THUNDER BAY – The NDP’s former pension critic admits he is hopeful the Ontario Registered Pension Plan does not become reality.
That’s because John Rafferty, who is running for a renewed term in the House of Commons in the Thunder Bay-Rainy River riding, would rather see Ottawa enhance the existing Canada Pension Plan to make the new retirement savings fund proposed by Ontario Premier Kathleen Wynne unnecessary.
“I’m not entirely sure this is needed in Ontario particularly if there’s a federal government that’s willing to talk to Kathleen Wynne and to talk to provincial and territorial governments across Canada,” he said on Wednesday.
“It simply makes sense from a bureaucratic point of view that you have one fund, a national fund, which takes care of all Canadians.”
The proposed Ontario pension plan has become a lightning rod on the federal election campaign trail with Conservative Leader Stephen Harper and Wynne engaging in a public war of words over the issue, with Harper pledging he will do everything he can to make it difficult for the Ontario Liberals to enact the plan.
Rafferty said he would be hesitant to buy into the plan unless there are guarantees, like with the CPP, the government can’t access any money in the fund.
He suggested returning age of retirement to 65 after the Conservatives raised it to 67, protecting the Guaranteed Income Supplement and gradually enhancing the CPP over the next decade to ensure Canadians have sufficient retirement savings.
Thunder Bay-Superior North Conservative candidate Richard Harvey argued the implementation of the plan would be dangerous for Ontario.
“Really, this is nothing more than a Liberal job-killing tax hike,” he said.
“It’s going to mean a small business that employs 10 people are going to be looking at $10,00 a year that business is going to have coming out of their pockets. When you look at a grocery store, the margin of profit a grocery store is such they can’t afford this new tax to be put on.”
Instead, governments should support giving people freedom to choose how to save for retirement and not force them into another compulsory pension plan.
“The big thing here is we have to look at giving people the choice,” he said. “Some people have adequate pensions, adequate savings and adequate investments for retirement. We have to respect our citizens and the fact they can make those decisions.”
Don Rusnak, the Liberal candidate in Thunder Bay-Rainy River, would not say if his party supports the Ontario plan but acknowledged the need to protect pensions.
“I think pensions need to be there for all Canadians,” he said, using his family as an example where his retired father feared his pension would fall short. “That’s not how Canadians who have worked hard like my father should be living their retirement. It’s something that should be there and should be addressed.”
Rusnak maintained the more significant issue is how Harper and his government have managed their relationship with the provinces, especially Ontario.
The federal government needs to work more collaboratively with the provinces, he said.
“A Liberal government would be committed to working with the Ontario government. It’s about partnering with municipalities, it’s about partnering with everyone,” Rusnak said.
“It’s not this constant fight the Harper Conservatives are always doing. They’re turning everything into a political fight and that doesn’t need to happen. It doesn’t help Canadians.”
Thunder Bay-Superior North Green Party candidate Bruce Hyer also would not commit to supporting the plan in Parliament until it becomes clear what is being voted on but said more needs to be done nationally.
“We will push for an expanded CPP,” he said. “We need to increase the benefits from 25 per cent of an average industrial wage to about 50 per cent...It’s just too low. That’s the only thing wrong with the CPP. The pay-ins and payouts need to be increased.”
