A variety of issues related to Canada’s people were brought to the Committee’s attention. Specifically, witnesses spoke about personal income taxation, education, employment, health, and retirement savings and income.

PERSONAL INCOME TAXATION

Tax Burden

In its appearance before the Committee, the Canadian Institute of Chartered Accountants shared its view that easing the personal income tax burden would help to attract and retain employees, thereby enhancing economic growth. In particular, it believed that broad-based tax reductions — rather than personal income tax credits, which add complexity to the system — should be examined.

According to Luc Godbout, additional study is needed in relation to data suggesting that some households in Ontario and Quebec with earnings of less than $40,000 pay relatively more in taxes when their household income increases by $400.

Seniors

In speaking to the Committee about single seniors, and particularly older women, the Canadian Association of Retired Persons made two requests: establish a measure that would be equivalent to the spousal allowance for single seniors who are in financial need, and make the Caregiver Tax Credit a refundable credit.

Persons with Disabilities

The Council of Canadians with Disabilities told the Committee that, in order to assist disabled individuals who are poor, the government should remove barriers for those with intellectual disabilities who wish to open a registered disability savings plan, expand the definition of a person with a disability in relation to the Disability Tax Credit, and make the Canada Pension Plan (CPP) disability benefit a non-taxable benefit for income tax purposes. As well, it said that the Disability Tax Credit should be fully refundable, exempt from income for purposes of provincial social assistance programs, and automatically available when qualification for the CPP disability benefit is established.

CHARITABLE DONATIONS

In speaking to the Committee about how best to provide incentives for individuals to donate to charities, the Medicine Hat and District Chamber of Commerce suggested that the government should increase the charitable donations tax credit rates and provide less direct funding to charities.

Sport Manitoba Inc. commented on the increasingly important role of the private sector in providing resources for the delivery of sports programs, and spoke about charitable tax incentives that attract such sources of funding.

EDUCATION

Federal Education Strategy

The Association of Canadian Community Colleges spoke to the Committee about lifelong learning, and supported this concept as part of a national strategy for education in Canada, while Polytechnics Canada highlighted the United Kingdom, Australia and Germany as possible models for addressing skilled labour shortages through the education system. The latter suggested that expert panels should be established and assigned the task of addressing the issue of skilled labour shortages.

In commenting on the Advisory Panel on Canada’s International Education Strategy’s report entitled International Education: A Key Driver of Canada’s Future Prosperity, the Canadian Bureau for International Education and the Association of Universities and Colleges of Canada supported the report’s recommendations. The former also advocated substantial and sustained investments in an international education strategy delivered in partnership with key stakeholders, and requested that funding for international education be increased to $25 million within three years, with a particular focus on enhancing Canada’s supply of scholarships. The Canadian Federation for the Humanities and Social Sciences supported scholarships, training and educational opportunities abroad, while the University of Toronto proposed investments in scholarships, particularly for graduate students.

The University of Manitoba focused on the strategic importance of fostering international research collaborations among universities, governments and industry, of investing in opportunities for Canadian students to study abroad, and of enhancing marketing and branding efforts in order to attract international students to Canada. The Council of Ontario Universities encouraged the government to make international education and research a pillar of the nation’s foreign policy and economic growth objectives. The University of Saskatchewan advocated the creation of a federal science strategy that would increase the national and international visibility of research-intensive Canadian universities and attract high-quality students and researchers to Canada, while McGill University spoke about the importance of supporting international partnerships through investments in internationalization, such as funding study-abroad programs for Canadian students, providing seed funding to support international research collaborations, and funding bilateral or multinational research initiatives.

Regarding the inequity that they perceived exists in federal post-secondary education funding, the National Association of Career Colleges and Polytechnics Canada highlighted the need to ensure that private and public educational institutions receive an equitable share of research awards and scholarships, particularly within an approach designed to attract international students to Canada. In relation to English as a second language training, the Canadian Association of University Teachers urged the government to fund public institutions and to avoid a voucher system that, in its view, gives a preferential benefit to private trainers.

Support to the Provinces/Territories and First Nations

The Association of Canadian Community Colleges informed the Committee about the need to increase funding of the post-secondary education component of the CST in order to achieve improved educational outcomes across Canada.

The Inuit Tapiriit Kanatami highlighted the challenge of adapting public-sector policies and private-sector initiatives to address the particular needs of Aboriginal students, and noted the urgency of achieving better socioeconomic outcomes for Inuit through educational support; from that perspective, it argued for targeted funding measures aimed at what it characterized as radical improvements in Inuit education and training. The Association of Universities and Colleges of Canada and the University of Saskatchewan supported more federal funding of post-secondary studies, while the University of Manitoba encouraged renewed federal funding of reach-back programs, which are currently being financed by the private sector. The University of Manitoba also advocated support for university programs that address the unique needs of Canada’s Aboriginal population, as well as for a greater range of family, community and other supports for Aboriginal post-secondary students. The Boys and Girls Clubs of Canada encouraged the government to work in collaboration with Aboriginal organizations to meet the needs of Aboriginal peoples for information relating to post-secondary education.

The Canadian Association of University Teachers and the Canadian Union of Public Employees argued for increased funding of Aboriginal post-secondary education, while the Association of Canadian Community Colleges spoke about the need for balanced investments between the kindergarten through grade 12 system and post-secondary education, and highlighted the educational gap between Aboriginal peoples and non-Aboriginal residents in Canada. The Canadian Alliance of Student Associations requested that the government remove the 2% funding cap currently in place in relation to the Post-Secondary Student Support Program, and called for adequate funding to support both the backlog of students who have been denied assistance and the needs of future applicants. The Council of Ontario Universities urged the government to consider new areas of investment that would increase Aboriginal high school completion, and that would expand access to — and encourage success in — post-secondary education for Aboriginal learners.

Regarding the improved Aboriginal educational outcomes that they argued could be achieved through government support of ongoing efforts by private institutions, the Association of Universities and Colleges of Canada focused on increasing the scale of proven projects, while the University of Saskatchewan mentioned that new approaches that are being explored would be implemented more quickly with federal support. As a means of closing the educational gap between Aboriginal peoples and non-Aboriginal residents in Canada, they noted the need for federal support of initiatives developed in partnership with such stakeholders as Aboriginal leaders, universities and the private sector.

Support for Students

In its appearance before the Committee, the Canadian Federation of Students advocated the implementation of a federal post-secondary education act modelled on the Canada Health Act, with provincial accountability regarding the way in which federal transfers are spent. It called for measures that would address current disparities in the amount of per-student funding to the provinces, decrease student debt by one half by 2015, address the underfunding of post-secondary education resulting from reduced federal transfers in the late 1990s, and lower tuition fees.

The Canadian Federation of Students requested that the government redirect the tax expenditure in respect of education tax credits and savings schemes — currently about $2.52 billion — to the Canada Student Grants Program (CSGP), while the Canadian Alliance of Student Associations asked for a 25% increase, per qualified student, in the funding available under the CSGP. Regarding student loans, the National Association of Career Colleges advocated more funding for students through the Canada Student Loans Program (CSLP).

Figure 3 – Public Support to Households and other Private Entities for Tertiary Education as a Percentage of Total Public Expenditures on Education, By Type, Organisation for Economic Co-operation and Development Countries, 2009

Note:    Countries are ranked in descending order of the share of scholarships and other grants to households and transfers and payments to other private entities in total public expenditure on education.

Source:       Prepared using data from Organisation for Economic Co-operation and Development, Education at a Glance 2012, 11 September 2012, p. 276.

Polytechnics Canada and the National Association of Career Colleges noted that, given the eligibility requirements for funding under the CSGP and the CSLP, the condensed nature of their programs puts them at a disadvantage compared to other educational institutions, such as universities. In particular, the latter noted that the average length of a career college program is about 26 weeks, and that eligibility for the CSLP and the CSGP requires program durations of at least 4 weeks and 60 weeks respectively; consequently, it advocated harmonization of program-duration eligibility criteria for both programs, which it believed would reduce unnecessary and complicated bureaucracy.

In speaking about student nutrition, Food Secure Canada stated that a national student nutrition program for all primary and secondary schools in Canada would result in higher grades; it suggested that the government should fund 20% of the costs of existing breakfast and snack programs.

The Canadian Federation of Nurses Unions proposed an expansion of the CSLP’s loan forgiveness provision for nurses and other health care providers, such as physiotherapists, working in rural and remote areas to those working in other geographical areas, and an expansion of the CSGP to registered nurses who are returning to school.

Job Training

The Association of Canadian Community Colleges and the Canadian Union of Public Employees spoke to the Committee about the need for public-private collaboration to address the skills development needs of Canadians. The latter also supported greater investments in training and education, particularly in national workplace training programs and initiatives that would lead to improved employment opportunities for women, visible minorities and disabled Canadians. The Association of Universities and Colleges of Canada advocated internships and other measures that would increase the work experiences of graduate students in a broad range of interdisciplinary sectors.

The Canadian Steel Producers Association and the Petroleum Services Association of Canada proposed the introduction of a training tax credit that would offset some of the training costs associated with hiring people who lack the necessary skills and that would encourage employers to invest in further skills development of their existing workforce. The Mining Association of Canada asked that the government consider the funding of specific programs within the Mining Industry Human Resources Council related to labour market research, labour certification and Aboriginal inclusion. In speaking about the needs of their profession and sector respectively, Engineers Canada and the Forest Products Association of Canada urged the government to work on initiatives to help attract and train underrepresented groups, such as women and Aboriginal peoples.

Financial Literacy

In its appearance before the Committee, the Canadian Institute of Chartered Accountants observed that individuals must have the skills and knowledge to save for their retirement. To that end, it urged the government to continue its commitment to financial literacy.

EMPLOYMENT

Labour Shortages and Domestic Labour Force

In speaking to the Committee about the need to address current and projected labour shortages, the Canadian Association of Oilwell Drilling Contractors supported providing incentives through existing pension plans, while the Alberta Chambers of Commerce advocated specific pension-related changes, such as increasing the age of 70 that currently exists in respect of CPP retirement benefits to 75, providing incentives to individuals who postpone receipt of their pension, amending registered retirement savings plan (RRSP) rules to provide greater flexibility for retirement saving after age 72, and developing harmonized and flexible pension policies in relation to part-time employment that would provide Canadians with incentives to transition out of the labour force after age 65.

Regarding training and educational initiatives to address skills gaps in the labour force, the Greater Kitchener Waterloo Chamber of Commerce cited the need for increased investments in skills development as complex technological advances are continuously implemented by manufacturers seeking higher productivity. As well, the Canadian Alliance of Students Associations and the University of Manitoba suggested that training programs should be targeted to industries where skills gaps exist, and that the benefits of education in the technical professions that are in the greatest demand across Canada should be advertised. The Canadian Restaurant and Foodservices Association spoke about the importance of working in collaboration with community colleges and universities to improve their understanding of labour market needs, and to ensure that students are successful in obtaining employment upon graduation.

In support of trade professions and apprenticeships, the Canadian Association of University Teachers suggested that employers should be provided with incentives to hire apprentices, while the Building and Construction Trades Department, AFL-CIO advocated an extension of the Apprenticeship Incentive Grant to cover the third and fourth years of the apprenticeship program, as well as an increase in the amount of the grant. Polytechnics Canada suggested that employers that are willing to retain an apprentice through completion of his/her certification should be provided with tax credits. The Association of Canadian Community Colleges advocated a national vision for skills development, specifically in relation to trades, while the Building and Construction Trades Department, AFL-CIO noted the importance of national coordination in relation to the public funding of education and training programs, suggesting that — throughout the education system — skilled trades should be promoted as a valuable career path, and argued for enhanced support of the Skills Canada program.

Regarding the way in which Labour Market Agreements (LMAs) are delivered, Polytechnics Canada highlighted the need for national standards and for LMAs to address specific challenges, such as attracting Canada’s youth to trade professions, as well as enhancing the image of colleges as providers of training and education for the skills that are in demand. The Building and Construction Trades Department, AFL-CIO suggested that LMAs should prescribe and measure training goals for new Red Seal apprenticeships, and that funding to provincial governments under LMAs should be allocated differently so as to encourage employers to hire construction apprentices.

The Building and Construction Trades Department, AFL-CIO proposed that the government establish a procurement policy in respect of construction sites under federal contracts that would encourage contractors to hire youth or Aboriginal peoples registered in the Red Seal trades, while Polytechnics Canada said that retention of registered apprentices should be a positive consideration for purposes of decisions about the employer that will be awarded a procurement contract.

The Alberta Chambers of Commerce, the Calgary Chamber of Commerce, the Canadian Energy Pipeline Association and the Mining Association of Canada commented on labour shortages and highlighted the importance of inter-provincial labour mobility. The Calgary Chamber of Commerce also noted that promotion of Canada’s energy sector and its role in the Canadian economy could lead to enhanced labour mobility.

The Association of Canadian Community Colleges and the Canadian Association of University Teachers supported initiatives to encourage the transferability of skills across jurisdictions, and proposed that the number of apprenticeships within the Red Seal Program be expanded; similarly, the Forest Products Association of Canada argued for initiatives to encourage skills transferability. The Canadian Chamber of Commerce and the Canadian Association of Oilwell Drilling Contractors advocated reform of the Employment Insurance (EI) system in order to encourage people to relocate to areas where labour shortages exist.

Regarding financial support for companies that incur expenses related to labour mobility and travel, the Canadian Association of Oilwell Drilling Contractors called for tax credits for worker relocation or seasonal work travel expenses, while the Petroleum Services Association of Canada proposed two changes: reversal of the decision to phase out the Overseas Employment Tax Credit as a means of encouraging employee retention, and an amendment to subsection 6(6) of the Income Tax Act (ITA) to make inter-provincial travel expenses incurred for non-temporary work assignments non-taxable benefits. The Building and Construction Trades Department, AFL-CIO suggested that the government should consider measures that would encourage labour mobility of skilled trades workers, and noted its willingness to partner with the government in creating a mobility tax credit to benefit companies that provide housing incentives to their employees. It also supported Bill C-201, An Act to amend the Income Tax Act (travel and accommodation deduction for tradespersons).

Labour Shortages and International Labour Force

In speaking to the Committee about foreign sources of labour, McGill University, the Forest Products Association of Canada, Engineers Canada and the Mining Association of Canada argued for improved efficiency of the immigration system as a means of lowering barriers to foreign workers. The Canadian Restaurant and Foodservices Association suggested that modernization of Canada’s immigration laws should focus on the needs of the labour market for both skilled and unskilled workers. As well, McGill University, the Canadian Institute of Chartered Accountants and Engineers Canada urged the government to continue or increase support of initiatives that streamline the validation process in respect of foreign education qualifications, professional licences or credentials, and workplace experience.

The Petroleum Services Association of Canada and the Canadian Cattlemen’s Association advocated more efficiency in relation to the Temporary Foreign Worker Program, as well as initiatives that would facilitate both the retention of temporary foreign workers in Canada and their transition to permanent residence status and citizenship. The Alberta Chambers of Commerce suggested that the Temporary Foreign Worker Program should be targeted to address immediate labour shortages; in its view, foreign workers should use other immigration programs for attaining permanent residence status. The Medicine Hat and District Chamber of Commerce highlighted the importance of the Temporary Foreign Worker Program — which it said should have an increased investment — and the Provincial Nominee Program — which it said should be integrated federally in a different manner; it also identified the need to change the way in which these programs are implemented.

The Canadian Alliance of Student Associations asked that — like international doctoral students — international master’s, undergraduate and college students in specific areas of study be accepted for permanent residence status under the Federal Skilled Worker Program.

Other Employment Supports

In their appearance before the Committee, the Canadian Association of Community Health Centres and Canada Without Poverty advocated the design and establishment of a federal poverty reduction and elimination plan, and made particular mention of Bill C-233, An Act to eliminate poverty in Canada; in their view, such a plan should be adopted in collaboration with, and as a complement to, existing provincial/territorial initiatives. In discussing the link among educational attainment, employment and poverty, the Boys and Girls Clubs of Canada similarly supported a federal poverty reduction plan. As well, Canada Without Poverty proposed additional measures to alleviate poverty, such as the establishment of a low-income refundable tax credit equal to the difference between a person's total income and the value of the low-income measure of applicable households, and the creation of an anti-poverty competitiveness task force and an anti-poverty impact test similar to the business impact test undertaken by departments to evaluate regulations and regulatory burden.

Canada Without Poverty and the Canadian Federation of Nurses Unions supported affordable early childhood education and care programs across Canada, the former in order to address multi-generational poverty in families and the latter in order to encourage female labour force participation. As well, the Canadian Federation of Nurses Unions proposed that monies currently allocated to the Universal Child Care Benefit be given to provinces/territories to enable expansion of accessible, affordable and high-quality child care spaces. The Child Care Advocacy Association of Canada suggested that the government should include child care in any national strategy related to training skilled workers to replace retiring workers, and advocated universal, affordable, high-quality child care and education, which — among other effects — would support the education and employment needs of parents.

Canada Without Poverty highlighted the need to implement social skills and support programs that would help Canadians, particularly those with low incomes, be better equipped to access the labour force, while the Council of Canadians with Disabilities advocated initiatives to improve employment access for disabled persons, such as the regulation of new information technologies, the creation of a centre of excellence for the dissemination of information to employers about universal design options, and the inclusion of employment targets in LMAs with the provinces.

The Boys and Girls Clubs of Canada noted the importance of Canada’s Youth Employment Strategy and of high-quality after-school programs in enhancing opportunities for youth employment through skills development. It requested increased funding of the Skills Link program, and argued that funding of this and related programs should be made on a long-term and stable basis.

HEALTH

Health Accord, the Canada Health Act and the Health Care System

In speaking to the Committee about the next health accord between the federal government and the provinces/territories, the Canadian Association of Community Health Centres suggested that the accord should contain stable funding, with a minimum 6% yearly increase, and provide for enforcement of the Canada Health Act. Canadian Doctors for Medicare, which highlighted the need for national leadership in maintaining a universal health care system, urged the government to negotiate an accord that reflects the needs of all regions and the shared priorities of Canadians, with new funding conditional on provincial/territorial compliance with the Canada Health Act.

As well, Canadian Doctors for Medicare noted the federal responsibility for enforcing the Canada Health Act, and — in identifying the violation of the legislation that is occurring with extra billing — suggested that the government should work with the provinces to prevent extra billing.

The Canadian Federation of Nurses Unions supported negotiations between the federal and provincial/territorial governments on a new health accord with a duration that exceeds five years.

The Canadian Medical Association requested that the government recognize the implications of the social determinants of health for the demands placed on the health care system. It also suggested that metrics to link health care spending to health outcomes should be created.

Health Care Delivery

The Canadian Nurses Association informed the Committee about the use of health system indicators to improve health care delivery and about the work of the Canadian Institute for Health Information (CIHI) in identifying indicators, and suggested that the government should implement a national strategy with five health and health system indicators; the indicators should be selected in cooperation with the provinces/territories after working with the CIHI, health providers and other stakeholders. It also advocated a federal commitment to Canada being among the top five ranking nations for each indicator by 2017.

Table 2 – Possible Indicators for Measuring Health System Outcomes

Indicator	Description
Perceived Health	An indicator of overall health status reported by individuals aged 12 and older
Health Conditions	Information on selected health conditions, such as diabetes and high blood pressure
Birth-related Indicators	Low birth weight and preterm birth
Life Expectancy	Life expectancy at birth and life expectancy at age 65
Premature Mortality	Age-standardized rate of deaths of individuals who are younger than age 75, per 100,000 population
Potential Years of Life Lost	All deaths occurring at each age before 75 multiplied by the number of remaining years to live until age 75
Potentially Avoidable Mortality	Age-standardized rate of premature deaths before age 75 that could potentially have been avoided through all levels of prevention (primary, secondary, tertiary), per 100,000 population
Mortality From Preventable Causes	Age-standardized rate of premature deaths that could potentially have been prevented through primary prevention efforts, per 100,000 population
Mortality From Treatable Causes	Age-standardized rate of premature deaths that could potentially have been avoided through secondary or tertiary prevention, per 100,000 population
Health Utility Index	An index for measuring years lived in good health compared with years lived in poor health
Disability-adjusted Life Expectancy	A comprehensive index of mortality and health status
Wait time	Information on wait times for various procedures including such indicators as hip fracture surgery or diagnostic imaging (that is, MRI and CT scans)
In-hospital Mortality	Information on selected conditions and interventions, including 30-day in-hospital mortality for acute myocardial infarction and stroke
Readmission	Information on readmission for selected conditions and interventions
Repeat Hospitalization for Mental Illness	A proxy measure for aspects of appropriateness of services

Source:       Prepared using information from Canadian Institute for Health Information, Developing a Model for Measuring the Efficiency of the Health System in Canada, October 2012.

Canadian Doctors for Medicare said that the federal role in health care should not be limited to transferring funds to the provinces, and proposed that the government set national standards — such as best practices — for health care delivery. It also noted that certain best practices are limited to hospitals and clinics, and requested federal leadership to identify health care innovations that could be used throughout Canada.

Regarding innovation and models of best practices, such as optimal nurse staffing, integrating care beyond the hospital and measures identified by the Premiers’ working group on health care innovation, the Canadian Federation of Nurses Unions called for the government to establish a health innovation fund that would finance the identification and implementation of such models, and to obtain information through the National Survey of the Work and Health of Nurses that was previously conducted by the CIHI and Statistics Canada.

In order to increase hospital efficiency, improve health care, reduce health care spending and create jobs, St. Boniface Hospital advocated the use of Lean quality transformation methods, and the creation of a Canadian centre for innovation in the delivery of health care that would provide training and advice on the implementation of such methods to other health care facilities.

The use of inter-professional primary health care teams, such as those used in community health centres, was highlighted by the Canadian Association of Community Health Centres. It suggested that investments should be made in a pan-Canadian network of such centres, and advocated a national vision to integrate services across the country.

Regarding the funding of health care for refugees, the Canadian Federation of Nurses Unions shared its view that recent reductions in federal funding of such health care would result in increased use of emergency services, which are funded by provincial/territorial governments, and argued for a reversal of the reductions.

The Canadian Medical Association called for targeted investments in health infrastructure to address the lack of long-term care accommodations.

Health Research

In informing the Committee about the limited research on the issue of the transfer of health-related research to public policy and practice, the Canadian Cancer Society suggested that all governments should make a commitment to conducting such research and to investments that would support health research.

The Canadian Cancer Society also commented on the impact of cancer and other chronic diseases on the economy, and said that investments in cancer prevention could also reduce the incidence of other diseases. It urged the government to increase investments in prevention research, and to integrate such research into policies and programs that would empower Canadians to make decisions that would have a positive impact on their health.

The Réseau québécois d’action pour la santé des femmes noted that Health Canada’s Women’s Health Contribution Program is being abolished in March 2013, and requested permanent funding of $4 million annually for independent and specialized research centres so that the health of women could be improved.

Regarding the health of military personnel, veterans and their families, the Canadian Institute for Military and Veterans Health Research requested a federal investment of $15 million over five years. It commented that the investment would fund direct research and research with industry partners through public-private partnerships, and would reduce the costs of health care insurance and benefits provided by Veterans Affairs Canada.

People with Disabilities or Other Medical Conditions, Seniors and Women

The Council of Canadians with Disabilities informed the Committee that grants provided to national disability organizations through the Social Development Partnerships Program were recently reduced and that, in future, grants will be provided to all not-for-profit groups in a competitive process. It proposed that funds for national disability organizations be allocated through a separate competitive process.

The Canadian Cancer Society commented that a multi-sectoral approach is important in addressing chronic diseases, and urged the government to take a leadership role in bringing non-governmental organizations, governments and the private sector together to advance shared practices.

Regarding seniors’ health, the Canadian Nurses Association noted that social determinants of health — such as income — play a large role in the health of Canadians. It proposed the implementation of a healthy aging strategy, as well as expanded federal tax credits and home care benefits so that older Canadians could stay in their homes and remain independent longer. The Canadian Medical Association spoke about the need to develop a pan-Canadian strategy for long-term care, home care and palliative care, as well as a dementia strategy.

In speaking about the health of women, the Réseau québécois d’action pour la santé des femmes requested a $100 million investment in prevention programs that aim to improve daily living conditions for women.

Mental Health

In informing the Committee about a coordinated national strategy for mental illness and mental health with federal leadership and provincial partnerships, the Canadian Association of Social Workers supported specific recommendations in the federal government’s mental health strategy for Canada and said that the strategy should be implemented immediately. In particular, it mentioned increasing the proportion of health and social spending that is devoted to mental health, creating an innovation fund to assist provinces/territories in developing sustainable mental health infrastructure and ensuring that mental health services comply with the five key principles of the Canada Health Act. The Canadian Psychological Association also supported the creation of an innovation fund to assist provinces/territories in developing sustainable mental health infrastructure.

Regarding access to psychologists in the federal health sector as well as in rural and remote communities, the Canadian Psychological Association urged the creation of federal residency placements within federal departments that provide health services as well as loan forgiveness under the CSLP for psychologists who relocate to rural and remote communities.

In commenting that it is difficult for federal public service employees to obtain psychological services, the Canadian Psychological Association suggested that extended health care insurance plans for such employees should be examined, and urged the removal of the requirement for a referral by a medical doctor before reimbursement of psychological services fees by an insurance plan.

Purchase of Pharmaceutical Drugs

The Canadian Federation of Nurses Unions told the Committee that the purchase of pharmaceutical drugs in bulk by the provinces/territories could lower health care costs, and suggested that the government should provide leadership in respect of this type of purchasing. Similarly, the Canadian Association of Community Health Centres supported a national bulk purchasing program and the Canadian Medical Association recognized the need for a national pharmaceutical strategy so that Canadians can afford essential drugs.

RETIREMENT SAVINGS AND INCOME

General

In speaking to the Committee about Canada’s demographic change, which will mean a higher proportion of retirement-age Canadians, the Financial Executives International Canada suggested that the government should conduct a study and develop a national framework regarding retirement income security.

Government-sponsored Benefits

The Professional Institute of the Public Service of Canada spoke to the Committee about the CPP, and requested mandatory CPP contribution and retirement benefit increases as a means to provide Canadians with a secure option for retirement savings. The Canadian Labour Congress and the Canadian Union of Public Employees suggested that future CPP retirement benefits should be doubled, with this change phased in on a fully pre-funded basis, while the Canadian Federation of Independent Business supported a supplementary voluntary CPP that would allow eligible Canadians to increase their CPP contributions in order to receive additional CPP retirement benefits.

In order to address what they deemed to be the growing income inequality gap in Canada, the Canadian Association of Social Workers suggested that the recent increase in the age of eligibility for Old Age Security (OAS) benefits from 65 to 67 should be reversed. The Canadian Association of Retired Persons noted that, since eligibility for Guaranteed Income Supplement (GIS) benefits depends on eligibility for OAS benefits, GIS benefits that will be lost as a result of the increase in the age of eligibility should be reimbursed.

Privately Financed Benefits

The Portfolio Management Association of Canada informed the Committee about the difficulties encountered by Canadians seeking to invest their retirement savings in stock exchanges located in “emerging market” countries. In particular, the list of designated stock exchanges that are approved for purposes of RRSP investments includes only three exchanges that are located in emerging markets; from that perspective, it proposed that the government update the list of designated stock exchanges.

The Canadian Institute of Chartered Accountants urged the government to provide additional incentives to save for retirement. It made particular mention of reducing or eliminating the income tax on personal savings, increasing limits on Tax-Free Savings Account (TFSA) contributions and reviewing the limits for RRSP contributions.

The Professional Institute of the Public Service of Canada called for the government to encourage employers to provide defined benefit pension plans.

The Alberta Chambers of Commerce stated that, in 1995, the government changed the ITA’s provisions regarding the transferability of severance payments to an RRSP; it asked that these provisions be reinstated, thus ensuring that Canadians are not burdened with higher-than-normal levels of taxation during times of personal financial hardship.

In noting that the introduction of the Harmonized Sales Tax (HST) affected management fees for financial services, the Portfolio Management Association of Canada urged the government to simplify the taxation of these fees when they are related to retirement savings.

Recognizing that the ITA provisions in relation to the capital gains exemption for small business owners are rarely changed and that almost one half and three quarters of Canadian entrepreneurs plan to leave their businesses in the next 5 and 10 years respectively, the Canadian Federation of Independent Business suggested that the level of the lifetime capital gains exemption should be indexed to inflation.

In speaking about the requirement that provincial governments adopt legislation that would enable pooled registered pension plans (PRPPs) to be offered by provincially regulated employers, the Canadian Bankers’ Association encouraged the government to continue working with provincial governments to that end. According to the Portfolio Management Association of Canada, there is a strong likelihood that many provinces will not implement legislation that would require employers to offer PRPPs. From that perspective, it encouraged the government to introduce specific tax incentives for employers to establish PRPPs or other retirement savings vehicles.

Figure 4 – Proportion of Total Canadian Registered Pension Plans that are Defined Benefit and Defined Contribution, Canada, 1992–2011

Source:       Prepared using data from Statistics Canada, CANSIM, Table 280-0010 (accessed 23 November 2012).

Fair Pensions for All commented on the differences between the private and public sectors and among generations in terms of pension coverage, and encouraged the government to reform the federal public pension system and pension entitlements to enhance equity between sectors and across generations.

The Canadian Federation of Independent Business said that the normal retirement age should be increased to 65 for all federal public servants, and that the bridge benefit that ensures that retiring federal public servants receive an amount equivalent to full CPP retirement benefits until age 65 should be eliminated. It also believed that parliamentarians and individuals who join the federal public service should be members of a defined contribution pension plan, which it characterized as the standard in the private sector.