Barrie Examiner Column on OAS

October 15, 2009

Numerous people have contacted my office in recent weeks with concerns over a Private Members Bill introduced by Liberal MP Ruby Dhalla and seconded by Liberal MP Bob Rae. Bill C-428 proposes to make changes to Old Age Security by reducing the residency period required from ten years to only three. The intent of OAS is a repayment to seniors who have made significant contributions to Canadian society. Three years does not make for a substantial contribution.

Unlike the Canada Pension Plan (a participatory program that recipients contribute to throughout their working years), OAS is 100% funded by the Canadian taxpayer. In order to receive the maximum OAS benefit (just over $500 a month), you must have lived here for 40 years. Each year shy of that mark means less OAS (i.e. 10 years equals one quarter and three years would only equal three fortieths or about $37 a month). Ms. Dhalla exploits the obvious when announcing that “no senior should live in poverty”. She knows that is why we have the Guaranteed Income Supplement (GIS) to increase the income of those seniors whose combined OAS and CPP do not meet a certain threshold. In addition, certain medical, prescription drug and dental costs can also be covered.

Proponents of the Bill argue that Canada has reciprocal agreements with more than 50 countries and that a lower residency requirement already applies to them. But those 50 countries have a Social Security benefit system in place and when these foreign born residents collect income from their homelands, that amount is considered when calculating whether they qualify for further assistance through GIS. If they come from a country where no such programs exist (like India) a GIS supplement would likely automatically apply. Most experts agree that Bill C-428 would cost the Canadian taxpayer $700 million a year.

Immigration figures suggest Canada remains one of the most attractive destinations for immigrants. Between 2001 and 2006, 1,110,000 immigrants, a significant number of them over 50, came to Canada increasing the foreign-born population by 13.6%. This was four times higher than the growth rate of the Canadian-born population (3.3%). Recent immigrants born in Asia (including the Middle East) made up the largest proportion (58.3%) of newcomers to Canada.

It is understandable that people are eager to participate in the Canadian experience. There are some pretty repressive, cruel and hopeless places in the world. But we need to better address the legitimate needs of our own naturalized senior citizens before we even consider extending what could be seen as a dangerous sense of entitlement to others. Ms. Dhalla should be taking the opportunity to start a serious dialogue about all seniors in Canada and not just pandering to a specific ethnic group for her own political survival. Seniors are patriots, volunteers for people in need and vital caregivers to their grandchildren. They deserve far more respect, attention and credit than they are given. The audacity of this Bill proves it.

I will be voting against Bill C-428.
Patrick Brown
MP Barrie