OTTAWA—Despite the uproar over proposed changes to Old Age Security, Prime Minister Stephen Harper’s government is not backing away from its plan to save money by cutting pension benefits.
No details have been released but it is widely believed the Conservatives will unveil plans to gradually raise eligibility for OAS benefits by two years to age 67. In the Commons Thursday, Harper repeatedly refused to answer opposition questions about what the government has in mind for seniors.
But Finance Minister Jim Flaherty made it clear the Conservatives are sticking to their plan to cut spending on OAS, which provides a monthly cheque to qualifying Canadians beginning at 65.
“We do need to take action to ensure the long-term sustainability of these programs,” Flaherty told reporters in a telephone conference from Israel, where he is on government business.
And he brushed aside arguments from opposition MPs and some economists that the government is creating a crisis that doesn’t exist. These critics say the increase in pension costs in Canada over the next few decades will not be large enough to threaten Ottawa’s fiscal stability.
“We look at these programs, we look at the longer term, we look at the demographic numbers, which are clear,” Flaherty said. “We look at the predictions by the experts and by (the) finance (department) with respect to costs going forward. And we need to take action.”
With the government up against a backlash over pension cuts, there had been speculation the Conservatives might reverse course. But Flaherty gave no such indication, although he did say current recipients of OAS — or those near retirement — do not need to worry about sudden surprises.
In Ottawa, the NDP argued the government should be trying to raise the living standards of seniors who are poor rather than threatening to reduce their benefits.
NDP MP Wayne Marston said the Conservatives are spending billions on corporate tax cuts, prisons and fighter jets “but they can’t spare $540 a month for Canada’s poorest seniors.”
In the Commons, Liberal interim leader Bob Rae asked Harper why the pension cuts had not been mentioned before the May 2 election.
“Why would the Prime Minister not have shared this question with the Canadian people in an election,” Rae asked.
Harper replied that voters knew the Conservatives if elected would move to reduce the $31 billion federal budget deficit. “We made very clear commitments to the Canadian people. We are balancing our budget,” he said.
Human Resources Minister Diane Finley told CBC-TV the government is looking at how much time other countries have given citizens to adjust to changes in eligibility for pension payments. “Some have allowed for 24 years, some 14, some 10, some less,” Finley said. “We’re going to make sure that Canadians all have the time to adjust their retirement savings programs, their personal ones, to any changes.”
But Finley declined to give details of those changes.
Original Article
Source: Star
Author: Les Whittington
No details have been released but it is widely believed the Conservatives will unveil plans to gradually raise eligibility for OAS benefits by two years to age 67. In the Commons Thursday, Harper repeatedly refused to answer opposition questions about what the government has in mind for seniors.
But Finance Minister Jim Flaherty made it clear the Conservatives are sticking to their plan to cut spending on OAS, which provides a monthly cheque to qualifying Canadians beginning at 65.
“We do need to take action to ensure the long-term sustainability of these programs,” Flaherty told reporters in a telephone conference from Israel, where he is on government business.
And he brushed aside arguments from opposition MPs and some economists that the government is creating a crisis that doesn’t exist. These critics say the increase in pension costs in Canada over the next few decades will not be large enough to threaten Ottawa’s fiscal stability.
“We look at these programs, we look at the longer term, we look at the demographic numbers, which are clear,” Flaherty said. “We look at the predictions by the experts and by (the) finance (department) with respect to costs going forward. And we need to take action.”
With the government up against a backlash over pension cuts, there had been speculation the Conservatives might reverse course. But Flaherty gave no such indication, although he did say current recipients of OAS — or those near retirement — do not need to worry about sudden surprises.
In Ottawa, the NDP argued the government should be trying to raise the living standards of seniors who are poor rather than threatening to reduce their benefits.
NDP MP Wayne Marston said the Conservatives are spending billions on corporate tax cuts, prisons and fighter jets “but they can’t spare $540 a month for Canada’s poorest seniors.”
In the Commons, Liberal interim leader Bob Rae asked Harper why the pension cuts had not been mentioned before the May 2 election.
“Why would the Prime Minister not have shared this question with the Canadian people in an election,” Rae asked.
Harper replied that voters knew the Conservatives if elected would move to reduce the $31 billion federal budget deficit. “We made very clear commitments to the Canadian people. We are balancing our budget,” he said.
Human Resources Minister Diane Finley told CBC-TV the government is looking at how much time other countries have given citizens to adjust to changes in eligibility for pension payments. “Some have allowed for 24 years, some 14, some 10, some less,” Finley said. “We’re going to make sure that Canadians all have the time to adjust their retirement savings programs, their personal ones, to any changes.”
But Finley declined to give details of those changes.
Original Article
Source: Star
Author: Les Whittington
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