But the very existence of the report — now confirmed by Postmedia News through an access to information request — raises questions about the Harper's government's transparency on the politically explosive issue of seniors' pensions.
After federal bureaucrats drafted the taxpayer-funded report in 2007, the Conservatives decided to keep it under wraps. They introduced four budgets and ran in two elections without publicly signalling that cuts to the pension system could be in the offing.
It wasn't until after winning a majority government that Prime Minister Stephen Harper revealed earlier this year his plans to slash pensions for future senior citizens — a plan that was outlined in Flaherty's March 29 budget.
Flaherty's budget proposes that starting in 2023, the age of eligibility for the Old Age Security (OAS) benefit will gradually increase to 67 from 65.
Now, the government has formally denied a request from Postmedia News for a copy of the Finance Department report prepared five years ago.
In his March 20, 2007 budget, Flaherty promised to release a report later that year that would "provide a broad analysis of current and future demographic changes and the implication of these changes for Canada's long-run economic and fiscal outlook."
Moreover, Flaherty's budget said that "publication of a report on fiscal sustainability is motivated by the government's view that maintaining sustainable public finances at all orders of government is a critical condition to achieving intergenerational equity and strong and sustained economic growth."
However, Flaherty did not release the report when he issued his fiscal and economic update on Oct. 30, 2007. Since then, it has never been clear what happened to the report.
Earlier this year, Postmedia News requested a copy of a draft or final version of the report. The department said it has three documents, totalling 211 pages, in its files.
But the department refused to release them, citing sections in the Access to Information Act which allow the government to deny public release of information involving "advice or recommendations" to a minister, and materials involving cabinet confidences which are excluded from disclosure under the Act.
In a related request, Postmedia News sought 2007 briefing notes to Flaherty about the preparation of the report, and the department found 154 pages. It decided to censor virtually all of the material. Only two partly-blacked-out pages out of the 154 pages were released.
One document, however, is significant.
The Sept. 6, 2007 memorandum — marked "SECRET" — was written by then-deputy finance minister Rob Wright to Flaherty.
"Please find attached an early draft of the Fiscal Sustainability and Intergenerational Report," wrote Wright.
"We have tried to position the Report as a readable background document that presents the facts and policy implications related to population aging."
Wright offered to review the "main messages" of the report with Flaherty in a meeting to occur four days later.
A senior finance official said Thursday there is a reason why the report was never released.
"With the onset of the worst global financial crisis since the 1930s, the Government of Canada's priority through the global turbulence has been to protect the economy and help create jobs with (and devoting resources to creating and implementing) Canada's Economic Action Plan," wrote Chisholm Pothier, Flaherty's director of communications.
"As such no final report was ever completed or released."
The economic statement in the fall of 2007 proclaimed: "Canada's economic and fiscal fundamentals are as solid as the Canadian Shield, yet the world economy is experiencing turbulence and increased uncertainty." The statement's focus was on tax cuts and there was no mention of the aging population.
Parliamentary Budget Officer Kevin Page, who has said publicly the pension system is financially sustainable as it is, said Thursday the government's recent decision to keep the report secret "creates a culture of distrust" among Canadians.
"The public needs to see that information because they need to understand what is the fiscal context for some of these major decisions that are being taken with respect to Old Age Security, and with respect to the Canada Health Transfer."
The Tories have been accused by the opposition parties of hiding their plans for pensions during last year's election campaign, and of failing to prove Harper's assertion that the pension plan is financially unsustainable without cuts.
NDP finance critic Peggy Nash said the Tories have not been "open or transparent" with Canadians. She questioned whether the 2007 report is being kept secret because it could be politically embarrassing.
"From what we have seen of this government, if the facts supported their argument they'd put it in neon lights on Parliament Hill. The fact that they are hiding it tends to lead me to believe that the facts don't support their argument."
Original Article
Source: canada.com
Author: Mark Kennedy
No comments:
Post a Comment