Living Wage

One of the recent gospel readings was Luke’s 11: 42-46. “Woe to you Pharisees! For you tithe mint and rue and herbs of all kinds, and neglect justice and the love of God; it is these you ought to have practised, without neglecting the others.” My morning meditation was not one of those feel good exercises in prayer but it did prompt this column.

I recently wrote an open letter to the Premier as a result of his invitation to engage in public debate over exactly what to do with our budgetary surplus dollars in view of the retirement of our provincial debt.

I argued that investing in economically challenged families would be fiscally responsible and would represent a true Alberta Advantage as this would mean supporting individuals and families in meeting their needs to maintain and a safe and adequate standard of living, to live with dignity, participate meaningfully in society and break through the generational cycle of poverty so that they can achieve their potential.

Reaching one’s potential also takes more than obtaining basic nutrition, shelter, and clothing. It requires enabling families in financial distress to become economically self-sufficient, to thrive and experience life to its fullest with far more joy and far less struggle.

I received several letters and telephone calls of support and a few abusive and angry responses indicating my complete lack of understanding of how the economy works and the root causes of poverty. However, one letter really moved me and I would like to share you the story of Allan.

Allan has been a recipient of Assured Income for the Severely Handicapped since 1993. The maximum AISH payment is $850 per month.

Nevertheless, starting with only two suitcases of clothing, he has slowly improved his situation in life to the point that he now resides in a
bachelor suite apartment.

In 1998 he received an inheritance cheque for $1,000 from his mother’s estate and the Government of Alberta clawed back 85%.

Allan “earned” (his term) another $1,927.86, this time from his grandmother’ s estate. Based on the documentation submitted regarding the inheritance in July 2004, he was subsequently informed that he was ineligible for August 2004 benefits and received debt notification from the Government of Alberta requesting the amount of $1,216.32. The covering letter stated: “While you are receiving benefits, a debt payment is deducted from your benefits each month until your debt is repaid. If you stop receiving financial benefits before your debt is repaid, you will be notified of the amount still owing. It is your responsibility to repay this debt.”

Allan’s total income for 2003 was $10,006 with total federal non-refundable-tax credits of $1,240 and total Alberta non-refundable tax credits of $1,352.

In responding to Allan’s plight, Clint Dunford, the Minister of Human Resources and Employment reminded him that “with continued growth to the AISH caseload and the increased costs of medical benefits, it is important to ensure that AISH continues to be available to those who need it most, while balancing accountability to the taxpayer ... Some types of income, such as Good and Services Tax (GST) credit, are fully exempt. Other incomes, such as employment earnings or interest income, are partially exempt. Some income, such as inheritance, is not exempt in the month it is received and must be deducted dollar for dollar.”

The Minister concluded with the reminder of the requirement of people receiving AISH to report changes to their circumstances, including changes to their income or assets.

It wasn’t hard to apply today’s Gospel: “Woe to you...for you load people with burdens hard to bear and you yourselves do not lift a finger to help them.”

In December 2002, 11,235 Calgarians relied on Supports for Independence (SFI), which provide income support and medical benefits; 10,816 Calgarians received Assured Income from the Severely Handicapped allowances. In June of 2002, 23,523 seniors were receiving Guaranteed Income Supplements benefits.

According to the national Council on Welfare (2003), the level of social assistance or welfare payments in Canada guarantee that recipients live below the Low-Income Cutoff levels. In Alberta, a single employable personal requiring social assistance in 2002 received $5,034; this represented only 26% of the LICO. A single person with a disability received $7,601 or 39% of the LICO. For a single parent with one child, Alberta ranked lowest in the country for welfare income as a percentage of LICO, $11,634 or 48% of the LICO.

As poverty increases in Calgary, greater numbers of people are facing economic, health and social barriers to their active participation in society. Growing rates of poverty are cause for concern not only for the health and social consequences for those who are living in poverty, but also because of the broader economic implications for Calgary and Alberta.

Calgary’s appeal as a sound place for businesses to invest is directly related to its ability to attract and retain skilled workers, reduce social service and health expenditures, increase the educational attainment of our youth, reduce crime, and improve the health and well being of all Calgarians. Each of these factors is closely linked with financial security, a key component of which is wages that are high enough to keep workers and their families our of poverty.

The last word belongs to Allan: “I shudder to think that the Alberta Government’s next step will be to monitor the food bank and deduct from “the poor’s” disbursements (welfare, SFI, AISH, etc.) because we didn’t buy the groceries. Where does it end? I know I am not the only person who sees that this legislation is WRONG.”

F. B. Henry
Bishop of Calgary

E-Mail Bishop Frederick Henry