Mr. Speaker, I rise today on this issue which I consider to be extremely important.
The motion talks about the harmful effects of the growing income gap fostered by the government's unbalanced economic agenda. It is my belief that this is one of the most important challenges facing all levels of government today. It is probably an issue on which we as leaders in the federal government and leaders in the provincial governments are going to be judged. The situation is serious and I submit it is getting worse.
The statistics that were released last week confirmed trends which most of us were aware of already: the rich are getting richer and the poor are getting poorer. Presently across Canada, 788,000 children are living in poverty and 244,000 seniors are living in poverty. Statistics Canada has broken down the figures into five strata. Between 1980 and 2005, the income of people in the top 20% increased by 16.4%, using constant dollars. However, the income of the individuals in the bottom one-fifth decreased by 20.6%. We can see the dramatic effect that has happened over the last number of years.
This is an issue that all Canadians should be concerned about. The issue is one of social justice. It has a tremendous effect on our economy, our society and our future.
The correlation between levels of poverty and health care is fully documented. It is well known to people who study this particular issue. The relationship between people living on a low income and crime is also well documented. I do not hear that discussion when we talk about getting tough on crime. The relationship between people living on a low income and lower educational attainment is also well documented. The incidence between people living in poverty and their participation in society, which I call the “demogratic” deficit for lack of another word, is well known. When we combine education and participation in society, we are getting right to the heart of the whole productivity agenda.
This issue has such a dramatic effect on our productivity right now, and will have in the future, that it should concern everyone in this assembly.
The motion talks about the growing income gap, which is extremely important. It also talks about reforming employment insurance. I am going to speak briefly about employment insurance, which is a very important issue to all Canadians, especially seasonal workers, people who do not have income security. However, it is only one part of the overall policy and any changes have to be part of a larger comprehensive strategy.
Over the last five to ten years there have been some significant changes made to the EI regime, some of which are extremely important. The most significant social change I have seen in the EI program has been the institution of paternity benefits. We have seen lower EI rates. We have seen compassionate benefits. Changes have been made to allow five additional weeks of benefits in certain areas. These are steps in the right direction. I submit that paternity benefits are a major step in the right direction. I agree with a lot of the other speakers that further changes are required.
However, this is all part of a larger issue, which must be improving income and income security for lower income Canadians. It does require a comprehensive strategy and the federal government working closely and in cooperation with the provincial governments, some of which are doing more work on this particular issue than others.
Above and beyond EI, it talks about the rates of social assistance that are now being paid to low income Canadians. It talks about the minimum wage and about job opportunities that are not available in many regions. It talks about the need for increased supports for people moving from welfare into the workforce and the disincentives that are there for those people who want to make that jump.
It cries out for the need for increased public transit, supporting individuals. It cries out for the need for increased affordable housing. It talks about the need for affordable early childhood education and affordable child care. It talks about aids and support for children from low income families trying to pursue their goal for post-secondary education. It talks about pensions, child care programs and workforce training.
We see a whole hodgepodge of strategies that the government is not pursuing. As we saw from the statistics that were released last week, the rich are getting richer and the poor are getting poorer. It is my position that that will have a tremendous effect on our future productivity, whether it be health care costs, crime rates, educational attainment or the economy.
What have we seen in the last couple of years? We have had some tax cuts. I certainly supported the corporate tax cuts that were made because they support the productivity of this nation. We saw a very small decrease in the personal income tax rate and the basic personal exemption was raised, but not significantly.
The GST was reduced. Do people earning $14,000, $16,000 or $18,000 a year receive any benefit from the decrease in the GST from 7% to 5%? I do not think so. If the benefit is there, it is very minimal. They do not pay GST on their rent, on their fuel oil or on their food. Any benefit to that class of people is extremely minimal. If, on the other hand, people were to go out and purchase a new Audi, the benefit would be significant.
The Kelowna accord for our aboriginal population was gutted. The early childhood programs that were implemented were gutted. The affordable housing programs were not gutted but they were decreased. Cuts were made to the literacy programs across the country.
Most important, what I have seen happen in this assembly over the last two years is that the fiscal framework of the Government of Canada has been destroyed.
The government in power inherited a surplus of approximately $15 billion a year but now, according to all economists and people who are talking about this issue, we are very close to going into a deficit like we had in 1993. We have lost the ability to respond to issues that come up like this, issues that cry out for a response from the Government of Canada.
I certainly support the announcement made by our leader, the 30-50 plan--