Released on February 14, 1997
Finance Minister Janice MacKinnon today expressed disappointment thatthe federal government is moving ahead with legislation to change the
Canada Pension Plan (CPP) without the agreement of Saskatchewan.
"For three decades, the CPP has been a key pillar of our social safety
net," MacKinnon said. "It is part of our tradition as a compassionate,
caring and fair nation. It has allowed millions of lower-income,
disabled and elderly Canadians to retire with dignity and a modest
pension."
The minister said the province opposes the changes because it cuts
future benefits for the disabled and the elderly poor, such as the
surviving spouses of CPP beneficiaries. It will also see lower-income
Canadians pay significant increases in their CPP premiums.
During the past year, the federal government and the provinces have
been involved in joint discussions on reforming the CPP. MacKinnon
said all provinces recognize that reform is necessary to put the CPP on
a sound financial footing. Changes to the CPP require the approval of
two-thirds of the provinces representing two-thirds of Canada's
population.
"We asked the federal government to consider using the huge surplus in
the Employment Insurance program to help us protect the Canada Pension
Plan," MacKinnon said. "All provinces agreed that protecting the CPP
would involve gradually increasing premiums paid by employers and
employees. However, that could be offset by lowering premiums in the
Employment Insurance program.
"It's an idea that's good for business and good for jobs. I have urged
Federal Finance Minister Paul Martin to reduce Employment Insurance
premiums in the upcoming federal budget."
MacKinnon added that Saskatchewan and other provinces put forward
additional progressive ideas for reform to better protect the most
vulnerable.
"Unfortunately, these suggestions were ignored. The federal government
refused to move from its predetermined timetable for reform. It wanted
to broker with the other provinces an overnight solution to a problem
that's been 30 years in the making."
The minister continued to express concern for the country's social
safety net, which is already under pressure from $7 billion of federal
cuts to health, post-secondary education and social programs. She
added that the proposed CPP changes are very regressive.
"Of all the groups who most need the protection of the safety net,
shouldn't the disabled, the elderly poor and low-income Canadians be at
the front of the line?"
Both the governments of Saskatchewan and British Columbia oppose
today's agreement reached by the federal government and the remaining
eight provinces.
MacKinnon said she will push for further formal discussions in the hope
that fairer, more compassionate reform of the CPP can be achieved
"We will continue to strongly voice our opposition to these benefit
cuts, and work for a stronger CPP, one that protects seniors today but
also gives our children and grandchildren confidence for tomorrow."
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For more information, contact:
Ron Podbielski
Director of Communications, Finance
Regina Phone: (306) 787-6578