion annually in increases in the GIS and will benefit from targeted tax relief of $2.3 billion in 2011-12.

What are these tax breaks? First, we raised the age credit by $1,000 in 2006 and by another $1,000 in 2009. Second, we doubled the maximum amount of pension revenue that is eligible for a pension tax credit, which has gone up to $2,000. Third, we have allowed pension splitting. Finally, we have raised the age limit for converting pensions and registered retirement savings plans from 69 to 71.

As a result of our tax relief measures, 85,000 seniors have been removed from the tax roles entirely. In 2011, a single senior will earn at least $19,064 and a senior couple will earn at least $38,128 before paying any federal income tax.

It is clear that an important dimension of economic well-being for the senior population is the income at their disposal relative to the working population. A good income security system contributes to maintaining the standard of living of seniors and minimizes the risk of poverty. This year almost $70 billion will be paid out to Canadians through Canada's public pension system, which includes old age security and the Canadian pension plan.

The guaranteed income supplement, or GIS, is part of the old age security program. For this program alone, more than 1.6 million seniors received more than $7.7 billion in 2009-10. This is in addition to the $26.4 billion provided to 4.6 million OAS pensioners. It provides extra support to seniors with little or no income and has been instrumental in reducing poverty among seniors in Canada. That is why we have enhanced the GIS benefit by 7%, over and above the cost of living, since 2006.

The numbers speak for themselves. Canada has one of the lowest rates of senior poverty among the countries in the OECD. It is lower than that of Denmark, France, Germany, the United Kingdom and the United States. We are proud that the rate of low income among seniors has steadily decreased from a high of 21.3% in 1980 to less than 6% today. Canadians can take pride in this notable achievement. We have also changed the rules so recipients can earn up to $3,500 without affecting the benefit amounts.

Given that our economy is so fragile, in spite of the recovery, we must limit our spending while keeping tax levels low. In addition, given the aging population and other demographic challenges, there will be significant pressures placed on Canada's pension system in the coming years. We need to be fiscally responsible now to ensure support remains available for those poor most in need.

The $300 million a year increase in the guaranteed income supplement allows us to focus our efforts on those seniors who need it most.

This is a balanced approach. It allows us to help the most vulnerable among us while fostering efforts to boost growth and create jobs.

However, what we have not heard from the opposition is a concrete plan. We see a general concept in this motion, which we will support and believe we have addressed this in the budget, but we do not see a strategy or a costed proposal. Depending on the measure of poverty that is referred to, the NDP may be talking about a $2 billion a year increase in government costs. In an era of fiscal restraint, one is left wondering how we might fund such a program.

It raises a question as to whether we would be perpetually required to increase funding as we chase a relative measure such as the low income cutoff. Using LICO, which relies on an average, requires perfect equality for all income brackets to end poverty.

While we support this motion and we believe we have addressed this issue in the budget, we would like some clarification from the members across on what they are actually using to define poverty, because, as I noted earlier, Canada has one of the lowest instances of senior poverty in the world.

Everyone, including our government, is concerned about the financial security of our seniors.

However, to be effective, we need to target our interventions. It is in this spirit that we brought in the largest increase in the guaranteed income supplement for the lowest of income seniors in 25 years to help those seniors who need it the most.

For the most part, the majority of individuals who will receive the top up are women, women who may never have worked outside the home long enough to build a retirement pension in their own name or contribute significantly to the Canada pension plan, women who have had informal precarious jobs without any social benefits, and women who reach the age of retirement without sufficient private retirement pension benefits even though they have made a huge and valuable contribution to their family, their community and to our society.

We are proud of what we are doing to ensure the financial security of our seniors. Efforts over the past few years to reduce poverty among seniors have borne fruit and the statistics speak for themselves.

We are indebted to the previous generations who built this great country.

We owe it to our seniors to ensure they have a high quality of life and that they can retire in dignity.