Mr. Speaker, I will be splitting my time with the member for Niagara West—Glanbrook.
I welcome this opportunity to discuss government measures for the protection of seniors. I fully support the sentiment of the hon. member for Hamilton Mountain that older Canadians are creative, active and valued members of our society. In the actions that the government has taken, we have demonstrated our commitment to ensure that they have the respect and dignity they deserve in their senior years. We are moving on a number of fronts to address their concerns.
It is well known that Canada's population is aging at an unprecedented rate. In fact the number of seniors in Canada is expected to double in the decades to come. We are therefore now putting in place measures to ensure that policies, programs and services meet the evolving needs of today's seniors and those of tomorrow.
Today I would like to focus primarily on financial security. The hon. member has raised the very important issue of income security for older Canadians. Canada's retirement income system is recognized around the world as one of the best. Today more than four million seniors receive old age security benefits and three million receive Canada pension plan retirement pensions. As well, the guaranteed income supplement, the allowance, and the allowance for the survivor provide an additional income to 1.6 million low income seniors.
This government will ensure that old age security and the Canada pension plan remain fundamental guarantees of income security for seniors in their retirement years.
The Canada pension plan and old age security will be offered to seniors now and in the future. As the chief actuary said, Canada is one of those rare countries that can count on a secure public pension plan. He added that the 9.9% contribution rate will be enough to sustain the Canada pension plan for at least the next 75 years.
He also said that the old age security program remains viable and affordable for the Government of Canada. We can be particularly pleased with the fact that in his report he predicts less dependence on support benefits by low-income persons because of the higher incomes of seniors to come. Canadians can be assured that this financial support is here to stay.
Many people probably do not know that funding the Canada pension plan and old age security is one of the major expenses of the Government of Canada.
In 2004-05, some $51.6 billion was paid out as direct income support to seniors, which is $23.8 billion for the Canada pension plan and $27.8 billion for old age security.
For the most part, thanks to these programs the senior population living in poverty has gone from 21% in 1980 to 6.8% in 2004, which is the lowest level of all time.
Yet, despite the success in reducing poverty among seniors, there is always more to do. To assist them the government has the guaranteed income supplement which provides some 1.5 million low and modest income seniors with financial support. Payments from the GIS total more than $6 billion annually.
This government is committed to helping Canada's seniors who built this country and the future seniors who are now building on this foundation.
In budget 2006 we have taken positive steps to fulfill our promise that seniors will be able to keep more of their hard-earned savings by doubling the maximum pension income amount that is eligible for a federal tax credit from $1,000 to $2,000 per year in 2006. This measure will benefit nearly 2.7 million taxpayers with pension incomes. It will also benefit low and modest income seniors as some 85,000 pensioners will no longer have to pay income tax and will be removed from the tax rolls.
Furthermore, as part of our commitment to the continued viability of Canada's retirement income system, the federal government will discuss with the provinces and territories the possibility of allocating part of future federal surpluses to the Canada pension plan and to the Québec pension plan. This is one of our ways of offering an acceptable level of economic well-being, as the hon. member said so well.
In order to ensure there is accountability for how seniors are treated and to ensure seniors have a voice in government policy decisions, our government will appoint a national seniors council. This council will be made up of seniors and representatives of seniors organizations to advise the minister responsible for seniors on significant issues affecting them.
This government is sensitive to the needs of senior Canadians. The budget addresses financial issues. We have a secure pension system and, through our seniors council, we will be creating a forum for seniors' views to be heard. These are the areas I have focused on but I would like to mention that the government's commitment in health care, affordable housing, public transit and in safety and security also address the particular needs and concerns of seniors throughout the country.
In addition, through Human Resources and Social Development, Canada's seniors secretariat, we work with the provinces, territories and many other partners to promote the well-being of seniors across the country. Through our host of programs, seniors can share their creativity and wealth of talent in helping to build vibrant communities and a stronger Canada.
While I respect the hon. member's good intention in the proposal raised today, I can assure the House that in this month of June, celebrated as Seniors Month in many parts of the country, and in all the other 11 months Canadians can be confident that this government will protect the interests of seniors.