Budget Bill Passes in the Senate

After much protest, Bill C-38, the omnibus budget bill passed third reading in the Senate last Friday (to see how Senators voted click here).  This gargantuan bill that went well beyond consideration for federal financial measures (aka: a budget) and steamrolled its way into such matters as health, employment insurance, and the environment, was opposed by many Canadians and civil society.  As one Senator claimed, truly it was a, “omni-mess”.

Standing at 452 pages in length, with 753 clauses and amendments that would affect 70 laws, Bill C-38 – the Jobs, Growth and Long-Term Prosperity Act – went well beyond its duty to examine government revenue and spending.  Bills of this length should not be allowed in parliament – how can we expect parliamentarians to properly review and debate each section?  With time restrictions on debate and multiple government agencies and civil society organizations trying to testify to the damaging effects of this bill, appropriate deliberation was not possible.

In 2009 the Senate Committee on Finance noted: “The practice of using omnibus bills to introduce budget measures has the effect of preventing Parliament from engaging in meaningful examination of the myriad policy proposals contained in them. In particular, the practice makes it almost impossible for committees to conduct a thorough study of the proposed legislation.”

Even a young Stephen Harper was opposed to omnibus legislation in 1994 that was put forward by the Liberal government at the time. He is quoted as saying:  “First, there is a lack of relevancy of these issues. The omnibus bills we have before us attempt to amend several different existing laws. Second, in the interest of democracy I ask: How can members represent their constituents on these various areas when they are forced to vote in a block on such legislation and on such concerns?”

And yet here we are – facing a multitude of upcoming changes including changes to Old Age Security and Employment Insurance that will leave thousands of Canadians in a worse position, and not fully contributing to the healthy economy this government so desperately wants to create.

Starting in 2023, the age of eligibility for Old Age Security will move from 65 to 67.  A move, the government asserts, that will ensure the system remains “sustainable.”  This is an interesting posture considering that the government’s own Parliamentary Budget Officer said the system IS currently sustainable, and there is therefore no need for this change that pushes more seniors into poverty.

Recently in the Senate, during the debate at second reading of the bill, Senator Mercer stated that the “average retiring Canadian will lose $12,000, and the lowest income Canadians will lose up to $30,000. What is worse is that 40 per cent of OAS recipients earn less than $20,000, and 53 per cent of them earn less than $25,000 a year.”  Why push low-income seniors to the edge when we don’t have to?

Another area of concern involves the amendments to Employment Insurance.  Now there are greater restrictions are EI and people will be forced to accept lower paying jobs that are farther from their homes.  The impact on families, individuals and communities cannot be underestimated – less money coming in means less money to spend on rent, food, clothing, and transportation.  People expected to travel more will also have less time for family, recreation and themselves.

Dignity for All: the campaign for a poverty-free Canada, sent an open letter to provincial and federal finance ministers in June regarding changes to these two programs but has yet to receive a response.  Signed by 18 organizations and unions (including the CWP Advocacy Network), the letter called for the reversal of changes made to the OAS age of eligibility, a national conversation on pensions, and a review of the changes to EI.  All signatories shared the concern that the changes resulting from Bill C-38 will affect the most vulnerable in our society and in turn, have a negative impact on the economy.

While Bill C-38 has passed, the repercussions of this massive piece of legislation will be felt for years to come, and the scariest part is that its effects are not fully understood yet.  Canadians deserve more than this – they deserve the democratic practices that this country was founded on.