Municipalities call on province, Ottawa to consider basic income guarantee

When he was an MP in Ottawa, Mike Savage was vice-chair of a committee that studied poverty. After travelling the country to meet with organizations and people with lived experience, one of the recommendations was for the government of the day to consider a basic income guarantee.

Years removed from his time in Ottawa and now occupying the mayor's office in Halifax Regional Municipality, Savage finds himself in familiar territory: he's one of several mayors and wardens in the province to recently write to Ottawa and the provincial government calling on them to pursue the idea.

"I just believe that, as a society, we've spent decades if not centuries managing poverty instead of trying to get rid of poverty," he said in a recent interview.

"And this, to me, is the way to do it."

Although there are variations on the idea, the general approach of a basic income guarantee is that it would provide enough money to bring everyone to at least what is considered the poverty line.

Alex Morrison, warden of the Municipality of the County of Annapolis, said the concept is "in line with Canada."

To Morrison, a basic income guarantee is no different than programs such as the Canada child benefit for families, employment insurance, and the guaranteed income supplement and old age security programs for seniors.

"It's in keeping with the Canadian approach to making sure that our citizens are treated well," he said in an interview.

For Savage and Morrison, as well as representatives for the Town of Wolfville and Municipality of the County of Pictou, the decision to advocate for a basic income guarantee is also a reflection of the fact that they see increasing evidence of poverty in their respective communities and are limited in terms of their ability to respond by both finances and jurisdiction.

Such a program would not be cheap.

Cost could be offset by other savings, tax changes

A recent estimate by the parliamentary budget officer estimated a basic income guarantee could cost upwards of $90 billion.

But Mandy Kay-Raining Bird, chair of Basic Income Nova Scotia, said there are ways to offset those costs and help pay for the program.

Kay-Raining Bird said previous pilot programs have shown that ensuring people have enough money to live reduces their reliance on the health-care system and interactions with the justice system, both of which would produce savings for governments.

The program could also be opportunities to reduce or collapse some existing supports into the basic income guarantee, she said. But along with efficiencies, Kay-Raining Bird said she thinks it is also time to reexamine the federal tax system.

"I think there's evidence to show that our taxation system has become less equitable over the past number of decades," she said in an interview.

"People who are wealthy could take on a larger share, large corporations could take on a larger share."

Despite the lobby effort by municipalities and advocacy groups, for now it appears the idea will not get the endorsement of the Nova Scotia government.

In an email, spokesperson Leanne Strathdee-Dowling said that several years ago officials in the Community Services Department sought input from advocacy groups, organizations, clients and staff.

No plans by N.S. govt for basic income guarantee

"From those conversations, the department determined that a standard household rate for people on income assistance is the best and most sustainable option for Nova Scotia," she said.

"A guaranteed basic income is not something under consideration at this time."

The Tory budget that passed earlier this month froze income assistance rates for the second consecutive year.

The Tories have pointed to increases in various targeted programs for seniors and families as ways they are helping vulnerable groups.

However, the majority of income assistance clients are single people and do not have children. As well, seniors do not qualify for income assistance.

A spokesperson for Employment and Social Development Canada (ESDC) said in an emailed statement that income security is a shared responsibility and federal officials recognize the importance of working with provinces and territories to find solutions.

"Moreover, if a provincial or territorial government decides to proceed with a basic income pilot, ESDC would be pleased to share federal-level administrative, survey, and tax data that could support program design and evaluation," Cristina Bianchi said in an email.

Kay-Raining Bird said a recent study pegged the cost of poverty in Atlantic Canada at about $4.5 billion a year. That means governments have a choice, she said.

"By allowing poverty to continue to exist, we choose to take on those costs. We could instead choose wellbeing and the elimination of poverty with a basic income."

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