Whitehorse Daily Star

Opposition parties critique planned welfare reforms

The leader of the territory's official Opposition says he wants to know when social assistance recipients will actually see an increase in their monthly cheques.

By Whitehorse Star on November 28, 2007

The leader of the territory's official Opposition says he wants to know when social assistance recipients will actually see an increase in their monthly cheques.

He made that clear after Health and Social Services Minister Brad Cathers announced proposed rate boosts and changes to the system on Wednesday.

'That's the only announcement that matters,' Liberal Leader Arthur Mitchell told reporters Wednesday afternoon.

Before the cabinet can approve the changes though, Cathers said, the government must consult with first nations and the federal Department of Indian Affairs and Northern Development.

'What they've done is yet again they've announced that they're beginning to get ready to commence something,' Mitchell said. 'That's the only way I know to describe it.'

The announcement is a 'camouflage' for the fact the government hasn't done anything on social assistance rates, he argued.

The government has stated throughout the fall session it's reviewing the rates that have been in place for 15 years and will be doing something, but nothing has come of it, the Liberal leader argued.

'They (the government) raise false hope,' he said. The government has done the same sort of pre-announcements on other occasions, such as child care announcements and initiatives like opening more beds at Copper Ridge Place, he said.

'This is a really, really sad public relations approach to governance when you announce something three times over before doing it,' Mitchell said.

While he went on to say he's in favour of any move that will enable recipients to live with dignity and is encouraged by potential changes, he noted right now they're just a series of promises.

Among them, the government is proposing to raise rates across the board, but by just how much depends on people's circumstances, such as where they live and the number of others in their household.

A single person on social assistance in Whitehorse would see his or her rates jump around 20 per cent monthly with shelter going up from $390 to $490, food rising from $159 to $200, fuel from a maximum of $400 to $439, clothing from $56 to $70 and incidentals from $40 to $50.

There are also changes proposed for the earned income exemption. That allows social assistance recipients to keep some income when they find work, while remaining on social assistance (provided their income doesn't exceed a certain limit).

Currently, a recipient keeps $1 of every $4 earned after a three-month period where every dollar earned is clawed back.

The changes proposed would see recipients keep $2 of every $4 earned with no waiting period.

A three-year cap would be placed on the earned income exemption, with recipients taken off the system at the end of three years. Currently, there's no limit on the time period they remain on the system while earning money as well.

Mitchell noted it will likely be at least December when the changes occur, unless they're approved in the next couple of days.

'Let's talk about it in December,' he said. 'I hope we're not still talking about it in January, February or March.'

NDP Leader Todd Hardy said yesterday's announcement came as a 'mixed bag' for him.

After seven years of pushing both the current Yukon Party and former Liberal government for welfare reform, Hardy said he supports the changes to the earned income exemption so recipients can keep more of their income.

'We applaud that,' he said.

There were not, however, enough details given on exactly what the rate increases will mean, he added.

There's a number of other ways to address the issue, Hardy continued.

In the legislature Wednesday, he brought forward a motion that the government develop a policy on a guaranteed income available to all adults in an effort to reduce the social assistance system, simplify and reduce administrative costs, maintain consumer demand, deal with long-term unemployment and under-employement, and stimulate growth in work such as literacy and art, volunteer service and research.

Then, in question period, Hardy asked Cathers to stop treating the national child tax credit as taxable income and raise the minimum wage to $10 along with calling, once again, for the guaranteed annual income.

Cathers continued to point to the announcement made earlier in the day and the changes that may be in place for social assistance, depending on what comes out of the consultation with first nations and Ottawa.

Like Mitchell, Hardy took issue with the government making the announcement prior to its consultation.

Hardy argued the government seems to use the first nation consultation requirements as an excuse not to take action.

'They haven't done their work,' he said. He questioned what the government has been doing in the months proceeding when Cathers stated an announcement on the rates would be coming following the review and internal processes.

The NDP leader also argued the announcement didn't address one of the major issues in the territory around how people on social assistance can afford to pay for shelter.

'What we really need is social housing,' he said, noting there are no such rental units available.

He questioned what's to stop a landlord from jacking up rental rates once the social assistance rates increase, thereby leaving a recipient having to put even more money into rent and not having cash available for other necessities like food.

Yukon Anti-Poverty Coalition co-chair Ross Findlater said at lunchtime today he was pleased with the announcement that the government is moving ahead with raising rates, but it's still not enough.

'These bring it almost up to the cost of living,' he said. He later pointed out the average monthly rent of a one-bedroom apartment in Whitehorse is $650, but the proposed increase will only provide up to $490 monthly for shelter.

'That still leaves a huge hole,' he said.

Findlater argued the rates need to be indexed to the cost of living, as is now done for the minimum wage and his own pension plan.

That would mean the government would not fall behind as it's done in the past, he said .

The consultation with first nations and the Department of Indian Affairs and Northern Development also worries Findlater, who remembers a first nation expressing concerns in the past over potential rate boosts.

First nations and the federal government typically follow the territory's policy for their own social assistance programs, Findlater said.

He wonders what would happen if there's opposition to the proposal. Even if there's not, he added, there remains a concern about how long it will take before the rates go up.

He had been hopeful it would happen before Christmas, but that no longer appears to be the case, he said.

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