New Brunswick Provincial Poverty Profile OVERVIEW New Brunswick s poverty reduction plan, Overcoming Poverty Together: The New Brunswick Economic and Social Inclusion Plan, was formed in 2009 on the ideological basis that all citizens and sectors have a role to play in reducing poverty. Throughout the process of developing, drafting, and implementing the PAP, representatives from the government, the non-profit sector, the business sector, and people who have lived in poverty have played leading roles. The PAP sets out the dual goals of reducing poverty and creating opportunities for socio-economic development. 1 Plan Components and Highlights Three priority areas for action have been developed to achieve the PAP goal, By 2015, New Brunswick will have reduced income poverty by 25% and deep income poverty by 50%, and will have made significant progress in achieving sustained economic and social inclusion 2 : 1. Opportunities for Being (Meeting basic needs) Reforming social assistance; Raising the minimum wage Providing stable funding for homeless shelters Initiating a prescription drug program for uninsured citizens 2. Opportunities for Becoming (Lifelong learning and skills acquisition) Increasing the number of registered Early Childhood Education spots Advancing the community schools concept Providing ongoing teacher training Initiating literacy mentors programs 3. Opportunities for Belonging (Community participation) Developing a housing strategy Exploring opportunities for social enterprise Providing continuing education opportunities to support low-income people to enter the skilled workforce 3 Governance model To implement the PAP, the government has introduced Community Economic and Social Inclusion Networks. These Networks consist of community non-profit groups that put together a localized plan to deliver programs outlined in the provincial PAP in a specific geographic area. There will be between 12 1
and 20 local Networks province-wide. Networks are overseen and allocated funding by employees of the Economic and Social Inclusion Corporation (ESIC), which is directed by the Provincial Economic and Social Inclusion Board. 4 The Board is comprised of representatives from government, businesses, community non-profits, and low-income persons. Community Engagement in Plan Development and Implementation As a response to mounting pressure from civil society, the government initiated a public engagement process to develop the PAP in October 2008. 5 There were three co-chairs for the process, representing the government, non-profit sector, and the business sector, and the process had three phases. The first stage was the Public Dialogue, which called for broad public input into what the PAP should contain. This phase involved over 2500 citizens, 6 over 20% of whom had lived in poverty. 7 The second stage was the Roundtable, Facilitated Dialogue Sessions, which involved 30 participants from the four sectors (government, non-profits, business, and people living in poverty) working together to develop options to address poverty. The final was the Final Forum stage, which engaged 47 New Brunswick leaders from the four sectors and resulted in the adoption of the PAP. The PAP is to be renewed in five years after another community engagement process. 8 New Brunswick s Poverty Reduction Act (enacted April 2010) http://www.gnb.ca/legis/bill/file/56/4/bill-39-e.htm Purpose The PAP process committed the New Brunswick government to enacting an Act supporting the plan. The primary purpose of the Act is to set up the governance structure to implement the plan. Key Provisions Establishes the Economic and Social Inclusion Corporation (ESIC), which is directed by the Economic and Social Inclusion Board and oversees PAP development, implementation, and evaluation. Establishes a maximum of 20 Community Inclusion Networks working in distinct geographic regions that implement the PAP at the community level. Creates an Economic and Social Inclusion Fund, which is distributed to the Networks to implement objectives of the PAP. Fund also pays expenses of the Corporation. Stipulates that a new Economic and Social Inclusion Plan shall be adopted every five years through a 2
MEASURING PROGRESS AND SUCCESS Statistical Indicators of Poverty in Canada (unofficial measurement tools) LICO 9 Low Income Cut-off After-tax LIM 10 Low-Income Measurement MBM 11 Market Basket Measure Food Bank Usage 12 Welfare Recipients 13 1995 93,000, 12.7% 110,000, 15.0% - - - 2000 67,000, 9.2% 108,000, 14.8% 100,000, 13.7% 19,890, 2.7% 54,180, 7.2% 2005 70,000, 9.6% 127,000, 17.5% 96,000, 13.1% 19,441, 2.6% 44,616, 6.0% 2009 49,000, 6.7% 107,000, 14.6% 82,000, 11.2% 17,889, 2.4% 39,058, 5.2% 2010 - - - 18,517, 2.5% 40,491, 5.4% * 2009 -PAP came into place * data not available The Act provides that the ESIC shall make by-laws to establish indicators to measure the success of the Plan. 14 In June 2010, the ESIC approved progress indicators, and in January 2011, the Board of Directors approved one company to establish baselines and gather data on the indicators for the next five years. Indicators include: school readiness among 4-year olds, participation rate in post-secondary education, and percent of New Brunswickers in core housing need. 15 Progress to Date The New Brunswick provincial government has historically looked to strengthening employment opportunities as the main way to reduce poverty in the province, despite the fact that wages in New Brunswick are almost 20% lower than the Canadian average. 16 The PAP represents a more comprehensive approach to addressing poverty for the province, answer[ing] the call for a new direction in social policy. 17 The PAP was estimated to cost up to $30 million over five years. No budget accompanied the plan, but Social Development Minister Kelly Lamrock affirmed that money would be found for PAP implementation. 18 The 2010-2011 budget allocated $15 million to social sectors with programs falling under the PAP (such as child care, affordable housing, and education), 19 and as of 2010, more than half of the priority actions in the PAP have been completed or are underway. 20 Views From Outside the New Brunswick Government The PAP has come under broad criticism from the Common Front for Social Justice (CFSJ), which is the main anti-poverty organization in New Brunswick. In a recent report, the CFSJ highlighted several key criticisms, including that the immediate changes to social assistance only benefit 3% of social assistance clients and that the PAP does not do enough for people with disabilities, seniors, and part-time workers. The CFSJ also outlined potential negative consequences of delivering services through the local Networks, criticised the Board for not being representative, and denounced budgetary commitments for being insufficient. 21 3
Make Poverty History and Citizens for Public Justice have echoed the CFSJ s critiques, emphasizing that the ESIC detracts from the ability of Members of the Provincial Legislature to hold those implementing the plan accountable, that social assistance changes reach only a fraction of clients, and that the minimum wage remains the lowest in Atlantic Canada. 22 In fact, the scheduled minimum wage increase in September 2011 has been delayed for six months in order to study a two-tier minimum wage, which would set a lower minimum wage for employees who earn tips. 23 However, tips are not guaranteed income; a two-tier minimum wage puts workers in the service industry, many of whom are women, in situations of greater income insecurity. Additionally, the Community Action Group on Homelessness criticised this decision for going against public sentiment to raise the minimum wage, as outlined in the PAP. 24 Notes on Critical Thematic Areas 1. Human Rights: The 2009 PAP, progress reports, and Act all fail to situate poverty elimination squarely within the framework of human rights. 2. Income Support: The government committed to reforming social assistance through three immediate measures and 10 longer term measures to be introduced over the next five years. The three immediate commitments have been met. The interim social assistance rate has been eliminated, resulting in an 82% increase in monthly benefits for 1,200 people. 25 Health care coverage has been extended for people leaving social assistance for three years, benefitting 802 clients. 26 The household income policy has been changed so that clients will not be penalized for living with roommates, benefitting 350 people. 27 Long-term government commitments include refocusing income support on employment, outcomes, and social and economic inclusion. Specifically, the government will overhaul the household income policy, restructure social assistance rates for people with disabilities, and raise the allowable asset exemption. 28 The government has created an Advisory Committee on Social Assistance Reform to advise the ESIC on this issue. 29 3. Housing: The government committed to affordable housing in mixed-income neighbourhoods. 30 The government launched its comprehensive five-year housing strategy, Hope is a Home, in June 2010, which commits to sustainable, affordable, and accessible housing for people in housing need. 31 The government has also committed to stable funding for homeless shelters, 32 investing between $250,000 and $750,000 annually until 2015. 33 An additional investment of $460,000 has funded building repairs in five shelters. 34 The housing strategy includes the government s homelessness framework called A Home for Everyone. The housing strategy aims to reduce core housing need by 10% over the next five years and reduce chronic homelessness significantly over the next five years. 35 4. Education: In the PAP, the government made commitments to K to 12 education, post-secondary education, and adult education. The government committed to advancing community schools 36 and expanding the literacy mentor program from 17 schools to every school in the next five years. 37 The 4
government committed to post-secondary education, investing $672 million in tuition freezes, infrastructure upgrades, and operational support. 38 Another $1 million was invested to support Aboriginal persons and $1.5 million for low-income families. 39 The government s adult literacy strategy invested $10 million in programming in 2010, and a three-year implementation plan for the strategy was released in February 2011. 40 New Brunswick s Community Adult Learning Network (CALNet) includes a number of Community Adult Learning Centers which provide 242 academic programs in over 100 communities. 41 5. Early Childhood Education and Care: In the PAP, the government committed to increasing the number of registered early learning spots to accommodate a minimum of 20% of infants and 50% of two to five year olds. 42 From March 2010 to January 2011, the number of spaces has increased by almost 1,500, accommodating 11% of infants and 43% of children in that age group. 43 In the PAP, the McCain Foundation committed to funding five additional integrated early learning sites, which are now under development. 44 The government also committed to introducing an Early Learning and Child Care Act, which was passed in April 2010 and will take effect once regulations are approved. 45 6. Healthcare: The government committed to initiating a vision and dental program for children of lowincome families by April 2011 46 and a prescription drug program for uninsured citizens by April 2012. 47 As of March 2011, the government has created an Advisory Committee on Health Benefits. The Committee s recommendations on the vision and dental programs were announced to have been delayed until summer 2011; however, recommendations are still not available at the time of writing. The Committee has not yet started developing a prescription drug plan for non-insured citizens. 7. Employment Support: The government committed to removing disincentives to work over the next five years by moving from passive assistance to an employment orientation, providing more opportunities for people to keep earned income as they transition to work, and reforming wage exemptions and including a working income supplement. 48 The government committed to education and training to support low-income people to entering the skilled workforce, 49 and has developed the Workplace Essential Skills (WES) program, which runs 81 initiatives. 50 The government also committed to raising the minimum wage to the Atlantic average by September 2011 and adjust for inflation annually thereafter. 51 However, the planned increase to $10/ hour in September 2011 has been postponed by six-months in order to study a two-tier minimum wage. 8. Community Building/Investment: The government committed to exploring opportunities for social enterprise and community investment funds, 52 and developed an Advisory Committee to do so. The government committed to implementing the PAP through Community Economic and Social Inclusion Networks that allocate funding and oversee implementation at the local level. These Networks are intended to be locally responsive and flexible, and the government committed to supporting them through capacity-building efforts, 53 presumably strengthening community social capital. As of March, 5
2011, eight Networks have been approved and four more applications have been received. All 12 Networks (one from each region) should be approved by summer 2011. 54 THE BOTTOM LINE New Brunswick has followed a process of citizen engagement to develop the PAP and an accompanying Act rooting the PAP in law. While the PAP is a good start to address poverty in the province, many aspects of the plan have been vocally criticized by civil society organizations. The recent public outcry regarding the proposal of a two-tier minimum wage and the delay in raising the minimum wage is a poignant example of civil society s discontent. It is still too early to tell the real strength of the PAP, and whether the government will show continued commitment to implement change to address poverty in the province. FOR MORE INFORMATION Canada Without Poverty @UnderOne Roof 251 Bank Street, 2 nd Floor Ottawa, ON K2P 1X3 613-789-0096 (1-800-810-1076); info@cwp-csp.ca 6
ENDNOTES 1 Province of New Brunswick, Overcoming poverty together: The New Brunswick Economic and Social Inclusion Corporation, (2010), 3. http://www2.gnb.ca/content/dam/gnb/departments/esic/pdf/booklet-e.pdf. 2 Province of New Brunswick, Overcoming poverty together: The New Brunswick Economic and Social Inclusion Plan, (2009), 2. http://www2.gnb.ca/content/dam/gnb/departments/esic/pdf/plan-e.pdf. 3 Ibid, 3-4. 4 Ibid, 2; Province of New Brunswick (2010), 30 (Appendix E) 5 Kurt Peacock, Poverty Reduction Policies and Programs: Restoring Hope of Treading Water? New Brunswick, Social Development Report Series commissioned by the Canadian Council on Social Development (2009), 13. 6 Province of New Brunswick (2009), 1. 7 Personal communication with James Hughes, Government of New Brunswick: Social Development Department. 8 Province of New Brunswick (2010), 5-6. 9 Statistics Canada, CANSIM table 202-0208. 10 Ibid 11 Ibid 12 Food Banks Canada, Number of separate individuals assisted by food banks, March of each year, (1999-2010), Food Banks HungerCount Survey; New Brunswick Department of Finance, http://www.gnb.ca/0160/economics/populationcanadaprovinces1.htm 13 Province of New Brunswick, Department of Social Development, Social Assistance Caseloads and Recipients, (2000-2001; 2005-2006; 2009-2010; 2010-2011), http://www2.gnb.ca/content/gnb/en/departments/social_development/statistics/social_assistance_caseload_and_recipients. html. 14 Province of New Brunswick (2009), 5. 15 Province of New Brunswick, Overcoming Poverty Together: The New Brunswick Economic and Social Inclusion Plan, Progress Report: September 2010 March 2011 (March 2011), 11, http://www2.gnb.ca/content/dam/gnb/departments/esic/pdf/progressreportmarch2011.pdf. 16 Peacock, 5. 17 Ibid, 13. 18 N.B. unveils sweeping changes to social assistance, CBC News, (13 November 2009). http://www.cbc.ca/news/canada/newbrunswick/story/2009/11/13/nb-poverty-reduction-plan.html 19 The Common Front for Social Justice, Reading between the lines: An analysis of Overcoming Poverty Together: The New Brunswick Economic and Social Inclusion Plan, (March 2010). 20 Province of New Brunswick (2010), 13. 21 The Common Front for Social Justice, 4. 22 Make Poverty History, Poverty Reduction & New Brunswick, Make Poverty History Webpage (2010), http://www.makepovertyhistory.ca/learn/issues/poverty-reduction-plan/new-brunswick; Rebekah Sears, Moving forward with poverty reduction in New Brunswick?, Citizens for Public Justice. Blog, (3 August 2010), http://www.cpj.ca/en/blog/rebekah/moving-forward-poverty-reduction-new-brunswick. 23 Community Action Group on Homelessness, Another poverty reduction milestone missed with government s minimum wage proposal, (20 July 2011), http://www.cagh.ca/en/index.php/news/50-news/128-another-poverty-reduction-milestone-missedwith-governments-minimum-wage-proposal. 24 Ibid. 25 Province of New Brunswick (March 2011), 3. 26 Province of New Brunswick (March 2011), 5. 27 Province of New Brunswick (March 2010), 3; Province of New Brunswick, Social Development, Changes to household income policy introduced, Press Release, (17 February 2010), http://www.gnb.ca/cnb/news/fcs/2010e0232sd.htm; Province of New Brunswick (March 2011), 5. 28 Province of New Brunswick (2009), 3. 29 Province of New Brunswick (March 2011), 4. 7
30 Province of New Brunswick (2009), 4. 31 Province of New Brunswick (March 2011), 9. 32 Province of New Brunswick (2009), 4. 33 Province of New Brunswick, Overcoming Poverty Together: The New Brunswick Economic and Social Inclusion Plan, Progress Report as of August 11, 2010 (August 2010), 6. http://www.gnb.ca/cnb/news/fcs/2010e1044sd.htm 34 Province of New Brunswick (March 2011), 6. 35 Province of New Brunswick, Hope is a Home: New Brunswick s Housing Strategy,, New Brunswick Housing Corporation, Department of Social Development., http://www2.gnb.ca/content/dam/gnb/departments/sd-ds/pdf/housing/housingstrategye.pdf (2010), 2. 36 Province of New Brunswick (2009), 4. 37 Province of New Brunswick (August 2010), 8; Province of New Brunswick (March 2011), 9. 38 Province of New Brunswick, Overcoming Poverty Together: The New Brunswick Economic and Social Inclusion Plan, Progress Report as of March 15, 2010 (March 2010), 7, http://www2.gnb.ca/content/dam/gnb/departments/esic/pdf/progress1-e.pdf; Province of New Brunswick, Post-Secondary Education, Training and Labour, Government to make additional investments in community colleges, universities, Press Release, (20 January 2010), http://www.gnb.ca/cnb/news/pet/2010e0075pe.htm 39 Province of New Brunswick (March 2010), 7; Province of New Brunswick, Post-Secondary Education, Training and Labour, New initiatives to help Aboriginal students pursue post-secondary education, Press Release, (6 January 2010), http://www.gnb.ca/cnb/news/pet/2010e0007pe.htm; Province of New Brunswick (March 2011), 11. 40 Province of New Brunswick (March 2010), 7; Province of New Brunswick, Post-Secondary Education, Training and Labour, New adult literacy strategy focuses on creating best opportunities to learn, Press Release, (17 December 2009), http://www.gnb.ca/cnb/news/pet/2009e2017pe.htm; Province of New Brunswick (March 2011), 10. 41 Province of New Brunswick (March 2011), 10. 42 Province of New Brunswick (2009), 4. 43 Province of New Brunswick (March 2011), 8. 44 Ibid, 8. 45 Province of New Brunswick (March 2010), 6; Province of New Brunswick, Social Development, Early Learning and Childcare Act introduced, Press Release, (12 March 2010), http://www.gnb.ca/cnb/news/fcs/2010e0353sd.htm; Province of New Brunswick (August 2010), 7. 46 Province of New Brunswick (2009), 3. 47 Ibid, 4. 48 Ibid, 4. 49 Ibid, 4. 50 Province of New Brunswick (March 2011), 10. 51 Ibid, 5. 52 Ibid, 11. 53 Province of New Brunswick (2010), 8. 54 Province of New Brunswick (March 2011), 2. 8