Mr. Speaker, our parents always equated work with health. Our Prime Minister often tells us work is dignity. Meeting our own needs and those of the people who depend on us is also a source of pride, self-esteem and hope in the future. That is why this government has worked so hard, and continues to work so hard, to sustain the economic health of this country. We are very much aware that prosperity creates jobs, many jobs.
Since our government was first elected in 1993, more than 400,000 jobs have been created in Quebec. As a result, there has been a five point drop in the unemployment rate, to a 25-year low.
We are proud of Canada's economic performance. There are 2.1 million more jobs today than when we took office in 1993. We know that all Canadians benefit from this economic growth in one way or another. However we also know that they do not all benefit from it equally.
Therefore it is our collective responsibility to help those who, through no fault of their own, have difficulty providing for their needs. For this reason we have dynamic and effective social programs such as employment insurance.
The old employment insurance system was in need of updating. We therefore organized a broad consultation in all regions of the country. Then in 1996 we carried out an indepth reform of this program, which is one of the cornerstones of our social security system.
We are all aware that the labour market is constantly evolving. As technologies develop, markets become globalized and new forms of work are developed, change is taking place more rapidly than ever. We therefore wanted to ensure that our employment insurance program can effectively meet any shortages in the labour market.
Given the extent of the reforms, we promise to monitor the short and long term effects very closely. For this reason we included an annual evaluation mechanism that enables us to identify and correct certain provisions that are not having the desired effect.
This mechanism is very useful. In 1997 we used it to correct certain deficiencies by introducing the pilot project for small weeks.
One of the objectives of our employment insurance reform was to encourage people to work. In order to better achieve that objective, we introduced the short week pilot project and we have made various adjustments along the way. Today, we are continuing in the same direction with this bill, which seeks to ensure that the program is fair and effective.
As members will recall, Bill C-44, an act to amend the Employment Insurance Act, was introduced last September. This legislation was at second reading at the time of the election. Canadians supported the legislation and gave the government a clear mandate to advance the proposed changes. Bill C-2 is the same bill with an additional minor amendment concerning EI fishing regulations.
Members will recall that enhanced EI parental benefits came into effect on December 31, 2000. Payment of similar benefits to self-employed fishers requires an amendment to the EI fishing regulations. However, because of the election, amended regulations could not be approved by the House in time for December 31.
Amended regulations were tabled by the Minister of Human Resources Development and are being considered by the House. Bill C-2 would make these amendments retroactive to December 31, 2000, so that fishers can have access to the same types of benefits as other Canadians. This is the fair thing to do.
We want to provide additional help to those who are looking for work. We also want to correct certain provisions that are less effective than anticipated.
First, we are going to eliminate the intensity rule. The purpose of this rule, introduced in 1996, was to reduce the reliance of frequent claimants on employment insurance and to encourage work efforts.
Over time we have noted that this intensity rule did not produce the anticipated results and is instead seen as a penalty on workers living in communities where job opportunities are limited. Therefore we are correcting the situation.
Moreover, in those regions where seasonal industries are major economic catalysts, we will closely co-operate with the communities and with all our partners to help them diversify their economy and create jobs.
The bill also amends the criteria governing the clawback provision. That measure was introduced in the late seventies to deter high income earners from frequently relying on employment insurance.
The clawback will not apply to first time claimants and claimants collecting special benefits, namely sickness, maternity or parental benefits.
Moreover, this clawback provision should reflect today's economic reality. Therefore, we want to ensure that it targets only taxpayers with higher than average incomes.
Therefore the net income above which benefits must be paid back by repeat claimants would increase from $39,000 to $48,750. The maximum repayment would be limited to 30% of net income above this clawback threshold.
The government places a high priority on the welfare of families. Therefore, we have taken into consideration the case of parents returning to the labour market after having taken an extended time off to care for their children.
The regulations governing re-entrants' eligibility for regular benefits will be amended to ensure that parents of young children who return to the labour market are not unduly penalized because of their absence. This measure is in addition to the higher parental benefits that have been in effect since December 31, 2000.
As members know, since that date, all Canadian families that have a new child can enjoy much longer and much more flexible maternity and parental benefits. Thanks to these new measures, a large number of parents will be able to spend more time with their young children.
The bill improves our employment insurance system even further. It benefits parents and Canadians in all regions of the country who are looking for work. It also demonstrates our commitment to carefully scrutinize the effects of this very important social program.
We are also extending until 2006 the mandate of the Canada Employment Insurance Commission to continue closely monitoring the effects of the program.
I am very pleased that the economic situation in Quebec and in Canada has greatly improved. The amendments proposed to the House today will better help those who live in regions where seasonal work and unemployment are higher than average.
Our ministers travelled throughout Quebec and Canada. They met with workers and they found out for themselves that some provisions of the employment insurance program were not producing the anticipated results.
This is why we are proposing these amendments today. These amendments are improvements to the former law.
Our government promised to act. It is fulfilling that commitment.