Mar
2
MP Report
By Denise Savoie
Letters and phone calls to my office are a good indicator of what is on the minds of my constituents. When the Prime Minister chose a trip to Switzerland to speculate about increasing the age of eligibility for Old Age Security in Canada, he triggered a flood of phone calls and letters - and created widespread worry and uncertainty.
It was irresponsible of Mr. Harper to tell the world of his plans rather than discuss this important issue with Canadians first. And irresponsible to manufacture a crisis by overstating future costs.
According to the Parliamentary Budget Officer, Canada's current use of Old Age Security and the Guaranteed Annual Income is sustainable, despite growth in our senior population. The Conservatives tell us that the cost of OAS will explode from $36 billion a year to $106 billion. But those alarmist raw numbers do not account for inflation and the growth in the Canadian economy and working population in the next 18 years, as projected by Statistics Canada's August 2011 Canadian Economic Observer.
Taking the whole picture into account, OAS and GIS expenditures are actually projected to decrease in cost in the long run, relative to the size of the economy. The Office of the Chief Actuary projects that while the cost of OAS will increase from 2.2 to a peak of less than 3% of the GDP when baby boomers are drawing their benefits, OAS spending will continue to drop as a percentage of GDP after 2030.
What we need is thoughtful, long-term planning. We need to make retirement security one of our priorities as a country, ahead of things like corporate tax cuts and billions of dollars for manufactured increases in criminality.
A modest increase in Canada Pension Plan premiums over a long period of time is the way to provide real, sustainable retirement security. Expanding the GIS is the way to lift the most vulnerable seniors out of poverty - not expecting older workers to wait until age 67 to receive OAS. All that this plan will achieve is downloading more costs onto provinces by adding to the number of people applying for provincial assistance.
The government is choosing to give tax breaks to corporations like Caterpillar, who then pull up stakes and take their money and jobs elsewhere. Let's reconsider flawed policies, like the costly and ill-conceived crime bill, and invest instead in practical, affordable measures to lift every senior out of poverty and to help guarantee a decent quality of life during retirement for all Canadians.
In closing, I would like to extend an invitation to you to attend my Annual Celebration of International Women's Day. The event takes place March 11 at The Belfry, 1291 Gladstone Avenue in Fernwood. Please note that the time is 1-3 p.m. and not 2-4 p.m. as was mentioned in one of my newsletters. The event is free, but please RSVP to 250-363-3600 so we will get a sense of the numbers who plan to attend. I have lined up an exciting panel of 'Change-Makers' for an exchange of ideas and an afternoon of inspiring discussion.