Critique of Quebec poverty plan.

MONTREAL -- Quebec's much lauded poverty plan came in for criticism by Alain Noel of the Departement de science politique, Centre de recherche sur les politiques et developpement social, Universite de Montreal. According to Noel, the plan appears to break with the logic underlying penalties and workfare for those on social assistance who refuse training or employment by offering enhanced benefits and work premiums says a critique of the plan. The critique was published by the Canadian Policy Research Networks.

Noel complimented the plan saying that it is "genuinely redistributive," and "will help improve the situation of many low income households."

However, Noel contends that the government's approach "leaves aside many key aspects of the law against poverty and social exclusion, particularly in the areas of collective action and citizen empowerment," and while he says for now it is probably "good to praise" the unexpected government plan because in many ways it is "well intentioned and valuable," much more needs to be done, and public interest organizations must remain vigilant.

In April 2004, the provincial government introduced a new plan, Reconciling Freedom and Social Justice: A Challenge for Tomorrow, against poverty and social exclusion in order to comply with Bill 112, an anti-poverty law passed in December 2003 by the Quebec National Assembly.

The action plan and its components came as a surprise to many groups and organizations in the way in which its new measures addressed social assistance and workfare. Contrary to expectations, the plan ended penalties imposed on social assistance recipients who refused to participate in training or work measures.

The action plan, according to Noel, increases social assistance benefits modestly and provide better income incentives to facilitate the transition from welfare to work.

The action plan introduces a refundable tax credit for all working poor in Quebec, with or without children. This premium is expected to complement the working income of more than 500,000 households, including 200,000 with children and 335,000 without.

The minimum wage is being raised in three stages. A new and better family benefits program will begin in January 2005 to replace the current nonrefundable tax credit for children, the Quebec family allowances and the tax reduction for families with quarterly assistance payments for families with children. These payments are universal, and are geared towards families with lower incomes. Additional support will be available for large families and for single-parent families.

www.cpm.org