July 15, 1964

AGRICULTURE

PROPOSED NATION-WIDE TOUR BY HOUSE COMMITTEE

LIB

Harry William Hays (Minister of Agriculture)

Liberal

Hon. Harry W. Hays (Minister of Agriculture):

Mr. Speaker, a few weeks ago I announced plans for a coast to coast tour by the house committee on agriculture. We have worked out a tentative itinerary which will take the committee into every province over a two week period. We had hoped to be able to organize this tour for early August, but I wish to inform the house now that this has not been possible, for several reasons. In the first place, we have been unable to charter a suitable aircraft during August for the two week period we estimate the tour will take. Another obstacle to having the tour during August is the problem of booking accommodation for such a large group at the height of the tourist season. We also thought committee members might find the weather rather unpleasantly hot for the kind of intensive itinerary, including long bus rides through the countryside, at this time of year. For all these reasons we have decided to postpone the tour for a few weeks.

A suitable aircraft is available for late September and early October, and we now expect to take the committee on this tour of the country at that time to see our farm problems as they really are, the better, we hope, to deal with them in parliament in the future.

Topic:   AGRICULTURE
Subtopic:   PROPOSED NATION-WIDE TOUR BY HOUSE COMMITTEE
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QUESTIONS


(Questions answered orally are indicated by an asterisk.)


COST OF PENSIONS AT 65 AND 70

RA

Mr. Caoueile

Ralliement Créditiste

1. According to government actuaries, how many persons in Canada will have reached 65 years of age by January 1. 1965?

2. How many will have reached 70 years of age?

3. What amount would the government have to pay, on that same date, in order to give everyone a pension of $100 a month (a) at age 65 (b) at age 70?

4. What amount would the government have to pay, starting on January 1, 1965, in order to give everyone a pension of $150 a month (a) at age 65 (b) at age 70?

5. By what percentage would income tax and corporation taxes have to be increased in order to cover these expenditures each year?

6. What amount of income tax would a person earning $5,000 a year, married and with two children have to pay in order to cover expenditures under parts 3 and 4 above?

Answer: 1, 2, 3 and 4. Based on a set of projections of the 1961 census population developed last year in connection with actuarial studies on the Canada pension plan, as described in the actuarial report dated August 30, 1963, and tabled in parliament on October 15, 1963, the chief actuary of the department of insurance has estimated that on January 1, 1965, there would be in Canada 1,469,000 persons aged 65 or over and 960,000 persons aged 70 or over. He has also estimated that, for the calendar year 1965, it would cost $1,822 million to pay $100 per month to persons aged 65 or over in that year, $1,190 million to pay $100 per month to persons aged 70 or over, $2,733 million to pay $150 per month to persons aged 65 or over and $1,785 million to pay $150 per month to persons aged 70 or over. These costs, based on the aforementioned set of population projections, were adjusted to take account of past and anticipated future experience under the old age security program.

5. In order to raise an amount of revenue equal to the amount by which the above estimated costs exceed the expenditures forecast for the present old age security pensions the budgetary revenue from income tax on individuals and corporations combined would have to be increased by approximately the following percentages:

For pensions of $100 per month payable at age 65, 27 per cent; for pensions of $100 per month payable at age 70, 9 per cent; for pensions of $150 per month payable at age 65, 53 per cent; for pensions of $150 per month payable at age 70, 26 per cent.

Increases of this magnitude in present rates of tax would in some cases be impractical. For example, if the present top rate of personal income tax, which is 80 per cent before provincial abatement, were increased by 27 per cent it would become 101.6 per cent. If the present corporation income tax rate of 47 per cent before provincial abatement were

Questions

increased by 27 per cent it would become 59.7 per cent and if increased by 53 per cent it would become 71.9 per cent.

6. If the personal income tax payable by a married taxpayer with income of $5,000, who had two dependant children qualified for family allowance (which is $237.79 at current rates after deducting a provincial abatement at 21 per cent) were increased by the percentages shown above the additional amounts of tax payable would be as follows:

Increases of 27 per cent, $64; increase of 9 per cent, $21; increase of 53 per cent, $126; increase of 26 per cent, $62.

However, because it would be impractical to increase the tax of all individuals by 53 per cent or even by 27 per cent, the amount of tax paid by individuals with lower or medium incomes would have to be increased by more than the percentages shown above in order to produce the revenue proposed. As a result the taxpayer described in this question would have to pay larger amounts of additional tax than shown above. An increase of 27 per cent or even 9 per cent would have a very appreciable effect on the tax of all individuals.

Topic:   QUESTIONS
Subtopic:   COST OF PENSIONS AT 65 AND 70
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CYCLICAL REVIEW OF CIVIL SERVICE SALARIES

PC

Mr. Nugent

Progressive Conservative

1. When is it expected that the next cyclical review of civil service salaries in each of the groups will be completed (a) by the civil service commission (b) by the government?

2. In respect of each group, what will be the operative date of salary adjustment?

Topic:   QUESTIONS
Subtopic:   CYCLICAL REVIEW OF CIVIL SERVICE SALARIES
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LIB

George James McIlraith (President of the Privy Council)

Liberal

Mr. Mcllraith:

1. The second cyclical review of civil service salaries is now under way and final decision in respect of each of the groups has, or will be, taken as follows:

Group "A", professional and related classes -review completed and salary revisions approved on March 20 and April 9, 1964.

Group "B", administration and clerical classes. Group "C", hospital classes. Group "D", postal, customs, immigration, maintenance and service classes.

In each case the commission's submission is expected to reach the treasury board not later than seven months after the effective date of the increase. In the case of the "B" group, the treasury board has approved the extension of the time limitation to July 15, 1964, for the civil service commission to submit its recommendations. Once the commission's recommendations have been received, decisions are taken by the treasury board

as soon as possible, subject to the requirement to consult with staff associations. Past experience indicates that there is an interval of eight to nine months between the effective date of the increase and the date of announcement.

2. Group "A", July 1, 1963; Group "B", October 1, 1963; Group "C", January 1, 1964; Group "D", October 1, 1964.

Topic:   QUESTIONS
Subtopic:   CYCLICAL REVIEW OF CIVIL SERVICE SALARIES
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SALARY ADJUSTMENTS FOR GROUP A" CIVIL SERVANTS

PC

Mr. Nugent

Progressive Conservative

1. On what date did the civil service commission make its last recommendations for salary adjustments for civil servants in group "A"?

2. On what date did the government take action in respect thereto?

3. Did the government accept all recommendations of the civil service commission and. if not. in what particulars, in detail, did the government refuse to accept the recommendations of the civil service commission: and, in each case, what was the specific reason for such refusal?

Topic:   QUESTIONS
Subtopic:   SALARY ADJUSTMENTS FOR GROUP A" CIVIL SERVANTS
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LIB

George James McIlraith (President of the Privy Council)

Liberal

Mr. Mcllraith:

1. Civil service commission recommendations for classes in the "A" group were received on March 5, March 19, and April 6, 1964.

2. Revised rates were approved by the treasury board on March 20 and April 9, 1964.

3. The treasury board, acting on behalf of the governor in council, has the responsibility in accordance with section 11 of the Civil Service Act, to establish rates of pay after considering the recommendations which the civil service commission is required, by section 10 of the same act, to make. In discharging this responsibility, the board exercises its own judgment, based on the facts and considerations which in its opinion are relevant. This may, and in fact, does result at times in the establishment of rates for certain classes which differ from those recommended by the commission.

Topic:   QUESTIONS
Subtopic:   SALARY ADJUSTMENTS FOR GROUP A" CIVIL SERVANTS
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CRITERIA FOR CIVIL SERVICE SALARY ADJUSTMENTS

PC

Mr. Nugent

Progressive Conservative

X. Have the civil service commission and the treasury board established common criteria or formulae for the determination of the basis of recommendations for the adjustment of salaries of civil servants and, if so, what are such criteria or formulae?

2. If not, in what particulars do the criteria or formulae applied by the civil service commission and the treasury board differ and for what reasons?

3. What attitude has each of the staff associations communicated to the government as its official position (a) in respect of criteria or formulae adopted by the civil service commission but not approved by treasury board (b) in respect of

criteria or formulae used by treasury board without prior recommendation from the civil service commission (c) in respect of such criteria or formulae as may be agreed upon between the two bodies?

Topic:   QUESTIONS
Subtopic:   CRITERIA FOR CIVIL SERVICE SALARY ADJUSTMENTS
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LIB

George James McIlraith (President of the Privy Council)

Liberal

Mr. Mcllrailh:

1 and 2. The general criteria established for the commission are set forth in section 10 of the Civil Service Act, and the recommendations submitted by the commission are based on the commission's best judgment as to how these criteria should be applied. No similar criteria are prescribed in the act for the treasury board, acting on behalf of the governor in council; however, in considering the recommendations made by the commission the board takes full account of the criteria set out in section 10 of the act, and also of the policy statements made by successive governments in recent years in which the principles governing wage policies for the public service have been enunciated.

3. The government is not in a position to speak on behalf of the staff associations as to their official positions with respect to the matters referred to in this question. The views of the staff associations on a wide variety of formulae and methods of statistical measurement are communicated to the government, not only through formal correspondence with respect to individual questions at issue, but also through the consultations which take place, pursuant to section 7 of the Civil Service Act, on each occasion when salary revisions for groups "A", "B", "C" and "D" are being considered.

Topic:   QUESTIONS
Subtopic:   CRITERIA FOR CIVIL SERVICE SALARY ADJUSTMENTS
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ADOPTION' OF CYCLICAL REVIEW OF CIVIL SERVICE SALARIES

PC

Mr. Nugent

Progressive Conservative

1. When was the system of cyclical review of civil service salaries adopted?

2. Do Her Majesty's present ministers support and uphold this system of salary review instituted by Her Majesty's former ministers?

Topic:   QUESTIONS
Subtopic:   ADOPTION' OF CYCLICAL REVIEW OF CIVIL SERVICE SALARIES
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LIB

George James McIlraith (President of the Privy Council)

Liberal

Mr. Mcllrailh:

1. The system of cyclical pay reviews was announced in December, 1961. The first cycle started on July 1, 1961, the date of revision for group "A" classes.

2. The present government is following the system of cyclical pay review announced in December, 1961, pending the completion of development and enactment of collective bargaining in the public service as announced by the Prime Minister.

Questions

Topic:   QUESTIONS
Subtopic:   ADOPTION' OF CYCLICAL REVIEW OF CIVIL SERVICE SALARIES
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DANISH PROTESTS REGARDING BUTTER SALES TO U.K.

July 15, 1964