The Speech from the Throne, delivered by new Governor General David Johnston, on June 3, was a missed opportunity to keep earlier promises to improve the Canada Pension Plan and Quebec Pension Plan (CPP/QPP), says Ken Georgetti, president of the Canadian Labour Congress (CLC).
“Doing nothing now will cost future taxpayers a lot more down the road,” Georgetti says. “Our kids will have to shell out for tax-financed programs such as the Guaranteed Income Supplement for poor seniors. That will represent a huge burden on the public purse. Canadians would be far better off with an improved CPP/QPP.”
Georgetti says there is a “looming pension crisis” that will result in hardship for Canadians in their retirement. The CLC proposes a gradual doubling of CPP/QPP benefits to be financed by modest increases in the premiums paid for equally by workers and their employers.
“Almost every province agrees with us about expanding the CPP/QPP,” Georgetti says.
According to the Throne Speech, the Canadian government will, among other things, be focusing on “supporting hard-working families by helping seniors make ends meet and continuing to help Canadians save for their retirement; by supporting family caregivers; by helping parents who want to provide their children with opportunities to discover their creative passions; and by working with the provinces and territories to ensure that the healthcare system is sustainable and delivers results for Canadians.”
According the government website, “the economy remains the government’s top priority.”
More on the federal budget to come later today and tomorrow.