Mr. Speaker, I will not take issue with you at this point, but I would indicate that, in fairness, the government needs to respond and the government will respond to both the motion and to the amendment that was proposed.
I point out to all members of the House that we all share concerns with regard to seasonal workers. The original motion called upon the government to restore EI benefits to seasonal workers. I reject the premise that EI benefits have been taken away from these workers. I would support, however, the amendment proposed by the member for Miramichi. His proposed amendment would ask us to take immediate action to review EI benefits so that workers with seasonal jobs could continue contributing to the economy and building a better quality of life. I think this is important for everyone.
Canadians and seasonal work remain an important factor in government social and economic planning. An estimated 327,000 Canadians worked in seasonal jobs in 1997, about 3% of all paid workers. In Atlantic Canada the numbers were obviously higher than the national average.
Furthermore, within certain industries themselves there is greater seasonality in Atlantic Canada than elsewhere in the country. In other words, employment fluctuates more with the seasons.
We must recognize that seasonal industries are a large factor in the Canadian economy and indeed we must recognize the increased importance to the Atlantic region in general. Obviously the treatment of seasonal workers on employment insurance is an important concern to the government and will be treated as such. However, it seems that whenever EI comes up for discussion in the House we must return to the basics.
Why was the EI system introduced in 1996? We had to make the system fairer. There had to be greater incentives to work. We wanted to increase assistance for low income families with children and we wanted to ensure the future viability of the program. Overall, we wanted a balance in the system, redirecting resources to help unemployed Canadians get back to work.
The EI program introduced in 1996 included measures to achieve these ends, but it was never designed, nor should it have been, to be the sole solution, the sole guarantee of well-being for Canadians in any region.
Concern for unemployed workers has always been a priority of the government. We must ensure that EI benefits continue to provide income while unemployed individuals look for a new job. In addition, EI provides active re-employment measures like career counselling, self-employment and skills development to help improve the employability of individuals. Indeed, active re-employment measures are now helping people to return to the labour market.
While a strong economy was the result of the creation of 383,000 full time jobs last year, we have nevertheless maintained our efforts to help those workers, regions and industries which face special challenges.
We introduced EI to help contribute to the adjustment in the fishery. We created small weeks adjustment projects at a cost of $225 million to help workers, many of whom are seasonal workers, collect higher benefits and maintain a hold on the job market.
We have established a working group with the provinces and territories to examine ways to address the specific needs of seasonal workers, including options for pilot projects to create employment opportunities in the off season. We have invested $30 million over two years to launch pilot projects to help workers maintain a strong attachment to the workforce.
The minister has recognized this and she has committed her regional officials to work closely with these workers to better appreciate local needs and explore how we can better help communities help themselves.
The redesigned EI plan introduced the hours based system rather than the previous system based on weeks worked. The hours based system is much fairer in that every hour of work counts toward eligibility of benefits. Remember, seasonal workers tend to work a large number of hours in a given week, so the EI system benefits them particularly.
Evidence is building that many seasonal workers are in fact finding the extra work needed to qualify for longer benefits. Keep in mind as well that we are attentive to working families with low incomes. Seasonal workers in this situation receive higher benefits with the family supplement. If they receive the family supplement, they are exempt from the intensity rule.
Also, many seasonal workers are receiving increased benefits because of participation in small weeks projects.
But the point we should be bearing in mind during debate on this motion is that the effects of various changes introduced in the EI package can only be measured as they are played out over time.
The EI program and its efforts are being monitored continuously, and there is a requirement for annual assessment reports for the five years following its introduction. The third report has just been released and it provides a more up to date assessment of how the program is working.
The EI reforms cannot be looked at in isolation from what has been happening in the Canadian economy and the labour market. Unemployment rates have declined dramatically across the country and unemployment is at its lowest level in decades. Job growth was particularly strong for women and youth.
It is not immediately apparent what this has meant for seasonal workers, since EI data seldom differentiates between seasonal and non-seasonal workers. However, there is a great overlap of seasonal workers and frequent EI users. Data for these groups are often very similar.
In 1998-99 frequent claimants received about 43% of all regular and fishing benefits, up from 41% in the previous year. Benefit payments to these claimants were $3.4 billion, virtually unchanged from the previous year. At the same time, benefits paid to unemployed workers in most seasonal industries increased substantially with the highest increases taking place in fishing and trapping which was up 70% and mining, oil and gas which was up 52%. While the percentages of benefits received by frequent claimants increased, the number of regular and fishing claims made by frequent claimants declined 5.7% to 604,000 due in part to a general decline in claims overall.
I will sum up by saying I believe the third annual monitoring and assessment report demonstrates that the EI regime does indeed provide better coverage for seasonal workers compared to the system it replaced. Therefore the amendment moved by the hon. member for Miramichi is more in keeping with what is happening with regard to the EI regime. We should indeed be monitoring EI benefits not only for seasonal workers but for all workers. This is what we are doing. With respect to the proposed subamendment that the review include cross-country hearings, while the intentions may be honourable, the net result would only add to the cost of the existing process. The government certainly will support the amendment.
Mr. Speaker, I thank you for allowing me a bit of leeway with regard to the time.