Harper made the comment in a candid interview in his office across from Parliament Hill with Postmedia News and the National Post.
The interview came at the end of a stormy week in the House of Commons, where opposition parties have blasted Harper for publicly signalling recently that the pension system needs to be reformed to ensure its long-term affordability.
Harper had been vague about his government's plans when he first broached the subject a week ago and as he responded to political attacks in the Commons.
But in Friday's interview, Harper confirmed that, while no final decisions have been made, the government is examining whether to gradually increase the age eligibility for OAS from 65.
He did not provide further details on how the criteria would be adjusted, although it is widely believed that the age would gradually be increased to 67. This would accomplish two goals: keep more people in the declining workforce, and reduce the cost of the OAS system itself because there would be fewer beneficiaries.
"Absolutely, it's being considered," said Harper, when asked if OAS eligibility is being considered as an option for reform.
"But what we have to be clear on is that we are not looking at changes that are going to affect people that are currently in retirement or approaching retirement."
In the wide-ranging interview, the prime minister spoke bluntly about critical issues facing Canada and the world.
Among the highlights:
- Iran is led by a "fanatical and dangerous" regime that is pursuing nuclear technology to build weapons of mass destruction.
"This is a very dangerous situation," he said.
"I look at the rhetoric and the kind of philosophy that drives the Iranian regime, the kind of threats they have made to others in the world and my deep concern about this regime is that, for the first time in history, we are facing a regime that not only wants to attain nuclear weapons but a regime that has, compared to virtually all other holders of nuclear weapons in the past, far less fear of using them."
- China, which will play host to a visit by Harper next week, has become an important factor in Canada's economic growth because of its burgeoning economy.
Canada will "diversify" its trade to that country, as well as other Asian nations, because "traditional western allies" are experiencing slow economic growth.
The Chinese leaders, who were once surprised by Harper's blunt comments on human rights when the Tories first took office, now understand it's normal for this to occur.
"They expected that Canada would not vocalize any issues that were the least bit troubling to them. That was the approach they were used to from the government (of Canada).
"I think now they understand that this is a government that has somewhat of a different agenda, that we have a more balanced approach across a range of issues, that we are clearer and more outspoken on foreign policy than our predecessors. But at the same time we are also committed to mutually beneficial economic relations."
- Canada is emerging as an "energy superpower" in the world because of its abundance of resources. However, its "weakness" is that the main customer has been the United States — a vulnerability recently highlighted by the delay of the proposed Keystone XL pipeline. Consequently, Canada must look for markets elsewhere, particularly Asia.
"I don't think anyone has actually challenged the government's assertion that these are important industries and that it is in Canada's interest to diversify."
- Finance Minister Jim Flaherty's upcoming budget, although featuring cutbacks to reduce the deficit, won't be so austere that it will send the country's economy into decline, as some have predicted. There will be no "appreciable immediate economic impact," said Harper.
Opposition parties say Harper has created a "manufactured crisis'' about the future sustainability of pensions. The government says the cost of the OAS, without reforms, will soar from $36.5 billion in 2010 to $108 billion in 2030.
But critics say that, in fact, when viewed as a ratio of Canada's GDP, the increase in pension costs won't be so stark.
In the Postmedia News interview, Harper made it clear he is not backing down.
"We should go back to the major issue here, which goes beyond, of course, just retirement income system," he said.
"We are going to have a lower and lower percentage of our population that is working. This is going to be a significant economic problem. And obviously one of the things that many countries have been looking at is trying to have the incentives to keep people in the labour force and contributing."
He said most western nations are facing this problem, and some are under "desperate circumstances."
"I don't think we need to be in that position. I think we can examine these issues now and deal with problems before they are upon us."
Asked if anyone over the age of 50 should be concerned about how they are personally affected by upcoming pension reforms, he declined to comment.
"I think I've said all I'm going to say for now. I think it's pretty clear what the government is looking at and we're obviously going to make sure that future generations are protected as well as current seniors."
Opposition parties complain that Harper did not raise the issue in the last election and say he lacks a mandate to change the system.
In the interview, Harper did not answer a question on why he did not mention the pension system in the election.
"I think governments do have a responsibility to look beyond their mandate. And obviously we want to be the government for a very long time, so I think we should, as a government, responsibly try and foresee problems and address them before they come upon us."
Original Article
Source: canada.com
Author: Mark Kennedy
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