Mr. Speaker, I thank my colleague from Terrebonne—Blainville for sharing her time with me and for an excellent speech. There were good points, it was well argued and it was an important message from our new generation of NDP MPs.
It is useful, as we enter into a debate on the old age security regime in this country, to pause and reflect on some of the steps that got us to the position we are in. I am very proud, as an NDP member of Parliament, to take up the cause of defending the integrity of our old age security system, as has been our function and role throughout much of the last century.
I represent the riding of Winnipeg Centre, which is home to two of the greatest champions of social justice, I might say, that this country has ever known. In 1921, the Government of Canada wanted to send J.S. Woodsworth to prison for his role as the leader of the 1919 general strike but the good people of Winnipeg Centre sent him to Parliament in Ottawa instead and he stayed there until his untimely death in 1942.
I raise that subject because, only three years after J.S. Woodsworth arrived in Parliament, the prime minister of the day, William Lyon Mackenzie King, was in trouble. He was going to lose his government and needed the coalition support of what J.S. Woodsworth called the ginger group at the time, the Independent Labour Party. Woodsworth negotiated with Mackenzie King a deal, a condition, a compact, a coalition so to speak. The very art of politics is forming compacts, coalitions and agreements. Woodsworth went to Mackenzie King and said, “If you agree to introduce an old age security regime, I will support your government”. That was the birth of the Canadian old age security system. We have that letter on file at NDP headquarters. It took Mackenzie King a long time to live up to his promise but he indeed did introduce old age security.
When J.S. Woodsworth passed away, he was replaced by the man who is known as the father of the Canadian pension plan, Stanley Knowles. Stanley Knowles represented my riding from 1942 until his stroke in 1984 made it impossible for him to continue. He served continuously, except for the Diefenbaker sweep of 1957. During that time, he was not only the undisputed champion of the Canadian pension plan but he fought and fought to introduce it and the old age security system. There are famous speeches on record that people published in their entirety and circulated across the country as this movement gained momentum. He did not stop fighting until he managed to have the old age security pension indexed to inflation as a secondary objective. This took his entire career but it was his proudest achievement and perhaps one of the most proud achievements of the NDP.
It always seems to fall to us to defend the integrity of the pension system, which has been under continuous assault by successive Conservative governments that do not fundamentally believe in this type of universality of old age security systems.
We can trace what is going on today with the terrible notion that the Prime Minister of Canada would announce fundamental social policy changes in a speech in a foreign country. We can trace it back, or I do at least, to the musings of the unofficial prime minister of Canada at the time, Thomas d'Aquino, the chief executive officer of the Canadian Council of Chief Executives. Mr. d'Aquino had a checklist of things he thought Canada needed to do that consisted of 10 or 15 items. One by one he was checking them all off and one of them was, which he announced quite publicly, that Canada had to get out from under the crippling legacy costs.
Nobody really paid too much attention because the term “legacy costs” did not ring any bells. What he meant was pensions. Sure enough, the right wing think tanks started to fall in line and also blame pensions for all of our economic woes. There was no mention of the fact that corporate tax cuts had taken over $100 billion worth of fiscal capacity in the two last governments, the Martin regime and this one.
Even when General Motors and the big auto companies ran into trouble, nobody said that maybe people were not buying their cars because they were making models nobody wanted. Immediately they said that the reason they could not function was because their legacy costs were too great, that they had to get out from under their pensions.
With this notion of never let a good crisis go to waste, they started to segue from the real root cause of their industrial woes and blamed it on this notion that we deserved to retire in some dignity and that we could take seniors out of poverty.
We have three pillars to our old age security system. One is personal savings, whatever one can save and invest during one's working life. Second, hopefully one has a pension through one's workplace, although that is becoming a rarity because of this full frontal assault by the right on the very notion that workplace pensions are possible. Third, is a robust universal government-sponsored pension plan.
The government would have us believe that there is something luxurious and comfortable about the pension system as we know it, the OAS and GIS. In actual fact, when compared with other countries, the replacement of earnings in retirement does not come anywhere close to a lot of western developed nations. It is really quite a modest system.
We have seen this assault on pensions and on the notion of pensions gaining validators and momentum, or currency. In fact, some experts in the field challenge whether it is an emergency at all. Yes, there is a demographic blip, but we would have had the fiscal capacity to provide were it not for the choices made by successive Liberal and Conservative governments to hollow out that fiscal capacity. However, we seem to be able to find money to spend in corporate tax cuts. Let us not kid ourselves. When $6 billion in corporate tax cuts is granted, that is spending money. We argue that is wasteful spending of money, and we believe that has been validated.
The logic was that if we gave those tax cuts to corporations, they would spend that money in the economy, create more jobs and a virtuous cycle would begin. In actual fact, they have been hoarding that money away. Our worst fears are realized. They are stacking it up and stockpiling it like Scrooge McDuck in the comic books, rolling around in their piles of dough but they are not reinvesting. There is no empirical evidence to prove it.
Not a single study in the world has ever proven that a tax cut equals more jobs. The only predictable and verifiable outcome of a tax cut given to companies is that they will have more money and greater profits. That is what was done. It was a transfer of wealth.
In the richest and most powerful civilization in the history of the world, the government cannot tell me that we cannot afford to lift every senior citizen out of poverty.
Our former leader, Jack Layton, costed this out and we ran on that as a platform. Instead of the $6 billion for corporate tax cuts, we could spend $1 billion of that and all 250,000 seniors, who are currently below the poverty line, would at least get to the poverty line. They would not be wealthy, rich or even comfortable. They would still be poor, but out of the depths of abject poverty. That is the cost and it is achievable, yet we go in the opposite direction.
Again, in the spirit of never let a good crisis go to waste, the Conservatives are cutting, hacking and slashing upon ideological lines just as we predicted they would. They are coming up with these dummy saving accounts to offset it. Bill C-25, the bill we were forced to vote on yesterday, is nothing but a 401(k). The only ones who will get rich on that are the stock brokers who will charge a commission every time that money is moved around. It is a 401(k), the Americanization of our pension regime.
We are here to defend the integrity of the old age security in the spirit of Woodsworth and Stanley Knowles. The NDP is proud to present this motion today to flush out the enemies of the public pension system, to denounce them and hold them to account so they will not get away with this. There will be a blue rinse revolution in this land if they proceed in this way.