Speech from the Minister Jean-Yves Duclos for ABLE Conference

Richmond, British Columbia
May 9, 2018
Check against delivery
(2018 PASRB 000342)


Opening

Thank you for that kind introduction Louise. It’s always a pleasure to be here in beautiful British Columbia and what a treat to share the stage with Louise from Winnipeg.

For decades, Louise has been working to address poverty in this country. As co-Director of SEED in Winnipeg, she helped develop SEED’s financial empowerment program.

Thank you Louise for your work with SEED as well as your meaningful work with Canada’s Poverty Reduction Strategy Advisory Committee.

Before I begin, I would like to acknowledge that we are on the traditional territory of the Musqueam Peoples.

I would also like to thank ABLE Canada for inviting me here today. Your work in financial education and empowerment of Canadians is remarkable, and you are an important leader in the fight against poverty.

Today, I want to tell you what our government is doing to reduce poverty in Canada, how these efforts contribute to reconciliation with Indigenous Peoples, and our progress towards a national Poverty Reduction Strategy.

As Minister of Families, Children and Social Development, I have the important responsibility of addressing the issue of poverty in Canada.

But it’s more than a line item or objective in my mandate letter. It’s something I feel passionately about, and have for some time.

In fact, finding solutions to poverty is why I became an economist and a politician in the first place.

For 23 years, as a researcher and as a professor of economics, I was focused on the social and economic issues that affect people in this country.

My career was about facts. I gathered facts, I analysed facts and I wrote about facts. Sometimes policymakers listened. Sometimes they did not.

A few years ago, the previous Canadian government decided to increase the age of eligibility for old age pensions, from 65 to 67.

I became alarmed because the government had conducted zero scientific study on the effects of this change, especially on the most vulnerable seniors. It did not ask how the change would impact poverty rates. It did not ask whether there was a legitimate sustainability problem to fix in the first place. It did not ask about effects on savings or work behaviour.

The government was simply not interested in knowing who would bear the burden of the change.

So I did what any economist would do: I went looking for the facts. I put together a small team of researchers and graduate students, and we assessed the likely social and economic impact of the change in the age of eligibility.

We found that the change would plunge 100,000 seniors, aged 65 and 66, into poverty, every year. This represented a tripling of the poverty rate, from 6% to 17%.

The average senior man would have seen his income drop by 11%, while the average senior woman would have seen her income drop by 32%. Elderly women would clearly be the worst affected.

The worst impacts would hit those least able and least likely to adapt their work and savings behaviour. These facts mattered to me, and of course they mattered to vulnerable seniors.

So I did what most economists do not do, which is run for elected office, —and to my surprise, I won.

Soon after that, Prime Minister Trudeau made me a cabinet Minister responsible for employment insurance, childcare, housing, pensions, and benefits to families and seniors, to name a few.

So after years of assessing the impacts of decisions made by federal politicians in Ottawa, I was joining them, with a chance to find real, practical solutions for Canadians.

I can tell you that we are doing just that. One of my first actions as Minister was to reverse those changes from the previous Government.

Our focus remains the same as the day we took office: to strengthen the middle class and help those working hard to join it.

This continues to guide us in everything we do; and our plan is working, because Canadians are working.

Over the last two years, Canadians have grown our economy, creating nearly 600,000 jobs and driving the unemployment rate down to near 40-year lows.

The issue of poverty

However, while we are a prosperous country, too many Canadians are being left out of that success.

The fact is, poverty does not cease to exist in the face of a strong economy, and for those that live with it every day, we must act.

Nelson Mandela once famously said that: “Overcoming poverty is not a gesture of charity. It is an act of justice. It is the protection of a fundamental right—the right to dignity and a decent life.”

We owe it to Canadians to ensure that they have a real, fair chance at success and achieving their full potential—not only because they have a right to live that decent life, it is also vital to the success of our country.

More people working, contributing to society, and engaged in our communities means a stronger Canada for all.

But overcoming poverty is no simple task. Poverty is complex.

As the Prime Minister has said, and as I have said many times: Poverty is sexist; Poverty is racist.

It affects some of us more than others, but we all benefit when poverty falls and when social inclusion is enhanced.

That’s why, over the past year and a half, we’ve been talking to Canadians to inform the development of a national poverty reduction strategy.

Our plan is to create an inclusive strategy that sets real targets for poverty reduction, and builds on our efforts already in motion.

I will talk more about that strategy in a moment, but let me first tell you about some of those efforts that are building its foundation.

Taking Action Now

We are taking action for Canadians and their families.

Soon after coming into office, we increased taxes for the wealthiest 1 percent of individuals in order to lower taxes for the middle class.

We did not do it out of lack of consideration for people who are very successful in life, but rather because we believe that middle class families need more help.

As I said earlier, we also restored the eligibility age of the Old Age Security benefit from 67 back to 65 years old; and for Allowance benefits, we lowered the age from 62 to 60 years old.

These changes are keeping approximately 100,000 seniors from falling into severe poverty.

In addition, we increased the top-up of the Guaranteed Income Supplement by up to $947 per year for single seniors.

This move alone has improved the financial security of close to 900,000 seniors and is lifting tens of thousands of seniors out of poverty.

On the other end of the age spectrum, we’re providing more help for families with children with the introduction of a new tax-free, monthly Canada Child Benefit that is simpler, fairer and more effective.

This innovative social policy allows nine out of ten Canadian families to have more money to raise their children and lift 300,000 Canadian children and their 200,000 parents out of poverty.

For families, we’re also addressing the lack of affordable, high-quality child care.

We know that too many parents in this country are making difficult choices: some are sacrificing retirement savings to pay for child care, while others are leaving their job because child care is unavailable or unaffordable.

That’s why we’re investing $7.5 billion over 11 years in early learning and child care, and have entered into three-year bilateral funding agreements with provinces and territories.

Right here in British Colombia, the Federal government is investing $153 million to promote local solutions for families across the province.

Agreements like this address local early learning and child care needs, increasing the affordability, inclusivity and flexibility of high-quality child care.

We’re also working with Indigenous partners to co-develop an Indigenous Early Learning and Child Care Framework.

This Framework will reflect the unique cultures and needs of First Nations, Inuit and Métis children and families across Canada.

Once approved, the Framework will complement investments made under the Multilateral Early Learning and Child Care Framework with provinces and territories.

In 2019, we are going to enhance the Canada Workers Benefit, which will put more money in the pockets of low-income workers.

This will help over 2 million Canadians who are working hard to join the middle class and will lift 70,000 low income workers out of poverty by 2020, while encouraging more Canadians to join or stay in the labour market.

Improving access to benefits

This is good news for Canada, but if we want to ensure we’re getting the maximum effect out of these benefits, we need to make sure that they are getting to those who need them most.

With this in mind, in our latest budget we are amending income tax rules to allow the Canada Revenue Agency to automatically provide the Canada Workers Benefit to eligible tax filers.

Because of these changes, we estimate that 300,000 more Canadians will now receive the Benefit.

I know ABLE Canada has long advocated for our government to do more to help Canadians get the benefits they need and are entitled to.

Automatically qualifying Canadians for benefits, the way we’re doing with the Canada Workers Benefit, helps to do just that.

Similarly, building on automatic enrolment for Old Age Security, this year we have expanded the scope of automatic enrolment to the Guaranteed Income Supplement for seniors.

This means that, once automatically enrolled for Old Age Security benefits, recipients will be automatically considered for the GIS each year based on their tax filing. No need to apply.

We know the importance of Canadians properly filing their taxes, so that they can get the benefits to which they are entitled—the benefits they need.

That’s why, we’ve taken action, including enhancing the Community Volunteer Income Tax Program—which promotes free tax preparation clinics and arranges for volunteers to complete income tax and benefit returns for eligible Canadians.

The program is a great example of what can be achieved when community organizations come together. Last year, over 700,000 individuals were helped by over 2,800 organizations.

In our latest budget, we doubled the size of the program, helping hundreds of thousands more individuals complete their taxes and access benefits.

We are also investing in improving telephone and digital services provided by the Canada Revenue Agency. This includes additional training for agents to ensure that Canadians get the correct information when they call.

We recognize that Canadians may not be aware that there is help out there for them when they need it most. We also recognize that some populations face distinct barriers to accessing their benefits.

This is especially true for some Indigenous communities and in particular some remote and northern Indigenous communities.

In our 2018 Budget, we are proposing to expand outreach efforts to these communities, to ensure they get their benefits.

Poverty Reduction and Reconciliation with Indigenous Peoples

On this note, I would like to elaborate on what we’re doing when it comes to poverty and Indigenous Peoples.

In 2015, with the release of the final report on Truth and Reconciliation, we accepted fully our responsibilities—and our historical failings—as a government and as a nation.

We know that we need a total renewal of the relationship between Canada and Indigenous Peoples.

In an address to the United Nations General Assembly in 2017, our Prime Minister said that:

“We now have before us an opportunity to deliver true, meaningful and lasting reconciliation between Canada and [Indigenous Peoples].”

We are acting on that opportunity, and taking a hard look at our history as we attempt to right the wrongs of the past.

Our plan will move us towards a renewed nation-to-nation, government-to-government and Inuit-Crown relationship.

This relationship must be based on recognition, rights, respect, cooperation and partnership.

I’ve already mentioned some of our social support measures underway, such as an Indigenous Early Learning and Child Care Framework, as well efforts to improve access to benefits.

These measures are only a sliver of what needs to be done.

For our government, there is no relationship more important to Canada than the one with Indigenous Peoples—and we need to make sure they have every chance to succeed.

We know this is not possible without things like: good health; strong communities; good, well-paying jobs; a quality education; and safe and affordable places to live.

The truth is, safe, adequate and affordable housing remains out of reach for too many Indigenous people.

We’ve heard stories of 20 people crammed into two-bedroom houses, with family members sleeping in shifts so that everyone can get a few hours of sleep in a bed.

Situations like these are simply, unacceptable.

We are working in partnership with Indigenous communities to take action on this front.

And just as we plan to do with the Indigenous Early Learning and Child Care Framework, our actions will reflect the unique culture circumstances and needs of Indigenous Peoples.

Through investments made in Budget 2017 and Budget 2018, we have dedicated funding to support distinctions-based housing strategies.

This includes $600 million to support First Nations housing on reserve as part of a Housing Strategy that is being developed in partnership with First Nations.

It also includes $400 million to support an Inuit-led housing plan in Nunavik, Nunatsiavut[1] and Inuvialuit[2]. This is in addition to the $240 million announced in Budget 2017 to support housing in Nunavut.

We’ve also dedicated $500 million to support a Métis Nation housing strategy.

These initiatives are part of our wider strategy to address housing and homelessness in this country.

Our National Housing Strategy is a 10-year, $40 billion plan which will enable more Canadians to have a safe, affordable home where children can learn and grow, where parents can find the stability that they need to be successful in the labour market and where seniors can live in dignity.

The Federal government is back in Housing and the Strategy has bold outcomes to achieve over the next decade.

This includes a commitment to reducing chronic homelessness by 50% and removing more than 530,000 households out of housing need.

Poverty Reduction Strategy

Taking action on housing, supporting vulnerable populations, enhancing benefits and ensuring access to those benefits: these are some of the initiatives our Poverty Reduction Strategy will build upon.

While we should be proud of the foundation we have laid, we cannot become complacent—we cannot rest on our laurels.

We’ve consulted broadly on this Strategy, across the country, with academics, researchers, stakeholders, Indigenous partners and—most importantly—with people with lived experience of poverty.

ABLE Canada was one of those organizations that provided valuable input. I can tell you the message we heard was clear, and the lessons we learned are important.

First and foremost, we need to focus on addressing the basic needs of Canadians, such as food, housing and healthcare.

We also want to generate opportunities and hope, so that Canadians can move up the income ladder.

We also need to build and promote resiliency so Canadians can handle life’s unexpected setbacks when they happen.

We need to be inclusive in our actions, taking into account the different effects and causes of poverty as they relate to different populations, some more vulnerable than others.

In my view, to make sure we’re taking the best course of action, everything we do must be meaningful, measurable, and monitorable.

1.          Meaningful, in that we are making a real difference for people in their day-to-day lives.

2.          Measurable to ensure that we have robust and clear data so that we can target support where it is needed most.

3.          Monitorable, in that we can hold ourselves accountable and we fully understand the effect we are having.

Closing

In closing, our Strategy will set targets and publicly report on progress. As a progressive society, we must do everything we can to effectively reduce poverty.

To underscore this idea, I’ll share a quote from American President Franklin D. Roosevelt that resonated with me.

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little.”

Here in Canada, right now, we are making progress—but we have so much more to do.

We will continue working with our partners, including provincial, territorial, indigenous and municipal governments—and this collaboration will be a big part of our Strategy going forward.

But government cannot do it alone.

I look to the participants in this room. In our Strategy, there will be a role for you, because addressing poverty will require us to work together if we truly intend to reduce it.

Together, let us continue the fight to reduce poverty—not in the name of charity, but in the name of justice, progress and economic growth, and so that everyone has a real and fair chance to succeed.

Thank you.

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[1][nuˈnɑ-tsievut]

[2][in-uvi-aluet]