Budget 2016: NDP Supplementary Report on the Pre-budget Consultations
Building a fairer and more prosperous country

1. Introduction

After years of Conservative government, the economic situation of families, workers and those with the least continues to deteriorate. In combination with the current uncertain global economic climate, the NDP recognizes that the challenges are significant and that choices must be made.

However, the newly elected Liberal government cannot hide behind the economic situation to lower Canadians’ expectations before tabling the budget and back tracking on its promises. Canadians expect to see action in the upcoming budget to deliver on the measures they were promised.

Moreover, the NDP is concerned that the interests of the most vulnerable are being put aside. Concrete steps must be taken to help the less fortunate, low-income families, seniors and Indigenous peoples. The NDP is disappointed that, instead of helping those who really need it, the Liberals introduced a costly tax cut that excludes 60% of Canadians while giving the largest benefits to the wealthy.

The New Democrats also note the limitations of the 2016-2017 pre-budget consultation process. The consultations held by the Standing Committee on Finance are among the few opportunities available to Canadians to influence the most important initiatives the government will take over the course of a normal year. The NDP notes that the Committee could not carry out the usual process this year, and greatly thanks all those who participated in these shortened consultations. The NDP remains disappointed, however, that the concerns of many Canadians were not heard.

2. The uncertain global economic climate and the Canadian economy

The New Democrats recognize that the global economy remains fragile. Oil prices may not rise as quickly as expected, China’s economic rebalancing could lead to a slowdown and new volatility, fluctuations in exchange rates could lead to tensions in financial markets and the weak Canadian dollar could continue to raise the costs of our imports.

The New Democrats remain concerned about the impact of the economy on the lives of Canadians:

• Canadian household debt continues to rise. Among G7 countries, Canada had the largest increase in household debt relative to income since 2000. In the third quarter of 2015, total household debt reached 171% of disposable income.[1]
• As of January 2016, the unemployment rate in Canada was 7.2%, and 14.4% in Newfoundland and Labrador.[2]
• Access to EI benefits has plunged to a historic low, with fewer than 4 in 10 unemployed Canadians qualifying for benefits.
• Poverty rates among seniors are increasing and reached 11.1% in 2013, according to the low-income measure (LIM). The poverty rate for elderly women living alone is at 30%.[3]

3. Concreate measures to move Canada forward

Over four days of hearings in Ottawa, the Committee heard from 92 witnesses and received 175 briefs from individuals and groups who were not able to appear. They highlighted the significant challenges Canada faces and the need for the government to increase its efforts to find solutions to social, economic and environmental issues.

The New Democrats believe the government has an important and crucial role to play in ensuring the delivery of services to Canadians, reducing inequality and ensuring conditions for long-term success. Below we expand on certain measures that the government should adopt to this end and that were not included in the committee’s report:

Agriculture, Forest and Mining

• The Government should match the $1 billion provincial contribution to support the infrastructure needed to unlock the potential of the Ring of Fire in Northern Ontario.

Art, Culture and Linguistic Identity

• The Government should commit to an immediate reinvestment of at least $ 150 million to the CBC / Radio-Canada.
• The Government should reinvest in our cultural and creative institutions such as the Canada Council for the Arts, Telefilm Canada and the National Film Board.

Employment Insurance

• The Government should ensure the Employment Insurance (EI) fund is used solely for EI benefits, and should also reverse 2012 EI reforms in order to help unemployed Canadians by making EI more accessible and eliminating the significant backlogs of appeals before the Social Security Tribunal and in service delivery.

Businesses and SMEs

• The Government should implement a cap on credit card fees and surcharges for merchants, retailers and small business owners.

Environment and Renewable Energy

• The Government should enshrine the “polluter-pay” principle in law and set a price for carbon emissions, in order to encourage investments in green energy and help meet our international climate change obligations.
• The Government should announce a clear timetable for the elimination of existing subsidies for fossil fuels.
• The Government should strengthen the review process for major natural resource projects to ensure that cumulative environmental impacts are considered, that meaningful consultations with Indigenous peoples occur, and that arbitrary restrictions on public participation are removed.
• The Government should take advantage of opportunities to make Canada a world leader in the development and export of renewable energy by supporting investments in this sector.
• The Government should establish new, more ambitious targets for greenhouse gas emissions and put in place transparency and accountability measures to ensure we meet those targets.

Tax System

• The Government should close the stock option deduction loophole which mainly benefits wealthy Canadians.
• The Government should take action to combat tax evasion through the use of offshore tax havens.

Income Inequality and Poverty

• The Government should reinstate a federal minimum wage and gradually increase it to $15 an hour.
• The Government should increase direct support for low-income Canadians by expanding benefits and eligibility under the Working Income Tax Benefit.
• The Government should commit to addressing the rising prevalence of precarious work, including by ending the abuse of unpaid internships.

Infrastructure and Transport

• The Government should review the Building Canada program to make municipal streets, municipal ports, non-professional sports and cultural infrastructure projects eligible, and should review the definition of eligible broadband projects to add cellular telephone infrastructure.
• The Government should not force communities to adopt a public-private partnership or outsourcing model. Also, the government should not impose conditions leading to the privatisation of public infrastructure.
• The Government must ensure that municipalities of all sizes and types including small, rural, northern, and Indigenous communities are able to receive access to their fair share of infrastructure funding.

Social and Affordable Housing

• The Government should act immediately to address the affordable housing shortage experienced by Canadian municipalities by renewing social housing agreements and by working towards the development and implementation of a national housing strategy.
• The Government should provide significant investments and offer incentives for the development and construction of social and affordable housing units.

Indigenous Peoples

• The Government should make it a priority to implement the recommendations of the Truth and Reconciliation Commission, in cooperation with provinces and First Nations, Métis and Inuit communities.
• The Government should immediately end the punitive 2 percent cap on First Nations funding and put in place a fair and equitable financial relationship with built in indexation to close the gap between First Nations communities and other Canadians.

Retirement Security and Seniors

• The Government should enhance retirement security for all Canadians by working with the provinces and territories to increase Canada and Quebec Pension Plan benefits, increasing Guaranteed Income Supplement (GIS) benefits and returning the age of eligibility for Old Age Security and the Guaranteed income Supplement from 67 to 65.

Child Care

• The Government should work with the provinces and territories to implement a universal and affordable national child care program, to provide quality daycare spaces for preschool children.

Health and Wellness

• The Government should reverse the Conservatives’ planned cuts to health care transfers and restore the funding escalator in the next Health Accord.
• The Government should take concrete steps to make prescription drugs more affordable and more accessible by working with the provinces and territories to implement a National Pharmacare Program that will ensure universal coverage for prescription drugs.
• The Government should work with provinces, territories and health experts to develop and implement a National Mental Health and Dementia Strategy.
• The Government should increase compassionate care benefits to ensure caregivers are eligible to a paid six-month leave to take care of a gravely sick member of the family.