House of Commons Hansard #38 of the 35th Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was benefits.

Topics

Salmon StocksOral Question Period

2:45 p.m.

Reform

Mike Scott Reform Skeena, BC

Mr. Speaker, my question is for the Minister of Fisheries and Oceans.

B.C. salmon stocks are rapidly shrinking. Fraser River stocks are almost gone and this year's Alaskan catch will severely hurt our northern runs. One would think the government's plan would include a strategy to save the salmon but it does not. The minister of fisheries is fiddling with licences while the B.C. fishery burns.

My question for the minister is very simple. Will his plan preserve salmon stocks in British Columbia or not?

Salmon StocksOral Question Period

2:45 p.m.

Vancouver Quadra B.C.

Liberal

Ted McWhinney LiberalParliamentary Secretary to Minister of Fisheries and Oceans

Mr. Speaker, the hon. member will be aware that a parliamentary committee has been considering the plan and it does involve consideration of a long range strategy.

In fact, as a result of fruitful discussions between the minister, the parliamentary secretary and the main stakeholders in British Columbia in the salmon industry, the parliamentary committee will be hearing expert witnesses in the next week. It will be advising on the development of a strategy.

We are faced with two problems, an immediate short run, a 1996 problem that is near crisis dimensions, and a long range one. There are all these matters. For one month there has been a continuing process of discussion with the main stakeholders. Continuing input, including input from the hon. member, will all be part of the final plan.

Salmon StocksOral Question Period

2:45 p.m.

Reform

Mike Scott Reform Skeena, BC

Mr. Speaker, the delegation to which the minister's representative refers has told the committee and the members of Parliament that the measures in the Mifflin plan will not conserve salmon in British Columbia. The minister admitted as much in the House yesterday in response to a question from this party.

His admission flies in the face of what the minister said when he announced the plan in March. He emphatically told British Columbians that conservation was the overall objective, and now he admits it is not.

Why is the government spending all its bloated bureaucratic energy on a plan that does not stop the pie from shrinking, but just gives bigger pieces to fewer people?

Salmon StocksOral Question Period

2:50 p.m.

Vancouver Quadra B.C.

Liberal

Ted McWhinney LiberalParliamentary Secretary to Minister of Fisheries and Oceans

Mr. Speaker, the hon. member is too selective in his recourse to witnesses. We have heard many people, many strongly in support of plan, many critical. The government is open to a dialogue, to discussion, and we are considering all these matters.

As far as the industry is concerned, it has been made clear by the minister that the first priority is the conservation of the fish. But the good health of the industry is dependent on conservation. Let us get through 1996, then 1997-98 will be a more normal season.

Irving WhaleOral Question Period

2:50 p.m.

Bloc

Monique Guay Bloc Laurentides, QC

Mr. Speaker, my question is for the Acting Prime Minister.

Quebec environment minister David Cliche yesterday announced that, for the moment, he is unable to give the go ahead to the operation to refloat the Irving Whale , because federal employees have been unable to provide satisfactory answers to a number of questions, in particular four key questions on the safety of the operation.

How can the minister explain the inability of the environment department's employees to provide answers to Quebec's questions?

Irving WhaleOral Question Period

2:50 p.m.

Beauséjour New Brunswick

Liberal

Fernand Robichaud LiberalSecretary of State (Agriculture and Agri-Food

Mr. Speaker, the Government of Quebec, through its minister, has indeed raised questions that are highly technical in nature and are related to certain studies already carried out. I assure my colleague opposite that all of these questions will be carefully studied and answered. We are confident that we have the information in hand to reply to them.

Irving WhaleOral Question Period

2:50 p.m.

Bloc

Monique Guay Bloc Laurentides, QC

Mr. Speaker, the Irving Whale refloat is scheduled to begin May 15, so these answers must be received as promptly as possible, before the operation is begun.

Does the minister commit to not beginning the refloat until such time as the environment department's employees have provided satisfactory answers to all of the technical questions raised by Quebec?

Irving WhaleOral Question Period

2:50 p.m.

Beauséjour New Brunswick

Liberal

Fernand Robichaud LiberalSecretary of State (Agriculture and Agri-Food

Mr. Speaker, the ministers with responsibility on the federal level, that is the Minister of Fisheries and the Minister of the Environment, have issued directives for federal and provincial officials to meet as

soon as possible with a view to finding answers to all of the technical questions raised.

I assure the hon. member that these answers will be found and that, in the case of the Irving Whale refloating operation, nothing is being taken for granted, and every effort will be expended to reassure all those with concerns about the operation.

Canada Pension PlanOral Question Period

May 2nd, 1996 / 2:50 p.m.

Reform

Jan Brown Reform Calgary Southeast, AB

Mr. Speaker, my question is for the Minister of Human Resources Development.

Further to yesterday's discussion, it is becoming abundantly clear that the government's CPP hearings are a sham and that the government has already made up its mind to double the CPP payroll tax.

Consider the structure of the hearings. Only Liberal MPs are allowed to sit on the panel. Only one MP, the Parliamentary Secretary to the Minister of Finance, is attending all of the hearings, and this one MP has already said that he advocates an immediate doubling of the CPP payroll tax from 5.5 per cent to 10 per cent.

Will the minister admit the obvious? The fix is in on these hearings.

Canada Pension PlanOral Question Period

2:50 p.m.

Acadie—Bathurst New Brunswick

Liberal

Douglas Young LiberalMinister of Human Resources Development

Mr. Speaker, the Minister of Finance and I have had many discussion about this to ensure that the process from the federal government's point of view is properly conducted.

To correct the impression left by the hon. member, the member of Parliament who is representing the Government of Canada is the chairman of the industry committee but is certainly no longer the Parliamentary Secretary to the Minister of Finance, and is actually acting our behalf.

Even with the flexible federalism being practised in this country, it would be impossible for one federal member of Parliament to put the fix in with 10 provinces and the territories. This is a co-operative arrangement. It can only be changed, as I recall off the top of my head, with the agreement of seven of the provinces, representing 70 per cent of the Canadian population. Not even the hon. member for Winnipeg North Centre can put that kind of a fix in.

Canada Pension PlanOral Question Period

2:55 p.m.

Reform

Jan Brown Reform Calgary Southeast, AB

Mr. Speaker, despite the hon. member's remarks to me, I would like to read into the record a statement made on April 14 by the hon. member for Winnipeg North Centre who said: "My own view is if we reorganize the program and stabilize the contributions at somewhere in the range of 10 per cent, it would be a more adequate solution".

This amounts to an additional 5 per cent payroll tax taken from the pay cheque of every Canadian from coast to coast. Will the minister state for the record that he will not implement this, the worst of all possible scenarios?

Canada Pension PlanOral Question Period

2:55 p.m.

Acadie—Bathurst New Brunswick

Liberal

Douglas Young LiberalMinister of Human Resources Development

Mr. Speaker, I keep trying to reassure the hon. member that it is not going to be a unilateral decision of the Government of Canada.

There is another side to the coin. When the hon. member who was involved in the hearing process expressed his views, I have no doubt he was saying that, depending on the need to maintain an appropriate level of support for recipients of the Canada pension plan in the future, there will have to be some hard decisions made. That was his view. As indicated in the quote, it was a personal view. However, his personal views will have to be seen through the prism of all of these hearings, with all of the provinces being involved.

At the end of the process, whatever the recommendations may be of the government and the various provincial governments involved, it will be brought to the House where all members will have an adequate and appropriate opportunity to express their views on the matter.

JusticeOral Question Period

2:55 p.m.

Liberal

Jesse Flis Liberal Parkdale—High Park, ON

Mr. Speaker, my question is for the justice minister.

People in my riding are outraged about the placement of a convicted dangerous sex offender at Keele Street Correctional Centre. The public is justifiably concerned about the safety of their families.

In the platform book and in the throne speech the government made commitments for greater security for our communities. When can my constituents and other concerned Canadians expect tougher legislation for dangerous sex offenders?

JusticeOral Question Period

2:55 p.m.

Etobicoke Centre Ontario

Liberal

Allan Rock LiberalMinister of Justice and Attorney General of Canada

Mr. Speaker, first, I know the hon. member is aware of the measures already taken. The Solicitor General of Canada has implemented measures through Bill C-45 which could result in parole being denied altogether to certain offenders, particularly sex offenders, who must serve their full time. There have been measures in bills which I have brought forward which provide for stiffer sentences for crimes of violence.

The question which the hon. member raises deals directly with the issue of how to manage high risk offenders. As the hon. member knows, because I have told the House before, the solicitor general and I are preparing proposals for cabinet which I hope to

introduce before we rise at the end of June to deal with high risk offenders, that is, for people who may not be categorized as dangerous within Part XXIV of the Criminal Code, but who, because of their violent conduct, are at a high risk to re-offend by harming others after their release from prison. These proposals would empower the court to impose periods of supervision as long as ten years after their release.

That and related changes, I hope, will deal with the concerns that the hon. member has raised. I will elaborate on those proposals with the solicitor general in the weeks ahead.

Child CareOral Question Period

2:55 p.m.

NDP

Svend Robinson NDP Burnaby—Kingsway, BC

Mr. Speaker, my question is for the Minister of Human Resources Development.

In the last federal election the Liberals promised in the red book and across Canada to implement, together with the provinces, an affordable, accessible, national child care plan. In view of the fact that there are no more federally earmarked dollars for child care under the CHST, will this be another broken promise like the GST promise, or will the Liberal government and this minister finally recognize that there is a desperate need for quality accessible child care in every province and territory in Canada? Will the minister finally live up to that promise?

Child CareOral Question Period

2:55 p.m.

Acadie—Bathurst New Brunswick

Liberal

Douglas Young LiberalMinister of Human Resources Development

Mr. Speaker, an attempt was made by the government before Christmas to try to find a way to come to the assistance of people who understand, as the hon. member knows, the need for child care across the country.

The response to that initiative, led by the Government of Canada, was less than warm. Governments across the country, practically without exception, said that although they recognized the need for child care, they wanted to make sure the Government of Canada understood the jurisdictional questions and that whatever the Government of Canada did it would be compatible with what the provinces saw as their needs and based on their capacity to provide resources.

I assure the hon. member we have had conversations with representatives of all governments across the country. We believe there is a very good opportunity to continue to play a national role in the provision of child care.

I look forward to working with individuals and groups, people who are interested in this matter, as well as with provincial governments to ensure the Government of Canada plays a significant but acceptable role in the provision of child care support across the country.

Presence In GalleryOral Question Period

3 p.m.

The Speaker

I draw to the attention of members the presence in the gallery of fellow parliamentarians of ours from Russia, a delegation of regional chairs and members of the Federation Council of Russia.

Presence In GalleryOral Question Period

3 p.m.

Some hon. members

Hear, hear.

Business Of The HouseOral Question Period

3 p.m.

Bloc

Gilles Duceppe Bloc Laurier—Sainte-Marie, QC

Mr. Speaker, I would like to know what the legislative agenda for next week is.

Business Of The HouseOral Question Period

3 p.m.

Saint-Léonard Québec

Liberal

Alfonso Gagliano LiberalMinister of Labour and Deputy Leader of the Government in the House of Commons

Mr. Speaker, the government intends to continue consideration of Bill C-12, an act respecting employment insurance in Canada, until its completion.

If the bill is not concluded when Bill C-33, the human rights amendment, comes out of committee, we will interrupt the debate to conclude Bill C-33. Then we will return to Bill C-12.

If at some point before next week's business statement we either complete both of these bills or are, for procedural reasons, unable to consider either of them, we will call Bill C-19, the internal trade bill, followed by Bill C-26, the ocean legislation.

The House resumed consideration of the motion.

Employment Insurance ActGovernment Orders

3 p.m.

Bloc

François Langlois Bloc Bellechasse, QC

Mr. Speaker, I appreciate your giving me the floor so early. Our proceedings are moving faster and faster, exactly the reverse of what we are used to from the government.

Regarding this bill, before oral question period, I was listening to my colleague, the member for Portneuf, with whom I share the same views on the negative consequences of unemployment insurance. At the end of my speech, I will have the opportunity to be more specific as to its impact on the area I represent, namely the south shore, the area of Bellechasse.

Obviously, when we talk about unemployment insurance, it always brings us back to the history of the Canadian Federation, to

the constitutional background of this whole issue. I will go back to a time when my father had just turned 30, in 1938, and a new session was starting; 10 years later, I had the pleasure to be born, coming into a world of unemployment insurance. I will read something I wrote several years ago.

In 1938, at the start of the new session of Parliament, the government mentioned in the throne speech that it was seeking the co-operation of the provinces to amend the British North America Act to give the Canadian Parliament the necessary power to implement a national unemployment insurance plan.

The governor general added:

"My ministers hope that the proposal may meet with early approval in order that unemployment insurance legislation may be enacted during the present session of Parliament".

That was in 1938. In fact, as early as November 5, 1937, the federal government had contacted the provincial governments and asked them their views on the principle of an amendment to the British North America Act that would give unemployment insurance to the federal authority.

It must be remembered that there was no amending formula at the time. We will see the somewhat twisted and strange way in which the federal government acted to take over control of unemployment insurance.

So, in 1937, a detailed proposal was submitted to the provinces; in March 1938, the provinces of British Columbia, Saskatchewan, Manitoba, Nova Scotia and Prince Edward Island had totally agreed on the amendment proposed by the federal government. As for the Government of Ontario, it had given its agreement in principle without expressing its views on the text submitted by the federal government. Only Alberta, New Brunswick and Quebec had refused to agree to the constitutional amendment.

It must be remembered that in 1938 the Union Nationale government, under Mr. Duplessis, whose favourite theme was respect for provincial autonomy, was certainly not about to agree to such an amendment. The Government of Quebec was undoubtedly willing to assume responsibility for unemployment insurance in due course, according to the wishes of the voters.

However, after the provinces in question rejected its proposal, the federal government did not go ahead with its plan. According to the statements made by the then Prime Minister of Canada, Mackenzie King, especially in 1938-39, although the federal government did not want to enshrine in a constitutional agreement the principle that constitutional amendments should be approved by the provinces, it was not willing to go ahead with its proposal as long as there was provincial opposition to it.

What happened? On June 25, 1940, Prime Minister Mackenzie King made the announcement in the House of Commons that all nine Canadian provinces had finally approved the amendment proposed by the federal government. Quebec had elected a new government, the Godbout government, in 1939. Ernest Lapointe, the minister, got involved in the election campaign, saying that the Liberals were the only guarantee against conscription. As members may recall, they did not keep their promise, giving the green light to conscription for Quebecers and ignoring the results of the 1942 plebiscite. Even today, in 1996, our questions to the government remain unanswered: Would it respect Quebecers' democratic vote on the same issue today? The question remains unanswered, as it was in 1942, when the plebiscite results were ignored.

The Government of Quebec at the time paid dearly, losing the 1944 election, which saw the Union Nationale return to power. The government paid the price, but it was already too late. No amending formula, no public ratification. How did this happen? Through telephone calls-or telegraph messages at the time-or simply through an exchange of letters.

In eight out of the nine provinces-as members may recall, Newfoundland was still a Dominion at the time, a status which Newfoundlanders may or may not regret-only the cabinet had conveyed its approval in a simple letter. A two cent stamp to say they agreed with a constitutional amendment. Only the British Columbia legislature formally approved the amendment. In only one out of the nine provinces was the amendment voted on by members of the legislature.

Then there was a letter most likely signed by the clerk of the executive council that said: "Yes, let us amend the Canadian Constitution". In a strong position because of this letter, the House voted an address to the Imperial Parliament asking for some amendments to the Canadian Constitution. It is important to note however that, following a decision made two years earlier, on June 17, 1936, this was one of the rare occasions where the Supreme Court of Canada stated 1936, that the employment and social insurance act was ultra vires the powers of the federal Parliament, hence recognizing provincial jurisdiction over this area. The decision of the Supreme Court was sanctioned by the Privy Council in 1937, on January 27, 1937, to be specific.

These dates have to be mentioned, because in constitutional matters, as we have often heard and as my grandfather used to say, the Supreme Court is like the leaning tower of Pisa, it always leans the same way. Nothing has changed. It was the same in the 1930s, it was the same at the beginning of the century, and it all started in 1875, when that court was first established.

To come back to what the Minister of Justice said earlier, when he told the House that he wants to intervene in litigation dealing with Quebec issues and with the fundamental right of Quebecers to self-determination, I sure hope that the last word over the future of the people of Quebec will remain in the hands of those, in Quebec, who have the right to vote. The right to self-determination is a question of legitimacy that cannot be restricted by any outside influence.

Following this brief overview-I have many more pages I could read on this, but I will refrain from doing so-of the situation in an area like mine, that goes from the Beauce region to the beautiful riding of Kamouraska-Rivière-du-Loup, from the St. Lawrence River to the Maine border, I can tell the House that the legislation before us will hurt. The same as in all the regions. The regions will be hit hardest. Members who represent other areas have also expressed their point of view.

It will be tough on seasonal workers, and there are a lot of forestry workers in my riding who, because of the production calendar in this industry, work a limited number of months every year and will be hard pressed to work the required number of hours to become eligible for UI benefits. They will then have to resort to welfare. Once workers get a taste of welfare, it is hard to get them all back to work.

In general, people in my area are not very rich. They are poor financially, but their wealth is in their heart, in their fundamental values. These are people who want to work, who like to work, who do not complain for no reason but who want to enjoy the same benefits as other Canadians do. However, these are people who, because of what I would call the unemployment insurance map, are included in regions that are not to their advantage.

When I see that, for unemployment insurance evaluation purposes, the people of Sainte-Apolline, in my riding, a community of less than 1,000 people where unemployment is high, where there is a forest management co-operative, are in the same group as the people of thriving communities such as Saint-Jean-Chrysostome or Saint-Romuald, in the riding of Lévis, I can say there is a problem with human resources development in Canada. We should look at this and draw up a new map that reflects reality.

People who live in the RCM of Montmagny and in the RCM of L'Islet have a lot more in common with people who live in the RCM of Kamouraska than with those who live in the RCM of Desjardins or of Chutes-de-la-Chaudière, which do not have the same dynamic and the same prosperity.

We have to be careful with statistics. What do we do when we want to get statistics? We interview people. We ask them questions about their income, about their employment status, about their employability. We make sure to come by when people are not around, when young people are not around. I have to say that in several parishes in my riding, especially in the southern part, near the state of Maine, the employment rate among young people is extremely low and these people have left that part of the riding in droves. And the ones who come back are almost sure not to find a job.

So we have to look closely at these numbers. I agree with the views expressed by my colleagues in the official opposition and I will vote accordingly on the proposed amendments at report stage.

Employment Insurance ActGovernment Orders

3:15 p.m.

Bloc

Benoît Sauvageau Bloc Terrebonne, QC

Mr. Speaker, as you have seen, this debate has injected some passion into our Liberal and Reform friends. We have seen the number of people who have risen to take part in the debate.

But, more seriously, it is with some surprise that we note that even with a debate as important as that on unemployment insurance reform, which, in several ridings represented by Liberal MPs, has led to very large demonstrations, these MPs, who were elected, let us not forget, to represent their constituents, nonetheless remain silent, probably to toe the party line yet again.

These MPs are remaining silent in the face of a bill that will hurt all, or many, of the inhabitants of their ridings, especially the MPs representing remote areas, those representing the Atlantic provinces, those who should be aware of what is going on and of the demonstrations that have taken place in their ridings.

I am very surprised to see how quiet these MPs are, but I would like to say "well done" to the members of the Bloc Quebecois, including the member for Mercier, who did an excellent job in bringing to the public's attention the hidden agenda, the effects of which would have been felt by the people of Canada and Quebec in a few weeks or months.

I think it is thanks to the work of the hon. members for Mercier, Kamouraska-Rivière-du-Loup and Lévis, to name but a few, that we can now discuss here in the House, for one day or several, a bill the government tried to sneak by us. But thanks to the work of that committee, we have the opportunity to discuss it here.

To start off, I would like to quote from a brief submitted to the committee, a brief Liberal members most likely wanted to shelve quickly. It was written by Jean-Guy Ouellet and Georges Campeau, who are not professional agitators or bad separatists, but lawyers specializing in social law, respectively lecturer and professor in the legal sciences department of UQAM.

They say in this brief, and I quote: "The bill on employment insurance-already the name is somewhat strange, and I will explain what I mean by that later-is part of a policy aimed at

using the unemployment insurance fund to finance an increasing number of activities other than benefit payments. Not only is this policy to the detriment of the right to benefits of an increasing number of contributors to the system, but-and this is the most important thing-its constitutionality-as my colleague from Bellechasse was saying earlier-is far from being certain. By using unemployment insurance premiums, a surplus fund of $5 billion, to finance more than benefit payments, the federal legislation is de facto transforming these premiums into a regressive tax. Because of the capping of maximum yearly insurable earnings at $39,000, such a use of the unemployment insurance account is not only inequitable-the authors repeat-but its constitutionality is doubtful".

Further along in the text, we can read: "The federal Parliament's jurisdiction in the unemployment insurance sector is to collect premiums in order to compensate people in case they become unemployed". Not to meddle into all provincial programs. Not to try to reinvent programs sponsored by the Council for Canadian Unity. It is, I repeat, to collect contributions to cover those who are insured in the event of unemployment. This is the principle of fire insurance, of theft insurance. Not reinventing the wheel, not reinventing numerous programs.

The conclusion reads: "It is therefore appropriate to wonder if this new direction the plan is taking, with its discriminatory effects on certain disadvantaged groups such as young people and women, does not also run counter to the equal rights protected by the Constitution". First the authors question the constitutionality of Bill C-12, and second they question whether it does not infringe upon the equal rights protected by the Constitution.

In closing they say: "Instead of denouncing unemployment insurance fraud, the Minister of Human Resources Development would be well advised to check out the constitutionality and legitimacy of his bill before announcing it and passing it openly". I believe this article clearly demonstrates the immoral nature of the bill presented by the Minister of Human Resources Development.

A few years ago, the present Prime Minister himself condemned the unemployment insurance reform bill when it was introduced by the Conservative government of the day. Let us keep in mind that the bill in question was far more difficult and far more harmful to workers than the one introduced now by the Liberals. However, they call it employment insurance, but this is not the case. It is not employment insurance, it is still a piece of legislation that will mostly penalize seasonal workers, along with young people and women seeking first jobs. What should be done is to set a maximum percentage of unemployment that is acceptable, and that is not done here. In this bill we should specify pro-job creation measures, and that is not done here.

I will give you an example of the way it not only does not encourage jobs creation, but it contributes to increasing the number of people unemployed or on welfare and wastes public funds. As you will recall, not so long ago, six or eight months perhaps, the government decided to redistribute, reorganize employment centres across Canada. Only a few weeks before, not months but weeks, the Terrebonne employment centre, in my riding, had moved into brand new offices in order to meet federal standards. The federal government, through the Terrebonne employment centre, had to pay huge costs for moving, a ten-year lease, purchase of material and furniture. How much? Thousands or even millions of dollars? We do not know.

Even before the official opening of the employment centre people there received a letter saying: "Sorry, but we moved you a bit prematurely; the centre will be closing soon, but we do not know when exactly". You can imagine the atmosphere these people in my riding who want to help people find jobs must work in. Instead, their morale is undermined by a letter informing them that in six months, eight months or a year the centre will be closed and they might have to move to Sainte-Thérèse, Saint-Jérôme or God knows where. Many of them could even lose their jobs. This is the kind of motivation this government is giving to its civil servants, who are asked to help people.

I believe that if we want to help people find jobs, to reduce the unemployment rate, to find work for every Canadian, we should first make sure that government spending-I was about to say waste-is a little more effective and efficient.

A small business with an annual turnover of $100,000 is supposed to have a business plan, which means a government should have one too. I will never accept that a government which is wasting money to take an employment centre, move it elsewhere while telling the employees concerned that their centre is to be closed after hundreds of thousands of dollars were spent on it-and ruining the atmosphere they work in-I will never accept that such a government introduce a bill that is harmful, dangerous and unfair for Canadians.

I say again for young people who, some day, will have to find a first job: if they unfortunately have to turn to unemployment insurance, the present system requires them to have worked 15 hours a week for 20 weeks to be eligible. The bill introduced by the Minister of Human Resources Development requires that people work twenty-six 35-hour weeks.

In other words, a message similar to the one sent to officials of the Employment Centre of Terrebonne is being sent to a number of students. It tells them: "Go to school, get an education but, let us warn you right from the start, if you have difficulty finding a job after, do not count on the federal government to help you, you will

be on welfare. We will never help you with our new laws and our new standards". Given today's job insecurity, it is almost impossible for a student to work a minimum of 35 hours weekly for 26 weeks in his first job.

Therefore, on behalf of young people, of women, of people from the various regions, my colleagues in the Bloc and I oppose Bill C-12.

Employment Insurance ActGovernment Orders

3:25 p.m.

Hillsborough P.E.I.

Liberal

George Proud LiberalParliamentary Secretary to Minister of Labour

Mr. Speaker, I rise today to take part in this report stage debate on the employment insurance bill, Bill C-12. It is something I have great feelings about.

We have talked about this bill for many months, some people longer than I have. Many people on both sides of the aisle have spent many long days, weeks and months getting this piece of legislation to where it is today.

The government believes the object of the exercise is to make all aspects of the new employment insurance system fair and balanced. We have listened to the concerns raised in hearings by the parliamentary committee on Bill C-12 and we have responded by fine tuning the legislation to better respond to the reality of different job markets.

Over the last number of months one of the very important issues that has arisen is how to deal with individuals who have gaps or breaks in their employment. For example, there are individuals whose work patterns consist of some steady weeks of work interrupted by some weeks of not working, and then more weeks of work. For these individuals setting a relatively short consecutive period of weeks worked on which to calculate possible benefits could mean very low benefits.

The number of people affected is not very small. Approximately 35 per cent of all claimants who apply for income each year are affected by these gaps. That means some 850,000 Canadians with irregular work patterns who deserve access to the same protection against job loss as do those in regular jobs fell into this category.

Ten per cent of all claimants have gaps of four weeks or more. The average gap ranges from 2.9 weeks in New Brunswick to 4.8 weeks in Manitoba. We feel it is not fair to those who, through no fault of their own, have not had that steady work prior to becoming unemployed. That is why the employment benefit will be calculated in a new way. It will allow all individuals to count back 26 weeks to find their required weeks of work when calculating average income for employment insurance benefits.

This will enable individuals to have gaps of between four and 12 weeks without affecting their benefit levels. However, benefits will still be based on how much they earn in the 26 week period. This compromise of maintaining a fixed period of 26 weeks will maintain one of the central objectives of the new legislation, which is to increase work incentives while at the same time ensuring a better relationship between benefits paid and the normal pattern of earnings.

The 26 week period helps workers with irregular work patterns in every region of the country and in all industries from construction to the service sector. We feel that this is very important. Hundreds of thousands of Canadians in all industries suffer this problem of gaps in their employment income. They work several weeks and then are off for several weeks. The government believes that individuals should not be unfairly penalized because of this. In seeking a solution the government has had to find a balance between these two objectives.

First, a change had to be made to the old system so that there would be an incentive to work additional weeks if the work was available. In too many cases following the minimum weeks worked, an unemployment insurance claim was the first step toward finding replacement income rather than the last.

Second, many individuals in very high areas of unemployment who work in seasonal industries simply do not have the employment opportunities which would provide them with the steady work necessary to claim an adequate benefit.

It is doubly unfair in some cases. Many individuals who can only find the minimum number of weeks to qualify also have gaps due to the nature of their work, be it construction, the fishery, et cetera. Therefore, while all their hours worked would be counted in qualifying for benefits, some of their earnings would not be counted in determining the size of their weekly cheque.

Bill C-12 will allow individuals to count every dollar they have earned over the last 26 weeks prior to their claim to determine their benefit. The amounts of their employment insurance cheques will be calculated by averaging the amount earned over this period.

For instance, individuals in high unemployment areas will need 420 hours, or the equivalent of 12 weeks at 35 hours a week over the past year, to qualify. To maximize their benefits they will require two more weeks of work to get the full 55 per cent of their weekly wage. An individual in a low unemployment area will need 700 hours of work, or the equivalent of 20 weeks at 35 hours a week over the past year. To maximize their cheque they will require 22 weeks of earnings over the 26 week period.

The government believes this is a fair and balanced approach which strengthens the incentive to work while at the same time providing equal treatment for those workers with gaps in their income. It also recognizes that individuals in low unemployment areas have more opportunities to fill the gaps with alternative work.

In moving to the hours based system of calculating eligibility and benefits for unemployed Canadians, the government wants to ensure that every hour of work counts and that it pays more to work longer where the work is available. That is very, very important.

The new system is much fairer for those who work part time and in seasonal industries. For example, those who work less than 15 hours per week will now have their work insured. Under employment insurance, 90,000 workers in part time and seasonal jobs will now be eligible for benefits. Many will qualify sooner, for longer periods and will be able to insure more of their income than before. We think this is a great improvement.

Entitlement for benefit and duration of the unemployment benefit payable will be based on the number of hours worked in the last 52 weeks. Those in areas of high unemployment require 420 hours as I have said. About 270,000 workers will qualify for an additional three weeks of benefits because they will be given full credit for all the hours they worked.

Many people still have the problem of gaps in their employment. They work a few weeks, are off a few weeks and are back at work again. Addressing the issue of these gaps was one of the most important areas we dealt with and was a major concern of the committee and the government. The solution in the amended Bill C-12 is to allow all claimants to count back a full 26 weeks to find the required weeks of earnings.

In closing I feel, as I know my colleagues do on all sides of the House, that we have come a long way and we have made many great improvements. Many people appeared before the committee. Even though many were opposed to the bill in general, I believe that after listening, talking, and participating in open-line shows they have seen we have done a great justice especially to the seasonal workers in bringing these amendments forward.

I salute the people who brought the amendments forward. I thank the committee for all of its work. I look forward to the bill becoming law and to getting on with the process for the people who through no fault of their own have to use unemployment insurance.

Employment Insurance ActGovernment Orders

3:35 p.m.

Bloc

Jean H. Leroux Bloc Shefford, QC

Mr. Speaker, the Minister of Human Resources Development come up with a bill entitled an act respecting employment insurance in Canada. I would suggest, as mentioned in the amendments, that it be called an act to amend the Unemployment Insurance Act because, outside of an election campaign, can the government promise that this bill is going to create jobs? I do not believe it will.

I would like to talk about the people in my riding, the citizens of Shefford and Granby, the two main cities I represent. I am always quite surprised to hear that the federal government intends to work in co-operation with the private sector and the provinces to collectively invest in job creation. You may have recognized an excerpt from the throne speech.

This point is directly connected with the promises made by the federal government to strengthen the Canadian economy and the regions by withdrawing from programs aimed at helping businesses and by making deep cuts to the unemployment insurance program. In a way that is just as contradictory, in its last budget, the federal government announced plans, for 1996-97, for an unprecedented reduction of transfer payments to the provinces, and drastic cuts in social programs, especially unemployment insurance.

In its last throne speech, the government said that the economic situation was not as bad as it seemed in this country, and that if it was not much brighter it was the fault of private businesses. In my area, 6,000 people signed a petition circulated by the Granby board of trade, asking this government to keep the employment centre in Granby open. The government ignored it. We also have organizations such as the regional development council, trades and merchants associations, which are working very hard, and I believe it is unfair for the government to be blaming these people.

Since the unemployed, students and welfare recipients have already been hurt by the reforms contained in last year's budget, the government should find other ways of getting money.

When will the Liberal government admit frankly that it made a mistake in choosing to pick on the have-nots of our society and that now it is leaving it up to the more affluent classes to determine what they will contribute to the overall sacrifice. How will the government force the wealthy to do their share, now that the small taxpayers are overburdened?

For 1996-97, the shortfall under the Canada health and social transfer will represent, for Quebec alone, $765 million in lost revenues for education, manpower training and other social programs. The unemployment insurance reform will cost Quebecers another $534 million in 1996.

This represents a total of $1.3 billion that Quebec will not receive. The reduced unemployment insurance benefits mean less money for low income taxpayers. We all know that these benefits only pay for food, rent and other basic needs of life.

When the federal government says it will work in agreement with the private sector and the provinces, what does it mean? How will the government do that? What practical measures, what action will be taken? Will it simply impose on the private sector and the provinces its own rules and national standards?

Let us take my region for example, and more specifically the case of Granby, the largest city in the federal riding of Shefford. Granby now receives $30,700 in lieu of taxes for federal offices. It is quite simple, if there were no federal government, things would not change much in my riding since Granby receives only $30,700.

Saint-Jean-sur-Richelieu, with a population slightly smaller than that of Granby and a much slower growth rate, receives $5 million from the federal government in lieu of taxes. The amount is $643,000 in Saint-Hyacinthe. Imagine, $643,000 in Saint-Hyacinthe, and $30,700 in Granby. That is what the federal government means in our region.

Not only do Granby and the region receive very little from the federal government, but now the government wants to cut a whole series of services and programs. Among other things, in Granby, the employment centre would be replaced by a service point. If this trend persists, there will be practically no federal services left in our region. Where is the rightful share of Granby and its region in the redistribution of wealth?

The taxpayers of the riding of Shefford are tired of paying and getting nothing in return from the central government. However, Ottawa is right on one point: from now on, we have to rely on ourselves, on the energy and resources of our own regional business community, without any help from the federal government. That is already what we are doing. We are not relying on the federal government which is gradually pulling out.

In the next few months, the action plan from Ottawa for the riding of Shefford will reduce by more than three quarters the number of employees in the Granby employment centre. It is ironic, but it is the truth, and I think it should be condemned here. Shortly, the majority of employees in the employment centre will be out of a job. The closing of this employment centre is an irrational, even indecent, decision. That situation is unacceptable. People and organizations in the area, including the Chamber of Commerce and the various municipalities in the riding, will never accept this situation.

Soon, the city of Granby, the regional capital of my riding of Shefford, with more than 67,000 constituents, will have only one post office and one RCMP detachment left, plus two or three other points of reduced services.

I will give the House another example, to show to what extent Ottawa is pulling out despite its promise to stimulate employment.

In 1994, $386,488 were allocated for job creation for students in Granby and the area. In 1995, these funds from the Department of Human Resources Development dropped to less than $207,000, that is a budget cut of almost half in less than a year. This year, prospects for students are a little more generous, $257,000, but we are far from what we had before.

So, when Liberals promise to do more and better for the economy, they could not do worse. The federal government's apathy in Shefford is blatant. Even the Chamber of Commerce of Granby has proved it by circulating a petition, as I said earlier. It collected 6,300 signatures of people asking for that the employment centre in Granby be maintained, and that was refused. The petition was tabled here in the House and the response was negative. For this government, Granby and Shefford no longer exist, do not exist.

The only thing Ottawa managed to do was to unite all social and economic stakeholders, no matter their political allegiance, against the federal government's reforms and especially against the proposed unemployment insurance reform. People in Shefford have a long memory and will remember this Liberal government that does not recognize them.