Canada needs to overhaul its social safety net to help its most vulnerable working-age adults climb out of poverty, Liberal leadership candidate Bob Rae says.
In an era of growing federal surpluses, Canadians are entitled to broad-based income tax cuts that could help reduce disparities between low- and middle-income families, Mr. Rae told about 200 people at the Economic Club of Toronto yesterday.
"Let's genuinely do whatever we can to encourage people to get back into the workforce," he said, and to help those who are "stuck in a poverty trap and can't get out."
But Mr. Rae also assured his business audience that he has evolved from his socialist roots as Ontario's former New Democratic Party premier. He said none of the economic priorities contained in his platform could be accomplished unless the federal government continued to run a surplus.
Mr. Rae outlined his platform in a 13-page, single-spaced speech. His priorities include focusing on education, spearheading a research and innovation strategy, replacing or refurbishing roads, bridges, sewers and other infrastructure projects, and lowering income taxes for those who most need relief. But instead of reading the speech, the erudite Mr. Rae spoke off the cuff for 25 minutes.
The first thing he did was tackle head-on his biggest weakness: the negative perception of his years as premier of Ontario in the early 1990s.
Mr. Rae said he served as premier in the middle of a very tough recession in central Canada and that he has been involved in public-policy issues for 30 years.
"I've had high points. I've had low points," he said. "I'm not afraid to say I've learned from experience. I'm not afraid to say that I'm smarter today than I was 20 years ago."
Mr. Rae also slammed the Conservative government of Stephen Harper on a range of issues, from child care to aboriginal affairs and climate change.
"Stephen Harper's decision to cancel the national plan on child care, to tear up the Kelowna accord, and to walk away from Kyoto are all examples of an outmoded vision, driven by small-minded politics and rigid ideology," he said in his prepared text.
He also accused the Harper government of introducing a grab bag of tax incentives in its first budget designed to curry favour with specific groups, and criticized the planned cut in the GST to 6 per cent from 7 per cent as regressive because it favours those who have more money to spend.
Low-income families should be able to earn their way out of poverty with income tax credits and an enhanced child-support system, he said.
He cited a recent report by economists at Toronto-Dominion Bank that concludes those on welfare face significant barriers to getting back into the workforce.
"We all have to care about what's happening to our poorest citizens," he said.
However, he stressed, the economy and social investments should not be seen as independent silos. More money needs to be spent on public transit to reduce the number of cars on the roads and, in the process, greenhouse-gas emissions. His research and development strategy would include having Ottawa provide more funding for university research.
After his speech, Mr. Rae told reporters he thinks the leadership race is going well for him.
"It's not a sprint. It's a marathon. It's a long race," he said.
Karen Howlett