An open letter to Canada's finance ministers: "Ted Morton does not speak for
Albertans on CPP expansion!"

Alberta Federation of Labour President urges fellow Canadians to move forward on retirement security

EDMONTON, Dec. 14 /CNW/ - Alberta Federation of Labour President Gil McGowan released an open letter to Canada's provincial and federal finance ministers today, urging them to move ahead with reform to the Canada Pension Plan despite continued opposition from Alberta Finance Minister Ted Morton.

"Alberta Finance Minister Ted Morton does not speak for Albertans on the issue of retirement security," says McGowan, President of the AFL, which represents 140,000 Alberta workers.

Federal and provincial finance ministers will meet on December 20^th in Kananaskis, Alberta. In recent months, a rare consensus in favour of CPP expansion has emerged among the provinces and the federal government, with the exception of Alberta.

"The rest of the country needs to know that two-thirds of Albertans disagree with Ted Morton, along with experts across the political spectrum, and ordinary Albertans from all walks of life," continues McGowan, adding that it appears some members of Morton's own Conservative caucus also disagree with his position.

The open letter to Canada's finance ministers argues that a recent Environics poll found that 66-per-cent of Albertans support an increase in CPP benefits and only 19-per-cent are opposed. On November 26^th, Edmonton City Council passed a unanimous motion in favour of expanding CPP.  The same week, the Calgary Herald editorial board endorsed CPP expansion without reservations. 

McGowan adds that none of Alberta Finance Minister Ted Morton's claims about the negative effects of CPP expansion are supported by evidence. Rather, Albertans need CPP reform more than other Canadians - Albertans have lower workplace pension coverage than other Canadians and are able to save no more than other Canadians in RRSPs.

"Finance Minister Ted Morton has only suggested one alternative to CPP expansion - a voluntary scheme managed by the big banks and insurance companies. Polls show Albertans don't support those ideas, either," says McGowan, indicating that private, voluntary pension schemes come with extremely high fees and much more risk than the CPP.

"We urge Canadian finance ministers to do the right thing - and expand the Canada Pension Plan - as a way to ensure retirement security for all of us," concludes McGowan.

A copy of the open letter is attached.

December 14, 2010

Dear Provincial and Federal Finance Ministers:

Later this week, you will attend a pivotal meeting of utmost importance to all Canadians. In Kananaskis, you will be considering expansion of the Canada Pension Plan, a plan that all Canadian finance ministers support, with the exception of Alberta.

I am writing to ensure you are aware that Alberta Finance Minister Ted Morton does not speak for Albertans; in fact, Mr. Morton's position on CPP expansion runs directly contrary to a groundswell of public opinion in Alberta and even some members of his own Conservative caucus. Furthermore, Mr. Morton's claims that Albertans don't need CPP expansion, that the CPP is a "payroll tax" and will have a negative impact on job creation are not substantiated by evidence.

I am writing to urge you to proceed with CPP expansion because it is the best way to ensure retirement security for all Canadians in all provinces, including Alberta.

The majority of Albertans are in favour of expanding the CPP. A recent Environics poll found that 66-per-cent of Albertans support CPP expansion, with only 19-per-cent opposed.

On November 26^th, Edmonton City Council passed a unanimous motion in favour of expanding CPP.  On November 26^th, the Calgary Herald editorial board has also endorsed a larger CPP, without reservations. Albertans across the political spectrum support CPP reform.

The reality is Albertans need CPP reform even more than other Canadians. Economist Hugh Mackenzie, one of Canada's top pension experts, has found that Albertans are less likely to be covered by an employer pension plan than other Canadians.  Albertans with a workplace pension have inferior coverage compared to other Canadians, and Albertans are no more likely to save via RRSPs than other Canadians. Mackenzie also evaluates claims that modest, phased-in increases to CPP premiums negatively affect job creation, and finds there is no evidence for the claim. Rather, as the Calgary Herald editorial board pointed out, the CPP is not a payroll tax. It is a mandatory savings plan.

Please do not allow Alberta Finance Minister Morton to stand in the way of this crucial moment in Canadian history. Please support a phased-in, fully funded increase to Canada Pension Plan benefits when you meet with your colleagues in Kananaskis on December 20th. 

Sincerely,

"signed"

Gil McGowan, President
Alberta Federation of Labour

For further information:

Media Contact:
Gil McGowan, President, Alberta Federation of Labour -cell 780-218-9888 or 780-483-3021 or[email protected]