As the Bloc Quebecois calls on the minority Liberal government to increase Old Age Security (OAS) payments, debate is growing over how the City of Ottawa will allocate spending among age groups.
Block leader Yves-François Blanchet introduced a motion on Tuesday calling on the government to move forward with legislation to increase OAS payments for seniors aged 65 to 74.
The bloc said it would continue to support the Liberal government on a future no-confidence vote, but only if the OAS increase is achieved by the end of this month. It also calls for stronger trade protection for the supply-managed agricultural sector.
Senior benefits, such as OAS and the Income Security Supplement (GIS) for low-income seniors, already represent the largest and fastest growing portion of the federal budget.
The cost of elderly benefits is projected to rise from $80 billion this year to $100 billion a year by 2028-29, taking into account the proposed 10% increase. Not yet.
And the federal government already pays more than other major programs that disproportionately benefit young people, such as Employment Insurance (EI) ($26.6 billion), the Canada Child Benefit ($28.1 billion), and the National Child Care Program ($6.6 billion). Japan also spends a large amount on elderly benefits. ).
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The Parliamentary Budget Officer (PBO) says Brock’s proposed OAS increase would cost $16 billion over the next five years, and the spending would further increase the national debt, which currently exceeds $1.2 trillion. It turns out. The cost to finance all of this debt will be about $54 billion this year.
Environment Minister Stephen Guilbeault told reporters on Tuesday: “We need to look at the intergenerational impact of something like this. This is a lot of money and it’s not inconsequential. So we’re going to look at it very carefully. We need to do that.”
“Are the people in society who need support the most right now the elderly? I understand how young people are currently facing difficulties, but there should be a discussion,” he added in French. .
The Liberal government has not said how it will vote on today’s motion. Prime Minister Justin Trudeau’s cabinet members are instead touting the government’s fledgling dental care and upcoming pharmaceutical care programs as evidence of the government’s focus on supporting seniors.
Statistics Canada 2019 data Research shows people 65 and older already make up one of the wealthiest age groups in the country, with a median net worth of $543,200, compared to $234,400 for people aged 35 to 44 .
The Liberal government’s last budget, titled “Fairness for All Generations,” was designed to appeal to millennial and Gen Z voters who felt left behind as house prices continued to rise. Rising house prices are good news for elderly homeowners, but they are a drag on young households’ finances.
The centerpiece of that budget was a housing program paid for by the Treasury at a fraction of what was spent each year on OAS or GIS.
Blanchett said seniors “literally built Quebec and built the prosperity that we all enjoy today, so they deserve a significant increase in their purchasing power.”
He said the young people around him are thriving.
“They have a standard of living that we could never have imagined, and we are very happy about that,” he said in French during Tuesday’s debate on the motion.
“And I think the people who built this world for themselves need to be treated appropriately for doing that.”
Blanchet said the Liberal government’s move to increase OAS payments for people over 75 in 2022 amounted to a form of “discrimination” because eligible younger seniors would receive less.
Part of the Bloc’s voting base is older people who live in sparsely populated centers outside of Montreal and Quebec City.
“This is an opportunity for seniors to benefit greatly,” Blanchett said. “If the government doesn’t accept our requests, it won’t want to help millions of Canadians and Quebecers.”
Youth advocacy group Generation Squeeze says if the bloc gets his way, “young Canadians will have to pay even more in taxes for baby boomer OAS benefits.” Ta.
The group said this is unfair because young people are already struggling with rising housing costs, mounting student debt and future costs from climate-related natural disasters.
“Instead of being held hostage to the bloc, Ottawa should support financially unstable retirees by modernizing the OAS and improving benefits. “Instead of sparing spending on their descendants, they will be required to contribute more to their generation’s income needs,” the group’s founder Paul Kershaw wrote in a recent op-ed.
For the bloc’s pension law to become law, the Liberal government must approve the Royal Recommendation. That’s because private members’ bills cannot force Ottawa to spend more without cabinet approval.
The Block’s motion on Tuesday is an attempt to force the government to submit its recommendations so that the pension bill can be passed through parliament.
