Discounts and subsidies for seniors under more scrutiny than ever

Tom Hann says too many older people in St. John’s, N.L., are struggling to get by.

That’s why the city councillor, who also happens to be a senior citizen, thought it was a good idea to have the municipality lower the age limit for the discounts it offers seniors seeking bus passes or admission to pools and other recreational programs.

“If there’s anything we can do to take some of the pressure off these people, then let’s do it,” he said in a recent interview, adding that the age limit should eventually be lowered to 55 from 65. “We have a lot of people living hand-to-mouth all the time.”

Hann’s well-meaning proposal was shot down with little debate. A staff report dismissed the idea, noting the cities of Vancouver, Edmonton and Moncton offer discounts only to those 65 and older - though two neighbouring Newfoundland municipalities have lower age limits.

Last week, council voted to keep the age limit where it is.

It was minor a setback for Hann, who plans to keep pushing for a broader discount. But there is evidence to suggest seniors across Canada are facing a quiet backlash against the expansion or retention of long-held entitlements once considered sacrosanct.

In 2014, the ferry service linking the islands off the West Coast eliminated a discount that allowed those 65 and older to ride for free.

In recent years, TD Bank came under fire for scaling back its seniors program. And some airlines have also cut back on discounts.

In 2015, a report for the Institute for Research on Public Policy concluded it was time for governments, particularly municipal governments, to stop offering price breaks for seniors.

“I don’t think we should be providing special deals or perks to people simply based on their age,” economist Harry Kitchen, the report’s author, told Canadian Business. “You end up subsidizing some fairly wealthy people.”

In December of last year, there was talk of eliminating the discount offered to seniors who use public transit in Toronto, but Mayor John Tory quickly rejected the idea, saying the lower fares were for “people that have paid their dues.”