Madam Speaker, yesterday we had cowboys on this side of the House and today we have horsemen on that side. I feel quite comfortable on this side with the cowboys.
I will begin by thanking some people from my riding who came to see me last Friday to discuss this bill. They are five retired gentlemen who are involved in this pension fund. They were very concerned about the speed by which this was being put through with very little debate, and that the government was using closure to force it through. They would have liked a little more time for input to their members of parliament and to ask the government to reconsider.
I am also here today representing the people of Lethbridge, home to, among others, hundreds of people who will be affected by this legislation. This legislation, Bill C-78, is nothing but a bald-faced attempt by the Liberal government to continue its tax and spend policies on the backs of Canadian workers and taxpayers.
The act has been controversial from the day it was proposed, and rightfully so. What the government is proposing to do is underhanded and displays a flagrant disregard for the hard-working men and women who have helped the federal government finally land back on its feet after nearly collapsing under the weight of years and years of unethical free spending policies of successive Tory and Liberal governments.
The government has reached new lows using all the procedural tricks in the House to push the bill through the House and through committee, showing a blatant disrespect for the democratic traditions of the House.
The bill will affect the following three pension funds: the public service pension plan; the Royal Canadian Mounted Police plan; and the Canadian Forces plan. The gentlemen who came to see me last Friday are in all three of these plans.
The bill will give the government authority to seize the $30 billion surplus that exists in these plans and establish a public service pension investment board to invest the public sector pension funds in the markets. It will increase the employees' premiums from 30% to 40%. It will sweeten benefits for employees and retirees and will allow the Canada Post Corporation to establish its own pension plan by October 1, 2000.
The government in its usual way is assuring Canadians and pensioners that this is a much better method of safeguarding their money because, after all, if we cannot trust our government who can we trust.
It sounds very sugary, but the Canadian pensioners are not buying this line of government propaganda. Canadians of all political stripes, of all backgrounds and of all ages are banding together to tell the government one thing: “Keep your hands where we can see them and stay away from our money”.
It warms my heart to see Canadians of all kinds, weary of years of Liberal oppression, uniting together to demand an alternative. I want to tell all those opposed to the government's actions that they have friends on the benches of the official opposition.
I want to invite all Canadians who want a national government that will deliver lower taxes, better health care, greater democracy and a stronger federation characterized by a rebalancing of powers and equal treatment under the law to come join myself and my colleagues. Together we will deliver responsible government that cares, a government that listens to the people instead of telling them how it will be.
The first reason I oppose the bill is because it allows the federal government to continue its sleight of hand budgeting shell game. Even the Auditor General of Canada will not sign off on the government's budgets because of its bookkeeping methods.
The three funds contain a surplus of over $30 billion, money that has been contributed to the funds by the workers and by the taxpayers. This massive surplus has accumulated so quickly for several reasons. In order to explain this I will explain the basics of what affects the value of a pension fund.
A pension fund's value turns on three critical factors: interest rates, inflation and salary increases. The key reason for the size of the surplus was that actuaries assumed that wages would grow at 2% above the rate of inflation when in fact they have been frozen for the last six years.
That is another thing. A lot of people who worked for the government and who have retired in the last few years have had their wages frozen for six years. The settlement that they reached just a few weeks ago was not any great shakes after six or seven years of being frozen.
Since salaries were frozen, inflation was no longer a concern. The fund also grew because of the heady interest rates from the 1980s. The 20 year government bonds held by the funds have been providing handsome returns for the last five to ten years of relatively low interest rates.
Undoubtedly this is an enviable position to be in, as $30 billion is a huge amount of money. However, it goes without saying that when there is money involved there are bound to be two sides of the story.
The unions are telling Canadians that this money belongs to the civil servants who contributed to the fund. The government is telling Canadians that this money does not belong to the workers and it does not belong to the taxpayer, that it belongs to the government and the government alone.
The government does not feel that this money belongs to the workers alone because it alone was on the hook when the fund ran a deficit so it feels solely entitled to the surplus.
The gentlemen who came to see me last Friday pointed something out to me, and it is stated in some of their documents, that this indeed is a bit of a red herring that the government is trying to float.
However, what the government so easily forgets is that it does not have any money of its own. This is money that belongs to the taxpayers. It was the taxpayers who had to kick in when the government found itself $13 billion short, so it should be the taxpayers who benefit here.
Taxpayers will not benefit by having this money forfeited to the federal government.
The federal government has proven over and over again that it is not to be trusted with taxpayers' money. For all we know, this money will be used to print more joke books or to give away more free flags. Even today on the front page of the paper there is another story of some $50,000 or more going to a project that did not deserve any government or taxpayers' money.
This surplus should stay right where it is, away from the clutches of the government, right where the taxpayers can see it and readily available should any shortfall occur again.
There is another reason for opposing this bill. Part of the sugar-coating the Liberals are using to slip this bill past the public is that they are sweetening the benefits for employees and retirees. The bill states that survivor benefits are extended to an expanded class of beneficiary. The bill will extend benefits to the survivors of a so-called conjugal relationship, which sounds fine, but it becomes a little tricky when one tries to define what is a relationship of a conjugal nature. Is it a relationship between a man and a woman in the traditional family sense of the word? Does that include common law relationships between a man and woman? Does it include relationships between cohabiting same sex partners? Could it include two roommates? This bill could cover any of these situations, but it does not clearly define what is a conjugal relationship. Even if it did, how would a government prove whether a relationship is conjugal in nature?
Is this government, the party that is most famous for saying that it will stay out of the bedrooms of the nation, now going to hire private investigators to determine whether a relationship is conjugal? This is absolutely absurd. Without defining what conjugal relationships are, Bill C-78 survivor's benefits provisions could be subject to all kinds of litigation from individuals who deem their relationships to be of a conjugal nature.
My time is limited, but I would like to conclude by stressing one last point. Taxpayers are the odd man out in this debate. When these pension funds were created the government structured the funds in such a way that employees paid a combined 7.5% of their wages for their pension plan and the government's Canada pension plan. However, after years of successive CPP increases, with more to come, brought on by years of government mismanagement and neglect, the employee contribution to the pension fund slipped to 30%, with the government picking up the other 70%.
It was because of this mismanagement that taxpayers were forced to kick in $13 billion recently to cover shortfalls. In addition to that $13 billion, the government has taken an additional $10 billion by not making interest payments on the actuarial surplus of the fund. To anybody else this amounts to highway robbery, but to the Liberal finance minister it is called being fiscally prudent.
The government is about 30 years late in breaking the linkage between the CPP and pension plan contributions. It has already cost the taxpayer over $20 billion. It is high time that the taxpayer is shown some respect. It is because of this flagrant disrespect shown to the taxpayer and because of the extraordinary contempt that the government holds for the traditions of democracy that the Reform Party cannot support this bill.
As we work through this we must remember that this bill has been rammed through the committee with very little chance for comment and it is being rammed through the House.
The hon. member from Mississauga earlier said that there were only 15 amendments. I have a list showing 51 amendments on a bill that has 200 clauses. That represents one out of four clauses which opposition parties felt needed to be amended. As well, it is a tragedy that the government has brought in closure over 50 times.