Talk of expanding the Canada Pension Plan was dominating the discussion yesterday, but much of it seemed to be in a bit of a vacuum. To recap, the Conservatives, having largely eschewed any talk of CPP expansion as “job-killing payroll taxes” to date (despite some positive noises having been made by Jim Flaherty at one point), say they’re going to consult on voluntary expansion, but haven’t approached any of the provinces, which they need to do. The Liberals are moving in the direction of making an expansion mandatory, which the NDP have already largely been in favour of. For some context, Maclean’s spoke to a pension expert about the situation, and they reposted an piece from Kevin Milligan about what different expansion models could look like (and it’s also a reminder that none of this is about poor seniors, who are already taken care of by other programmes). The Ottawa Citizen also has a Q&A about the discussion as well. What should also bear mentioning is that voluntary increased contributions, if not done in a certain way, could dramatically increase the administration costs of CPP since it will require individual management of accounts – something that the current system does not currently need. Dramatically increasing costs will make CPP a less efficient vehicle for retirement savings, and may start to look like a commercial pension instead. If the government is insistent on a voluntary expansion as one of a number of options (like TFSAs and pooled registered plans), then this cost factor could be an important determiner in what that could look like.
Tag Archives: Pensions
QP: CPP consultations and fictitious allegations
Even though the king and queen of the Netherlands were visiting, all of the leaders actually showed up for QP for a change. Thomas Mulcair led off, asking for the declaration of Mike Duffy’s residence. Stephen Harper responded that Duffy’s actions were before the courts. Mulcair threatened that if Harper didn’t answer now, he would at the debates, and then demanded that the full Duffy audit be released. Mulcair gave some vaguely coherent muttering about the PMO covering up the cover-up in the Senate, to which Harper reminded them that the NDP faces their own repayment problem for their satellite offices. Mulcair moved onto the retirement age, demanding it be lowered to 65 (not that it actually changed — just OAS), to which Harper listed off their other measures for seniors. Mulcair closed with a quote from Jim Flaherty regarding CPP, to which Harper insisted the NDP would raise taxes on seniors. Justin Trudeau was up for the Liberals, and wondered why the government made their CPP announcement with no consultation by the provinces. Harper said that their record of supporting voluntary options was clear, while the Liberals would raise taxes. Trudeau reminded Harper of his record of statements on breaking up the CPP. Harper said that was false, and touted the options they created to help Canadians save. When Trudeau insisted that experts agreed with them, Harper said that Trudeau’s experts were imaginary, and that Trudeau would show leadership in raising taxes.
Roundup: An arbiter and a process in place
The Auditor General was making the media rounds yesterday, largely combating the cheap outrage journalism about the supposed spending issues of his office (which wasn’t a story but hey), and confirmed that about 30 senators would be facing some kind of repayment, fewer than 10 serious enough to merit being forwarded to the RCMP – but of course, ten became the headline number when he said it would be fewer, and the number of five to eight has been suggested by other media outlets, which seems more in line with what he claims. The total number of senators examined was 117 current and former, and it certainly sounds like the majority of cases will be fairly minor in terms of repayments. The Senate announced that they are retaining former Supreme Court Justice Ian Binnie as the independent arbiter on expenses, so that they have a process by which to dispute the AG’s findings if they so choose, and that may be necessary considering the complaints emerging about the lack of knowledge on the part of auditors as to parliamentary functions. This raises the question of fairness – is it fair that these senators will have a process in place, whereas Senators Duffy, Brazeau and Wallin did not, and were suspended without any kind of due process? The answer of course is that no, it’s probably not fair, but this was a fairly consuming crisis at the time, and they were sacrificed on the altar of expediency. Politics is messy business, particularly when you were high-profile appointments and had become a political liability. I’m not sure that it should be reason to forgo having a process going forward, but if all three are found guilty on the charges laid by the RCMP, then will it really matter in the end?
QP: Ibid., Ibid., Ibid.
Despite it only being a Thursday, the major leaders were elsewhere in the country, busy campaiging instead of doing their jobs. Megan Leslie led off, bringing up job losses at Bombardier and wondered why the government wasn’t doing more for manufacturing. Pierre Poilievre gave a pro forma expression of sympathy before touting the government’s job creation record. Leslie asked again in English twice again, got the same answer, and then Alexandre Boulerice took another kick at it in French. Poilievre was just as adept in repeating the good news talking points in French. Marc Garneau led for the Liberals, also asking about the job losses, and Poilievre put a “Liberals would raise taxes” spin on his same talking points. Judy Sgro took a kick at it, naming some of the other closing plants and job losses, but Poilievre kept insisting the Liberals would raise taxes and kill more jobs.
QP: Carry on the middle-class talking points
As Monday is the new Friday, none of the main leaders were in the House — Harper in Europe, Mulcair in Quebec City, and Trudeau across the river in Gatineau, having just laid out his party’s new tax plan. When QP kicked off, Megan Leslie led off, asking about job losses in the manufacturing sector. Pierre Poilievre took the question, and listed off some talking points about how great their family tax cuts were. Leslie noted the media reports that Conservative MPs will personally benefit more from income splitting than others, but Poilievre was undaunted from his talking points. Leslie then changed to the topics of coalition air strikes in Syria hitting civilians. Rob Nicholson noted that they had a 12-month commitment. Jack Harris then asked about Harper’s comments that they were not sure how effective the bombing campaign was. Nicholson noted it was a precision campaign, and wanted the NDP to thank the men and women in uniform. Harris then asked about reports about allegations of mistreatment of Taliban by military police. James Bezan insisted that they were taking the allegations seriously. Dominic LeBlanc led off for the Liberals, praising their recent announcement and wondered why the government wouldn’t adopt it (Poilievre: Yay our plan), and Ralph Goodale got increasingly critical of that plan Poilievre was touting (Poilievre: You just said you want to raise taxes on people making $60,000 — blatantly untrue).
Pierre Poilievre is sticking to his talking points. #QP pic.twitter.com/lxQCieojfm
— Dale Smith (@journo_dale) May 4, 2015
Roundup: Recycled economic planks
Thomas Mulcair spent the noon hour yesterday laying out three of his party’s economic planks for the coming election. (A reminder: it’s still nine months away). To that end, Mulcair promised a cut to small business taxes, an extension of the capital gains cost allowances for companies buying new equipment, and an innovation tax credit for businesses. The first of those is not new – the NDP have been going in this direction since the previous election, and the second is current government policy that is set to expire, but one wonders how much it has been taken up as the government already extended it, and we still hear that Canadian companies didn’t spend the high dollar years investing in this equipment to boost productivity at a time when it was advantageous for them to do so, and now the dollar is much lower and it’s more costly for these businesses to buy this new equipment. The third, geared toward research and development, again sounds suspiciously like what the current government has been trying to do as they retooled the National Research Council to help with commercialisation of technologies. There is, of course, debate on some of the utility of these points as well, with certain experts saying that those small businesses that would benefit from this kind of tax cut are already well off. (Also, small businesses are not the biggest job creators in the country – sorry, but that doesn’t make any mathematical sense). The final point is geared toward revitalising the manufacturing sector, but it’s pocket change in terms of dollars, and the sector has much more entrenched structural problems. Of course, there is no mention of how this is costed, on top of promises for their childcare spaces, restoring the much higher healthcare transfer escalator, and returning OAS eligibility to 65 – and no, raising corporate income taxes won’t get you that much, nor will going after offshore tax havens. Mulcair also added that the NDP would move to protect pensions from bankruptcy proceedings, which again is not new policy, for what it’s worth.
QP: Trying to protect bureaucrats
After the government unveiled their much ballyhooed price gap legislation, it remained to be seen if that would lead off QP, or if Julian Fantino would remain in the line of fire. Before things got started, however, the two new Conservative MPs from the recent by-elections, Jim Eglinski and Pat Perkins, took their seats. Thomas Mulcair had not yet returned from Paris, leaving Peter Julian to lead off, asking about the US Senate torture report, and how CSIS and the RCMP could use information obtained by torture. Harper insisted it had nothing to do with Canada. Julian moved onto the veterans file and demanded the resignation of Julian Fantino, to which Harper said that the NDP were more interested in protecting bureaucrats and cutting services. Nycole Turmel was up next, and asked about processing times for EI applications, and the decision to hire temporary workers to clear the backlog. Jason Kenney responded that they were dedicated to giving good levels of service, and thanked his parliamentary secretary for the report on processing. Turmel tied in the Social Security Tribunal and the Temporary Foreign Workers programme, calling Kenney incompetent, but Kenney repeated Harper’s line that the NDP is averse to efficiencies. Justin Trudeau was up next, and brought up the sacred obligation to veterans, wondering why the priority was a tax break for wealthy families instead of veterans. Harper insisted that they provide benefits to both families and veterans, and the current court case was against a previous Liberal programme. Trudeau listed a number of veterans programmes cut or underfunded by the government, to which Harper recited of list of programmes that he claimed the Liberals voted against before trotting out his line that they were trying to protect bureaucrats. Trudeau asked again in French, and Harper claimed that 100 of the jobs they eliminated existed solely to delay benefits payments. (Really?!)
Shorter Jason Kenney: OH NOES! Dozens of thousands of unionised government employees! #QP
— Dale Smith (@journo_dale) December 9, 2014
Roundup: A largely fictitious distinction
While the battle over what’s happening at Veterans Affairs continues to rage, we are continually reassured by both the Prime Minister and the Original Series duotronic computer system known as Julian Fantino that we shouldn’t worry – that any cuts that have been made are all “back office” bureaucrats, and that front-line services haven’t been affected. Really! And while the example of cutting 12 photocopy clerks by moving to digitised medical records may be an example of those “back office” cuts, we should stop kidding ourselves – there is no neat dividing line between what is a front-line service position and a back-office bureaucrat because it’s the job of those bureaucrats to process the work of the front-line providers. If anything, this notion that back-office positions are being eliminated means anything, it’s that it forces more front-line workers to do the processing work themselves, essentially increasing their workload and making them less able to help veterans because they’re the ones busy processing the paperwork rather than focusing on the service aspect. Using the excuse of it being “back office” is largely a fictional distinction made for the sake of optics – but then again, that is the way that this government likes to operate, by photo op and announcement rather than by actual results, so this really should surprise nobody.
Roundup: PBO declares the cupboard bare
The Parliamentary Budget Officer appeared before the Commons finance committee yesterday, and said that after the new sorta-income-splitting Family Tax Credit rollout that there won’t be any fiscal room for any further permanent tax cuts or spending measures. In other words, the cupboard is bare (and still reliant on further austerity to keep the budget in balance). Kevin Milligan gives a more detailed breakdown of what all of the family tax credits mean, while Stephen Gordon once again says what needs to be said, especially with what this means for the next election:
Beast. Starved. MT @davidakin: Latest from @PBO_DPB post-FTC. Short version: Fiscal cupboard cleaned out by PMSH: http://t.co/2DwOxNDiBx
— Stephen Gordon (@stephenfgordon) November 3, 2014
If oppo wants to campaign on more spending, oppo will also have to campaign on tax increases. And not just on corps and/or the 1%, either.
— Stephen Gordon (@stephenfgordon) November 3, 2014
Roundup: A surprise trip to Iraq
John Baird quietly took a trip to Iraq along with is opposition critics, Paul Dewar and Marc Garneau, to meet with officials there and to pledge aid. James Cudmore looks at what Canada could contribute if we take the fight to ISIS, which could include special forces or aerial reconnaissance and support, but unlikely boots on the ground, as it’s politically unpalatable in an election year. Whatever we do, Harper has stated that it’ll be done on a tight budget because we really want to be cheap about fighting the kinds of grave threats that Harper is making them out to be.