44th Parl. 1st Sess.
May 11, 2023 10:00AM
The Chair is now prepared to rule on the point of order raised by the deputy House leader of the government on April 19, 2023, regarding Bill C-319, an act to amend the Old Age Security Act (amount of full pension), standing in the name of the member for Shefford.
In a statement concerning Private Members’ Business on March 30, 2023, the Chair invited members to make arguments regarding the need for this bill to be accompanied by a royal recommendation.
In her statement, the deputy House leader of the government noted that Bill C-319 would increase the amount of the full pension for Canadians aged 65 to 74 by 10%. This increase is not provided for by the Old Age Security Act. She argued that, as a result, this charge against the consolidated revenue fund is not authorized by the act or any other.
The increase in the amount of the full pension that Bill C-319 would provide to all pensioners aged 65 or older would raise public spending for purposes not currently authorized by the Act. Consequently, the Chair is of the opinion that the bill infringes on the financial prerogative of the Crown and needs a new royal recommendation if it is to receive a final vote in the House at third reading.
The House will soon take up the second reading motion for the bill, which can be put to a vote at the conclusion of debate on that motion.
I thank all members for their attention.
The House will now proceed to the consideration of Private Members' Business, as listed on today's Order Paper.
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moved that Bill C-319, An Act to amend the Old Age Security Act (amount of full pension), be read the second time and referred to a committee.
She said: Mr. Speaker, I am honoured to introduce my first bill today, Bill C-319. The summary reads as follows:
This enactment amends the Old Age Security Act to increase the amount of the full pension to which all pensioners aged 65 or older are entitled by 10% and to raise the exemption for a person’s employment income or self-employed earnings that is taken into account in determining the amount of the guaranteed income supplement from $5,000 to $6,500.
For years, the Bloc Québécois has made the condition of seniors one of its top priorities. Seniors were the people hardest hit by the COVID-19 pandemic. They were among those who suffered the most and they continue to suffer the negative consequences of the pandemic, such as isolation, anxiety and financial hardship.
That said, I do not want to paint an overly gloomy picture today. Instead, I want to present seniors as a grey force consisting of people who want to continue contributing to our society. They built Quebec, and we owe them respect.
Bill C-319 is designed to improve the financial situation of seniors and is structured around two parts. In my speech today, I will first address the part of my bill that deals with increasing old age security, or OAS, and then I will address the part that deals with increasing the qualifying threshold for the guaranteed income supplement, or GIS. I will end my speech by explaining a bit more about the impact inflation has on the financial health of seniors.
To begin, the first part aims to eliminate the current age discrimination. In the 2021 budget, the Liberal government increased old age security benefits for seniors over the age of 75. This delayed and ill-conceived measure has created a new problem—a divide between seniors aged 65 to 74 and those aged 75 and over. Seniors are not taking it lying down.
The Bloc Québécois opposed this discrimination that would create two classes of seniors. Naturally, today's insecurity, economic context, loss of purchasing power and exponential increase in food and housing prices do not affect only the oldest recipients of OAS; it affects all of them. This measure misses the mark by helping a minority of seniors.
In 2021, there were 2.8 million people 75 and over compared to 3.7 million between the ages of 65 and 74. This opinion is shared by FADOQ and its president, Gisèle Tassé-Goodman, who had this to say about the measure: “In principle, there is a good intention to provide financial assistance to seniors, but, in reality, people under 75 who are eligible for old age security get absolutely nothing.”
To date, nothing has been done to address this injustice, and this bill seeks to end this discriminatory measure. It is not true that the one-time vote-seeking cheque of $500 for people 75 and over in August 2021 will be of any help. Seniors even feel that they have been used.
With Bill C‑319, the Bloc Québécois is proposing a 10% increase to old age security starting at age 65 for every month after June 2023. For example, at present, this increase would raise the benefits paid to single, widowed, divorced or separated persons from $1,032 to $1,135.31 every month. As for the amount paid when both spouses are retired, it would increase from $621.25 to $683.35 per month. You do not live in the lap of luxury with that amount. You certainly do not go down south, and you do not stash your money away in tax havens.
Second, with inflation rising sharply and quickly and with the shortage of labour and experienced workers, the Bloc Québécois remains focused on defending the interests and desire of some seniors to remain active on the labour market and contribute fully to the vitality of their community. This is why the Bloc Québécois has long been calling for an increase in the earnings exemption for seniors.
Back in 2021, during the last federal election, the Bloc Québécois platform proposed to raise the exemption from $5,000 to $6,000 in order to allow those who are willing and able to continue working to do so without a significant reduction in their GIS benefit, which is derived from old age security.
Given the exceptional transformation in Canada's demographics in recent decades, there are now more people aged 65 and over, and they now outnumber children under 15. It is vital that we adjust our public policies so that older Quebeckers can maintain a dignified quality of life in the manner of their choosing.
In fact, Employment and Social Development Canada released a document entitled “Promoting the labour force participation of older Canadians — Promising Initiatives” in May 2018, following an extensive pan-Canadian scan. The document identifies the harmful consequences of ageism in the workplace and the challenges faced by seniors. These include a lack of education or training, health issues, and work-life balance issues due to a lack of workplace accommodations. The study then proposes a number of measures to facilitate the integration of experienced workers and encourage their participation in the workforce.
Socializing in the workplace is beneficial for breaking out of isolation. Life expectancy is steadily increasing, and more jobs are less demanding than in the past.
I find it hard to understand the choices the Liberal government has made since it came to power. At best, the Liberals have taken half-hearted or ad hoc measures, as we saw during the pandemic. Currently, old age security payments are not enough to weather the affordability crisis and the dramatic price increases for housing or intermediate housing resources.
Six years ago, in June 2017, the Standing Senate Committee on National Finance published a report on the financial impact and local considerations of an aging population. Everyone agrees that the economic situation of households has deteriorated significantly with the pandemic, and that sudden inflation is hurting Quebeckers and Canadians. The committee's findings and proposed solutions at that time could not be clearer. It recommended:
That the Government of Canada, in collaboration with its provincial, territorial and Indigenous partners, put measures in place to increase labour force participation of underrepresented groups and to better match labour demand with labour supply in order to mitigate the negative impact of population aging on the economy and on the labour market.
As previously mentioned, modest sums have been granted to date and one-time assistance was offered during the pandemic in June 2020. We appreciate these efforts, but we are clear about the indirect effects of this hastily put together aid. Nevertheless, small and medium enterprises are increasingly stressed out as they desperately look for workers, and about the closure of many shops and the decline in some areas.
We believe that the tax contributions, the tax incentives and the income exemption rates on the old age security pension and the guaranteed income supplement do not entice older people to return to work because they will be denied hundreds of dollars a month.
Let us not forget the sad irony of Liberal measures such as the Canada emergency response benefit and the Canada recovery benefit, which were considered income during the health crisis. In the end, they took away significant sums of money from the most fragile and least fortunate in the population. This aberration was finally corrected by the government in February 2022 after several months of representations by the Bloc Québécois to the Minister of Seniors when Bill C‑12 was tabled.
At the time, Bloc Québécois researchers found that GIS recipients who received CERB lost 50 cents of the supplement for every dollar they received, so a tax rate of 50%, almost double that of the richest people in society. However, at the time, no one informed affected taxpayers of this dramatic impact on disposable household income. During the study for this legislation, the Bloc Québécois pointed out that this major injustice is both harmful and absurd. The FADOQ network called the situation a tragedy.
Let me get back to what we are suggesting. The exemption on earnings and miscellaneous income would increase from $5,000 to $6,500 per year. That would leave an additional $1,500 in the pockets of all claimants aged 65 and older. Compared to the 2021 proposal, then, the current bill suggests an additional $500, for a total of $6,500, to offset the deteriorating economic situation. The goal of these two measures combined is to increase both the monthly base amounts and the annual working income. We believe that this will help seniors deal with inflation and the current hardships. It is the least we can do, to allow millions of people who built our communities to live with dignity.
Third, I want to talk about the impact of inflation. Do not forget that old age security is taxable. The OAS and GIS amounts are revised in January, April, July and October, ostensibly to reflect the cost of living. These benefits were indexed annually until 1973. At that time, inflation was very high, particularly for fuel and food, and officials felt that quarterly indexing would better protect against unexpectedly large price increases during the year. By the summer of 2020, however, even FADOQ had decried the fact that these increases will not even buy a coffee at Tim Horton's.
The consumption habits of seniors differ from those of the rest of the population. As a result, they experience different inflation. Statistics Canada studied this difference in 2005. It found that seniors spend proportionately less on transportation, gasoline or a new car, but much more on housing and food. For every $100, they spend $56, compared to $45 for all other households. Surely we all agree that housing and groceries are not luxuries.
What is the impact of that inflation? From 1992 to 2004, the average annual inflation rate was 1.95% for senior-only households, compared to 1.84% for other households. Again, seniors are harder hit.
I will refresh the Liberals' memory. On March 19, 2022, the Liberal member for Etobicoke North moved motion No. 45. If the Liberal Party and the Green Party are consistent with their support—14 members from these two parties jointly supported this motion—then Bill C‑319 should be adopted.
I will read the text of the motion, because it is worth it:
That:
(a) the House recognize that (i) seniors deserve a dignified retirement free from financial worry, (ii) many seniors are worried about their retirement savings running out, (iii) many seniors are concerned about being able to live independently in their own homes; and
(b) in the opinion of the House, the government should undertake a study examining population aging, longevity, interest rates, and registered retirement income funds, and report its findings and recommendations to the House within 12 months of the adoption of this motion.
On June 15, 2022, 301 members finally voted in favour this motion, while 25 voted against. Out of the 326 members present, only 25 members from the New Democratic Party voted against this motion.
Seniors living on fixed incomes are having a hard time making ends meet because their daily expenses are increasing faster than their pension payments. Old age security, or OAS, is adjusted to inflation every three months, while the Canada pension plan, or CPP, is adjusted every January. However, OAS and the CPP are not enough for some people to make ends meet.
People are feeling the shock of the 10.3% year-over-year increase in the cost of food, as reported by Statistics Canada in the year leading up to September. Food prices rose faster than the generalized cost of living index, which rose 6.9% year over year in September, also according to Statistics Canada.
I met with some representatives from the Salvation Army this morning who told me that they too have noticed, like many other support organizations, that demand for food has doubled, and that a large portion of the demand is from seniors. It is inconceivable that this permanent increase in the OAS, which is the first since 1973, so the first in 50 years, is not indexed to inflation. We hope that this will help seniors who, as we have seen, are turning more and more to food banks.
Let us remember that, in the summer of 2021, one month before the election, the federal government handed out $500 cheques to seniors who were eligible for the old age security pension to supposedly help them with affordability issues related to the pandemic. However, it is going to take a lot more than an ad hoc approach. We really need to focus on the long term.
Other than the increase to index it to inflation, the full OAS for seniors aged 65 to 74 remains unchanged. It is $666.83 a month. With that low monthly income, it is not surprising that Canada has the generation of retirees facing the greatest inequities and injustices.
Since the 2019 election, the Bloc Québécois has been calling for the government to increase the old age security pension for seniors as of age 65 and has been calling the government out on its discrimination and ageism against seniors aged 65 to 74, so this bill is a logical extension of our position.
In closing, I would like to thank Gisèle Tassé‑Goodman from the FADOQ, Pierre‑Claude Poulin from the Association québécoise de défense des droits des personnes retraitées et préretraitées and Diane Dupéré from the Association québécoise des retraités et des retraitées des secteurs public et parapublic for their support of this bill. Like me, they are just the mouthpiece for seniors whose stories they hear every day. I would be remiss if I failed to mention all of the seniors groups from all over Quebec who also sent me messages of support. They think that Bill C-319 is the least we can do to give seniors a little help and bit of fresh air.
One last thing: I wish the House would realize the importance of this bill, which is not a luxury, but a necessity. It is just common sense to help seniors age with dignity. Based on the feedback I have received so far, even from seniors outside Quebec, all I have to say is let us work together. Similar motions have been passed many times, including the Bloc Québécois motion calling for an increase in OAS as part of our opposition day. Only the Liberals voted against it. They were the only holdouts. This time, I am reaching out to them. I am asking them to eliminate the injustice they created and vote with us in favour of Bill C‑319.
Once again, this is a matter of dignity for seniors.
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Mr. Speaker, since there is no question and comment period at this time under the rules of debate in the House, some of my colleagues push the envelope and sometimes say outrageous things.
Having said that, I would first like to recall the purpose of the bill:
This enactment amends the Old Age Security Act to increase the amount of the full pension to which all pensioners aged 65 or older are entitled by 10% and to raise the exemption for a person's employment income or self-employed earnings that is taken into account in determining the amount of the guaranteed income supplement from $5,000 to $6,500.
The goal is to prevent this from having an impact on the guaranteed income supplement. Since its arrival in the House in the 1990s, the Bloc Québécois has fought hard for the guaranteed income supplement. We wanted to ensure that more and more Quebec seniors were entitled to it. We realized that people did not know they were entitled to it. We toured Quebec to raise awareness and encourage them to apply.
When we first came to the House, even though we were not a recognized party, we did a review of what was happening with the guaranteed income supplement. Once again, we found that many seniors who were entitled to it were not receiving it.
When we presented our budget expectations in 2016, my colleague from Joliette and the member for Repentigny met with the Minister of Finance at the time, Mr. Morneau. They told him that anyone entitled to the guaranteed income supplement should be automatically registered to receive it. That was the Bloc Québécois's doing. He told us that we were right and that he would implement this system in 2018.
Again, just last year, in my constituency office, I met with seniors who were entitled to it but were not receiving it. There are still people who fall through the cracks.
That said, as recently as April 6, 2023, Michel Girard, a long-time financial columnist who everyone knows, stated that 409,860 people aged 65 and over live on less than a livable income. That is incredible. That is 53% of people living alone who do not have a livable income. Over the years, seniors have become impoverished. We must fix this, especially in light of the post-pandemic inflationary context.
The underlying objective of this bill is the social autonomy of seniors. I have often had the opportunity to speak about the autonomy of seniors, but I want to remind members that seniors' autonomy is not limited to their physical autonomy. Naturally, some people lose their autonomy with the loss of mobility. That does not take away their autonomy.
Autonomy is also not limited to seniors' social autonomy. However, it is society that often impacts the social autonomy of seniors. What is social autonomy? It is the income and the place they are given so they can continue to work in society. Ageism does exist.
People approaching retirement have made an absolutely remarkable and phenomenal contribution to society, and yet the closer they get to retirement, the more they are progressively excluded from decision-making places. In fact, if it were not for advocacy groups like the FADOQ network and the Association québécoise de défense des droits des personnes retraitées et préretraitées, seniors would be in bad shape. I commend them for their work, and I also commend my colleague from Shefford, who has shown remarkable leadership on this issue. She was able to bring all the networks together to finally get the government to listen to reason. At least I hope so.
Senior's autonomy is not limited to their mental autonomy, in other words their cognitive ability. Many prejudices exist about that. It is believed that 20% of seniors may have cognitive impairments. Some studies in the literature say that among these 20%, 10% of the disorders are reversible, if the people are well cared for and if we do not reduce their capacity to act. Isolation necessarily creates long-term cognitive impairments.
Seniors who live at or below the poverty line are the most precious members of our society. The older one gets, the more one acquires that which society cannot do without, which is moral autonomy. Moral autonomy refers to a human being's capacity to make a just and fair decision while making sure that their decision-making capacity, their practical judgment, is accurate. That does not happen at 20 or 30 years of age. It is acquired over a lifetime. Society therefore needs to make room for seniors because they are the ones who can show us the way forward, if we listen to them and we do not push them aside as if they were unnecessary, and if we do not undermine their income and their livelihood.
Everyone knows that seniors living in precarious situations eventually become sick. People living with financial worries eventually become sick. From a purely economic standpoint, if we take care of our seniors, if we let them have more of what they need to live, we will inevitably have a healthier, less sickly society. In the end, that will cost much less. What is more, those people will enjoy living. There is nothing more important than to give life meaning. After all, we are all looking for happiness.
I am appealing to every member's sense of honour, justice and equity to make sure my colleague's bill, on behalf of all seniors across the country, including Quebec's seniors, can give them at least the bare necessities. Seniors are wise. That is something all the seniors' rights groups agree upon. What we are asking for is a decent bare minimum so as to give them a little breathing room.
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