Consumer Price Index Error

The federal government bilked seniors out of millions because of a miscalculation in the cost of living, the New Democratic Party says.

NDP candidate Tom King joined Chris Charlton, member of Parliament for Hamilton Mountain, in calling for rebates at a gathering of seniors yesterday.

Charlton said the error could have cost anyone on the Canada Pension Plan, Old Age Security, or a private pension plan.

"From 2001 to 2006, Statistics Canada made a mistake calculating the consumer price index," she said.

The index measures the price increase in items regularly purchased by households, from groceries and clothing to transportation and fuel.

Ms. Chris Charlton (Hamilton Mountain, NDP):

Mr. Speaker, I am pleased to table another set of petitions that arises out of my national campaign to fight for fairness for ordinary Canadians, and in particular for seniors who were shortchanged by their government as a result of an error in calculating the rate of inflation.

The government has acknowledged the mistake made by Statistics Canada but is refusing to take any remedial action.

The petitioners call upon Parliament to take full responsibility for this error which negatively impacted their incomes from 2001 to 2006, and to take the required steps to repay every Canadian who has been shortchanged by a government program because of the miscalculation of the CPI.

Ms. Chris Charlton (Hamilton Mountain, NDP):

Mr. Speaker, I am pleased to table another petition today that arises out of my national campaign to fight for fairness for ordinary Canadians and, in particular, for seniors, who were shortchanged by their government as a result of an error in calculating the rate of inflation.

The government has acknowledged the mistake made by Statistics Canada but is refusing to take any remedial action.

The petitioners call upon Parliament to take full responsibility for this error, which negatively impacted their incomes from 2001 to 2006, and to take the required steps to repay every Canadian who has been shortchanged by a government program because of the miscalculation of the CPI.

Ms. Chris Charlton (Hamilton Mountain, NDP):

Mr. Speaker, I want to take this rare opportunity to follow up on a question I asked the minister recently about an error admitted to by Statistics Canada in calculating the rate of inflation.

As members will recall, I have been raising this issue in the House on behalf of seniors since it first became public in August 2006. I would like to remind members of the House and people who may be watching us tonight on television what is at issue here.

Between July 2001 and March 2006, Statistics Canada underestimated the consumer price index by one-tenth of one percentage point in each of those five years. This means that recipients of the old age security, Canada pension plan and the guaranteed income supplement were shortchanged on their cost of living adjustments for a period of five years.

Ms. Chris Charlton (Hamilton Mountain, NDP):

Mr. Speaker, I have a second petition as well, which speaks to my campaign for seniors who were shortchanged by their government as a result of an error in calculating the rate of inflation. The government has acknowledged the mistake made by Statistics Canada but is refusing to take any remedial action.

The petitioners call upon Parliament to take full responsibility for this error which negatively impacted their incomes from 2001 to 2006, and take the required steps to repay every Canadian who has been shortchanged by a government program because of the miscalculation of the CPI.

Click on the link below to download Chris's petition to the House of Commons calling on the Government of Canada to fix the StatsCan Consumber Price Index Error (CPI).

Ms. Chris Charlton (Hamilton Mountain, NDP):

Mr. Speaker, a simple mistake by Statistics Canada resulted in a botched formula for inflation from 2001 to 2006. The consequence is that the Canada pension plan, old age security, and the guaranteed income supplement have been underpaid to every single senior in the country.

The minister who is supposed to represent seniors at the cabinet table admits the mistake but says, “too bad, so sad”.

Why is the government refusing to pay seniors what is rightfully theirs?

Hon. Monte Solberg (Minister of Human Resources and Social Development, CPC):

Ms. Chris Charlton (Hamilton Mountain, NDP):

Mr. Speaker, the second petition that I am pleased to table today is one that arises out of my national campaign to fight for fairness for ordinary Canadians, and in particular for seniors who were shortchanged by their government as a result of an error in calculating the rate of inflation.

The government has acknowledged the mistake made by Statistics Canada, but is refusing to take any remedial action.

Petitioners from all over the country are paying attention to this issue. At this time I have received hundreds of signatures from Kelowna, Coquitlam, Langley, Victoria, Abbotsford, St-Bruno, Chatham, Oakville, Burlington, Peterborough, Beaverton, North York, Etobicoke and Milton. All the petitioners are asking for is some fairness.

The New Democrats are accusing the federal government of shortchanging seniors to the tune of about $1 billion.

They say that Statistics Canada's inflation rates were by about 0.1 per cent a year on its Consumer Price Index between 2001 and 2006. That led to lower pension payments for seniors, and the NDP's seniors critic says the government now needs to make reimbursements.

"Average Canadian seniors have worked hard all their lives, they've played by the rules, and they have a right to expect that the government isn't going to play keep-away with their benefit payments," said Chris Charlton.

TORONTO - NDP Leader Jack Layton and NDP Seniors and Pensions Critic Chris Charlton (Hamilton Mountain) were joined by retired police officers, firefighters, steelworkers and municipal employees today to call on the government to return to seniors what is rightfully theirs.

"By its own admission, StatsCanapplied a botched formula for inflation from 2001 to 2006. Their mistake is being paid for by some of the most vulnerable members of our society", said Layton.

The error resulted from an incorrect calculation in the Consumer Price Index showing that rates for hotel and motel rooms had dropped 16.5%, while they had actually risen 32.2%. This negatively impacted the CPI by .1% per year.