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The Senate

Motion to Call Upon the Government to Introduce Legislation to Freeze the Sessional Allowances of Parliamentarians in Light of the Economic Situation and the Ongoing Pandemic--Debate Adjourned

October 29, 2020


Pursuant to notice of October 27, 2020, moved:

That the Senate of Canada call upon the Government of Canada to introduce legislation that would freeze the sessional allowances of parliamentarians for a period that the government considers appropriate in light of the economic situation and the ongoing pandemic or for a maximum period of three years.

She said: Honourable senators, two days ago, I tabled a notice of motion that reads as follows:

That the Senate of Canada call upon the Government of Canada to introduce legislation that would freeze the sessional allowances of parliamentarians for a period that the government considers appropriate in light of the economic situation and the ongoing pandemic or for a maximum period of three years.

By supporting this motion, this is the message we are sending to the government: Senators do not want their privileged position to be devoid of sensitivity and consideration for the harsh economic reality many Canadians are experiencing.

Given the devastating effects of the COVID-19 pandemic on the finances of individuals and the state, the government should take steps to ensure that parliamentarians do not get a pay raise.

I rise today to share with you the main reasons that led me to move this motion in the Upper House. As a member of the Internal Economy Committee and, more specifically, as chair of the Subcommittee on Estimates, I have seen first-hand how senators’ allowances are set and how amounts are allocated among the various Senate departments.

Our salary increase is set by law. Year in and year out, it is included in the Senate budget and the calculation is built in automatically. If we do not want to receive this allowance, the legislation must be amended.

The purpose of my motion is, therefore, to urge the government to amend the act so as to freeze the salary of parliamentarians for the fiscal year 2021-22 and, if deemed appropriate, to extend this freeze for an additional period of up to two years. Giving up the increase in our sessional allowances is a simple act, and, I will say, not a very costly one for each and every one of us. It’s a little bit over $3,000 a year.

In 2010, parliamentarians waived the increase to their sessional allowance for three consecutive fiscal periods because of the economic crisis at the time. The current economic situation is similar to that one. The Senate should communicate clearly to the government that the current economic crisis calls for the implementation of this measure once again.

The Senate, the chamber of sober second thought, can lead by example. As senators, we can be proactive about the study of the government’s response to the COVID-19 pandemic by being mindful of the impact of our sessional allowance on the state of the nation’s finances. The financial impact will not be significant, but the gesture may well be.

Allow me, esteemed colleagues, to elaborate on the primary reason I am moving this motion. It has to do with the advantages we have as Canadian senators.

It is undeniable that our status as senators comes with many benefits, including that related to our sessional allowance and the annual increase of that allowance. However, these financial benefits make no sense when they are juxtaposed with the harsh reality of many Canadians today. Many of them have lost their jobs and some industries are struggling to survive this second wave of the COVID-19 pandemic.

The current crisis, more than ever, appeals to our solidarity with and sensitivity to the socio-economic reality of Canadians. The pandemic has deepened inequalities and shed light on many of the social issues that underlie the increasing gap between rich and poor. I am thinking of systemic racism in particular. Black people are at greater risk of contracting COVID-19 and suffering the financial consequences of the pandemic than other Canadians, according to a survey conducted by Innovative Research Group Inc. in partnership with the African Canadian Civic Engagement Council.

The pandemic has also affected women more than men in the workforce. For example, according to the Ontario Chamber of Commerce, the pandemic has led to the lowest rate of women’s participation in the province’s economy in 30 years. Seniors, children and migrant workers are also among vulnerable groups that are feeling more of the negative impact of the pandemic. While it is true that this motion will not result in substantial savings, it does, however, demonstrate our solidarity with Canadians. By supporting this motion, we recognize the advantageous position we occupy in Canadian society and the fact that it is strengthened by the economic situation brought about by the COVID-19 pandemic.

In addition, I want to share with you the pertinence of presenting and supporting this motion right now. To that end, I must briefly speak of the freezing of the sessional allowance, which was adopted by Parliament in 2010, in response to the 2008-10 financial crisis. In 2010, the government of the day had introduced Bill C-9, the Jobs and Economic Growth Act. This omnibus bill included clause 1649, which replaced section 55 of the Expenditure Restraint Act. Effective July 12, 2010, section 55 provided that senators’ and members’ allowances and salaries would not be increased in the 2010-11, 2011-12 and 2012-13 fiscal years.

In response to the 2008-10 financial crisis, parliamentarians decided that the best thing to do was not to accept a salary increase for three years. Recently, certain members in the other place have publicly spoken about the fact that they would like the current government to propose a similar measure.

The current economic situation is similar to what was seen back then — some may say it’s even worse — and should therefore, at the very least, prompt an equivalent response from parliamentarians. Senators are among the main stakeholders in this debate and should express themselves transparently by taking a position on this motion.

Mindful of how the government is spending in the pandemic, the Senate must lead by example by asking the federal government to introduce legislation that would freeze the sessional allowances of parliamentarians for an appropriate period of time. The Senate has mandated the Senate Standing Committee on National Finance and the Senate Standing Committee on Social Affairs, Science and Technology to study the federal government’s response to the COVID-19 pandemic.

The Senate has also created or will be creating a new Senate committee on the lessons learned from the COVID-19 pandemic and future preparedness.

In this chamber, we often express our concerns about how much the government is spending to manage this crisis. If we support a measure to freeze our parliamentary allowances, it would show that we are concerned about our country’s finances.

Logically, the Senate must support measures that ensure responsible management of government finances. It goes without saying that the motion I have moved will do just that.

The motion I’ve proposed today calls on the government to introduce legislation that would freeze the salaries of senators and members of Parliament for a maximum of three years, or for a period that the government considers appropriate, in light of the economic situation and the ongoing pandemic.

Some may see this as a superficial or even symbolic gesture, since freezing parliamentarians’ salaries will not save a substantial amount of money. I did a quick calculation, and if you combine the amounts for the Senate and the House of Commons, we’re talking about $1.7 million a year.

However, I do believe that supporting this motion is an expression of our solidarity with Canadians during these difficult times and a demonstration that, in our work as parliamentarians, we are concerned about our status and the wealth gap that is unfortunately growing in our Canadian society.

Honourable senators, let’s stand together in supporting this motion in order to send a clear and certain signal to the government. I thank you for your attention.

Hon. Claude Carignan [ + ]

Thank you, senator.

Have you estimated the cost of your motion per senator over a period of 10 years?

I calculated for a one-year period, not 10 years. Over a period of 10 years, we’d have to do some exponential calculations, so I calculated the amount over the period of one year.

Senator Carignan [ + ]

If we did an exponential calculation and calculated for three years? You mentioned $3,000, so for the third year, we’re talking about $9,000. If you take $9,000 recurring over 10 years, you’re talking about asking senators to give up $100,000 over a period of 10 years.

I’m not sure I understand your calculations.

When we look at the amount of money we receive, if we add in our marginal tax rate, that amount comes to roughly $3,300, but once we subtract the taxes, the amount decreases over a 10-year period.

Senator Carignan [ + ]

Let me clarify my question.

If you give up $3,000 once, the second year you give up $6,000, and the third year, $9,000. If you do this for 10 years, then you’ve given up $100,000, because it must be indexed.

I just want to make sure you understand how much it will cost, over 10 years, to give up three years of indexing.

I understand your calculations, and I could give you more significant figures. It’s an accurate calculation, very accurate, except that, since we are senators, I’m not sure it is a calculation that can be easily justified to Canadian taxpayers. Therefore, I think this calculation needs to be weighed, if I can put it that way.

Hon. Leo Housakos [ + ]

Thank you for this motion, Senator Moncion. I find it very interesting. I fully agree that the pandemic has had a catastrophic impact on the economic health and mental health of Canadians. We have never seen so much worry and anxiety in Canadian society as we have now as a result of the pandemic.

I find your motion far more symbolic than anything else, because in reality, the impact of COVID-19 on the economy amounts to hundreds of billions of dollars, not just a few million.

Here is what I was wondering: Did you consider, when moving a motion like this forward, broadening it a little bit more? The reality is that those of us working in the public service as parliamentarians, but also civil servants across the country, provincially and federally — for now we’re talking about the federal scope — are all working remotely.

The reality is all of us have had a reduced workload because of the situation of the pandemic, but none of us has participated in the sacrifices that many Canadians have.

If you look at the impact on Canadians in the private sector, it has been anywhere from 30% to 40%. It’s significant. Some it has been so impactful that they have lost their work.

Did you ever consider putting this motion across the board but rolling it back for a short period of time during the pandemic so people in the public sector — not just parliamentarians — would share in the sacrifice, and all of us in the public sector would share in the pain that Canadians are going through?

Thank you for the question, senator. No, I did not go that far. I find it difficult to go as far as that.

Employees have collective agreements and, as employers, we must respect them. There are many rules in place. As you mentioned, and as I stated in my speech, this is much more symbolic than significant financially, but I believe that this motion sends a message. It sends a message to several groups and individuals who are relatively well-paid, fortunate and who are not affected in the same way by the pandemic. It is truly a symbolic message and what I am asking of the government is that it at least study this.

The other element that I would like to mention and did not discuss in my speech is that when we received a pay increase this year, at the start of the pandemic, we were asked to donate it. I thought that was a good suggestion. Since the beginning of the year, I have donated a similar amount every month but to different charities. This means that I donate this money, even though it is part of my salary and I pay income tax on it, by giving an equivalent amount. I have donated to the food bank, a local health organization and several interest groups. However, there are other ways to provide money to organizations and other groups.

Hon. Jean-Guy Dagenais [ + ]

Honourable senators, I did not want to participate in the debate, but I find myself forced to do so. It is very commendable that the senator has been donating her salary increase to food banks, since this is obviously a personal gesture.

I have negotiated several collective agreements, and let me tell you, in the 1980s, the Quebec government found itself in a very precarious financial situation. It therefore introduced special legislation to freeze all salaries.

To pick up on what Senator Housakos was saying, if we’re going to take such a drastic measure, it should apply not only to parliamentarians, but also to the entire public service. The government will not hesitate to pass special legislation, and it would be entirely within its rights to do so. That’s the point I wanted to make.

Senator Housakos [ + ]

Senator Dagenais, I heard Senator Moncion’s arguments, and I also heard your perspective. I have some concerns, not only as a senator, but also as a Canadian.

There are in fact two classes of citizens in Canada: One class is privileged, made up of people who work for the federal government or a provincial government, who are public servants with collective agreements; the other class is made up of private sector employees who don’t have collective agreements to rely on for protection in times of crisis.

Senator Dagenais, as members of the upper chamber, we have an obligation to protect and stand in solidarity with Canadians in a crisis, period. Don’t you think it’s unfair and just plain wrong to have two classes of citizens, one that is quite protected and the other without adequate protection?

Senator Dagenais [ + ]

Thank you, Senator Housakos. I have to agree with what you are saying. However, this is simply a symbolic gesture that will have no impact on the government’s spending.

What is disappointing is to see a Prime Minister acting like a teenager with his father’s credit card on a Saturday night. I can tell you that, according to current estimates, Canada could face a deficit of $450 billion. Symbolic gestures are very nice, but we need to be more concerned about the government’s reckless spending.

You have to be careful when you say that there are two classes of citizens. I was a police officer, I was unionized and I had privileges, but it should be said that people have these privileges because of their role. I can tell you that when I was a police officer, we had salary freezes at the time and I did not agree with that. We have to be careful when we talk about privileged and non-privileged classes. That is the way society works, and we can’t beat ourselves up over every raise we get. I don’t expect you to agree with me, but that is how I see it.

We have to do what is in Canadians’ best interest, and that is what we have done quite recently. We supported bills like Bill C-2. I’m still annoyed at myself for giving Bill C-4 the go‑ahead in just a day and a half though. The Senate was there to help Canadians. It did its job. I think our job is to approve bills, to fine-tune them and to take the time to study bills in order to help Canadians, rather than just do something symbolic. That kind of thing can impress people, but it does not help the country’s finances.

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