95-4E
DISABILITY: SOCIO-ECONOMIC ASPECTS
AND PROPOSALS FOR REFORM
Prepared by:
William R. Young
Political and Social Affairs Division
Revised 24 January 1997
TABLE OF CONTENTS
ISSUE
DEFINITION
BACKGROUND
AND ANALYSIS
A. The Policy Debate
1. The Definition
of Disability
2.
Employability
3.
Separating Eligibility for Disability-Related Supports and Services
from Income Benefits
B. Disability Programs
1. Historical Evolution
2.
Current Programs
3.
Recent Situation and Developments
a. Taxation
b. Employment
4.
Income Security/Pensions
C. Proposals for Reform
PARLIAMENTARY
ACTION
CHRONOLOGY
SELECTED
REFERENCES
DISABILITY: SOCIO-ECONOMIC
ASPECTS
AND PROPOSALS FOR REFORM*
ISSUE
DEFINITION
In recent years,
Canadians with disabilities have been seeking fuller economic and social
participation in society. Technological advances and improved rehabilitation
techniques are rendering obsolete programs based on a "charity model,"
whereby those with disabilities were segregated as a group and received
special treatment, as long as they did not participate in the mainstream.
People with disabilities would be able to participate even more fully
in society and the economy if barriers to training and employment were
removed and they were instead given adequate access to disability-related
supports and services. This goal, however, has been blocked by programs
put in place at a time when these people were seen as socially dependent
and unemployable.
This paper sets
out and analyses some of the barriers that prevent people with disabilities
from achieving full integration, explores the jurisdictional responsibilities
of both the federal government and the provinces, outlines the current
programs and proposals to reform them, and highlights some new challenges
emerging as a result of policy and program review.
BACKGROUND AND ANALYSIS
Demographic, legal,
policy and attitudinal changes have led to a higher profile for people
with disabilities. The United Nations declared the years from 1983 to
1992 to be the Decade of Disabled Persons and governments in Canada responded
by undertaking reviews of disability-related policies and programs and
effecting some reforms. Public awareness of disability issues has also
increased as a result of changes in orientation by organizations providing
services to, or advocating on behalf of, people with disabilities. Originally,
such organizations were charities run by non-disabled persons who treated
"the disabled" as patients or clients. Since the late 1970s,
however, most disability-related organizations have adopted the philosophy
of "independent living," based on the view that persons with
disabilities can best define their own needs and direct the fiscal and
human resources to meet them.
Canadian federal
and provincial governments also adopted and supported the principle of
independent living in their joint review of services affecting people
with disabilities, Mainstream 92. It set out a vision, principles
and strategic directions for governments leading to the full participation
in community life of persons with disabilities and their greater control
over decisions that affect their lives.
The debate over
the place of people with disabilities has been conducted in light of social
and economic statistics resulting from the post-censal surveys carried
out in 1986 and 1991. These Health and Activity Limitation Surveys (HALS)
showed that the absolute number of Canadians who identified themselves
as disabled grew from 3.3 million to 4.2 million during the five years
between the surveys; that is, the percentage of the Canadian population
with disabilities increased from 13.2% in 1986 to 15.5% in 1991. HALS
statistics show that people with disabilities are significantly poorer
than non-disabled people; of adults with disabilities, 43% (981,080) had
an individual income of less than $10,000 per year and 26% (592,160) had
one of less than $5,000.
A. The Policy Debate
Recent policy studies
have concluded that most social and economic programs do not meet the
needs of persons with disabilities. In most cases, such programs either
were based on premises that marginalized people with disabilities or were
programs devised for other purposes to which disability-related activities
had been added. The policy debate has centred on three issues: the definition
of disability, the nature of "employability," and the need to
separate eligibility for income support from the provision of disability-related
supports and services.
1. The Definition of
Disability
It is extremely
important that the definition of disability be differentiated from the
establishment of eligibility for programs. In the 1980s, the World Health
Organization (WHO) developed a multi-level definition of disability whereby
"impairment" is a permanent or transitory psychological or anatomical
loss or abnormality, "disability" is the loss or reduction of
functional ability and activity caused by an impairment, and "handicap"
is a disadvantage, either social or environmental, that arises from impairment
or disability. Accordingly, an impairment that can be corrected by an
assistive device like a hearing aid does not necessarily lead to a "disability"
or a resulting "handicap." Also important is the fact that having
a disability does not make a person eligible for all programs for those
with disabilities. Each program has specific eligibility criteria; however,
these eligibility criteria, such as "no longer being able to work"
or "having expenses associated with disability," do not define
disability but reflect decisions made politically and administratively
about who should be entitled to social or economic assistance.
In Canada, provincial
and federal governments and various workers compensation and private
pension and insurance plans have not agreed on a definition of disability
that moves beyond eligibility criteria based on the intention of the program,
on individual medical situations, or on when, how and where the disability
was incurred. Needless to say, this lack leads to inconsistencies.
2. Employability
Recent studies
(e.g., People with Disabilities: A Supplementary Paper, and The
Grand Design: Achieving the Open House Vision) point out that in order
to receive public and private pensions and entitlements, people with disabilities
must often classify themselves as "permanently unemployable"
and unable to support themselves. As a result, such people encounter barriers
if they wish to return to the workforce, particularly for part-time or
short-term employment. It is the "unemployable" classification
that gives people with disabilities access to programs that provide the
supports and services they require to perform the activities of daily
life. If these people demonstrate that they can hold a job, they lose
these supports and services. Those with disabilities who enter the labour
force (generally in low-paying positions) may well not be able to afford
to purchase these commodities in the marketplace.
3. Separating Eligibility for
Disability-Related Supports and Services from Income Benefits
Disability-related
supports and services are responsible for the additional costs that people
with disabilities must pay in order to participate in society and in the
economy. Non-disabled people do not have these costs. For a person with
a disability, these requirements for supports and services may vary over
time and certainly vary in price. Some may involve only the provision
of an office near an elevator but others, such as adapted computer equipment,
may be expensive. Various programs are in place to compensate people with
disabilities for these additional costs but those who are employed must
often cover most of the expense themselves and be compensated to some
extent through the tax system. Recent studies by the Roeher Institute
have shown that the problems are particularly acute for those requiring
assistance with personal care. Present systems do not respond well to
individual need and supports are provided on a discretionary basis. Most
provinces and territories do not provide supports to those ineligible
for social assistance, thus giving an incentive for people to remain outside
the labour force.
B. Disability Programs
1. Historical Evolution
Until the years
after the Second World War, most Canadians with disabilities, like those
who were elderly or poor, relied for their basic needs either on their
families or on private charities that would support them if they were
unable to support themselves. Canadian governments initial disability
benefits were likewise conditional on an individuals inability to
work and on a means test, as were disability and death benefits for federal
employees (1918), war veterans disability pensions (1919) and blind
persons allowances (1937). Traditionally, the concept of unemployability
was used to justify more generous treatment of people with disabilities
than of those who received other federally-funded pensions and benefits.
Tying disability benefits to unemployability persisted in the years after
1945 when the majority of Canadas social programs were put in place
(including allowances in 1954 for those who were "totally and permanently"
disabled, but did not receive blind persons allowances or workers
compensation). People with disabilities who were not deemed unemployable
were ineligible for these benefits and had to receive the less generous
amounts provided through provincial/municipal social assistance.
There were other
common features of post-war disability-related initiatives. Although the
federal government initiated a national vocational rehabilitation program
and entitlements for such people, costs were shared with the provinces.
From 1948, when the federal Health Grants, which began to fund rehabilitation,
were put in place, the federal government would only provide funding once
the provinces had agreed to pay their share (usually 50%). This applied
also to the disability allowances of 1954, disability-related costs covered
in the Hospital Insurance and Diagnostic Services Act (1957), and
the Vocational Rehabilitation of Disabled Persons Act (1961).
More recent social
programs have maintained the distinction between people with disabilities
and other recipients of income and social assistance, depending on whether
or not they are employable. The Canada Pension Plan (1966) has provided
disability benefits for contributors injured and unable to work. The Canada
Assistance Plan (CAP), introduced in the same year, consolidated four
programs (including two disability allowances) to help the provinces develop
integrated comprehensive social assistance programs for those in need,
regardless of the cause. CAP immediately became the most important government
instrument in providing income benefits and supports and services to people
with disabilities. Although the provincial governments are responsible
for the assistance and programs delivered through the CAP, the federal
government agreed to share the costs.
The employable/unemployable
distinction also formed the basis for much complementary provincial legislation
providing for workers compensation and other disability-related
income programs and provisions for supports and services. Traditionally,
people with disabilities have received higher income benefits from provincial
social assistance programs in recognition of their inability to work.
They also are eligible for a series of in-kind benefits, both for general
use and disability-related.
At the same time,
programs to encourage skills development and employability, such as the
developmental uses of unemployment insurance introduced in the late 1980s,
restrict eligibility for these supports and services to those who have
worked long enough to establish eligibility based on employment, thus
shutting out people with disabilities who have never been in the labour
force.
The federal government
has also recognized in the tax system the additional cost of disability
for those who earn income. (This relief is based on the principle of horizontal
equity, or "levelling the playing field.") Since 1930, sales
taxes and tariffs have taken into account costs for people with visual
and mobility impairments. In 1944, blind persons were allowed disability-related
deductions based on their additional costs. Eligibility has since been
widened to include people with other disabilities (or their spouses or
parents) and dollar limits and income thresholds have become more liberal.
In 1988, a major change to the tax system turned the tax deduction into
a Disability Tax Credit.
2. Current Programs
Today, all levels
of government, the private sector and voluntary agencies have programs
in place to employ and to provide income to people with disabilities and
to supply them with disability-related supports and services. These include
general programs (e.g., social assistance) available to all groups, including
people with disabilities. Targeted programs (i.e., health, assistive devices,
vocational rehabilitation, Canada/Quebec Pension Plan (disability), tax
credits and deductions, private disability insurance) do not take into
consideration the circumstances of disablement. Categorical programs,
such as workers compensation and automobile accident insurance,
provide benefits based on the cause of disability.
Many of the major
disability programs fall within provincial jurisdiction and are delivered,
if not funded, by the provincial governments. Such programs include social
assistance and the provision of disability-related supports and services,
workers compensation, vocational rehabilitation, and automobile
and long-term disability insurance. Most provinces do not have a comprehensive
policy framework for dealing with disability-related programs or issues
and tend to rely on a premiers council or other disability-focused
advisory bodies to provide an overview. Quebec, however, has dealt with
disability issues more comprehensively in the policy framework À part...égale
[On Equal Terms], which addresses disability issues for individuals.
In that province, services (health, rehabilitation, technical aids and
social services) are provided on the basis of need as determined by the
provincial health and social services departments, according to an individualized
plan, while other provincial agencies are responsible for such items as
house and automobile adaptations.
The federal governments
most important role has been providing about $2.5 billion per year
for disability-related activities undertaken by the provinces in order
to share the cost of the provincial/territorial social assistance system
and vocational rehabilitation through CAP and Vocational Rehabilitation
of Disabled Persons (VRDP). The federal government also administers the
Canada Student Loans Program which will provide $15 million in 1996-1997
to assist students with disabilities to cover the disability-related costs
of attending a post-secondary institution. The Canada Pension Plan, also
administered by the federal government, spends about $3.3 billion per
year in providing pension benefits to approximately 325,000 contributors
(and their dependent children) who cannot work because of disability.
Approximately $272 million (combined with provincial assistance of about
$135 million) goes from the federal government in tax assistance
to people with severe disabilities; such assistance includes the Disability
Tax Credit and additional tax relief to employers who make their premises
accessible and who employ a person with a disability.
The jurisdictional
problems of uploading and downloading in the area of disability were seen
very graphically when Canada Pension Plan disability benefits were raised
by $150 per month from January 1987 and eligibility rules were eased.
When some social assistance recipients with disabilities found that their
provincial payments were reduced as a result of their increased income,
the federal government partly rectified this situation by declaring the
pension non-taxable. In addition, the provinces have been encouraging
recipients of provincial social assistance to apply for Canada Pension
Plan disability benefits. As a result of an agreement between CPP and
the province of Ontario, there were approximately 20,000 applications
for transfer from provincial social assistance to CPP disability; 8,000
of these were accepted.
The federal government
attempted to put together a more comprehensive approach to disability
issues when, in September 1991, it launched the National Strategy for
the Integration of Persons with Disabilities. Ten federal departments
were to share $158 million over five years to fund five target areas:
employment and training opportunities; community integration; partnership
development; information exchange; and coordination and access to transportation,
housing and communications. With the government reorganization in 1993,
the bulk of the funding reverted to the Department of Human Resources
Development, which is ultimately responsible for approximately two-thirds
($100 million). Because the Canada Pension Plan and the Canada Assistance
Plan, key areas of spending on disability within federal jurisdiction,
as well as the Department of Finance, a critical policy-making department,
were not part of the National Strategy, its impact on federal activities
was limited. The National Strategy ended on 31 March 1996.
3. Recent Situation and Developments
a. Taxation
As pointed out
above, the tax system has been used to "level the playing field"
for people with disabilities who have earned income (not necessarily from
employment) by allowing them to claim tax recognition of a proportion
of their disability-related costs. In 1988, the medical expenses and disability
deductions became non-refundable tax credits. The Medical Expenses Tax
Credit (METC) was calculated as 17% of any eligible medical expenses over
3% of net income or $1,614, whichever was less. The intent is to reimburse
for exceptional medical expenses such as those for disability-related
items like wheelchairs, seeing-eye dogs, hearing aids, and modifications
to a home, and for full-time attendant care. Although approximately 1,130,000
Canadians claimed the credit in 1993, not all of these were persons with
disabilities.
The Disability
Tax Credit (DTC) supplements the METC for individuals with a severe and
prolonged mental or physical impairment that markedly restricts their
ability to perform the basic activities of daily living, as certified
by a qualified medical practitioner. In 1993, approximately 530,000 individuals
claimed the credit, which can also be transferred to a spouse or to a
parent of a child with a disability. The credit was increased in the 1991
Budget so that it currently reduces federal tax by about $720. When the
credit is combined with provincial taxes, the total benefit is approximately
$1,120. (This amount varies from province to province according to the
provincial tax rate.) In terms of employment, certain employer-provided
allowances for taxi fares, parking and attendant care are non-taxable
for individuals eligible for the disability tax credit and are allowed
as deductions for employers. Accessibility measures taken by businesses
are deductible in the year they are incurred rather than treated as capital
expenditures. People entitled to the DTC are also eligible for $5,000
in part-time attendant care expenses.
In addition, the
tax system provides for an infirm dependant tax credit (at a total cost
of $40 million in 1993), a $5,000 limit for child care expenses for children
with disabilities ($2,000 higher than for other children), and a non-refundable
credit for a dependent child with a disability who is over 18 years of
age. Since 1992, disability benefits from the Canada or Quebec Pension
Plans can be claimed as earned income for the purpose of calculating contributions
to a registered retirement savings plan. Certain medical devices are GST
zero-rated for persons with disabilities, as are institutional health
services and personal care services provided by charities and public sector
organizations.
Statistics demonstrate
that the tax measures for disability are not comprehensive. Approximately
1.4 million Canadians with disabilities reported out-of-pocket expenses
for items necessitated by their disabilities (prescription drugs, etc.)
and 837,000 had out-of-pocket expenses for everyday activities (such as
meal preparation). The disability tax credit does not provide compensation
for those with anything less than "severe" disabilities, nor
does it take into account restrictions on activities such as grocery shopping
that are not considered "basic" activities of daily living.
In addition, the Department of Finance estimates that 45% of the expenses
of those with severe disabilities are not eligible for itemization as
medical expenses because of the difficulty of separating the disability-related
and the consumption-related elements in an items use.
b. Employment
Like other Canadians,
people with disabilities cannot achieve full economic and social independence
and participation without access to employment. At the same time, many
recent developments in providing employment and training have not opened
doors for people with disabilities, despite significant increases in federal
and provincial/territorial spending on labour market adjustment programs.
This situation
arose largely because federal expenditures on such programming came from
two separate sources: the Consolidated Revenue Fund (CRF) or general revenues
of the federal government and the Unemployment Insurance (UI) Fund. Because
the law limited the recipients of UI money to UI claimants, people with
a weak attachment to the labour force, including those with disabilities,
were ineligible for UI training and received training funded by the CRF,
which also funded sectoral initiatives and partnership arrangements. The
recent enactment of Employment Insurance has not altered this basic structure.
This system has
made it increasingly difficult for people with disabilities to gain access
to training. In 1990, only 50% of working age people with a disability
reported receiving income from employment, compared to 73% of the general
population. In addition,
44% of persons
with disabilities aged 15-64 are not in the labour force. Many people
with disabilities are therefore not eligible for training tied to an ongoing
record of employment because they are ineligible for employment insurance.
Apart from this, because of declining CRF allocations for training and
employment for persons with disabilities, eligibility for employment insurance
has become more important than need in gaining access to assistance. Although
people with disabilities represented 6.5% of the working age population
in 1993-94, of the 587,178 participants in federal employment and training
programs only 2.0% (or 11,874) were persons with disabilities (a decline
from 2.1% in 1989-90).
One of the major
events affecting persons with disabilities in employment was the amalgamation,
in June 1993, of sections of Health and Welfare Canada, Employment and
Immigration, Labour Canada and Secretary of State into the Department
of Human Resources Development (HRDC). According to a recent evaluation
of HRDC programs, amalgamation into one huge department has resulted in
a loss of visibility and a low priority for disability-related initiatives.
Because of decentralization, HRDCs headquarters let individual regions
implement various employment-related initiatives for people with disabilities.
Competing priorities and regional employment centres focus on clientele
from unemployment insurance have often led people with disabilities to
be underserved. Budget cutbacks have also tended to promote "self-service"
for those using Canada Employment Centres; as a result, those who require
greater personal service (e.g., people with disabilities) have been disproportionately
affected.
The Employment
Equity Act, an approach to encouraging employment based on a human
rights model, has also worked less well for people with disabilities than
for other groups that are under-represented in the labour market.
4. Income Security/Pensions
From 1966 to 1996,
the Canada Assistance Plan allowed the federal government to share 50-50
with the provinces welfare and social services costs for Canadians in
need or likely to be in need. Because of requirements for disability-related
supports and services and difficulties in overcoming barriers to employment,
over 320,000 heads of households with disabilities (about 20% of all social
assistance recipients) have received assistance from the CAP. Provincial
authorities granted financial aid according to provincial guidelines and
the amount of assistance for approved items varied from province to province.
For a province to receive CAP funding, it had to administer a needs test
to determine eligibility for financial assistance, to refrain from imposing
residency requirements, and to establish an appeals mechanism.
The CAP contained
two funding streams. The first comprised the assistance (income) provisions
which shared the cost for basic requirements (e.g., food, shelter, clothing);
special needs (e.g., essential alterations to property and disability-related
equipment); and prescribed services (e.g., rehabilitation, counselling
purchased at the request of a provincially approved agency). The second
CAP funding stream was the welfare services provision that allowed cost-sharing
(including operational costs) of services that lessened, removed or prevented
the causes and effects of poverty, child neglect or dependence on public
assistance. No definitive financial breakdown is available outlining the
actual amounts spent on income, services or income-in-kind provided by
the two funding streams.
Because of the
rising cost of its share of the CAP, the federal government was under
pressure to reform funding for social assistance. In 1990, it unilaterally
set a limit on the amount provided to Ontario, Alberta and British Columbia
under the CAP. In February 1995, the federal Budget announced that the
transfers to the provinces provided by Established Programs Financing
(health and post-secondary education) and the CAP would be combined and
their overall amount reduced, from $29.7 billion for 1995-6 to $25.1 billion
in 1997-8. The new Canada Health and Social Transfer (CHST) was put in
place by Bill C-76, passed by Parliament in 1995 and is due to come
into effect on 1 April 1996. Because of their reliance on the CAP,
particularly its funding for disability-related supports and services,
people with disabilities have seen access to these decline after that
date.
Another important
federal measure for people with disabilities is the Canada Pension Plan,
which provides benefits to contributors who cannot work because of a severe
and prolonged disability (325,000) and to their dependent children (100,000
in 1994). CPP disability expenditures have grown from over $500 million
in 1985 to over $3.3 billion in 1996 (17% of CPP expenditures) plus
$329 million for disabled contributors child benefits. There
has been increasing concern about the growth in numbers of CPP disability
beneficiaries and the implications of this for the future of the plan.
There are several reasons for the increase: the difficulties that people
with disabilities have in finding and keeping employment; the recognition
of more types of disability; referrals to CPP by other agencies (i.e.,
provincial social assistance administrations and private insurers); and
easing of the eligibility criteria, notably by the passage of Bill C-57
in 1992, that enables applicants to apply many years after the onset of
disablement, and the rise of $150 per month in disability pensions in
June 1986.
In an effort to
contain expenditures, several reforms have been implemented by Income
Security Programs, by which the Canada Pension Plan is administered. New
guidelines, adopted in August 1995, stress the medical basis of disability
determination and rule out socio-economic factors in adjudicating applications.
Other reforms have encouraged return-to-work efforts and removed disincentives
to work. For example, a CPP recipient with a chronic disability (such
as multiple sclerosis) who returns to work can be "fast-tracked"
if his or her medical condition deteriorates and the individual requires
reinstatement. Full-time school attendance will no longer result in automatic
cessation of benefits and a trial work period of three months is permitted.
In addition, the CPP appeals procedure has been more formalized and a
program of reassessments has produced monthly savings of several million
dollars. A series of pilots has tested ways to reduce duplication and
increase opportunities for early rehabilitation and return-to-work. As
a result of these changes, from September 1994 to December 1995, there
has been a significant stabilization of the costs related to the disability
program. By March 1996, CPP administrators predicted that the plans
disability caseload would begin to decline and expenditures would decrease.
C. Proposals for Reform
Because of the
increasing visibility of programs for people with disabilities, the need
to deal with increasing costs of all social programs, and lobbying by
people with disabilities for removal of barriers to economic and social
participation, reform proposals have proliferated during the last few
years.
Perhaps the most
significant of the reform exercises was the review of federal-provincial-territorial
review of services for people with disabilities known as Mainstream 92.
In its report Pathway to Integration (May 1993), both levels of
government and the disability community agreed on a framework for disability-related
policies and programs that falls within the current constitutional/legislative
context. They stressed the importance of disability-related supports;
the accessibility of mainstream services; the need for coordinated efforts
to remove barriers to employment; support for independent living; long-term
arrangements to allow people with disabilities to purchase and manage
the supports they require; the need for preventative measures; and ensuring
income support adequate for disability-related needs.
Although the implementation
of the various elements of the framework has not been systematically monitored,
several initiatives have incorporated the ideas expressed in Mainstream
92. As part of the National Strategy for the Integration of Persons
with Disabilities, the federal government is contributing more than $14
million to support provincial demonstration projects whereby people with
intellectual handicaps move out of institutions and into the community.
Another example is the Independent Living Centres Pilot Project which
supports centres across the country that provide people with disabilities
with information, referral services, and peer support and assist with
individual advocacy and service development.
The announcement
of a review of social programs in January 1994 began a process conducted
by the Minister of Human Resources Development. As part of this, the federal
Budget in February 1994 announced $800 million for strategic initiatives
that would test innovative approaches to meeting social security needs
and would be developed in partnership with the provinces and the territories.
One of these initiatives, "Choice and Opportunity," developed
with the Prince Edward Island government, is reviewing the supports and
services available to people with intellectual disabilities with a view
to creating an integrated system.
In October 1994,
the government released the results of the review in the discussion paper
Improving Social Security and shortly thereafter published a supplementary
paper on persons with disabilities. These two documents emphasized the
need to accommodate people with disabilities in the learning and training
environment and to discuss with the provinces how best to achieve this.
The reports advocated incorporating people with disabilities into mainstream
programs through, for example, policies to extend flexible training and
work arrangements, the provision of basic skills, and appropriate and
timely access to the disability-related supports and services. Improving
Social Security also proposed updating the Vocational Rehabilitation
of Disabled Persons Act.
The social security
reform exercise provoked a plethora of other reform proposals, particularly
for separating eligibility for income assistance from provision of disability-related
supports and services. During the 1995 provincial election campaign in
Ontario, the Conservative party promised that it would act in this regard.
As well, the Roeher Institute proposed a national program (provincially
administered) that would offset the costs of disability, assure access
to disability-related supports, and allow people with disabilities to
have the same access to regular social assistance income benefits as other
Canadians.
In December 1995,
a ministerial council on social security reform recommended to provincial/territorial
first ministers that they consider the consolidation of income support
programs for people with severe disabilities. This single national program
would be jointly managed but delivered by the federal government. This
proposal was reminiscent of suggestions recently explored by some provinces
for implementing a guaranteed annual income (GAI) as a means of removing
individuals from the welfare rolls. On the positive side, a GAI would
provide more adequate income support, and could improve financial incentives
to work if additional earnings were taxed at a lower rate. At the same
time, however, a GAI might reinforce the tendency to categorize people
with disabilities as "unemployable" and divert resources from
programs promoting integration with the economic mainstream. In addition,
the income provided by a GAI would likely be too little to meet the needs
of those with high disability-related expenses and would not adequately
cover the costs of required disability-related supports and services.
A concurrent tax reform measure would be required to cover these costs
if a federal or provincial GAI were introduced.
The Federal/Provincial
Information Paper on the CPP (February 1996) outlines for discussion some
other options for changes to the disability income program provided by
the Canada Pension Plan. Among these options were: subtracting Workers
Compensation Benefits from CPP disability benefits for those who receive
both; increasing the years of required contributions to establish eligibility
for CPP disability; and basing eligibility for CPP retirement benefits
on wages at the time of disablement.
In light of the
implementation of the Canada Health and Social Transfer, various organizations
of persons with disabilities have argued for a statement of "ideal
values" to govern the new transfer and claim that taxpayers should
know how the transferred federal dollars are spent. They believe this
information could be used in the development and evaluation of social
programs under the new transfer arrangements. They have therefore been
lobbying for a "social audit" conducted by an independent mechanism
to report on the distribution of the CHST in the health, education, income
and social services systems.
When the government
response to the Grand Design (see Parliamentary Action) was tabled
on 8 May 1996, it was unanimously condemned by the disability community
for not addressing the recommendations in the report of the Standing Committee.
National organizations pointed out that interdepartmental coordination
had become an increasing problem and that, as implemented, the CHST would
leave people with disabilities unprotected. The employment and employability
provisions of employment insurance would affect people with disabilities
adversely because so many of them would be ineligible for training. The
various disability organizations also publicly raised the issue of the
phasing out of their funding by the Department of Human Resources Development.
On 5 June
1996, appearing before the House of Commons Standing Committee on Human
Rights and the Status of Persons with Disabilities, the Minister of Human
Resources Development announced the formation of a Federal Task Force
on Disability Issues to be chaired by Andy Scott, MP. This Task Force
would report to four Ministers (Finance, Human Resources Development,
Justice, and National Revenue). As well as investigating and making recommendations
regarding the overall role of the federal government in the area of disability,
the Task Force was to carry out the governments promise made in
the 1996 Budget and review the impact of the tax system on people with
disabilities.
After extensive
public consultations across the country, the Task Force presented its
report to the four Ministers on 26 October 1996. It made 52 recom-mendations
for a federal role that would affirm the citizenship of Canadians with
disabilities and advance their civil, political and social rights. The
Task Force recommended discussions with the provinces on building disability
into all mainstream policies and programs and identifying complementary
action to enable people with disabilities to benefit fully from mainstream
programs. The Task Force also recommended restoration of funding to national
organizations of persons with disabilities. The Task Force went on to
isolate short, medium and long-term changes that would achieve this end
within the scope of federal jurisdiction.
Specifically, the
Task Force recommended changes in four areas: legislation, labour market
integration, income security, and cost of disability. In terms of legislation,
it recommended amendments to the Criminal Code, Canada Evidence
Act and Canadian Human Rights Act that would remove barriers
for people with disabilities. In addition, the Task Force endorsed an
ongoing review of legislation and a new Canadians with Disabilities Act
that would ensure coordination and accountability at the federal level.
Other recommendations to ensure accountability included the appointment
of a Secretary of State for disability issues, an annual report on federal
activities in this area, and an assessment of the impact of proposed measures
on people with disabilities.
To deal with the
important issue of labour market integration, recommended were clear policy
and implementation guidelines to ensure access to employment insurance
training measures, including those transferred to the provinces, and access
to employment assistance services by those not eligible for employment
insurance. It was proposed that the Vocational Rehabilitation of Disabled
Persons Program be refocused and renamed the Employability Program Access
Fund to prepare people to participate in the labour market or in mainstream
programming.
The thrust of the
proposals for the disability income system involved long-term comprehensive
changes that would separate disability income programs from the provision
of disability-related supports and services. The Task Force recommended
that pilot projects test this approach. With respect to the tax system,
the Task Force adopted an approach that in the long term would encourage
greater tax recognition of the actual costs of disability and in the short
term would begin this process.
In its report on
pre-budget consultations of 5 December 1996, the House of Commons
Finance Committee endorsed the work of the Task Force and included people
with disabilities as one of the priorities in any increased investment
by the federal government in social issues.
In late 1996 and
early 1997, the federal and provincial governments continued discussions
of measures to reform joint federal and provincial programs for persons
with disabilities. This follows the decision by the First Ministers in
June 1996 to give the Federal/Provincial/Territorial Ministerial Council
on Social Policy Renewal a mandate to review and make recommendations
for reform of programs that support people with disabilities. At its meeting
on 27 November 1996, the Council agreed to look at practical improvements
to these programs, to establish a sub-committee that would look at the
Vocational Rehabilitation of Disabled Persons (currently cost-matched
by the federal and provincial government), and to consider the recommendations
of the Federal Task Force on Disability Issues.
In early 1997,
the federal government announced that it would restore annual operating
funding for national disability organizations at $5 million per year
and continue funding of $4.6 million for special projects. In addition,
the Minister of Human Resources Development announced that labour market
initiatives for Canadians with disabilities would continue until suitable
replacements were available, as would the Vocational Rehabilitation of
Disabled Persons Program until negotiations were completed with the provinces.
In January 1997,
Bill C-12 came into effect (Statutes of Canada, 1996, C23). This bill,
introducing employment insurance and reforming the unemployment insurance
system, will do little to increase the access to employment and training
measures for most people with disabilities (given the distinction between
CRF and UIDU funding discussed above). Under Bill C-12, as under the former
system, a person with a disability is eligible to request employment benefits
only to the degree that he or she has been an "insured participant"
through attachment to the labour market. Clause 60 of the bill, however,
provides for support measures whereby organizations can establish employment
assistance services providing information on employment opportunities,
help workers find suitable employment and employers find suitable workers,
and put in place other support measures. These measures are not conditional
on an attachment to the labour market and include programs rectifying
disadvantages, including those for persons with disabilities.
PARLIAMENTARY ACTION
Parliamentary committees
have had an extremely important role in promoting the economic and social
integration of persons with disabilities. In preparation for the International
Year of Disabled Persons, Parliament in 1980 established a Special Committee
on the Disabled and the Handicapped. In February 1981, this Committee
tabled Obstacles, a report to Parliament containing 130 recommendations,
including those for a comprehensive disability insurance system and greater
access to disability-related supports and services.
Since June 1987,
the Standing Orders of the House of Commons have made provision for a
Committee with a mandate to deal with the status of disabled persons.
Since April 1989, this mandate has also included dealing with human rights
issues.
Throughout the
34th Parliament, the Standing Committee on Human Rights and the Status
of Disabled Persons focused on the economic and social integration of
persons with disabilities. Its report A Consensus for Action led
to the inauguration of the National Strategy for the Integration of Persons
with Disabilities in 1991. As True as Taxes (10 March 1993)
related the overall operation of the tax system to social policy issues
and recommended reform of the medical expenses tax credit and the establishment
of a new refundable disability tax credit. Completing the Circle,
a report on aboriginal people (26 May 1993) recommended better coordination
of federal programs and activities for aboriginal people with disabilities.
In July 1993, Profitable Choices for Everyone resulted from a Parliamentary
Forum where the Committee brought together over 70 experts from business
labour and the disability community. This report made recommendations
regarding the involvement of people with disabilities in economic advisory
commissions, the development of a Canadian disability economic development
strategy, and the need to facilitate the manufacture and marketing of
consumer products for seniors and those with disabilities.
Following the federal
election in 1993, the Standing Committee on Human Resources Development
held hearings on the need to reform Canadas social programs. In
its report Security, Opportunity and Fairness, the Standing Committee
proposed initiatives to promote independent living and recommended that
federal-provincial-territorial governments reconcile definitions and eligibility
criteria for their programs for persons with disabilities.
In 1995, federal
legislation (Bill C-76) consolidated transfer payments to the provinces/territories.
Included in the new fiscal mechanism were the Canada Assistance Plan and
Established Programs Financing. The new Canada Health and Social Transfer
will be a block fund covering federal payments to the provinces in the
areas of social assistance as well as health and post-secondary education.
Throughout the
fall of 1995, the Standing Committee on Human Rights and the Status of
Disabled Persons held hearings on the National Strategy for the Integration
of Persons with Disabilities, which ended in 1996. In its report The
Grand Design: Achieving the "Open House" Vision, the Committee
recommended ongoing federal leadership in the area of disability to be
demonstrated by the appointment of a secretary of state with specific
responsibility for this area, a renewed national strategy with a clearer
vision, and an effective coordination of government policies. The Committee
also recommended minimum national standards for the CHST based on outcomes
and an audit of social expenditures through the CHST. Specifically, the
Committee recommended more effective employment measures, a review of
all tax measures with an impact on persons with disabilities, and a comprehensive
review to develop options regarding the disability income system and the
provision of disability-related supports and services.
CHRONOLOGY
1981 - International
Year of Disabled Persons.
1981 - Disability
included as a prohibited ground of discrimination in the Canadian
Charter of Rights and Freedoms and in the Canadian Human Rights
Act.
February 1981
- Tabling of the Obstacles Report of the Special Committee on
the Disabled and Handicapped.
1984 - Report
of the Quebec Government, On Equal Terms (À Part ... égale),
recommends comprehensive policy framework.
October 1984
- Report of the Commission on Equality in Employment (Abella Report)
dealing with employment opportunities for women, native people, visible
minorities and people with disabilities.
June 1987 - The
House of Commons established a Standing Committee on the Status of Disabled
Persons.
31 May 1988 -
Statistics Canada released first data on people with disabilities collected
in the Health and Activity Limitation Survey.
5 April 1989
- The House of Commons established the Standing Committee on Human Rights
and the Status of Disabled Persons.
18 June 1990
- The Standing Committee on the Status of Disabled Persons tabled A
Consensus for Action.
6 September 1991
- The Prime Minister announced the establishment of a National Strategy
for the Integration of Persons with Disabilities.
29-30 March 1992
- The Standing Committee on Human Rights and the Status of Disabled
Persons held a parliamentary forum "Profitable Choices for Everyone."
22-25 April 1992
- A World Congress on Disability, Independence 92 took place in
Vancouver.
March 1993 -
Release of Pathway to Integration, Final Report, Mainstream 92.
10 March 1993
- 28 July 1993 - Standing Committee on Human Rights and the Status of
Disabled Persons tabled As True as Taxes; Completing the Circle;
Profitable Choices for Everyone.
5 October 1994
- The Minister of Human Resources Development released Improving
Social Security in Canada, A Discussion Paper.
27 February 1995
- The Minister of Finance announced in the Budget that the Canada Assistance
Plan would be included in the new Canada Health and Social Transfer.
December 1995
- Standing Committee on Human Rights and the Status of Disabled Persons
tabled The Grand Design: Achieving the Open House Vision.
31 March 1996
- End of the National Strategy on the Integration of Persons with Disabilities.
8 May 1996 -
Government response to the Grand Design was tabled.
5 June 1996 -
The Minister of Human Resources Development announced the formation
of the Federal Task Force on Disability Issues.
21 June 1996
- The First Ministers mandated the Federal/Provincial/Terri-torial Ministerial
Council on Social Policy Renewal to study programs for people with disabilities.
26 October 1996
- The Federal Task Force on Disability Issues released its report.
January 1997
- Bill C-12, the Employment Insurance Act, came into effect.
January 1997
- The federal government extended VRDP and restored funding to national
organizations of persons with disabilities.
SELECTED REFERENCES
Bickenbach, Jerome.
Physical Disability and Social Policy. University of Toronto
Press, Toronto, 1993.
Canadian Labour
Force Development Board. Transitions to Employment for Persons with
Disabilities. Ottawa, 1994.
Department of
Human Resources Development. Improving Social Security in Canada:
A Discussion Paper. Ottawa, 1994.
Department of
Human Resources Development. Persons with Disabilities: A Supplementary
Paper. Ottawa, 1994.
Fawcett, Gail.
Living with Disability in Canada: An Economic Portrait. Ottawa,
1996.
Federal/Provincial/Territorial
Review of Services Affecting Canadians with Disabilities. Pathway
to Integration: Final Report, Mainstream 92; Report to Ministers
of Social Services. Ottawa, 1993.
Federal Task
Force on Disability Issues. Equal Citizenship for Canadians with
Disabilities: The Will to Act. Ottawa, 1996.
House of Commons,
Special Committee on the Disabled and Handicapped. Obstacles: Report
of the Special Committee on the Disabled and Handicapped. Ottawa,
February 1981.
House of Commons,
Special Committee on the Disabled and Handicapped. Follow-up Report:
Native Population. Ottawa, December 1981.
House of Commons,
Standing Committee on Human Rights and the Status of Disabled Persons.
A Consensus for Action. Ottawa, June 1990.
House of Commons,
Standing Committee on Human Rights and the Status of Disabled Persons.
Unanswered Questions. Ottawa, December 1990.
House of Commons,
Standing Committee on Human Rights and the Status of Disabled Persons.
As True as Taxes. Ottawa, March 1993.
House of Commons,
Standing Committee on Human Rights and the Status of Disabled Persons.
Completing the Circle: A Report on Aboriginal People with Disabilities.
Ottawa, May 1993.
House of Commons,
Standing Committee on Human Rights and the Status of Disabled Persons.
Profitable Choices for Everyone. Ottawa, August 1993.
Lunt Neil and
Patricia Thornton. Employment Policies for Disabled People: A Review
of Legislation and Services in Fifteen Countries. Research Series,
No. 16. Employment Department, London, UK, 1993.
Office des personnes
handicapées du Québec. On Equal Terms: the Social Integration of
Handicapped Persons: A Challenge for Everyone. Quebec, 1984.
Rioux, Marcia
and Cameron Crawford. The Canadian Disability Resource Program: Offsetting
Costs of Disability and Assuring Access to Disability-related Supports.
The Roeher Institute, Toronto, 1994.
Roeher Institute.
Income Insecurity: The Disability Income System in Canada. Toronto,
1988.
Roeher Institute.
On Target: Canadas Employment-Related Programs for Persons with
Disabilities. Toronto, 1992.
Roeher Institute.
Nothing Personal: The Need for Personal Supports in Canada. Toronto,
1993.
Statistics Canada.
Highlights from the Canadian Health and Disability Survey, 1983-1984.
Cat. 82-563. Ottawa, June 1985.
Statistics Canada.
Selected Socio-Economic Consequences of Disability for Women in Canada.
Ottawa, 1990.
Torjman, Sherri.
Small Technicality; Big Problem. Caledon Institute. Ottawa, April
1994.
Torjman, Sherri.
CHST Spells "COST" for the Disabled. Caledon Institute.
Ottawa, 1995.
United Nations. World Program
of Action Concerning Disabled Persons. New York, 1983.
*
The original version of this Current Issue Review was published in
January 1996; the paper has been regularly updated since that time.
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