Merv Tweed

[Pooled Registered Pension Plans Act, June 7th, 2012]

Mr. Speaker, I am pleased to stand and speak to Bill C-25.

I would think that all members of the House would see this as a benefit to all Canadians, particularly, as previously stated, the self-employed, small and medium-sized businesses and organizations that are probably too small to have their own plan but would like to offer another form of investment in the people they employ and an opportunity for people to grow within that company and stay with it based on the fact that they would have a plan at the end of the day that provides for their retirement.

As many are aware, our government understands the importance of a secure and dignified retirement for people who spent their entire lives building a better and more prosperous Canada and for their families themselves. This legislation would take Canada's retirement income system one step further by helping more Canadians realize their retirement goals.

A lot of work was put into developing this proposal. Canada's retirement system is strong but that does not mean it cannot be improved, that we cannot offer enhancements to pick up those individuals outside of the circle and offer them something better and an opportunity to invest for their retirement. This legislation addresses exactly that.

We all have memories of the crisis of 2008 and how it brought out concerns with regard to retirement. We all asked ourselves if our pension would be adequate, if we would be able to retire in the style we choose. I suspect upon reflection many people found they would not be able to. Things changed dramatically after 2008. If people were in the stock market or in RRSPs or in any type of investment, they took a hit. There is no question about it. The proposal we are putting forward would address that.

We did not do this blindly. We did it through co-operation and discussion with provinces and finance ministers across Canada, with people in our communities and, as the previous speaker mentioned, small business people. I was a small business person too. We always looked for opportunities to provide our employees with better security and better programs. Quite often we had to make the decision that we could not afford it.

This would address many of those issues. As I said, we did not do this blindly. We did it with a lot of consultation. We are trying to provide Canadians with an adequate standard of living upon retirement, and that is what everyone wants.

During the consultation period we found out that modest and middle income Canadians risked facing retirement with insufficient savings. Of particular concern was the declining participation in employer-sponsored RPPs. The proportion of working Canadians with such plans declined from 41% in 1991. Canadians are not taking full advantage of other retirement saving tools, like the RRSP.

I have been told that there is $600 billion in unused RRSP room. That is a clear indication that Canadians have priorities, and their families are their priorities. Sometimes we make those decisions and forget about the future. We need to always be aware of that and have that in our view.

With these findings, our government went to work on behalf of Canadians. We consulted, we met with provincial and territorial counterparts and held discussions with many businesses and we came to today's legislation.

In short, PRPPs are a new, innovative, privately administered, low cost and accessible pension option to help Canadians meet their retirement goals.

PRPPs are particularly important and significant for small and medium-sized businesses. It is quite often unaffordable for business owners to provide these types of benefits. The bill would give them that opportunity, because it would enable owners and employees alike to have access to a large-scale, low-cost private pension plan for the first time. We basically would piggyback on larger corporations. We would get a better buy-in and we would get a better return because of the pooled funds.

Professional administrators would be subject to a fiduciary standard of care to ensure that funds were invested in the best interests of the plan. That is obviously a given, but I think it needs to be said.

By pooling pension savings, PRPPs would offer Canadians greater purchasing power. Basically, we would be buying in bulk. We would be getting a bigger, better deal for less money. By achieving lower prices than would otherwise be available to Canadians, it would mean more money left in the pockets of those same Canadians when they retire.

The design of the plan would also be straightforward to allow for simple enrolment and management. People in small and medium-sized businesses, the self-employed, I suspect, and the employees themselves will like the simplified form.

Finally, they are intended to be largely harmonized from province to province, which further lowers administrative costs and makes the transferability a lot easier to deal with.

Overall, these design features would remove any of the traditional barriers that might have kept some employers from offering pension plans to their employees.

It is my belief that this would lead to a greater willingness for small and medium-sized businesses to offer PRPPs. That is crucial. It is crucial because, incredibly, more than 60% of Canadians do not have a workplace pension plan. That is a huge number. When the members opposite look at it and talk to their friends, they will see it would include a lot of the people who support them and work with them in their day-to-day lives, and it is important that we try to include them in the discussion.

With PRPPs, participation would be encouraged by automatic enrolment of employees into a PRPP where an employer offered one. The automatic enrolment would encourage regular savings by making participation the default choice of employees who do not actively make a decision to opt out.

I remember the best advice I ever received as a young person entering the workforce in a family business was from a financial advisor who told me to just take a little bit off my cheque every month as I would never miss it. Then, as I grew older and my needs changed and my income earnings changed, I could increase it. It is the best advice I have ever received and the best advice I have ever given my children or their friends.

Canada's finance ministers decided to proceed with the PRPP framework precisely because it was considered an effective and appropriate way to target the modest and middle-income individuals who may not be saving enough for retirement, particularly those who currently do not have access to an employer-sponsored pension plan. These PRPPs would strike the right balance.

I know that if the NDP members had their way they would double CPP benefits and increase payroll taxes on small and medium-sized businesses, but that is not the way this government operates. At a time when Canada's economic recovery is still fragile, imposing a job-killing tax on the creators of those very jobs would be simply irresponsible.

PRPPs would be an efficiently managed privately administered pension plan that would provide greater choice to employers and individuals and promote pension coverage and retirement saving.

Once the provinces put in place their PRPP legislation, the legislative and regulatory framework would be operational. This would allow administrators to develop and offer plans to Canadians and their employers. Working together with the provinces, I know and I am confident that we can get these important new retirement vehicles up and running for Canadians in a timely manner.

It is important to remember that PRPPs would not just stand by themselves. They would be part of a bigger picture, part of Canada's retirement income system. We must always remember that. This bill is designed to help the many who do not qualify or are unable to have a pension plan within the confines of where they work. I know the Minister of State for Finance has gone to great lengths to listen to Canadians and to hear what they asked for and what they need. I believe this bill responds to their needs in a very positive way.

I encourage all Canadians and all members of Parliament to support this legislation.

[Business of Supply, May 31st, 2012]

Mr. Speaker, I can relate an experience as recently as last week in my community.

I met an employer who is looking for heavy-duty welders. He came up to me and said, “What a great idea. Now I can actually have a pool that I can apply to, to find the qualified person who has the qualities I want in my job and at least have the opportunity to present my offer to him”. Before, they never had that. Also, “I'm an unemployed person with those qualities. I also have access to that same pool to put my name forward and put it out into the job market.”

I cannot think of a better way for people to connect and a better way to create an opportunity for people to get jobs.

[Business of Supply, May 31st, 2012]

Mr. Speaker, the bottom line is that if people want a job or are looking for one, there are several avenues they can take. In today's world, technology is not just the Internet. We have phones. We can access information through many sources, and we do.

The challenge from the government is to make sure as many of those sources have that information, so when people are looking for employment or people are looking for employees, they can access a pool that would tell them where these people are and provide them with the opportunity.

As a former self-employed person who employed many people, if I wanted to find somebody in this country to work for me, I would not hesitate to go out and find them. That is what we need people to do. And we need people who want to work to have access to that pool, as well.

[Business of Supply, May 31st, 2012]

Mr. Speaker, every part of Canada is different. Every part of Canada has different circumstances.

We have said very clearly that in situations where there is no opportunity to find that second job or that interim job, the employment insurance program will be there.

Unlike that member across the floor, we as a government will not tell people where they have to go and work. We will not tell people; we will simply make it available to the employers and employees that these opportunities exist. We would encourage them to fulfill that and take advantage of it.

[Business of Supply, May 31st, 2012]

Mr. Speaker, I will be sharing my time with the member for Saskatoon—Rosetown—Biggar.

Our government cannot support a motion that is factually incorrect. The changes we are introducing would ensure that Canadians are always better off working than not.

By accepting a reasonable job under the new definition, Canadians would actually increase their income from what they were collecting on EI, and in many cases that increase would be substantial. That is why our government is investing in connecting Canadians with jobs in their local labour markets.

These fair and reasonable measures announced a week ago today by my hon. colleague the Minister of Human Resources and Skills Development would help Canadians return to work more quickly. This would help address the growing skills and labour shortage in Canada by helping Canadians who want to work get back to work. These are necessary changes to ensure the EI program is working more effectively for Canada and for Canadians.

Thanks to the strong leadership of the Prime Minister and the Minister of Finance our economy has created 750,000 net new jobs since the end of the recession.

At the same time, we recognize that there are Canadians who are having difficulty finding work, particularly in the off-season in parts of the country where much of the economy is based on seasonal industries. Our government is committed to helping these Canadians find jobs they are qualified for in their local labour markets.

But for those individuals who live in areas of high unemployment and are unable to find jobs, the employment insurance system will be there for them, as it always has been.

These EI improvements are only the most recent in a series of economic action plan measures we have introduced to support jobs, growth and economic development. One of the programs that helped us achieve this economic success is the work-sharing program. I have had experience with that in a previous life, in my business experience. It has made a difference to both employees and employers alike in helping them survive the ups and downs of economic recovery.

Through the economic action plan, the Conservative government made the work-sharing program more accessible and extended its duration to help minimize the effects of the economic downturn on Canadian companies and their employees.

Since February 2009, more than 300,000 Canadians have benefited from the work-sharing program under the more than 11,000 agreements signed with employers.

How does it work? Work-sharing helps businesses avoid temporary layoffs when facing a reduction in the normal level of activity that is beyond their control. A good example would be manufacturing jobs, where economic slowdowns mean orders dry up unexpectedly. If workers agree to a reduced work week while their employer recovers, they may receive EI benefits, effectively allowing two or three workers to share one job but to still have their job.

Employers are able to retain their skilled employees and avoid the costly process of recruiting and training new employees when businesses return to normal levels. Employees keep their jobs and maintain their skills, all the while supplementing their wages with EI benefits for the days they are not working. They have helped their employer stay in business and stay open in the community, and they have not had to sacrifice their take-home pay.

This is the type of well-functioning program Canadians have come to expect from this government and it is a win-win for everyone involved.

Unlike the divisive politics of members opposite who try to pit one region of Canada against another, our government believes in programs, such as the work-sharing program, that are equally available everywhere in Canada, and that is important to note.

There are plenty of success stories that highlight how effective this program is, and if I may, I will share a couple.

Mascot Truck Parts, based in Ontario, was founded in 1936. The company has evolved over the past seven decades to become one of the largest heavy-duty specialists in North America, applying its expertise to rebuilding all makes of transmissions, differentials and steering gears.

The economic downturn hit the manufacturing and automotive industry hard and this had a major impact on Mascot. To avoid layoffs and keep the business running, the company signed a work-sharing agreement that began in August 2009 and ended in July 2010. It allowed Mascot Truck Parts to keep 107 employees and avoid laying anyone off when it was affected by the downturn.

In Alberta, there is a 475-person company called Standen's Limited that benefited from a work-sharing agreement between March 2009 and May 2010. The company manufactures heat-treated alloy steel products, such as leaf springs, tillage tools, trailer axles and other speciality products used for heavy-duty agriculture, transportation and light military vehicle applications.

The business exports internationally to the U.S., South America, Australia, New Zealand and China. When the downturn started to affect its bottom line, Standen's was able to keep its original staff on the payroll. Thanks to work-sharing, the business was staffed up, ready to roll when product demand resumed.

I have given two concrete examples of an effective EI program that works. The measures we introduced to support job growth and economic recovery have given us the strongest job growth numbers in the G8, something we should all be very proud of.

As Canada continues to move out of the recession, the Canadian labour market is shifting from one where we needed programs like work-sharing to one where there is a skills and labour shortage. With this evolution, our government is removing the disincentives to work that exist within the EI system to ensure we can match Canadians with available jobs in their local labour markets that are appropriate to their skill sets.

The communities I live in and represent in Brandon—Souris, Manitoba, are right now exemplifying exactly what is happening. We have a high demand for skilled labour, and unfortunately those people are not available within our region. I am not saying people should have to move, but if they choose to, Brandon—Souris is a great place to come and live, and the job opportunities are plenty. I would compare the lifestyle to any other part of Canada.

In closing, I urge my hon. colleagues to support our measured and reasonable changes to the employment insurance system. It is for this reason that I cannot support the opposition motion today.

[Petitions, May 14th, 2012]

Mr. Speaker, I am pleased to present, on behalf of constituents of Brandon—Souris and many others in western Manitoba, a petition respectfully requesting the House of Commons not to introduce any legislation that would restrict either the right or access to abortion services in Canada.

[Jobs, Growth and Long-Term Prosperity Act, May 11th, 2012]

Madam Speaker, I listened to my colleague's comments. I have heard it repeated over and over again. I am not sure if the thinking is that the more often it is said, people will start to believe it.

I have a very simple question for the member. She talked about the new prisons being built in Canada. I have searched everywhere and I am not having any luck finding a new prison. I wonder if she might be able to provide us with the address.

[National Defence, May 11th, 2012]

Mr. Speaker, after the Liberal decade of darkness, our Conservative government has re-equipped the Canadian armed forces. After years of Liberal neglect and NDP indifference, our military is finally getting the tools it needs. I am proud of our government's record, and we do tell Canadians about these investments.

Today there is a media report on the new armoured engineer vehicles that suggests the government should have communicated its intentions to Canadians. Can the minister confirm that this was done, and when?

[Jobs, Growth and Long-Term Prosperity Act, May 11th, 2012]

Mr. Speaker, my colleague also chairs the agriculture committee. He has been doing a great job in that area. I know the committee is reviewing some of the programs that have worked in the past and looking at what to put forward for the future.

I also know recently there was an announcement to encourage young people to get back into the field of agriculture. Would my hon. colleague elaborate on that please?

[Jobs, Growth and Long-Term Prosperity Act, May 10th, 2012]

Mr. Speaker, I too have experienced some of the devastation of the current government in Manitoba.

It is interesting that the member for Churchill would raise the issue of support for rural communities and rural parts of Manitoba. We have gone to great lengths to improve the conditions in Churchill, particularly with the port, and to improve economic activities.

Would the member comment on that and perhaps even elaborate further as to why the member for Churchill would vote against such an opportunity for her own community?