Madam Speaker, let me begin by saying that EI premium rates must come down and they will. They will be coming down over time. There is no question about that.
We have already made considerable progress in reducing EI premium revenues. Let me remind members that EI premium rates have declined every year since 1994, down from $3.07 in 1994 to $2.90 this year. Weekly maximum insurable earnings, MIEs, were rolled back to $750 and frozen rather than increased.
There is the new hires program. Many times people forget about the new hires program. Up to 900,000 eligible employers will pay virtually no premiums for new jobs created this year. This program has been set up to enhance employing more people.
Together these measures represent a cumulative reduction in EI revenues of some $4 billion from 1995 to 1997; $500 million in 1995, $1.8 billion in 1996 and $1.7 billion in 1997.
The EI premium rate for 1998 will be set later this fall by the Minister of Human Resources Development.
EI premium revenues are part of the consolidated revenues of the government. Please understand that they have been that way since 1986 at the insistence of the Auditor General of Canada. It is certainly true that they are important to achieving our fiscal objectives. A substantial reduction in EI premium revenues now would require either significant increases in other taxes, further large reductions in government programs, or an increase in the deficit.
As much as we would want to get EI premium rates down, we cannot do so prematurely. This is an important issue and must be considered together with other key priorities of the government.