OTTAWA: The Canadian Taxpayers Federation (CTF) today responded to the Blais Commission on Compensation and Allowances for Members of Parliament entitled Supporting Democracy. In total, the Commission makes 14 separate recommendations.

"We support the move to a fully transparent and taxable salary of just over $100,000. In effect, this is what MPs take home when their tax-free allowances are factored in, " said Walter Robinson, CTF Federal Director. "This move toward transparency and tax fairness is two big steps forward."

Among the other recommendations, the Commission suggests that Cabinet Ministers be the highest paid officials in their departments and that MPs have a choice between two competing pension plans.

Robinson stated, "the Commission has dropped the ball on reform of the offensive MP pension scheme. Instead of abolishing the plan, they have tinkered with accrual and contribution rates. The plan is now silver-plated instead of gold-plated." MPs who wish to opt-out of the current plan can opt in to a group RRSP scheme similar to those available in the private sector.

"This approach to MP pension reform will not fly with Canadian taxpayers. We reiterate our call for the abolition of the current pension scheme and replacing it with a voluntary, self-funding group RRSP scheme," added Robinson. "To do otherwise is patently unfair to Canadians."

The Blais Commission also does not act upon the recommendations of its predecessor commissions with respect to removing Parliamentarians from the process of deciding their own pay. "The commission is still comprised of former parliamentarians making recommendations and current parliamentarians then decide on their own salaries. This fact and the muddling of pension reform constitute three steps back in this process."

"On balance, MPs are going to have a tough job selling this package to taxpayers. We'll definitely fight them on their fumbling of the pension issue. The title of this report should be changed from Supporting Democracy to Pension Hypocrisy."