Supply  Thus, should there be any surpluses in the employment insurance fund, which is self-financed out of employer and employee contributions, it will stay in the EI account. To make it abundantly clear, EI premiums will not be used to pay down the debt. It is true that the unemployment insurance fund is currently in a small surplus position. It is true that the minister has said it is the government's intention to increase the reserve in the account.

Supply  Throughout this process we engaged Canadians in a serious debate about the issues. If we look at the objectives and clearly analyse the EI bill which was tabled, we find that those objectives are met. The hon. member said that this is a regressive piece of legislation. She should rethink, re-read and re-analyse what is in the legislation.

Income Tax Act  This legislation is about tax fairness and further broadening the tax base. For example, the full value of employer paid life insurance premiums will now become taxable. This will remove the advantage that people with corporate plans enjoy over self-employed Canadians or those whose employers do not offer insurance benefits.

Budgetary Policy  Consumers, homeowners, students and all other borrowers also pay this premium. The size of our debt makes our nation extremely sensitive to a rise in interest rates in the United States. Canada is forced to pay a premium over American rates in order to attract foreign capital.

Budgetary Policy  That strategy would have lower interest rates, raise the average growth rate of real GDP to 5 per cent per year over the next five years. A nominal freeze on program spending would be imposed in 1995 and 1996 and would be followed by moderate real growth in 1997 to 1999. There would be no increase in the global effective tax rate". For the largest part the paper exposes the analytical and empirical foundations of this proposed combination of accelerated growth and fiscal discipline.

Social Security Program  The recent strong employment growth in Quebec and across Canada has been helped by this government's freezing of the UI premiums below the required statutory rate in 1994; and the implementation of the $6 billion Federal Infrastructure Program to encourage capital expenditures. Employment growth will be further helped by a rollback in the UI premium rate in 1995, as announced in the 1994 Budget.

Budget Implementation Act  I am proud to be part of a government that had the courage in the budget to meet the problem head on. We also heard the reduction in the unemployment insurance premium cost would be a very important benefit to small and medium sized business persons. Many of them have said a reduction in that cost would spur them on to making decisions that would put people back to work.

Taxation  At the same time it is the reason that one of the essences of the unemployment insurance reform being undertaken by the Minister of Human Resources Development was in fact not only a freeze of the anticipated increase in unemployment insurance premiums brought in by the previous government but an actual rollback next January 1. The leader of the Reform Party referred to an intervention by a Hong Kong banker.

Budget Implementation Act, 1994  The budget takes a critical first step toward this broad goal by initiating concrete action in two major expenditure areas: unemployment insurance and federal transfer payments to provinces in support of social programs. Rising unemployment insurance premiums for business are a major obstacle to job creation. The changes to UI announced in the budget will lower premiums and provide the creation of more jobs. As the president of the Canadian Federation of Independent Business said: "It is a huge incentive for small business to create business".

Budget Implementation Act, 1994  Small business told us that any real effort to encourage job creation must look at the impact of payroll taxes such as UI. By reducing premiums we reduce the cost of employing people. For example, our premium cut and the subsequent freeze will save a business with 50 employees $15,000 during 1995 and 1996. How will we improve the linkages between work history and UI benefits?

Budget Implementation Act, 1994  Many public servants in my riding are affected by this freeze. Like them I feel the pinch the government has applied in making this applicable to all members and to all members of the public service. I do not think there is a member in this House who has not had some comment from a constituent about the freeze.

The Budget  According to a recent survey conducted by the Canadian Federation of Independent Business, a freeze or reduction in government payroll taxes was one of the most important conditions necessary for small business owners to hire more employees. We have listened. By rolling back unemployment insurance premiums for small business, we are providing these firms with incentives necessary to increase both investment and job creation.

Borrowing Authority Act, 1994-95  Over the next three years more than $3 billion will be cut in government operational spendings over and above the cuts of the 1993 budget. The salary freeze for public servants will be extended for two years and applies to all politicians. Budgets for ministers' offices have been reduced by $13 million annually. There will also be a review of every government appointed agency, board and commission.

Borrowing Authority Act, 1994-95  It is also important to view our decision to freeze wages in this context. First, it is evident from the other provisions of the budget that the public service is not being singled out for different or harsh treatment. In fact, in 1993 close to two-thirds of all employees under major wage settlements in Canada were subject to either a wage freeze or a decrease in their wages.

Borrowing Authority Act, 1994-95  Canadians also told us they want a government committed to lowering taxes that stand in the way of hiring and growth. Therefore, we will roll back UI premium rates in 1995 to their 1993 levels. This will save industry almost $300 million a year. Due to this action there should be some 40,000 more jobs in the economy than could otherwise be expected if premiums were allowed to rise.