$27b universal pharmacare plan tops Green Party platform costs
The Green Party of Canada’s promise of universal pharmacare would cost nearly $27 billion in its first year, says the national budget watchdog.
“That is the single biggest big ticket item in what we promise to do,” Green Party Leader Elizabeth May said.
“But it’s essential. We have to do it.”
May released the parliamentary budget office’s costing of 24 items of her party’s platform in Halifax on Wednesday morning. May was joined by candidates Jo-Ann Roberts (Halifax), Lil MacPherson (Dartmouth-Cole Harbour), Richard Zurawski (Halifax West) and Thomas Trappenberg (South Shore-St. Margarets).
Pharmacare takes the top spot of the Green Party’s platform costs, increasing by roughly $1 billion each year, with provincial contributions kicking in in the third year.
May said the Greens didn’t expect the PBO to have pharmacare coming in at $27 billion.
“We have adjusted and readjusted,” May said. “We were not prepared to reduce one iota our commitment to universal pharmacare.”
Eliminating tuition, with a cost of more than $16 billion in 2020-2021, is the party’s second most expensive promise. With the elimination of tuition, the Greens would eliminate the registered education savings plan.
“It’s popular but what it doesn’t do is it doesn’t provide the kind of educational benefits that we provide through eliminating tuition and investing $10 billion in post-secondary education,” May said.
“So it’s a popular program but with no purpose once we’ve eliminated tuition.”
Support for a national passenger rail system, energy saving home and building retrofits and restore climate change and atmospheric research funding are just a few targets on the Greens’ radar as part of the party’s promise to cut emissions 60 per cent below 2005 levels by 2030, which is at the core of the party’s platform.
May said applying or raising taxes would allow the party to balance its budget by 2024-2025, but would increase deficits to respond to a change in circumstances.
Applying a tax on financial transactions, raising corporate tax rates to the equivalent of the United States and applying a wealth tax would see $18 billion, $16 billion and $7.3 billion, respectively, by 2025, the PBO estimates.
“These are the things that bring in enough revenue that we are able to meet promises without increasing taxes for Canadians,” May said.
May also said she would incorporate businesses such as Amazon, Netflix, Google and Facebook into the tax regime.
“They mine our data and make a lot of money out of Canada. It’s only $1 billion by 2025, but it begins to level the playing field,” May said.
The party’s platform would also introduce a new tax on sugary drinks, which would bring in more than $300 million annually, according to the PBO.
“The tax on sugary drinks is for the purpose of discouraging empty calories that will lead to an increase in diabetes, the heart and stroke foundation and the diabetes association,” May said.
May acknowledged the platform introduced earlier this month differs slightly from the costing announced Wednesday.
This is the first election since the PBO was mandated to cost out election promises.
“There are some areas of discrepancy and unfortunately, I made the call and take responsibility for this, we could not delay our platform till today,” May said.
“I did not want on Sept. 25, with an election that started Sept. 11, to be releasing our full platform.”
After a quick stop in Truro, May headed to Montreal, where she will participate in the global climate strike rally with activist Greta Thunberg on Friday.