Francesco Sorbara

[Canada Pension Plan, October 24th, 2016]

Mr. Speaker, I am well aware of the pressures faced by seniors in my riding, as well as his, so I do note his comments with a large amount of empathy. Our government is committed to helping all Canadians. We did that with the enhanced guaranteed income supplement. That was the first step, with immediate relief provided to the most vulnerable seniors.

The enhanced CPP allows future generations and current workers to save more for their retirement so that they are not put in a position where they are unable to afford the basic necessities. I applaud our finance minister for his leadership on this file, for working together with all the provinces, of whichever political stripe, and coming to an agreement so quickly into our mandate. I think we should be applauded for that and the work he is doing.

[Canada Pension Plan, October 24th, 2016]

Mr. Speaker, we increased the guaranteed income supplement by approximately $947 in budget 2016, and that is going to help approximately one million Canadians who are the most vulnerable of the vulnerable. In addition, with the enhancement of the CPP, the working income tax benefits will be worked in such a manner that low-income Canadians will be left better off with the imposition of the enhanced CPP than they were prior, and that will assist them in moving out of poverty.

[Canada Pension Plan, October 24th, 2016]

Mr. Speaker, I will be splitting my time with the member for Winnipeg South.

Our government is committed to strengthening the backbone of the economy, the middle class, and those working hard to join it. It is with this commitment that our government has delivered on a number of platform promises that were made to hard-working Canadians.

I am proud to stand and speak to Bill C-26, an act to amend the Canada Pension Plan, the Canada Pension Plan Investment Board Act and the Income Tax Act. This legislation would strengthen Canada's pension system and was a key promise we made to ensure a secure and dignified retirement for all Canadians. I congratulate the Minister of Finance, who delivered on this commitment by working in close collaboration and common purpose with our provincial and territorial partners.

It must be noted that provincial leaders of every major political party, Liberal, New Democratic, and Conservative, worked diligently on coming to this historic agreement that would benefit generations of Canadians, including my two young children, Natalia and Eliana.

What is at stake is simple. We must strengthen our pension system to reflect the realities that exist today and ensure a dignified and secure retirement for all Canadians.

To start our discussion on the proposed legislation, I believe it is best to review Canada's retirement system as it stands today and why a strengthened CPP is required to address trends that are leaving so many Canadians unprepared for their post-work years. Today's multi-pillared system includes old age security and the guaranteed income supplement, which are paid out of general government revenues and act as a basic income floor for low and middle-income Canadians. The CPP and QPP are funded through mandatory employer-employee contributions, and, in the 1990s, the CPP shifted from a pay-as-you-go system to a pre-funded platform. Finally, we have private workplace pensions and discretionary individual savings, including tax-free savings accounts and registered retirement savings plans.

Despite this multi-pillared approach to the retirement system, a number of trends are emerging that are leaving millions of Canadians unprepared for retirement and potentially facing a material drop in their standard of living.

Extensive analysis conducted by the finance department found that around one-quarter of families nearing retirement, approximately 1.1 million families, are facing a drop in their standard of living. Furthermore, it is estimated that as many as five million Canadians do not have access to a workplace savings arrangement, and many of these middle-class Canadians are at a greater risk of under-saving for retirement. We must act to ensure that all Canadians have a secure and dignified retirement.

In addition, younger Canadians today face circumstances not faced by prior generations in terms of saving for their retirement. Canadians now entering the workforce will face the prospect of changing jobs several times in their lifetime, and a portable pension plan that facilitates job mobility is now a necessity in this changing job market.

Since the 1970s, we have seen a material decline in the overall participation in private sector registered pension plans, as well as an ongoing shift from defined benefit to defined contribution plans. Statistics Canada estimates that total private sector workplace registered pension plan coverage has declined from 35% to levels now approaching 20%. Frankly, fewer private sector companies are offering workplace pension plans, and many companies have closed or wound up their defined benefit pension plans.

Defined contribution plans are not in their exact nature true pension plans, as they expose individuals to investment risk and swings in the beneficiary's pension plan assets, and a subsequent shortfall in pension savings. Also, a low interest rate environment, which influences the present value of liabilities and has placed cash flow demands on companies to maintain solvency ratios, combined with, frankly, unfavourable accounting rules on pensions, has hastened the move by many companies away from defined benefit pensions.

Our government, in collaboration with the provinces, has taken a carefully targeted approach with this legislation to address the issues I have laid out while striking the important balance between short-term economic considerations and long-term economic gains.

What does an enhanced or stronger CPP mean for Canadians? Quite simply, it means a secure and dignified retirement for millions of Canadians. It means that individuals retiring can worry less about making ends meet and more about spending time with their loved ones, including grandchildren.

Once fully in place, this CPP enhancement would increase the maximum CPP retirement benefit of approximately $13,000 by up to 50%. In today's dollar terms, the proposed enhanced CPP represents an increase of nearly $7,000, to a maximum benefit of nearly $20,000.

The enhancement in this legislation would do two things to make this happen for contributors. First, it will increase the share of annual earnings received during retirement from one-quarter to one-third. This means that individuals making $50,000 today over their working lifetime would receive approximately $16,000 per year in retirement instead of the roughly $12,000 today. Second, it would increase by 14% the maximum income range, to approximately $82,700, so that those who earn more would receive more in retirement.

Enacting these changes with Bill C-26 would result, as estimated by the Department of Finance, in a reduction of families at risk of not having adequate retirement savings by one-quarter, from approximately 24% to 18%, when we consider all pillars of the retirement income system.

To ensure that these things are affordable, we would phase them in over seven years, starting in 2019 through to 2025, so the impact is minimal and gradual. As noted by David Dodge, former governor of the Bank of Canada, “The fundamental challenge [facing decision-makers] is how to provide for adequate retirement income for the future population of elderly people without imposing an undue burden of taxation on the working population and the business sector.”

We have struck this right balance. For example, an individual with earnings of $50,000 will contribute about $6 more a month in 2019, and by the end of the seven-year phase-in period, contributions for that individual would be about $40 per month. Additionally, and this is very important, we would ensure that low-income Canadians would not be financially burdened as a result of the extra contributions. We would enhance the working income tax benefit to roughly offset incremental CPP contributions with little to no change in disposable income, while still securing higher retirement income for low-income Canadians.

A strong CPP will be good for Canadians, and will also be beneficial to the Canadian economy overall. As estimated by the Department of Finance, greater CPP benefits would increase spending by retirees, providing for a boost to economic output. It is estimated that GDP would increase slightly, from 0.05% to 0.09%, and employment levels are projected to be permanently higher, by approximately 6,000 to 11,000 jobs, based on 2015 levels of employment. In addition, higher aggregate saving rates through enhancing CPP would increase the amount of capital available for investment.

The Canada pension plan is a solid program, and actuarially sound. It is fully funded for future generations. The most recent report noted that 5.3 million Canadians received approximately $38.7 billion in payments while contributions totalled nearly $45 billion. It cannot be understated just what advantages the CPP offers. The CPP as a retirement vehicle for Canadians is, in my view, a model for the world. These advantages include that CPP provides a secure, predictable, and stable benefit. Canadians will not outlive their savings, and benefits are not subject to shocks. CPP benefits are fully indexed to prices, so inflation will not reduce the value of a pension. CPP is fully portable, and it fills the gap of a decline in workplace pensions. Overall, CPP is an efficient way to save.

Finally, the CPP Investment Board operates at arm's length from the government, with a mandate to invest CPP funds in the best interests of plan members. It is a model that is independent, transparent, and accountable. It is well regarded around the world for its impressive record of investment performance and management excellence, with a 10-year annualized rate of return of 6.8%.

In closing, Bill C-26 is the next step forward in ensuring that all Canadians retire in a secure and dignified manner. I ask my colleagues to join with me in advancing this important piece of legislation that was brought forward in a collaborative approach between the provinces and the federal government.

[Pensions, October 6th, 2016]

Mr. Speaker, this summer, the Minister of Finance reached a historic agreement in principle between the federal government and the provinces to enhance the Canada pension plan. This deal was part of the government's commitment to help middle-class Canadians at every stage of their lives by putting more money in their pockets when they retire. This week the government has moved forward with implementing the agreement.

Would the parliamentary secretary please update the House as to the work being done to enhance the Canada pension plan?

[Canada Labour Code, September 23rd, 2016]

Madam Speaker, Bill C-4 would restore balance within the labour relations system in Canada, and we need balance. In any type of bargaining process, we need that system in place.

More important, for the broader economy, we need to have a transparent collective bargaining process take place, much like we saw with the recent Unifor negotiations and the recent CUPW Canada Post negotiations.

Frankly, the two bills that the previous government brought into place were unnecessary, basically attacked unions, and tilted the system in a way that upset the balance that was currently in place and was working fine.

[Canada Labour Code, September 23rd, 2016]

Madam Speaker, one of the components in Bill C-4 in repealing Bill C-377 and Bill C-525 is that union financial disclosure is already addressed in Canada's labour code and many provincial labour statutes. Therefore, many of the provisions contained in Bill C-525 and Bill C-377 were actually unnecessary. Also, the bill targeted only unions and not professional organizations.

With regard to the construction industry, there is a very healthy collective bargaining process that takes place in Ontario between the construction unions and their counterparties, and it has allowed the province to grow and prosper.

[Canada Labour Code, September 23rd, 2016]

Madam Speaker, Bill C-4 seeks to address two real issues that were brought in by the previous government on Bills C-377 and C-525, which tilted the balance that was in place away from unions. That is the first step we have adopted to address within our labour relations area.

[Canada Labour Code, September 23rd, 2016]

Madam Speaker, I wish everyone a good afternoon and a happy Friday.

I am very proud and fortunate to stand here at third reading to support our government in moving forward this important piece of legislation, Bill C-4, which would repeal Bills C-377 and C-525.

I spoke to this bill earlier, but I wanted to share my thoughts on Bill C-4 again, because I believe strongly in working to create a prosperous Canada, one in which the middle class and those looking to join it can grow and succeed. It was something I campaigned on last year and was a key plank in our government's election platform.

The two bills Bill C-4 seeks to repeal undermine labour unions and labour relations in our country, and in so doing, weaken our middle class.

Our government has an unwavering commitment to the middle class through initiatives like the Canada child benefit, which now sees nine out of ten Canadian families receiving higher monthly and tax-free benefits of approximately $2,300 a year; our middle-class tax cut, which reduced taxes for over nine million Canadians and will provide, over the next five years, approximately $20 billion in tax relief for Canadians; and recently, an historic agreement the Minister of Finance reached collaboratively with his provincial colleagues to expand and strengthen the Canada pension plan.

Our government is working to strengthen Canada's economy and to ensure that all Canadians have the opportunity to succeed.

When I last spoke to Bill C-4, I talked about the importance of the bill in restoring a clear and balanced approach to labour relations in Canada. I also talked about the fact that both my parents were union members. It was through the labour movement and its fight for fair wages and benefits that our family prospered in Canada. Frankly, it is one of the reasons I have the privilege to stand and speak in this House today.

I would like to focus my comments today on my personal connection to labour unions and their importance in helping create and sustain a strong middle class. However, before I do, I should probably provide some context and briefly explain the two bills that are to be repealed.

Bill C-377, which received royal assent in June 2015 and came into force at the end of 2015, created unnecessary red tape for unions and put workers at a disadvantage during the collective bargaining process. Bill C-525, which came into force on June 16, 2016, made it more difficult for employees to unionize and easier for a bargaining agent to be decertified.

Both bills diminish and weaken Canada's labour movement, are counterproductive to a positive working relationship between employees and employers, and negatively impact the growth and prosperity of Canada's middle class.

The two bills Bill C-4 seeks to repeal were ideologically driven, not fact, and were aimed at undermining the effectiveness of labour unions across Canada from coast to coast to coast.

One bill, Bill C-377, places onerous and unfair reporting obligations solely on labour and not on any other organizations, be it professional or otherwise. The other bill, Bill C-525, changes the way unions are certified and decertified, making it harder for workers to organize.

There was no compelling need to make it harder on the labour movement and no sound economic argument for the Conservative changes to the Labour Code. In fact, it was quite the opposite.

Given the essential role unions play in fostering and maintaining a prosperous middle class and in protecting the rights of workers, needlessly upsetting the labour market relations system that has contributed significantly to the overall Canadian economy makes little economic sense.

I said that I would be focusing my comments on a personal connection to the labour movement. Those members who know me know that I am an economist and a former corporate and government debt analyst who worked on Wall Street and Bay Street for nearly 25 years. People might ask themselves why I would be such a strong proponent of Bill C-4. It is because professionally and personally I recognize the importance of balance in Canada's labour system not only in allowing workers to make free and informed decisions but in giving employers a degree of certainty and access to a skilled workforce.

If we want to see an example of the labour system working in balance, we can look no further than the recent negotiations between General Motors and Unifor. Through a transparent collective bargaining process, both sides have come to a tentative agreement that seeks to achieve the best interests of both parties: business and labour.

I will quote Jerry Dias, Unifor's national president, who stated:

“This framework puts into motion what will be a historic agreement to secure a future for our members, for our communities and for the auto industry in Canada,” said Unifor National President Jerry Dias, who led the negotiations.

We must always ensure that labour and business can bargain in an open and balanced process. The bills that are repealed in Bill C-4 tilted that balance and it was wrong.

In my constituency of Vaughan—Woodbridge, I see how a fair and balanced labour system allows LiUNA and the carpenters' union to work with their partners, helping to ensure the availability of an educated and skilled labour force. That collaboration has played a large role in the phenomenal growth in enterprises in the city I call home, Vaughan, throughout the GTA, and, frankly, all of Canada.

Over the summer, I attended a LiUNA industry awareness event at its training facility in my riding of Vaughan—Woodbridge, where I saw first hand the training programs that LiUNA offers its members. LiUNA and its partners continue to train successive generations of workers who make Ontario a strong province and a beautiful place to call home. We must remember that unions like LiUNA continue to advocate for better health and safety conditions and strengthen pensions, which allow for a strong, prosperous, and growing middle class.

On a personal level, I also appreciate the importance of unions and a fair and balanced labour relations system. I was raised on the northwest coast of Canada in Prince Rupert, British Columbia, one of three boys, and both of my parents were union members. My father was a tradesperson, a carpenter and sheet metal worker. My mother, who, like my father, immigrated from Italy, worked in a fish processing plant. My parents came to Canada to build a better life and they brought with them the only asset they had: a work ethic and desire to build better lives for their family. With their union jobs, with benefits, good wages, and a safe environment, their aspirations for their family came true.

My parents instilled in me a very strong work ethic. Certainly those who know me, know I have carried that ethic with me proudly my entire life. They also instilled in me a very real understanding of the importance of unions and what decent wages and benefits meant to families.

In high school and while studying at university, I was a union member, working at the fish cannery, the Prince Rupert grain elevators and a pulp mill during the summers to help pay for my education. The work was not easy and the pay was not exorbitant, but it was a fair and decent wage. Because of the rules and oversight that unions helped to bring about, dangerous work environments were made safer.

Unions and their members are one of the backbones of the middle class in Canada. Union jobs enabled my immigrant parents to join the middle class. They allowed me the opportunity to pursue a higher education and, ultimately, with much happiness and privilege, it led me here to stand before the House of Commons.

I want to reiterate my full support for Bill C-4, our government's efforts to restore a fair and balanced labour relations system, and reaffirm my commitment to working toward creating and maintaining a prosperous Canada, one in which the middle class and those looking to join it can grow and succeed.

[Prostate Cancer Awareness Month, September 21st, 2016]

Mr. Speaker, I rise today to recognize September as Prostate Cancer Awareness Month.

The month is dedicated toward engaging and connecting with Canadians around a disease that one in eight men will be diagnosed with in their lifetime. Through community fundraising events, public service and research announcements, Prostate Cancer Canada attempts to alert people to the most common cancer in men.

Our riding of Vaughan—Woodbridge will be one of six communities across Canada hosting a breakfast for Prostate Cancer Awareness Month. The last 20 years has seen the death rate from prostate cancer drop by almost 40%, but still an estimated 4,100 Canadian men died from the disease in 2015 alone.

There is still a lot of work to be done to decrease the death toll further, and the increased awareness that comes from Prostate Cancer Awareness Month is a great place to start.

Please join me in attending an event, raising funds, or just sharing information about Prostate Cancer Awareness Month.

[Italian Contemporary Film Festival, June 13th, 2016]

Mr. Speaker, la dolce vita has arrived. On Thursday, June 9, the fifth annual Italian Contemporary Film Festival kicked off at the TIFF Lightbox in Toronto. This 10-day event runs in six cities and is one of the top 10 film festivals in North America. With nearly 30,000 attendees, the ICFF brings audiences together with internationally acclaimed filmmakers, producers, and actors through movies, talks, and panel discussions.

A part of Italian heritage month, the ICFF mission is to bring the Italian lifestyle, la dolce vita, to Canada. In addition to the cultural contributions the festival brings to Toronto, Hamilton, Niagara, Montreal, Quebec City, and the city of Vaughan, it also provides real economic and lasting benefits to Canadian businesses.

Please join me in applauding the co-founders of the Italian Contemporary Film Festival, Cristiano de Florentis and Maurizio Magnifico, and Canada's vibrant Italian Canadian community.