Canada’s finance ministers have agreed to increase the Canada Pension Plan (C.P.P.) by 1%. This is inevitable, and there really isn’t much point in arguing it. There is likely even a point after we finish grumbling about how it costs more we’ll even accept it; maybe even realize that this needed to eventually happen. The plan is 50 years old, the economy and demographics are different. It’s natural this should evolve to suit the country’s needs.
Its inevitability shouldn’t stop the questions. It’s been labelled a disaster by Canadian Chamber of Commerce President Perrin Beatty. Beatty says it will likely put the middle class under further strain. According to press reports this morning, the Liberals have not released what it would cost businesses. The Canadian Federation of Independent Business estimates it could cost employers with 15 employees approximately $13,200.
1% is probably the natural amount to settle on. But the economy is still a little shaky. The oil sands are still recovering after the wildfires. It feels like we’re nearing a point where we need to decide on how big of a role we want those resources to play. How much are we going to let climate change, influence the economy? Is this an environment where we should be raising C.P.P. by 1%? Were there other numbers thrown out? Why were they rejected? As it comes to timing, there is no perfect time to do this.
My next set of questions concerns mainly Ontario and the O.R.P.P. This was the lynchpin of the 2014 provincial election campaign. There’s a governing structure headed by Saad Rafi already in place. Do they really plan to give it up? How much money has been spent on it? (as of this morning Kathleen Wynne didn’t know). In the communication I’ve gotten on this so far there’s been nothing that has convinced me of this. If it stays in play then it could be curtains for Ontario’s economy.
There are 5 months to go until year’s end. Enough time to make people aware of the need for an increase and even this deal. Why not take the time to educate people on it? Why the hurry? The O.R.P.P. isn’t scheduled to begin contributions until January, 2018.
A C.P.P. increase is inevitable. Its inevitability shouldn’t stop people from asking questions.