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FINA Committee Report

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Mr. James Rajotte, MP
Chair of the Standing Committee on Finance
House of Commons
Ottawa, ON
K1A 0A6

Dear Mr. Rajotte,

I am pleased to respond on behalf of the Government of Canada (the Government) to the Third Report of the Standing Committee on Finance (the Committee) entitled, Income Inequality in Canada: An Overview. I would like to thank the Committee members for undertaking a review of this important issue and for listening to the testimonies of Canadians who offered their perspective on income inequality in Canada. I would also like to thank the witnesses for their valuable observations and important contributions to this report.

The Government believes that the most effective approach to raising the incomes of Canadians and their families is to grow the economy and help ensure that Canadians are well equipped with the skills required to obtain and keep the well-paying jobs available today and in the future. That is why our Government’s top priorities remain creating jobs, economic growth and long-term prosperity. This is why the Government has put in place appropriate policies to maximize growth and job creation and reduce inequality by: reducing taxes; increasing support for hard working Canadian families; promoting trade and investment; supporting key economic sectors; making education accessible and affordable; reducing barriers to labour market participation; and being responsible fiscal managers.

Canada’s economy has demonstrated a remarkable capacity to create jobs, setting the conditions for Canadians and their families to be successful. For example, it has displayed the strongest labour market performance among all G-7 economies with over 1 million net new jobs created since the depths of the global recession.

As a result of Canada’s strong economy, Canadians enjoy one of the highest standards of living in the world. The low-income rate in Canada has been declining and now sits at an all-time low. Canadian families in all income groups have seen increases of about 10 per cent or more in their take-home incomes since 2006. A recent Statistics Canada study found that the median net worth of Canadian families was up 44.5 per cent from 2005 and almost 80 per cent more than the 1999 median, adjusted for inflation. The Government has introduced more than 160 tax relief measures, cutting taxes for an average Canadian family of four by close to $3,400.

In addition, compared to other countries, including the United States, Canada is doing relatively well with regard to intergenerational earnings mobility. This means that Canadian children have a fair and decent opportunity to move up the income ladder and become more prosperous than their parents, demonstrating that individual talent, energy and hard work can lead to positive outcomes.

These trends are a testament to the fact that Canada is a wealthy and economically dynamic country that presents all individuals and families with an opportunity to improve their standards of living. 

The Committee makes recommendations in a variety of areas, which broadly speak to the importance of setting the right environment for businesses to grow and create jobs, while also working to ensure that all Canadians have an equal opportunity to share in the benefits of a strong economy. The Government supports this approach, and through its jobs, growth and long-term prosperity agenda, has taken actions that are well-aligned with the Committee’s recommendations.

Underpinning this plan is the Government’s commitment to sound fiscal management, including the return to budgetary balance by 2015. This will help ensure that Canada is well-positioned to continue to build on the existing foundation and achieve a high standard of living for all Canadians.

Allow me to outline in greater detail some of the measures the Government has put in place to support jobs and growth and promote equality of opportunity for Canadians.

The Government has put in place the right environment for business growth and job creation by improving the competitiveness and efficiency of the tax system, promoting trade and investment and supporting key economic sectors.

A competitive and efficient tax system:

Since 2006, the Government has taken a number of steps to improve tax competitiveness and encourage business investment. Some of the Government’s measures include: lowering the federal general corporate income tax rate to 15 per cent in 2012 from 22.12 per cent in 2007; reducing the small business tax rate to 11 per cent; and increasing the small business income limit to $500,000. In addition, the Government eliminated the federal capital tax in 2006, in recognition of the particularly harmful effect that capital taxes have on business investment. The Government also provided a temporary financial incentive to encourage the provinces to eliminate their general capital taxes, with the last provincial general capital tax eliminated in 2012. Today, Canada’s total business tax costs are the lowest in the G-7 and more than 40 per cent lower than those in the United States. The result of this low tax environment is that there is more money for existing businesses to hire and train more Canadians for available jobs, and that more businesses will want to invest and set up shop in Canada.

Investment and trade:

The Government recently announced that Canada has reached an agreement-in-principle with the European Union on the Comprehensive Economic and Trade Agreement (CETA), the most ambitious trade initiative that Canada has ever negotiated. The agreement expands access to the European Union market, which comprises 28 countries with a combined gross domestic product of $17 trillion and a population of over 500 million. Canadians will benefit from CETA, which, according to estimates will result in the economic equivalent of adding $1,000 to the average Canadian family’s income or almost 80,000 new jobs for the Canadian economy. In fact since 2006, the number of free trade deals has risen from 8 to 43.

Canada has maintained its reputation as an attractive investment destination and barriers to international trade have been removed through the signing of trade agreements. The objective of the new Global Markets Action Plan is to harness the power of trade and investment to drive economic growth and prosperity. The Plan aims to deepen Canada’s competitive advantage in established markets, sources of the bulk of foreign direct investment in Canada, and in select emerging markets where Canada has broad or specific interests. It puts particular emphasis on growing the footprint of Canada's small- and medium-sized enterprises in emerging markets. The Plan also prioritizes the establishment of advantageous trade policy frameworks that facilitate trade and investment and remove growth-stifling barriers.

To maintain Canada’s long-standing reputation as welcoming foreign investment, the Government has introduced provisions to improve transparency in the administration of the Investment Canada Act and issued guidelines to clarify how the investment review process will address proposed investments by state-owned enterprises.

Supporting the development of key sectors:

The Government continues to promote a positive business environment for Canadian industries, including a sustainable and robust resource sector. Canada’s natural resource sector represents 18 per cent of the economy and over half of our exports, and supports 1.8 million jobs directly and indirectly. The Government’s Responsible Resource Development Plan focuses on advancing four priority areas including: streamlining the review process for major projects and reducing duplication; ensuring environmentally responsible resource development; strengthening marine and pipeline safety and offshore liability regimes; and enhancing Aboriginal consultations and engagement in natural resource projects.

Manufacturers are major contributors to the Canadian economy, both in terms of output and employment. Recognizing the importance of the automotive industry within the manufacturing sector, Economic Action Plan (EAP) 2014 proposed to provide an additional $500 million over two years to the Automotive Innovation Fund. EAP 2013 also provided $1.4 billion of tax relief over a four-year period to Canada’s manufacturing sector through a two-year extension to the temporary accelerated capital cost allowance for machinery and equipment, which will enable companies to invest and create jobs over the coming years. 

Regional economic development agencies deliver a number of programs and services to promote and stimulate economic development in their respective regions, supporting industry clusters across Canada, and in turn, small- and medium-sized enterprises. For example, EAP 2013 announced continued investment in new innovation funding for manufacturers in Ontario through the Federal Economic Development Agency for Southern Ontario-led Advanced Manufacturing Fund.

Responsible fiscal management allows the Government to continue to support a growing economy and equality of opportunity for Canadians.

Underpinning the Government’s agenda for growth, job creation and long-term prosperity is the commitment to return to budgetary balance by 2015, while not reducing transfers to Canadians and other levels of government. In the upcoming 2014-2015 fiscal year, provinces and territories will receive almost $65 billion through the four major transfers—an increase of $3 billion over 2013-2014.In EAP 2012, the Government confirmed that the Canada Health Transfer (CHT) will grow at an annual rate of 6 per cent until the end of fiscal year 2016-2017. Starting in fiscal year 2017-2018, the CHT will grow in line with a three year moving average of nominal GDP growth with a guaranteed minimum funding growth rate of 3 per cent per year. The Canada Social Transfer (CST) will continue to grow at its current rate of 3 per cent annually in 2014-2015 and beyond.

The commitment to manage public finances in a responsible manner also includes measures to ensure the integrity of the tax system by closing tax loopholes and combating tax evasion and aggressive tax avoidance.

Lowering the debt reduces the burden placed on future generations of Canadians and improves the environment for investment by keeping taxes and interest rates low. It also helps ensure that Canada is well positioned to withstand future economic shocks and address the priorities of Canadians.

The Government has reduced taxes and increased support for hard working Canadian families, particularly benefiting those with low- and middle-incomes, so that they can make choices that are right for them.

Tax relief for Canadians:

Over a six-year period ending in 2013-2014, the Government will have provided almost $160 billion in tax relief for Canadian families and individuals. These tax reductions, some 160 of them, have given Canadians financial flexibility and have helped build a solid foundation for continued economic growth. For an average family of four, taxes have been cut by close to $3,400.

Canadians at all income levels are benefiting from tax relief introduced by the Government, with low- and middle-income Canadians receiving proportionately greater relief, and more than 1 million low-income Canadians having been removed from the tax rolls. Tax relief measures introduced by the Government include: fulfilling the Government’s commitment to reduce the Goods and Services Tax to 5 per cent from 7 per cent; increasing the Basic Personal Amount—the amount that all Canadians can earn without paying federal income tax; increasing the upper limit of the two lowest personal income tax brackets, so that individuals can earn more income before being subject to higher tax rates; and reducing the lowest personal income tax rate to 15 per cent from 16 per cent.

Supporting families with children:

Like the Committee, the Government believes that it is important to ensure that all children receive the best possible start and have the opportunity to reach their full potential. That is why the Government has provided over $6.5 billion in 2013-2014 in support of early childhood development and childcare through transfers to the provinces and territories, direct spending, and tax measures for families. This is the largest investment in early childhood development and early learning and childcare in the history of Canada. The Government has also increased the CST from $8.4 billion in 2005 to $12.2 billion in 2014 and rising.

The Universal Child Care Plan respects the fact that parents are the real child care experts and allows them to determine how best to care for their children. To support parents with their choice, the Universal Child Care Benefit provides over $2.7 billion annually to 1.6 million families. It is estimated that this investment lifted 19,000 families with about 41,000 children out of low-income in 2012.

The Government is taking action to reform the skills training system, promote an efficient labour market and better connect Canadians with available job. It has also taken significant action to make education accessible and affordable and to help students make informed career choices that align with labour market needs.

Aligning federal labour market programming with employer needs:

As the economy recovered from the recent recession, skills mismatches along with labour and skills shortages have emerged in certain regions and sectors, highlighting the need to integrate demand-driven approaches into labour market training. The Government is taking important steps to transform the skills training system to help Canadians acquire the skills that will get them hired or will help them get better jobs, and to ensure employers have access to the skills they need to grow their businesses.

EAP 2014 reiterated the Government’s intention to renew and transform the Labour Market Agreements and introduce the Canada Job Grant (CJG). The CJG will encourage employers to put more skin in the game for skills training and ensure that training leads to jobs.

The Government is also updating other labour market transfers to ensure that funds are being used to help Canadians obtain the skills they need for jobs in high-demand fields. To this end, the Government will renegotiate Labour Market Development Agreements with provinces and territories, as well as introduce a new generation of Labour Market Agreements for Persons with Disabilities, which will be reformed to be more responsive to labour market needs.

Promoting an efficient labour market:

A well-functioning labour market creates the conditions for all Canadians to fully participate in our economy. To better connect job seekers with employers, EAP 2014 announced $11.8 million over two years and $3.3 million per year ongoing to launch an enhanced Job Matching Service. This will provide job seekers with modern and reliable tools to find jobs that match their skills, and provide employers with better tools to look for qualified Canadians. Through a secure, authenticated process, registered job seekers and employers will be automatically matched on the basis of skills, knowledge and experience. The proposed enhanced Job Matching Service will build on the launch of a modernized and easy-to-use consolidated National Job Bank.

The Government has also taken steps to reduce barriers to labour mobility across provinces and territories by helping regulated occupations and the skilled trades develop nationally accepted standards. The Interprovincial Standards Red Seal Program ensures automatic recognition of the qualifications of 55 skilled trades across Canada, with approximately 25,000 Red Seals issued each year. The Red Seal trades (as of 2011) represent approximately 80 per cent of all registered apprentices.

In order to reduce non-financial barriers to completing training and obtaining certification, EAP 2014 proposed to introduce the Flexibility and Innovation in Apprenticeship Technical Training pilot project which will expand the use of innovative approaches to apprentice technical training. In addition, EAP 2013 reallocated $4 million over three years to continue work with provinces and territories to harmonize requirements for apprentices, as well as examine the use of practical tests as a method of assessment in targeted skilled trades.

EAP 2012 established the Connecting Canadians with Available Jobs (CCAJ) initiative to facilitate faster returns to work. CCAJ invested $21 million over two years to connect unemployed Canadians with jobs by enhancing the information provided to EI claimants to help their job search and clarifying what is expected of them while they look for work. Similarly, the Working While on Claim pilot project, which came into effect in August 2012, promotes labour market attachment by encouraging claimants to accept all available work while receiving EI benefits.

Supporting high school completion and post-secondary education:

Early support for high school students has been shown to drastically increase post-secondary education prospects and, ultimately, employment. In EAP 2013, the Government announced its intention to renew its support for Pathways to Education Canada, a not-for-profit organization that works with local community organizations to deliver a suite of supports for students in low-income communities, including tutoring and mentoring.

The Government also makes significant investments to ensure that students and their families can access and afford post-secondary education. These investments include: savings incentives to help families save for their child’s education; subsidized loans and grants to help students cover both education and living expenses; and tax credits for tuition, books, and other education-related expenses.

The Canada Education Savings Program encourages families to save for their children’s post-secondary education using Registered Education Savings Plans (RESPs), which allow savings to grow tax-free. The Canada Education Savings Grant and the Canada Learning Bond provide additional incentive, particularly for low- and middle-income families, to save in RESPs. As of December 2012, Canadian families held over $35 billion in RESP assets, and over 328,000 students withdrew more than $2.3 billion from RESPs to help pay for their education.

In addition, through the Canada Student Loans Program (CSLP), the Government provides loans and grants to students who demonstrate financial need. In the 2011-2012 school year, the CSLP provided $2.4 billion in Canada Student Loans to approximately 450,000 students and $647 million of non-repayable assistance in Canada Student Grants to more than 336,000 students from low- and middle-income families, and students with permanent disabilities.

Apprenticeship training is an important part of the post-secondary education system and is a key provider of the skills and knowledge necessary for jobs and growth. To further encourage Canadians to consider a career in the skilled trades, EAP 2014 proposed to create the Canada Apprentice Loan by expanding the CSLP to provide apprentices registered in Red Seal trades with access to over $100 million in interest-free loans each year. This action builds on the existing Government incentives to apprentices and employers to encourage apprenticeship training and stimulate employment in the skilled trades. The Government provides grants (i.e., Apprenticeship Incentive Grant and Apprenticeship Completion Grant), as well as tax credits and deductions (i.e., Apprenticeship Job Creation Tax Credit and Tradesperson’s Tools Deduction), to encourage more Canadians to pursue and complete apprenticeship programs in the Red Seal trades

The Government also supports post-secondary students and their families through a number of tax measures, which cumulatively provided about $1.8 billion in 2012 for post-secondary education and training and for families saving towards their children’s post-secondary education.

Informing student choice and supporting transitions to the labour market:

To inform education and career decisions, Canadians, and particularly youth, need to have access to up-to-date learning and labour market information. Through the Working in Canada (WiC) website (workingincanada.gc.ca) and CanLearn.ca, the Government provides information on available jobs, labour market outcomes, and educational and training requirements. The Government reaffirmed its commitment to improving these tools and announced, in EAP 2013, a reallocation of $19 million over two years to provide young Canadians with more information on job prospects and to undertake outreach efforts to promote careers in high-demand fields such as science, technology, engineering, mathematics (STEM) and the skilled trades.

In EAP 2014, the Government committed to take steps to ensure that apprentices are aware of the existing financial supports available to them while they are on technical training through the Employment Insurance (EI) program. In addition, through its funding of the Red Seal Program, the Government supports promotional activities to inform industry and tradespeople, as well as high-school students and the public at large, about apprenticeships and the benefits of working in the skilled trades. Red-seal.ca had over 455,500 visitors in 2012. The Government also provides significant support to Skills Canada to actively promote careers in the skilled trades to Canadian youth by working with local organizations, educators and governments.

Recognizing the importance of a successful transition to the workforce, the Government invests over $330 million annually in the Youth Employment Strategy (YES) to help young people between the ages of 15 and 30 get the information and gain the skills, work experience and abilities they need to transition to the labour market. The suite of programs under YES have helped many youth get hands-on work experiences; for example, in 2012-2013, over 2,800 workplace internships were funded and over 40,000 summer work experiences were provided to students. 

EAP 2014 announced that the Government will improve YES to align it with the evolving realities of the job market and to ensure federal investments in youth employment provide young Canadians with real-life work experience in high-demand fields such as STEM and the skilled trades. EAP 2014 also proposed to dedicate $40 million towards supporting up to 3,000 internships in high-demand fields. In addition, the Government will reallocate $15 million annually towards supporting up to 1,000 internships in small- and medium-sized enterprises. To support young entrepreneurs, the Government committed $18 million over two years to fund the Canadian Youth Business Foundation through EAP 2013. Since 2006, this initiative has invested in more than 5,600 young and emerging entrepreneurs across Canada, whose businesses have created over 23,000 new jobs, $163.6 million in tax revenue and hundreds of millions of dollars in sales and export revenue.

The Government recognizes that there are often challenges for underrepresented groups in obtaining the support they require for jobs and growth. That is why the Government has put in place many policies that support the integration of underrepresented groups in our society.

Support for Persons with Disabilities:

No government has done more than this Government to support Canadians with disabilities. Removing barriers that exist is key to seeing Canadians with disabilities succeed. That is why EAP 2013 made permanent the Opportunities Fund for Persons with Disabilities, which assists persons with disabilities prepare for, obtain and keep jobs, as well as the Enabling Accessibility Fund (EAF), which supports projects that improve the physical accessibility of persons with disabilities. Since its inception, EAF has funded over 1,300 community-based projects totalling over $89 million. Through its new Workplace Accessibility Stream, EAF provides funding to small businesses to make renovations to their workplace to create or maintain job opportunities for persons with disabilities. EAP 2013 also announced a time-limited $2 million investment to support the creation of a Canadian employers’ disability forum. Established by Canadian business leaders under the name Canadian Business SenseAbility, the forum will facilitate education, training and the sharing of resources and best practices among Canadian businesses. 

To further support the inclusion of persons with disabilities in the labour force, EAP 2014 proposed to connect persons with disabilities with jobs by providing $15 million over three years to the Ready, Willing & Able initiative of the Canadian Association for Community Living and $11.4 million over four years to support the expansion of vocational training programs for persons with Autism Spectrum Disorder, led by the Sinneave Family Foundation and Autism Speaks Canada. 

Aboriginal people:

Improving economic opportunities for Aboriginal people remains a priority for the Government as they are underrepresented in the labour market and often face multiple barriers to employment. The Government offers a suite of labour market programming to facilitate the labour market participation of Aboriginal people that includes the Aboriginal Skills and Employment Training Strategy, which funds Aboriginal organizations to help First Nations, Metis and Inuit people prepare for and find employment, and the Skills and Partnership Fund, which offers project-based training-to-employment opportunities for Aboriginal people. Together, these programs represent an annual investment of approximately $400 million.

Further, in EAP 2013, the Government committed to working with First Nations to improve the on-reserve Income Assistance program, and introduced the First Nations Job Fund, part of a $241 million five-year investment to help First Nation youth 18 to 24, in participating communities, who are eligible for income assistance access to the skills, training and supports they need to secure employment. Given that Aboriginal youth represent the fastest growing demographic in Canada and many First Nations communities are located in close proximity to large economic projects, there is tremendous opportunity to improve economic opportunities for Aboriginal people, while addressing some of Canada’s skills shortages. The current suite of Aboriginal labour market programming plays an important part in achieving these goals.

The Government focuses on supporting Aboriginal entrepreneurs through the creation and growth of viable Aboriginal businesses, by providing access to business capital, support services, and business opportunities through a network of community owned Aboriginal Financial Institutions across Canada. In addition, Aboriginal Affairs and Northern Development Canada (AANDC) facilitates Aboriginal business access to public and private sector business opportunities by enhancing Aboriginal business participation in the federal procurement process and identifying other public and private sector business opportunities generating various socio-economic benefits for Aboriginal businesses.

As it stands now, only 37 per cent of First Nation individuals aged 25-34 without a high school diploma are employed. The employment rate rises to 59 per cent for those with a high school diploma, and to 82 per cent for those with a university degree. This is why the Government is working to provide First Nation students with high quality education and to improve graduation rates.

On February 7, 2014, the Prime Minister and the National Chief of the Assembly of First Nations announced a historic agreement on education reform through the First Nations Control of First Nations Education Act. The agreement addresses key First Nation priorities related to the proposed legislation. The Prime Minister also announced new funding investments over $1.9 billion to support the implementation of the proposed Act. This includes $1.25 billion over three years in statutory funding for core operations, beginning in 2016-2017 and increasing annually thereafter, per the 4.5 per cent escalator; $160 million over four years for an Education Enhancement Fund to support transition to the proposed Act beginning in 2015-2016; and $500 million over seven years for new school construction on reserve beginning in 2015-2016. EAP 2014 reaffirmed these investments including the statutory funding mechanism for core education programs and services. These measures will allow First Nations to have an education system on reserve comparable to provincial and territorial school systems, as well as leading to more stable, predictable and sustainable funding.

The agreement builds on the commitment in EAP 2012 to work with First Nations and provinces on the development of First Nations education legislation and to explore mechanisms to ensure stable, predictable and sustainable funding for First Nation education. Following broad and intensive consultations since December 2012, the Government released Working Together for First Nation Students: A Proposal for a Bill on First Nations Education in October 2013 and invited stakeholder feedback on the draft legislative proposal.

As identified by the Committee, working with First Nations to improve local infrastructure and facilitate investments are important aspects of improving standards of living. The Government provides financial and advisory assistance for the construction, acquisition, operations and maintenance of community infrastructure on reserves. This includes housing, community buildings, schools, water supply, wastewater treatment, and essential elements of healthier, more sustainable communities. From 2006 to 2014, the Government will have invested $9.2 billion for community infrastructure on reserve. Additionally, the Government created the First Nations Market Housing Fund, which is helping First Nations communities and individuals secure private sector capital to build private dwellings on reserve. Ongoing investments will continue towards the construction, rehabilitation and enhancement of infrastructure, growing the economy and supporting First Nations.

At the same time, economic development of First Nations' substantial and growing land and natural resource base can greatly improve the well-being and quality of life for Aboriginal people in Canada. The Government continues to explore options related to private property ownership on reserves, as announced in 2012, and has provided support to the First Nations Tax Commission for its ongoing work on issues related to land certainty on reserve. 

Immigrants:

Too many newcomers and Canadians with international training are unable to use their skills and potential in the workforce. The Government is actively working with provincial and territorial governments to improve settlement outcomes for newcomers and improve the foreign credential recognition process. Currently, the Government invests around $900 million annually in settlement programming across the country and overseas to assist immigrants and refugees overcome barriers specific to the newcomer experience. Through the Foreign Credential Recognition Loans Pilot, over 1,000 newcomers have acquired microloans and learning supports to obtain recognition of their foreign credentials. The Government also invests to streamline the foreign credential recognition process. To date, internationally trained professionals in fourteen target occupations can now expect to have their credentials assessed within one year.

Going forward, in 2014-2015, federal, provincial and territorial governments will continue to collaborate to improve outcomes in employment and foreign qualifications recognition, social connections, and language skills.

Seniors:

The Government recognizes the valuable contribution that seniors have made building our country which is why the Government has done more than previous Governments to support them. The Government introduced pension income splitting and doubled the maximum amount of income eligible for the Pension Income Credit to $2,000; increased the maximum Guaranteed Income Supplement (GIS) earnings exemption to $3,500; introduced the largest increase to the lowest income GIS recipients in a generation in EAP 2011; removed 380,000 seniors from the tax rolls completely; invested in affordable housing for seniors; and invested significant funds to raise awareness and combat elder abuse. The proof of the Government’s action is in the very low incidence of low-income seniors in Canada, which is one of the lowest rates in the world.

Low-income Canadians:

To remove barriers to labour market participation for low-income Canadians, the Government continues to focus on measures to make work pay. First introduced in Budget 2007, the Working Income Tax Benefit (WITB) is a refundable tax credit that supplements the earnings of low-income workers to help ensure that these individuals are financially better off by getting a job. 

The WITB was enhanced by $580 million in Budget 2009 as part of Canada’s Economic Action Plan, effectively doubling the total assistance provided by the WITB. Up to 1.5 million working individuals and families receive assistance through the WITB. The WITB and other measures contained in the tax system are reviewed on a regular basis to ensure that they continue to meet their intended objectives in an efficient manner. Through our tax reductions the Government has removed over 1 million low-income Canadians from the tax rolls, ensuring that the Canadian tax system remains progressive and fair.

In addition, there are existing measures in place as part of the EI program that support low-income families and individuals. For example, the Family Supplement allows low-income families with children to receive up to 80 per cent of their insured earnings, higher than the normal rate of 55 per cent. In 2011-2012, low-income families received $112.6 million in additional benefits through the Family Supplement. The program also offers a premium refund to low-income workers, in which individuals with less than $2,000 of insured earnings are eligible to have their EI premiums refunded, after having completed their personal income tax forms.

In conclusion, our Government’s top priorities remain creating jobs, economic growth and long-term prosperity. By growing the economy and helping ensure that Canadians are well equipped with the skills required to obtain and keep the well-paying jobs available today and in the future, the Government believes that it is pursuing the most effective approach to raising the incomes of Canadians and their families. I trust that this Response will provide the Committee with the assurance that the Government has and will continue to take important steps to address income inequality. I would like to commend efforts made by members of the Committee, and the many witnesses who appeared before it for their valuable perspectives and contributions.

Yours sincerely,

Hon. Jason Kenney, PC, MP
Minister of Employment and Social Development Canada and
Minister for Multiculturalism