Feeling the demographic pressures of an aging population, Harper told an international economic forum that big changes loom to safeguard Canada’s wealth.
“In the months to come, our government will undertake major transformations to position Canada for growth over the next generation,” Harper said in a keynote speech to the World Economic Forum in Davos, Switzerland.
The Prime Minister pointedly noted that some developed nations appear to be taking their wealth for granted, a veiled poke at the continuing economic turmoil weighing down some European countries.
But it was his pre-emptive financial plan for Canada that drew the attention as Harper dropped hints of major — and likely controversial — reforms.
Indeed, his comments on retirement income changes fuel speculation that the Conservative government is planning to boost the eligibility age for Old Age Security to 67 from 65. The Prime Minister offered no specifics about his government’s intentions. But he warned that an aging population risks undermining the country’s economic position “well beyond the current economic crises.”
“Our demographics also constitute a threat to the social programs and services that Canadians cherish,” Harper said.
That’s why the Conservatives will act in the coming months to not only balance Ottawa’s books but ensure the “sustainability of our social programs and fiscal position over the next generation.
The Prime Minister ruled out changes to the Canada Pension Plan, which he said was “fully funded, actuarially sound.”
The changes to the retirement income system could be unveiled in the budget, expected in March.
Government officials provided statistics to underline the need to act, noting that the number of Canadians aged 65 and older is expected to double to 9.3 million by 2030. Because of the growing number of seniors and longer life expectancies, the cost of the Old Age Security program is expected to jump to $108 billion a year in 2030, up from $36 billion now.
But NDP MP Peter Julian predicted a furious backlash from Canadians who could have to work two years longer before collecting old age payments.
“That’s completely unacceptable,” Julian said in Ottawa. “We do not accept the proposition that more Canadian seniors have to live in poverty or that Canadians have to work longer in order to access retirement.”
Harper also signalled his government’s intention to act on several other fronts, including “significant reform” of the immigration system.
“We will ensure that, while we respect our humanitarian obligations and family reunification objectives, we make our economic and labour force needs the central goal of our immigration efforts in the future,” Harper said.
On energy, Harper gave his strongest backing yet of the controversial Northern Gateway pipeline to move Alberta oil to B.C. ports for export to Asian markets. The Prime Minister, whose natural resources minister has lashed out at “radical” opponents to the pipeline, suggested changes were coming to the regulatory process now evaluating the project.
“We will make it a national priority to ensure we have the capacity to export our energy products beyond the United States and specifically to Asia,” he said. “In this regard, we will soon take action to ensure that major energy and mining projects are not subject to unnecessary regulatory delays — that is, delay merely for the sake of delay.”
Harper, who has voiced frustration at debt-ridden European nations and their slow pace of reforms to get their finances in order, questioned whether developed nations no longer saw economic growth as a priority.
“Is it the case that, in the developed world, too many of us have in fact become complacent about our prosperity?” he said.
Original Article
Source: Star
Author: Bruce Campion-Smith
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