Paul Martin's Business Update - January 8th

Paul Martin's Business Update - January 8th

Ontario’s push to see contributions to the Canada Pension Plan doubled and, when that was rejected, declaring it would do its own version of the CPP is a major story worth some deeper exploration.

When the finance ministers met just before Christmas to explore and then reject the idea of a hike in CPP contributions, Ontario – which was the primary promoter of the concept – said it was to ensure people would have enough money to retire on. Nice but not particularly forthright.

There are other issues at play here. First, Ontario is carrying huge unfunded pension liabilities to its public servants, debts that would require massive tax increases to cover, and getting the people themselves to pay more to offset the shortfalls would shed part of the burden from the government down the road. To hide that fact is, at the very least, a little dishonest. Saskatchewan, by contrast, dumped those unwieldly public pension systems thirty years ago.

Ontario didn’t and now wants the rest of us to pay the price for their mismanagement.

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