Bill C-278 (Historical)

An Act to amend the Employment Insurance Act (benefits for illness, injury or quarantine)

This enactment extends the maximum period for which benefits for illness, injury or quarantine may be paid from fifteen weeks to fifty weeks.

Persons with Disabilities

[Lynne Yelich, Conservative, Parliamentary Secretary to the Minister of Human Resources and Social Development]

Mr. Speaker, I thank the House for the opportunity to speak on this important motion today. I would like to start by restating my support and the support of Canada's new government for Motion No. 243, which was presented by the hon. member for Kitchener Centre.

The proposed study will contribute to Human Resources and Social Development Canada's practice of continuously monitoring and assessing the Canada pension plan to ensure that it meets the needs of Canadians, both today and in the future. I know this study will provide valuable information on the extent to which the Canada pension plan disability program is meeting its objectives. This is important information. That is why I feel quite strongly that this study should be completed as soon as possible, not delayed until November.

It is important to note that later this week parliamentarians also will be considering possible changes to Bill C-278, which deals with another important program for persons with disabilities, EI sickness benefits, and I feel strongly that the Human Resources study of the level of financial support offered by the Canada pension plan disability needs to happen now.

The information to be gleaned from the study of CPP disability should be considered before proceeding to discuss possible changes to EI sickness benefits. All too often in this place hon. members want to act before the facts are in. They want to propose changes to programs before they even know whether there is a problem or not, and the political speeches begin before studies are undertaken. This issue is far too important to play politics with and I feel that every member of the House can agree with that.

This is an important issue, one that deserves to be examined right away. Let me repeat: this is important information and we need it as soon as possible, not in November. There are bills before Parliament that require the information that can be learned from studying this program and these bills will not wait until fall.

I think there is some confusion here as to what the CPP disability program is and what it is supposed to do. Therefore, I think it would be good to have a cursory examination of the program so that we can clear the air on a few important points before we begin to discuss changes in earnest.

It is important that all hon. members and in fact all Canadians understand what this program is about and how it works.

Let me start by saying the CPP disability program is the largest long term disability insurance program in Canada. Currently, some 300,000 Canadians and 90,000 of their dependent children receive about $3.3 billion in payments. The CPP program as a whole is recognized around the world as one of the best public pension systems in the world and this government has acted to make it even better.

The CPP disability program was designed to replace a portion of earnings for those who have to leave the workforce due to a severe and prolonged mental or physical disability. This program was not intended to function as a general needs-based income program. There are other levels of support, offered by all levels of government, that fulfill that role. Its purpose is to provide protection against the loss of employment income and to supplement other disability and family income.

How does it work? There are contributory and medical eligibility requirements for the disability benefit, as laid out in the Canada pension plan. First, applicants must have made CPP contributions in four of the last six years. This requirement of recent contributions to the CPP is designed to address the objective of replacing a portion of employment income.

While the government feels that this issue is worthy of immediate study, that is not to say that the government has not acted to make changes to this program. I am sure all members know that. It is part of Bill C-36, currently under review in the Senate. A proposed amendment seeks to make it easier to qualify for CPP disability benefits for long term CPP contributors, those with 25 or more years of contributions, by requiring contributions in only three of the last six years.

Second, as stipulated in the legislation, only those with a severe and prolonged mental or physical disability are eligible to receive disability benefits. This requirement refers to a disability that prevents an applicant from working regularly at any substantially gainful occupation, not just their most recent jobs.

As we can see from the specific eligibility requirements, not all Canadians with a work-limiting disability will be eligible to receive a benefit. CPP disability is intended for some of our most vulnerable Canadians.

I would like to take this opportunity today to address an important and often misunderstood point. I understand from recent comments made in the House that some are under the impression that all applicants for CPP disability benefits are automatically denied and that only through appealing this decision do they eventually receive CPP disability benefits.

This is simply not true and is a perfect example of some of the misunderstandings surrounding this program, misunderstandings that we on this side of the House feel should be examined immediately. If hon. members on the other side of the aisle feel this is true, then they should also want to study this immediately and not shirk their responsibilities by ignoring this issue for another six months.

That being said, each and every application for a CPP disability benefit is reviewed thoroughly and fairly with reference to the legislative requirements and in a timely manner.

Trained CPP disability specialists with a medical background view each applicant's application. They look at their capacity to work, taking into consideration their health status, disability-related limitations, treatments, and personal characteristics such as age, level of education, and work experience. All of these components are extremely important in the decision making process and help ensure a fair decision that is consistent with eligibility criteria.

Clients whose applications are not approved receive telephone calls and personalized letters explaining the reasons for denial. In addition, in cases where an applicant is not satisfied with a decision on their application for CPP disability benefits, there are three separate levels of recourse available. The last two levels are appeals to two independent review tribunals. This generous appeal structure is designed to ensure fairness and accessibility.

In addition, it is important to note that a significant number of CPP disability recipients can also receive benefits from other sources. The CPP disability program is one part of a broad and complex income system for persons with disabilities, a system that includes private long term disability insurance, workers' compensation, employment insurance sickness benefits, and provincial social assistance.

Staff in Service Canada's service delivery network also refer those who are denied a CPP disability benefit to other appropriate programs and supports that may be made available to them. For example, CPP disability applicants are encouraged to apply for a tax credit, called the disability tax credit, or the veterans disability pension if it appears that they may be eligible for one or both of these entitlements. In some cases, Service Canada staff will assist these individuals with their applications.

The Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities may wish to take this overall context of CPP disability programs into account when undertaking its study.

A number of hon. members of this House have indicated that it takes too long to adjudicate applications for CPP disability benefits. In 2005 and 2006, the disability program received more than 60,000 applications. Of those, over 30,000 applicants were granted benefits.

In terms of speed of service, the target is that 75% of decisions will be made within four months of receiving a completed form. As of February 2007, 86% of decisions were made within this timeframe.

Service Canada is exceeding its stated targets. That is indeed something to be proud of and we can feel confident that most vulnerable clients are being well attended to.

I again want to thank the House for the opportunity to speak today. I want to reiterate that it is an important issue that cannot wait until fall to be examined. There is currently legislation before the House and the Senate that would benefit from the knowledge that can be gained from undertaking an examination of the CPP disability, and these bills will not wait until fall. We need answers as soon as possible.

We would be shirking our duty as responsible legislators if we were to allow bills to proceed without having all the evidence in place beforehand. If the opposition really is interested in more than just playing politics with this important issue, then it will want to examine this issue right away and not wait until fall.

Employment Insurance Act

[Richard Nadeau, Bloc, Gatineau, QC]

Mr. Speaker, it is a great pleasure for me to take part in this debate and to deliver a speech on Bill C-265, An Act to amend the Employment Insurance Act (qualification for and entitlement to benefits), which aims at improving the employment insurance plan. I take the opportunity to salute my colleague from Acadie—Bathurst. I remember his early days in politics, which were very inspiring as a matter of fact. He used to put the Liberals in their place; they had been in power for a bit too long. He did the same for the Conservatives who, before them, were also not much help to the workers who had contributed and who are still contributing to the employment insurance plan. Just like the previous government, the present government continues not to give back to the workers the money they deserve and need when times get tough. The Bloc Québécois endorses the member's position. This is frankly an excellent initiative on the part of my NDP colleague from Acadie—Bathurst.

First and foremost, I would like to emphasize that this is a good bill. Here are three points showing this. First, by lowering the threshold for becoming a major attachment claimant to 360 hours, it makes special benefits available to those with that level of insurable employment. Second, the bill sets the benefit payable to 55% of the average weekly insurable earnings during the highest-paid 12 weeks in the 12-month period preceding the interruption of earnings. Third, the bill reduces the qualifying period before receiving benefits and removes the distinctions made in the qualifying period on the basis of the regional unemployment rate. This is very good.

This bill touches on a number of important points. First, employment insurance is no longer an assistance program. It has become a hidden tax because not all those who contribute have access to the program when they become unemployed. Under the Liberals, the employment insurance fund was used to balance the budget even though that is not at all the purpose of employment insurance. Although the Conservatives voted in favour of an independent employment insurance fund, the surpluses generated remain in the consolidated fund and are still being used for other purposes. That was the case last September 25 and with this budget as well. We do not have an independent employment insurance fund and this issue must remain in the forefront. This is a priority for the Bloc Québécois.

Another important point is the Auditor General's report of November 23, 2004, which reported at the time that the government continued—as she said—to loot the employment insurance fund despite the intentions of parliamentarians. Furthermore, the powers of the Employment Insurance Commission, whose membership includes contributors, will apparently be suspended for yet another year. That happened in 2004 and it has not changed. This situation is deplorable.

Conservatives voted against improvements to the employment insurance program in Bill C-278 and against the Bloc Québécois Bill C-269. It is about time that these individuals, who have been elected, respond to the needs of citizens, of the workers who need this fund—which is an insurance fund—when they lose their jobs.

As for the Bloc Québécois, it is still dead set against the looting of the employment insurance fund and proposes, among other things, that an independent fund and commission be established. The Bloc Québécois also demands that the federal government pay back misused money. That is very important. Money taken from the employment insurance fund must be returned to those who paid into it, the employers and employees, for when it is needed by workers who lose their jobs.

Improving the system for workers in a vulnerable situation is a matter of principle that should be defended. In the past two years, the Bloc Québécois has worked tirelessly on improving this system and we have another example of that today.

The Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities tabled or passed in its report of February 2005, no fewer than 28 very important recommendations that have to be considered and incorporated into the bill in order to respond to the needs of the workers. I will not read the 28 items, but I will cite a few to illustrate the importance and urgency of swiftly moving forward with the bill we are talking about today.

First, for example, the committee recommends a uniform 360 hour qualification requirement. This criterion, which was proposed by the committee at the time, is now in the bill. The committee also recommended a calculation based on the best 12 weeks of insurable employment; that is how benefits should be calculated for those who lose their jobs. The committee recommended increasing the benefit rate from 55% to 60% of average earnings before workers end up in a vulnerable situation. The committee also recommended that the government consider extending employment insurance coverage to self-employed workers. This is very important. This is a situation that did not exist before, or was quite rare at one time. Now it is a reality and these people should have the opportunity to receive employment insurance by contributing to it, of course, and being eligible for it.

The committee also recommended removing the arm's-length relationship clause within the employment insurance criteria, and eliminating the waiting period for those engaged in approved training. Furthermore, the committee recommended that individuals who take part in training to improve their status and perfect their skills should not be penalized, because they will be taking a course while receiving EI benefits, for instance. I could give countless other arguments, but let us move on.

The bill would reduce the minimum qualifying period to 360 hours of work for everyone—as we heard earlier—but the benefit period would vary with the region and the regional rate of unemployment. In comparison to the current figures, the new system would represent an average increase of five weeks in the benefit period and an increase in the maximum benefit period from 45 to 50 weeks. In regions with high unemployment—13% or more—it would provide between 30 and 50 weeks of benefits, depending on the hours worked and the unemployment rate.

For Quebec's high unemployment regions, however, it would substantially reduce what we call the spring gap or black hole. For example, in Gaspé, where the unemployment rate as of October 7, 2006, was 17.6%, a person who worked 360 hours would be eligible for 36 weeks of benefits.

I could go on. Nonetheless, we can clearly see the relevance of this bill, which is extremely important for all workers throughout Quebec and Canada.

Human Resources, Social Development and the Status of Persons with Disabilities

[Dean Allison, Conservative, Niagara West—Glanbrook, ON]

Mr. Speaker, I have the honour to present, in both official languages, the 11th report of the Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities on Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system).

I also have the honour to present, in both official languages, the 12th report of the standing committee on Bill C-278, An Act to amend the Employment Insurance Act (benefits for illness, injury or quarantine).

Bill C-265--Employment Insurance Act

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, we have had this debate on Bill C-278. I appreciate the argument by the member for Acadie—Bathurst but the recommendation of the Auditor General that all the premiums and benefits flow through the consolidated revenue fund does constitute government spending.

I concur with the arguments raised by the deputy House leader of the government that in this case as well a royal recommendation would be required.

[Tom Lukiwski, Conservative, Parliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform]

Mr. Speaker, I rise on a point of order with regard to Bill C-265. Without commenting on the merits of the private member's bill, I would appreciate your consideration on whether the bill requires a royal recommendation under Standing Order 79.

Bill C-265 would increase employment insurance benefits by lowering the threshold for eligibility for some claimants in changing the formula for the calculation of benefits. Both of these changes would result in significant new expenditures under the Employment Insurance Act.

Precedence clearly establishes that bills that create new government expenditures for employment insurance benefits require a royal recommendation.

Mr. Speaker, on December 8, 2004, you ruled, in the case of the 38th Parliament's bill, Bill C-278, which extended employment insurance benefits, that:

Inasmuch as section 54 of the Constitution, 1867, and Standing Order 79 prohibit the adoption of any bill appropriating public revenues without a royal recommendation, the same must apply to bills authorizing increased spending of public revenues. Bills mandating new or additional public spending must be seen as the equivalent of bills effecting an appropriation.

On November 6, 2006, you ruled, in the case of Bill C-269, extending employment insurance benefits, that:

Funds may only be appropriated by Parliament for purposes covered by a royal recommendation, as explicitly stated in Standing Order 79(1). New purposes must be accompanied by a new royal recommendation.

Again, on November 10, 2006, you ruled, in the case of Bill C-278, extending benefits, that:

...would require the expenditure of additional funds in a manner and for a purpose not currently authorized. Although contributions to the employment insurance program are indeed made by employers and employees, appropriations for the program are taken from the consolidated revenue fund and any increase in such spending would require a royal recommendation.

These precedents apply equally to Bill C-265, which should be accompanied by a royal recommendation.

The Québécois

[Claude DeBellefeuille, Bloc, Beauharnois—Salaberry, QC]

Mr. Speaker, my name is not on the list of members who are to speak to this motion today. I believe there was a mistake. I am supposed to speak to Bill C-278.

Bill C-278--Employment Insurance Act--Speaker's Ruling

[The Speaker, Peter Milliken]

I am now prepared to rule on the point of order raised by the hon. Parliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform on October 19, 2006, concerning the requirement for a royal recommendation for Bill C-278, An Act to amend the Employment Insurance Act (benefits for illness, injury or quarantine), standing in the name of the member for Sydney—Victoria.

I would like to thank the hon. parliamentary secretary for having raised this issue as well as the hon. member for Acadie—Bathurst and the hon. member for Sydney—Victoria for their comments.

In his intervention, the parliamentary secretary pointed out that the employment insurance program currently includes a 15-week sickness benefit period to provide temporary income support to individuals who are injured or too sick to work. Bill C-278 would extend the maximum period for which such benefits may be paid from the current 15 weeks to 50 weeks. Therefore, he argued, the bill would result in increased spending of public revenues and should be accompanied by a royal recommendation.

On the other hand, the hon. members for Acadie—Bathurst and for Sydney—Victoria contended that it is the contributions of employers and employees that make up the employment insurance fund. The fund should not be considered public revenue, they argued, and therefore, no royal recommendation should be required.

I have carefully reviewed Bill C-278 in light of the interventions of the hon. members and find that by amending the Employment Insurance Act to extend sickness benefits from 15 weeks to 50 weeks, the bill would require the expenditure of additional funds in a manner and for a purpose not currently authorized. Although contributions to the employment insurance program are indeed made by employers and employees, appropriations for the program are taken from the consolidated revenue fund and any increase in such spending would require a royal recommendation.

I will therefore decline to put the question on third reading of the bill in its present form unless a royal recommendation is received.

Meanwhile, however, the next time the House considers this bill, the debate will be on the motion for second reading, and that motion shall be put to a vote at the close of the second reading debate.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, I am pleased to speak this morning about Bill C-269, which, for the people who are watching, seeks to amend the employment insurance program in order to restore its true character and its real role.

I am very happy about the NDP's position, announced by the member for Burnaby—New Westminster. The NDP will vote in favour of this bill. I am also happy about the position of the member for Moncton—Riverview—Dieppe, who will vote for the bill. However, he did not announce the position of his party, the Liberal Party. I would have liked to know whether the Liberal Party will vote in favour of the bill. I hope it will, and I urge it to do so.

This morning, the Parliamentary Secretary to the Minister of Veterans Affairs acknowledged that this bill represented a radical alteration. That is at least something. It is a radical alteration. But the parliamentary secretary did not see the need for such a change. The problem is that the Conservatives are not aware of what workers who are unfortunate enough to lose their jobs go through.

She also went on about the fact that my colleague from Laurentides—Labelle, who introduced this bill, had toured Quebec to discuss it. The parliamentary secretary did not see the point of such a tour, because pilot projects are already under way in various regions, some of which she mentioned. Therein lies the problem. The government is using band-aids and patches to try to solve a serious problem. The parliamentary secretary does not want to acknowledge that, yet she boasts of having implemented pilot projects. None of these pilot projects is remedying the situation.

A number of the measures in Bill C-269 are designed to improve access to employment insurance. Less than 40% of people who are contributing to employment insurance and for whom employers are contributing to employment insurance can hope to receive benefits if they are so unfortunate as to lose their job.

The people who are receiving employment insurance are getting such low benefits that families are continuing to sink into poverty. Even a very important United Nations committee recognized that the program, as it exists in Canada, is reducing families to poverty. The committee members admonished Canada as a result.

This bill also seeks to increase the number of weeks of benefits, without distinguishing between economic regions where employment rates may vary. All individuals and families who lose their source of income experience the same difficulties and hardships regardless of whether or not the unemployment rate is high.

The bill also seeks to broaden the safety net for self-employed workers so that they have protection when they can no longer work.

I will not go over every provision of this bill as my colleagues have already done an admirable job of that. However, I would like to say to the Conservative Party that the current rules are discriminatory, particularly towards women and youth. Only about 38% of those who lose their jobs can expect to receive employment insurance benefits. Of these, 43% are men, 33% are women and 14% are youth. Individuals working in certain types of excluded jobs are affected more drastically.

Our colleague opposite says that 80% of individuals can expect to receive employment benefits; his statistics are based on current rules, which exclude a large number of workers from receiving benefits as soon as they are affected. These figures cannot be used. It is not being entirely truthful to use these figures as my colleague did this morning.

Furthermore, employment insurance premiums have become hidden taxes. Year after year, over the course of the last 12 years in particular, the employment insurance account has generated surpluses as a direct result of the restrictions applicable to employment insurance . These surpluses have been used for other purposes with the result that $50 billion has been diverted from the employment insurance account. This money does not belong to the national treasury but to the workers and their employers.

Every year, since 1997, the Auditor General of Canada has told us how much was diverted. Last November, she reported that we had surpassed the $48 billion mark.

Surpluses on the order of $13 billion were recently announced, of which $2 billion came from the employment insurance fund. That means that we have now reached and surpassed $50 billion diverted from the employment insurance fund. This scheme was adopted under the Liberal regime. When the Conservatives were in opposition, they denounced it as we did. Now that they are in power, they are pursuing this scheme; in other words, they are cheating workers and employers by using the money in their employment insurance fund for other purposes.

Last year, like every year, particularly since 1997, the Bloc Québécois came systematically back to this problem and introduced bills. Last year, we introduced Bill C-278, which mirrored many of the amendments we want to make to the act now, and the Conservatives voted against that bill. I hope that this year the Conservative members will realize how offensive their actions are to workers and to the public in each of their ridings.

I regularly receive letters, and I received another one this morning. Nearly every week, I receive two or three letters from other ridings. One of them comes to me from Mégantic—L'Érable. It is about a family in which the man and woman are both affected. In three pages, it describes all of the hardship caused by being unable to access employment insurance after paying in to it. These people are now middle-aged, and I note the insensitivity of the Conservatives, like the Liberals before them. However, I think that now that the Liberals are in opposition they will be able to reflect a little more on how they laid waste to the employment insurance fund. I hope that they will be voting the same way as we do.

To conclude, I would point out that the diversion of $50 billion has been accomplished on the backs of workers, fewer than 40% of whom have any hope of drawing employment insurance. This is a serious economic crime, one that has been committed at the expense of the unemployed and their families, and of regions in each of my colleagues’ ridings. This is a loss of over $30 million per year in their ridings, money that is not flowing into the regional economy. This is an exacerbating factor in the fiscal imbalance for each of the provinces, and particularly for Quebec, because these people who are not receiving employment insurance after paying into it all their lives end up in the ranks of social assistance recipients.

This is completely unacceptable. We should be rebelling against it, and I urge all my colleagues in the House to vote for Bill C-269.