‘Neo-conservative ideology’ behind pension cuts: Liberals

Prime Minister Stephen Harper’s “neo-conservative” ideology is the motivating factor behind his surprise announcement that future old age pensions must be slashed, say the Liberals.

Specifically, Harper was accused of caring more about middle-income and rich Canadians — at the expense of the poor — and of creating intergenerational conflict through his proposed pension reforms.

The political controversy over the issue grew hotter Wednesday, as the Conservative government’s critics pledged a fight in the House of Commons and urged the Canadian public to rise up against the forthcoming reforms. “This is an issue about at what point does the federal government take some responsibility about the status and position of the most vulnerable and needy people of our society,” said interim Liberal leader Bob Rae.

Rae said Harper has created a “totally manufactured crisis” about the future sustainability of pensions. The government says the cost of the Old Age Security (OAS) system, without reforms, will soar from $36.5 billion in 2010 to $108 billion in 2030.

But critics and experts have said that, in fact, when viewed in as a ratio of Canada’s GDP, the increase in pension costs won’t be so stark and the system will be affordable.

“This is the most clear example we can point to of where this neo-conservative ideology of Mr. Harper’s is driving this country, is driving our social programs.”

Beyond signalling in a speech in Davos, Switzerland last week that the pension system must be changed in future years to make it affordable, Harper has given no details on what the government has planned.

In his speech, the prime minister said Canada’s demographics — an aging population and declining workforce — “constitute a threat to the social programs and services that Canadians cherish.”

Harper said countries needed to make tough choices now to avoid economic decline. Harper has since sidestepped questions in the Commons over whether the government is considering, as one option, gradually increasing the age of eligibility — to 67 from 65 — for the OAS benefit. Harper reiterated in the Commons Wednesday that the planned changes to the pension system won’t affect today’s seniors or those close to turning 65. That didn’t satisfy NDP critic Peter Julian, who said Canadian taxpayers have been “living by the rules” and are counting on a pension when they retire.