OTTAWA – Canadians will accept cuts in their social programs in the name of deficit reduction only if they are convinced that the rich also are paying their share, says the Liberal chair of a Commons committee that studied social policy reform proposals.
Francis LeBlanc, a Nova Scotia Liberal, told a news conference that during hearings across Canada by the Commons human resources committee, hundreds of witnesses complained about an unfair tax system.
“Canadians want to see that if their benefits are reduced, especially in social security, that measures are taken to make sure wealthy Canadians and corporations are also asked to bear the brunt of deficit reduction,” he said.
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LeBlanc’s comments, and the committee report that supported social policy reform, landed in Ottawa at a delicate time for the government.
Its publication in the first days of the Commons winter session came just weeks before the government unveils its deficit-fighting budget. The Liberals are under pressure from Reform MPs, supported by some taxpayer rallies, not to raise taxes in the budget, not even in the name of “tax fairness.”
The report also came as the government was hinting that social policy reform, once slated for later this year, now might be delayed because of the need to deal with the deficit first.
Human resources minister Lloyd Axworthy insisted that changes to the vast network of costly social programs like welfare, education and unemployment insurance still are coming, although the timetable is not precise.
The committee report follows the unveiling of Axworthy’s proposals for discussion last year and then months of public hearings.
The Liberal majority on the committee endorsed many of the proposals for reform of social programs put forward by Axworthy.
It endorsed the idea of moving to replace existing federal contributions to provincial post-secondary education budgets with direct federal loans to students.
And it accepted the idea that Ottawa should replace its existing matched-funding method of financing provincial welfare programs with block funding transfers carrying fewer federal strings.
However, the committee rejected proposals that unemployment insurance rules be tightened to cut availability to seasonal workers.
Instead, it recommended the program continue to be widely available to the jobless, but with a lower level of benefits. LeBlanc called this a more reasonable approach for the regions, like Atlantic Canada, where seasonal work is common.
Reform and the Bloc QuŽbecois members of the committee issued minority reports – Reform calling for radical reform to save money and the BQ condemning any proposal to cut the social programs.
