The Conservative member, who I expect wants to get some votes out of Toronto in the next election if he hopes to be the government, has just made a very derogatory remark about Toronto not being very reputable. I am sure he will have a chance later to share with us what he means when he says that Toronto is not very reputable.
The $2,000 tax deduction from the Tory platform, about $600 to $800 per child for a typical family, ignores the reality that paying parents to stay at home is much more expensive. If a large number of parents take up the offer to stay at home, social costs will be astronomical. We would have to pay them at least the rate of maternity and parental benefits, currently 55% of their regular pay up to $413 per week. Those benefits, which now cover the first year of a child's life, cost about $2.7 billion a year. If we were to multiply that by six to cover all preschool years, this would cost more than $16 billion per year. Pretty soon we will be talking real money here for the Conservatives. This is what their proposal could eventually cost the economy of Canada.
Maternity and parental benefits cover only about 60% of all parents with newborns. I would hope that they would want to cover all parents. I do not think they would want to leave out families in Saskatchewan, in northern Ontario or in Prince Edward Island, but to cover all families it would cost $27 billion per year.
We are now talking $27 billion plus $16 billion. Pretty soon, as I said, we will be talking money that will allow people to understand what the real cost of the Conservative program would be.
We are also talking about the loss of billions of dollars in lost production. With the cost of families' lost income it will cost the government substantial amounts of current and future tax revenues. In the long run this would cost the economy about $83 billion per year. Taking the $83 billion per year and adding on to that another $27 billion per year, we are talking $110 billion a year. Add on top of that $16 billion and it is outrageous.
The proposal that the Conservatives are putting forward here today in terms of an alternative to the Liberals' national early childhood learning program, which we are supporting although we do not believe they have spelled it out clearly enough, is outrageous. It is something on which one would have to really think long and hard if we were actually serious about it and wanted to support it, which goes to my critique of everything that they have brought forward today. It is all very simplistic, ideological and has no real depth to it. When we begin to analyze it, as Mr. Krashinsky and Mr. Cleveland did, we begin to see how really out of whack it is and how outrageous and expensive it would be to all of us, to our economy, to our society, to families and to children.
Let us look for a second at the economics of child care, which again I do not think the Conservatives really fully understand because they cannot get out of this ideological box that they are in, which has them wanting us to go back to a Leave It To Beaver time in our history when perhaps families could afford to have a parent at home looking after the children.
What the Conservatives fail to be willing to recognize is that a huge majority of parents have chosen to both work because of the economy and because women in particular have found their way in life to get educated. We as a society have to understand and appreciate the gift that is there and the contribution women can make.
Families are making different choices and in making those choices they want the government to work with them to ensure their children are looked after in a way that reflects the quality they themselves would have given if a different choice had been made.
Let us look at the economics of this issue, which is really not rocket science but actually rather simple. This information is being put out by some reputable economists from, I dare say, Toronto. The economists say that for every $1 spent on child care there is a $2 economic benefit. That means for every dollar we invest in a child's early development, later on, in terms of the child's success in school and then in the workplace, we will see a $2 return on that $1 investment.
The child care community is clearly asking for this. We have to decide whether we want to spend 1% of our GDP on child care, which is not out of whack with what is going on in many places in the world today. We are talking somewhere between $10 billion and $15 billion a year. However on that 1% investment we would get a return of $20 billion to $30 billion down the road. Compare that to the over $100 billion that would be taken out of the economy through the motion proposed by the Conservatives. Two dollars for every $1 invested would increases tax revenues and decrease social, education and health costs.
Charles Coffee, vice-president of the Royal Bank of Canada, said:
A child's brain development in the first six years of life sets the foundation for lifelong learning, behaviour and health. High-quality early childhood education produces long-term positive outcomes and cost-savings that include improved school performance, reduced special education placement, lower school dropout rates, and increased lifelong earning potential.
That was not me talking nor was it the NDP caucus. That was Charles Coffee, vice-president of the Royal Bank, and a very well respected economist. He also said:
Employers increasingly find that the availability of good early childhood programs is critical to the recruitment and retention of parent employees.
It's estimated that work-life conflicts cost Canadian organizations roughly $2.7 billion in lost time due to work absences.
Charles Coffee is a very well respected member of the Order of Canada and does a lot of work in communities across this country.
If some members here have difficulty with Charles Coffee, for whatever reason, then let me tell them what David Dodge, Governor of the Bank of Canada, had to say about this. He said:
While parents, along with some psychologists, sociologists and public health experts, have long intuitively understood the importance of early childhood development, it is really only over the last quarter century or so that scientists, physicians and social scientists have come to recognize the crucial role played by ECD. The literature clearly shows that intervention to improve maternal and infant health, to support parenting, and to provide early childhood education is effective in improving readiness to learn at age six, thus raising the efficiency of primary schooling as a tool of human capital formation.
I think it is clear that if we understand some of the research that has been done on this, if we understand some of the economists and their analysis of what the Conservatives are putting forward, and if we listen to what these economists are saying about the benefit of investing money in early learning and child care, we will see that the country, if it is going to be competitive in the global economy, needs to have a first class national child care program.
We need a first class national child care program that will take root in every province and in every region of the country and one that is based on the best research and is rooted in the principles that the child care community has developed over the last 20 or 30 years in this country, which is quality, universality, developmental and accessibility.
The program, if it is to roll out effectively and if we are to hold whatever government is in place accountable for the expenditure of money required to do that, will need to be framed in legislation. Therefore, we will be pushing the government to move in that direction and we will be critical of it when it does not, which I hope to speak to very briefly this afternoon.
A critique of the Conservative proposal is that it is a bit bogus to pit stay at home parents against a national child care strategy. I do not think there is anyone on any side of the House who does not believe that parents give quality care to their children, and they should be given opportunity to make that choice. However, to pit parents who choose to stay at home against parents who choose to go into the workforce and in doing that their attempt to find quality child care is to be disingenuous if nothing else.
Already we are doing things to recognize the contribution that families make to the upbringing of children. In our tax system there is a spousal exemption. There also is the child care expense deduction which is not for stay at home parents. It is for unregulated child care.
The national child benefit is key. This only goes to working parents. Again, I would invite the Conservatives, if they are really concerned about low and modest income families, to stand up with me and demand the government in Ottawa and the provincial governments stop the clawback of the national child tax benefit supplement.
This is a program of significant money, over $1,000 per child, that is supposed to go to the most at risk and vulnerable of our children. However, because parents are not participating in the workforce, that money is clawed back. Therefore, money that could have gone to helping parents in the low and modest income levels who choose to stay home and look after the children is being clawed back by the government.
If the Conservatives are truly sincere and interested in doing something for modest and low income families in the interest of looking after children and reducing child poverty, which a national child care program will go a long way to doing as well, they should stand with me and join the fight to stop the clawback of the national child tax benefit.
There are a number of things that are being done to improve the lot of families and parents who choose to stay home. We can always do more. We can increase the national child tax benefit. We can find ways to support families who make those choices, but not at the cost and expense of putting in place a national child care program and funding it so it works. We should be enhancing all those supports for families and children.
What should Liberals do to confront this very real challenge? What should they do to confront the challenge that has been put before them by the Conservatives, the child care community and ourselves? They should move away more aggressively than they are at the moment and truly put in place a national program.
I asked the minister earlier what defined a national program for him and he had no answer. If one wants to look at it, he has a series of bilateral agreements now. He has $5 billion in a budget that is yet to be passed. He is working with us as New Democrats to see if we cannot get that money through the system and to the provinces that need it.
However, the kind of hesitancy or lack of confidence that we see in the government and in the minister and his staff indicates that something is lacking in the commitment to truly impose and provide a national child care program.
We want a national child care program that is based on the best research. We want a national child care program that is rooted in legislation and that is adequately funded. Anything short of that just will not cut it. It will not provide the kind of program that we know is possible, particularly when we look at what we have done with health care and education.