WHAT SHOULD AMOUNT BE?

United OAP camp

By JACK PHILLIPS
s general agreement among Canadians that
the federal old age pension of $40 a month is a national

g

it it there is not the same degree of unanimity. For

The Canadian Labor Congress, in its recent
ion to the federal cabinet, called for $65 a month
, With no means test.

@ The CCF and LPP, which depend largely on

labor support, are pressing for $75 at 65, also with no

ne

means test.

@ The Senior Citizens’ Association of British
Columbia, wi-h 5,000 members in 40 branches, is divided
on the question. One group advocates $75 a month for
all persons over 65. Another advocates supplementary
tederal bonuses up to $20 a month, on the basis of income

Under this plan, the maximum allowable

In effect,

pensioner. this would be a modified means test.

@ The Liberal government, with an eye to the
next federal election, is now considering an increase in the
basic pension of $5 or $10 a month.

The reaction to the federal government's proposal
from senior citizens, trade unionists, the CCF and LPP
has generally been one of condemning the suggested in-
crease as inadequate:

This, of course, raises an immediate question. What
can be done to unite public opinion around one, specific
proposal, in such a way as to win the maximum gain at
this time for senior citizens?

To my way of thinking, if the Canadian Labor Con-
gress, through its national, provincial and local councils
would initiate a broad public campaign on this issue, ‘the
senior citizens could gain at least twice the projected
figure of $10 a month.

The organized trade union movement, with its mil-
lion, three hundred thousand members, could be decisive
in such a campaign, and could win the active support of
senior citizens, farm groups and a wide cross-section of
public opinion.

To the cynical old-line politician in Ottawa, an in-
in old age pensions is only one of several ideas
being considered as vote-catching measures. To the
average man on the street,
the plight of the pensioner is

pe
crease

titled to receive a provincial

something that disturbs his bonus, if they can pass a means
conscience and excites his test, with the maximum set

at $20 a month. In other pro-
vinces, the bonus ranges from
$2.50 to $20, with some pay-
ing no bonus at all: Where
bonuses are given they are
paid out of provincial funds.

moral indignation. To the pen-
himself, if is a basic
question of getting enough
money to keep himself above
the borderline of destitution.

sioner

aa Oe

The universal pension of $40

a month at 70, without the
means test, was established in
1952, paid for entirely from the
federal estimates. Prior to
that, it was payable only to
those who could pass the means
test, with federal and provin-
cial governments sharing the
cost on a 50-50 basis. -Despite
‘he boasted generosity of the
Socred government of this
province in giving a provin-
cial bonus, this new financial
arrangement has saved it mil-
lions of dollars.
In B.C. pensioners are en-

(In my last. article I inadver-
tently stated that Ottawa con-
tributed half the cost.)
Assuming that a B.C. pen-
sioner receives the. full $60
a month, there is still much
to be desired. In a province
where winters are cold and
damp, it is a desperate strug-
gle to keep alive and in good
health on this meagre amount.
After he pays his rent, or else
the taxes and overhead on his
home, the pensioner is lucky
if he has more than a dollar
a day left for food, clothing
and other necessities of life.
In 1954, Ottawa paid out

close to $339 million to 716,399
old age pensioners.

In the same year, Ottawa
spent slightly more than $19
million in old age assistance

for senior citizens between
the ages of 65 and 69, with
the provincial governments
matching this sum.

Unlike the old age pension
at 70, assistance is given only
where the applicant can quali-
fy under the hated means test.
The maximum assistance pay-
able is $40 a month, but the
average payment in B.C., in
1954, was $37.72 a monih.

Cniy one in six in this cate-
gory in B.C., some 8,000 in all,
received the assistance in 1954,
as compared with the national
average of one in five.

Obviously, the means test is
a big factor in ruling out a
pension: for 80.percent of Can-
ada’s senior citizens between
ihe ages of 65 and 69.

xt at it

What are the basic features

of this means test?

1 To qualify the applicant
must have an income of
less than $720 a year if
single and $1200 if mar-
ried.

2 The recipient is allowed
a personal income (over
and above assistance) of
$240 a year if single or
married, or $720 a year
if spouse is not in receipt
of assistance.

Where the recipient is in
receipt of the full assistance
and the full provincial bonus,
he is allowed only $120 a year
in extra income if single, and
nothing if married. Any ex-
cess over the maximum is de-
ductible from the assistance
and the bonus.

In B.C. all those in receipt
of the provincial bonus are
entitled to free medical care,
hospitalization and drugs paid
for by the provincial treasury.

Those pensioners who have
a small, private income which
makes ‘them ineligible for the
bonus are in no better posi-
tion to pay for these services
than the pensioners who get
the bonus, but they must pay
the bills out of their own
pockets,

Until such time as a com-
prehensive scheme of national
health insurance is introduc-
ed, all old age pensioners in
B.C. should receive free medi-
cal services, drugs and hos-
pitalization at the expense of
the province.

Sickness is too often a tragic
financial burden for the wage
earner. To the pensioner, it
can be a financial calamity.

If the universal old age pen-
sion was $75 at 65, with no
means test, and if supplemen-
tary bonuses were granted
provincially as at present, and
if there was comprehensive
health insurance for every
Canadaian, the senior citizen
could then live with a reason-
able degree of comfort. More

The unemployment figure for the country is now re-
ported to be around the half million mark. This picture
was taken last week in a National Employment Service of-
fice in Toronto.

important, he could live with
the dignity befitting a pioneer
of our great country.

“But,” the old-line politician
will say, “where are we go-
ing to get all the money for
this crazy scheme of yours?
Do you know that if we gave

FEDERAL EXPENDITURES — FISCAL YEAR
ENDING MARCH 31, 1956

National Defense

Assuming that one -million
Canadians are 65 and over, the
cost of paying them $75 a
month would be $900 million
a year. This would require
an additional federal expen-
diture (over and above the
present expenditure for pen-
sions and assistance) of $525
million.

Deduct this «amount from
the national defense budget
and there would still remain
the tidy sum of $1,243,000,000.

In 1949, the universal old
age pension was set at $40 a
month. National defense ex-
penditures amounted to $361
million.

Today, with the basic pen-
sion still the same, national
defense expenditures have in-
creased by almost 400 per-
cent. It should be obvious,
therefore, and considering the
realities of Canada’s position
in the world, that too large a
share of the national tax rev-
enue is being consumed for
warfare and too little for wel-
fare.

Canada has the resources
and the wealth to provide
our senior citizens with a
much higher standard of life
than they enjoy today. What
is required is united action
by the labor movement and
all democratic-minded citizens,

In B.C., there are two large
organizations of pensioners,
the Senior Citizens’ Associa-

aign needed

ry

every man and woman $75 #
month at 65 it would bank
rupt the country? Why, ?
would cost nearly a_ billio®
dollars a year!” .

In reply to our “practic#!
politician,” let’s get down
facts and figures.

$1,768,600,000
514,300,000
374,105,337

tion and the Old Age Pensiol
ers’ Association, each with #
reported membership of 5,000.
Outside of a substantial pe™
movement in Sas

sioners’
katchewan and a_ smaller
movement in Alberta, ther

is no other influential grouP
in Canada.

The trade union movemett
should give every assistancé
and cooperation to the exis
ing associations, and shoul
help in organizing the unoré
anized pensioners. Provincl@
and national federations 9
senior citizens could be.
powerful force in advanciné
the interests of older peopl®
and a valuable ally to thé
labor movement in its car
paigns for progressive, socia
reforms. }

Political education and pol
tical action feature prominent
ly in the plans of the Canadia?
labor movement. It is a goo
idea for the active labor ma?
to remember that the perce”
tage of citizens over 60 wh?
turn out to vote is exception
ally high in relations to othe
age groups.

By working closely with th®
organized senior citizens, a?
by campaigning ° consistent!
and sincerely to better th?
lot of these pioneers (most %
whom came from the rank
of the active labor force) labo!
can strengthen its - overal.
political influence across th®
country. :

-

]

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FEBRUARY 22, 1957 — PACIFIC TRIBUNE—PAGE 8