Bill C-269 (Historical)

An Act to amend the Employment Insurance Act (improvement of the employment insurance system)

This enactment makes a number of amendments to the Employment Insurance Act. Specifically, it
(a) reduces each qualifying period by 70 hours;
(b) increases the benefit period;
(c) increases the rate of weekly benefits to 60%;
(d) repeals the waiting period;
(e) eliminates the presumption that persons related to each other do not deal with each other at arm’s length; and
(f) increases the maximum yearly insurable earnings to $41,500 and introduces an indexing formula.

Bill C-357--Employment Insurance Act and Bill C-362--Old Age Security Act

[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 two private members' bills, Bill C-357 and Bill C-362. Without commenting on their merits, I submit that these two bills require royal recommendations.

First, I want to explain why Bill C-357, An Act to amend the Employment Insurance Act (Employment Insurance Account and premium rate setting), requires a royal recommendation.

As the Chair ruled on May 9, 2005:

--bills which involve new or additional spending for a distinct purpose must be recommended by the Crown. The royal recommendation is also required where a bill alters the appropriation of public revenue “under the circumstances, in the manner and for the purposes set out” in the bill. What this means is that a royal recommendation is required not only in the case where more money is being appropriated, but also in the case where the authorization to spend for a specific purpose is being significantly altered.

I would note that Bill C-357 is nearly identical to Bill C-280 in the 38th Parliament which the Speaker ruled required a royal recommendation.

On June 13, 2005, the Speaker stated:

--Bill C-280 infringes on the financial initiative of the Crown for three reasons: first, clause 2 effects an appropriation of public funds by its transfer of these funds from the consolidated revenue fund to an independent employment insurance account established outside the consolidated revenue fund.

Second, clause 2 significantly alters the duties of the EI Commission to enable new or different spending of public funds by the commission for a new purpose namely, the investment of public funds.

Third, as indicated in my ruling of February 8, clause 5 increases the number of commissioners from four to seventeen.

All three of these conditions apply to Bill C-357.

Clause 2 would create an employment insurance account that is outside the consolidated revenue fund. The bill would transfer money out of the consolidated revenue fund to the employment insurance account and that money would no longer be available for any appropriations Parliament may make. This would be an appropriation of funds and, therefore, requires a royal recommendation.

However, worthy some aspects of the bill may be, and some aspects of it are, this does not alter the need for the royal recommendation.

Clause 2 would also change the duties of the Employment Insurance Commission, including new requirements for the commission to deposit assets with a financial institution and to invest assets to achieve a maximum rate of return.

These are new and distinct purposes which have not been authorized and are additional reasons why clause 2 requires a royal recommendation.

Clause 5 of Bill C-357 would increase the number of commissioners on the Employment Insurance Commission from its current four to seventeen.

On February 8, 2005, the Speaker ruled that the appointment of 13 new commissioners to the Employment Insurance Commission in Bill C-280 required a royal recommendation. This is consistent with other rulings where the Speaker found that adding remunerated members to commissions requires a royal recommendation. Given these precedents, I submit that clause 5 requires a royal recommendation.

To sum up, Bill C-357 would require an appropriation, it would alter the purpose of funds covered by the act, and it would require new spending for an expanded commission; therefore, it must accompanied by a royal recommendation.

The second bill I want to draw to your attention is Bill C-362, An Act to amend the Old Age Security Act.

This bill would increase old age security and guaranteed income supplement benefits by lowering the threshold for eligibility from the current 10 years to 3. This change would result in significant new expenditures.

Under the Old Age Security Act, applicants must have at least 10 years of residence in Canada after age 18 in order to qualify for benefits.

I would further note that partial benefits are paid to applicants who have less than 10 years of residence if the applicant has credits from a country with which Canada has a pension agreement. Residence has been an eligibility criteria since this program's inception in 1952. Reducing the residence requirement from 10 years to 3 years would have significant costs.

Since eligibility for old age security pensions also qualifies for low income recipients to receive the guaranteed income supplement, the Department of Human Resources and Skills Development estimates that the total cost of reducing the qualifying period would be over $700 million annually.

Precedents clearly establish that bills which create new expenditures for benefits by modifying eligibility criteria or changing the terms of a program require a royal recommendation.

On December 8, 2004, the Speaker ruled in the case of 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, the Speaker ruled with regard to Bill C-269, which extended employment insurance benefits, that:

Funds may only be appropriated by Parliament for purposes covered by a royal recommendation...New purposes must be accompanied by a new royal recommendation.

On November 9, 2006, the Speaker ruled in the case of Bill C-284, the bill that enlarged the scope of the student grants program beyond that originally authorized by Parliament, that:

Any extension of the terms of an existing program must be accompanied by a new royal recommendation.

On November 10, 2006, the Speaker ruled in the case of Bill C-278, dealing with employment insurance benefits, 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.

On March 23, 2007, the Speaker ruled in the case of Bill C-265, dealing with employment insurance benefits, that it was abundantly clear:

--those provisions of the bill which relate to increasing employment insurance benefits and easing the qualifications required to obtain them would require a royal recommendation.

I would also note that when Parliament adopted amendments to benefit criteria in the Old Age Security Act in Bill C-36 earlier this year, this legislation was accompanied by a royal recommendation.

In conclusion, Bill C-362 would increase expenditures for old age security and guaranteed income supplements in ways not already authorized and, therefore, should be accompanied by a royal recommendation.

Business of the House

[The Deputy Speaker, Bill Blaikie]

Before we begin private members' business today, I would like to remind the House that yesterday the Speaker made a statement in which he reminded the House that all items of private members' business originating in the House of Commons that were listed on the order paper during the previous session are reinstated to the order paper and shall be deemed to have been considered and approved at all stages completed at the time of prorogation of the first session. This also means that those items on the order of precedence remain on the order of precedence or, as the case may be, are referred to committee or sent to the Senate.

Just as individual items of private members' business continue their legislative progress from session to session, the Chair's rulings on these same items likewise survive prorogation. Specifically, there are six bills on which the Chair either ruled or commented with regard to the issue of the royal recommendation. The purpose of this statement is to remind the House of those rulings or statements.

Members will recall that on May 4 the Speaker made a statement expressing concern regarding the spending provisions contemplated by two bills, namely: Bill C-357, An Act to amend the Employment Insurance Act (Employment Insurance Account and premium rate setting) and another Act in consequence, standing in the name of the member for Gaspésie—Îles-de-la-Madeleine and Bill C-362, An Act to amend the Old Age Security Act (residency requirement), standing in the name of the member for Brampton West.

Just as was done last May, the Chair invites members who would like to make arguments regarding the need for a royal recommendation for these two bills or any of the other bills on the order of precedence to do so at an early opportunity.

Members will also recall that during the last session some private members' bills were found by the Speaker to require a royal recommendation. At the time of prorogation, there were four such bills on the order of precedence or in committee. Let us review briefly the situation in each of these four cases.

Bill C-265, An Act to amend the Employment Insurance Act (qualification for and entitlement to benefits),standing in the name of the member for Acadie—Bathurst, was before the Standing Committee on Human Resources, Social Development and the Status of persons with disabilities. The Chair ruled, on March 23, 2007, that the bill, in its present form, needed to be accompanied by a royal recommendation.

Bill C-284, An Act to amend the Canada Student Financial Assistance Act (Canada access grants), standing in the name of the member for Halifax West, was awaiting debate at report stage. On November 9, 2006, the Chair had ruled that the bill, in its form at second reading, needed to be accompanied by a royal recommendation. In committee all clauses of the bill were deleted. In its present eviscerated form, Bill C-284 need no longer be accompanied by a royal recommendation.

Bill C-303, an act for early learning and child care, standing in the name of the member for Victoria, was awaiting debate at report stage in the House. The Chair ruled on November 6, 2006, that the bill, in its form at second reading, needed to be accompanied by a royal recommendation. The Chair finds that the amendments reported back from committee do not remove the requirement that the bill be accompanied by a royal recommendation.

Finally, Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), standing in the name of the member for Laurentides—Labelle, was at third reading in the House. The Chair ruled, also on November 6, 2006, that the bill, in its form at second reading, needed to be accompanied by a royal recommendation and reminded members, on April 18, 2007, that the amendments reported back from committee did not remove this requirement.

Consistent with past practice, although today's debate on Bill C-269 may proceed, the Chair wishes to remind members that the question on third reading of the bill in its present form will not be put unless a royal recommendation is received.

I thank hon. members for their attention.

Employment Insurance

[Michel Guimond, Bloc, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Mr. Speaker, I am pleased to present a petition signed by 270 people, a vast majority of whom reside in the riding of Montmorency—Charlevoix—Haute-Côte-Nord. The petitioners call upon the Conservative government to give a royal recommendation to Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), so it can be adopted quickly at third reading. This bill is aimed essentially at correcting flaws in the Employment Insurance Act to make it more responsive to the needs of residents of the Upper North Shore.

Canadian Heritage--Main Estimates, 2007-08

[Johanne Deschamps, Bloc, Laurentides—Labelle, QC]

Mr. Speaker, the employment insurance issue is very important to me. This deals a direct blow to women in my riding, across Quebec and also in Canada.

Part-time work, seasonal work, casual work, home-based work, all these are the reality facing women every day. And the EI fund—in which the government does not invest one cent, but from which it takes surpluses of billion of dollars—does not deal with this reality at all.

Knowing that the system discriminates against women, will the minister dare to show some courage with her fellow ministers and ask them to give a royal recommendation to Bill C-269?

Employment Insurance

[Johanne Deschamps, Bloc, Laurentides—Labelle, QC]

Mr. Speaker, yesterday, at report stage, the House of Commons voted in favour of Bill C-269, introduced by the Bloc Québécois. This bill improves the employment insurance system. A majority of members supported the bill, which will require royal recommendation.

Will the government respect the decision of the House of Commons and grant this bill royal recommendation?

Employment Insurance Act

[John Cannis, Liberal, Scarborough Centre, ON]

Mr. Speaker, on behalf of the Liberal Party, I take this opportunity to speak to Bill C-357. The bill proposes some changes to the Employment Insurance Act as it relates to the setting of the premiums charged to employers and employees.

First, employment insurance is a very important program, a program that plays, in my view and I am sure in the view of all members in this honourable House, a very vital role in assisting workers in Canada when they find themselves either unemployed or underemployed. It is a program that supports workers while going from job A to job B.

Allow me to provide a little history to the employment insurance program for the benefit of all Canadians.

In 1934 the Government of Canada established a program that would provide Canadians with a partial income if they found themselves out of work. The Great Depression, as we all know, resulted in millions of Canadians losing their jobs and going through some very difficult times. As a result, the government took action to provide some income security.

The Employment and Social Insurance Act of 1935 paid minimum weekly wages based on earnings to certain unemployed people. It was in 1940 that Parliament passed the Unemployment Insurance Act, during a period when income security was not an issue. For example, we will recall that the war created well over a million jobs in our country at that time.

The program back then was meant to support, on a short term basis, individuals who were in between jobs and was primarily targeted the so-called blue workers. Since that period, employment insurance has become one of the major foundations of Canada's social safety net.

Two major changes occurred in the system, once in 1971 and again in the mid 1990s. In 1971 the program became more universal, with a wide range of occupations falling under its legislative scope. For example, further maternity, sickness and retirement benefits were added to the program. Premiums were reduced and benefits were increased. Prerequisite qualifiers were also raised, while benefit levels were to some degree restrained. At that time, the government placed restrictions on benefits for workers who had quit or had been fired. They were deemed ineligible, except for certain exceptions.

During 1971, the government shifted employment services and benefit costs from its consolidated revenue fund to what was then called the UI account. Although there were some efforts to make further changes to the act during the 1970s and 1980s, it was not until the 1990s that major reform to the act took place.

For example, in 1996 unemployment insurance became known as employment insurance or EI, “employment” meaning let us move forward to get people back into the workforce. Of course there were major changes in eligibility, including an “intensity rule” that reduced benefits for repeat claimants, and adjustments to that clause were made in 2001.

I know, Mr. Speaker, you were here at that time. When I was first elected in 1993, the government inherited a very difficult situation of high unemployment. I am sure you recall that it was close to 12%. EI premiums had been rising consistently. I remember at that time it was pegged at $3.05 per $100. Our country was described as unofficially bankrupt, so we had very little manoeuvring ability.

Later on as the economy got better, as we had eliminated the deficit much faster than we anticipated, economic growth occurred, employment started to unfold and more revenue started coming in because people were working as opposed to us paying out. We were able to look at adjustments as we removed that intensity rule in 2001.

I believe those changes were necessary at the time because of the difficulties that the country had. One was the $48 billion deficit and a $600 billion plus debt that we incurred, inherited from the Mulroney government, the Conservatives.

Earlier today the member for Burlington said that the government was listening to the people. He said, “a government that listens to them”. I think he said that about three times. I always get shivers the moment that someone says to me more than once, “Trust me, trust me”. I do not trust that person. Therefore, when the member for Burlington said on a several of occasions “a government that listens”, it just confirms that it has not listened. Income trusts is one example that I will use.

A short while ago Bill C-269 was before the House, on which we voted, to make some changes to help seasonal workers and to increase benefits in general. We supported that bill, as amended, at committee. I believe that in the current situation we can afford to take a look at EI in general and to see how we can better support all workers.

The comments we are hearing from our constituents, especially our seniors, our veterans and workers in general are as follows. If today our country has been blessed with such high surpluses, close to $14 billion, thanks to the good work that the previous Liberal governments did, it is today that we can take that extra step. It is not a risk. It is today that we have these surpluses and we can look at adjusting these programs.

We have workers in the Maritimes, in the north, in the mining industry who unfortunately and for whatever reasons do not have an opportunity, as some would say in downtown Toronto, to have steady employment throughout the year. This is where these programs must exercise some flexibility. I believe these are the times, when the economy is good, when there are surpluses, we can do that.

As often is the case with members from the Bloc, and I say this respectfully, they always attempt to maintain some kind of feigning sense of relevancy to the House by introducing certain private members' initiatives so they can send them in their householders to their constituents and say, “This is how relevant we are”. That is great. I cannot negatively comment on that. That is their privilege, but it is unfortunate because constituents depend on hearing from their members of Parliament a certain message that has relevancy. In a case like this, they are getting someone's goat going. They are getting them excited, and it is unfortunate.

Let me just point out why I made that statement. The member will know that what he seeks to accomplish already exists, thanks to the efforts and the hard work of the former Liberal finance minister, the member for Wascana, and the former Liberal minister of human resources, the member for Newmarket—Aurora. These changes were made.

What we did was formalize the EI rate setting process with an external process run by a chief actuary, something the member for Burlington said “We are going to do as a government”. We have already done it, as a Liberal government.

The member for Burlington should, as should all members, read up on what has been done before they stand up, for the benefit of all Canadians. It is up to the chief actuary to analyze the labour trends, the employment levels, the expected payments to be made and make recommendations to Parliament as to the setting of the EI rate. It is set in such a way which we put in place that it becomes revenue neutral, if I may describe it as such.

Let me repeat again for the benefit of the member for Burlington and all other members, that the EI--

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I am pleased to join the debate on Bill C-357, a Bloc Québécois proposal to amend the Employment Insurance Act.

The part of the bill that interests me is the one that calls for a separate account for EI. Conservatives have long supported the principle of a separate account. In our policy declaration of the Conservative Party, we stated our commitment to:

...the establishment of an independent employment insurance system, with a self-accounting fund administered by employees and employers, the surplus of which being used to increase workers’ benefits or reduce contributions.

In this House, the Prime Minister has confirmed that our government is looking for solutions to meet those objectives.

I too support the principle of the creation of a separate EI account. I also support the tremendous new direction of this government in making changes to the EI system. Canadians are seeing their new government take a very different approach to the old Liberal one. The old Liberals resisted change and did not listen. They stood in the way of returning contributions to the pockets of employers and employees who pay into EI.

Canadians see that their new government is different from the Liberals. They chose a new government because Canadians are different from the Liberals. The Liberals simply would not listen to Canadians and what they wanted to see in a responsible and sustainable EI system.

The new government is listening and we are getting things done based on what we are hearing. In a little over one year since forming government, we have taken action by bringing in measured but meaningful changes. We have heard the concerns of older workers, particularly in Quebec and Atlantic Canada, who were struggling in the face of changes to the labour situations in their regions. They told us that they needed something to help them with retraining and taking their experiences to a new situation.

We listened to their concerns and we responded to their needs with the targeted initiative for older workers. The targeted initiative designs projects for older workers in communities facing ongoing high unemployment or a single industry dealing with downsizing and it helps them. We have also taken action for workers who face work disruptions in regions with high unemployment.

Canadians found that their fortunes in most areas of the country improved once the new government took over. They are enjoying one of the most prosperous periods of economic growth and record employment in Canadian history.

Many sweeping changes to the EI program at a time of unprecedented labour strength would, at best, be difficult to reconcile with the realities of our thriving national economy and, at worst, it would have a cooling effect. Therefore, a major change is not and was not called for.

However, Canada's new government recognizes that change is required. We appreciate that not all regions are seeing the same growth. We understand the need to make changes to meet these regional realities but we need a measured and effective change.

We introduced a pilot project to extend the coverage for five additional weeks in regions with high unemployment. We heard from seasonal workers and others who told us about the income gap. We wanted to maintain an incentive to work and yet recognize the labour market realities they face.

We have also moved to extend a pilot project that calculates benefits on the best 14 weeks of wages during the last 52. We heard from Canadians who had sporadic employment and were losing out on having their weeks of full time work benefit them. More than 200,000 people in regions of high unemployment benefit from us getting things done for them.

Listening to Canadians is what this new government does and what good government does.

When Canadians came forward with concerns about the limits of their compassionate care benefits, we listened. They told us that there were incidents where benefits ended before the needs they were meant to address were resolved.

Again, it was this government which showed Canadians that their government was listening and ready to make the changes to EI that were needed, for which they asked. Our record, the record of Canada's new government, is one of which Canadians can be proud. Why? Because the changes we are making come from them.

Finally, they have a government that is listening to them. Finally, they have a government that is here for them.

As I return my remarks to the bill, Canadians need only to look at their government's record to see the proof of our commitment to making changes to EI to improve the system for workers and all Canadians. As I said at the outset, I and the new government are firmly committed the principle of a separate EI account. Canadians are satisfied that their new government is interested in solutions, and we will achieve just that.

What Canadians are wondering, though, is where the opposition really sits on EI reform. With 19 EI bills in the works, the other opposition parties have been heaping one EI bill after another onto the order paper, voting for implementation of all, but not prioritizing one of them: $3.7 billion for Bill C-269; $1.1 billion for Bill C-278; $1.4 billion for Bill C-265. There are 16 more EI bills to come, nine of which, including this one, are too complicated to cost. It will cost $4.7 billion to implement the seven which we were able to cost. That is over $11 billion in new annual spending.

With all these proposals for one-off changes to EI, adding up to billions annually in new costs, Canadians are looking for someone to stand up for them and think about the EI as a system. Canadians do not believe a system should be stitched together in little bits and pieces. Canadians are looking to their new government to stand up for them. They are hoping to maintain the EI as a system and protect it from the patchwork proposals made by the opposition.

Canadians will be disappointed in their new government if it did not stand up for them and insist on accountability for the use of their money. They would be disappointed if it did not stand up for them and ensure that the policy for which they have asked, and we have committed to pursuing, is also put together not in a piecemeal fashion as we have in front of us today.

In comparison to our record of taking clear action to getting things done with EI reform for Canadians, the record of the opposition member has been all but clear. Canadians have no idea what its priorities really are. Opposition members have not made it clear when it comes to how they plan their legislation. More often than not, they have not made their intentions clear when one looks at the legislation they put forward.

I take my responsibility to my constituents and all Canadians seriously. I take our commitment to a separate account seriously. I will continue to work for that objective.

Speakers' Ruling

[The Acting Speaker, Royal Galipeau]

There is one motion in amendment standing on the notice paper for the report stage of Bill C-269.

Motion No. 1 will not be chosen by the Chair because it could have been introduced at committee stage.

Since there is no report stage motion, the House will now proceed without debate to the vote on concurrence motion at report stage.

The House proceeded to the consideration of Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system) as reported (with amendments) from the committee.

Bill C-269 and Bill C-278

[The Speaker, Peter Milliken]

The Chair would like to take a moment to provide some information to the House regarding Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), standing in the name of the hon. member for Laurentides—Labelle, and regarding Bill C-278, An Act to amend the Employment Insurance Act (benefits for illness, injury or quarantine), standing in the name of the hon. member for Sydney—Victoria.

Both bills were reported to the House from the Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities on March 19, 2007.

With regard to C-269, many hon. members may recall that on November 6, 2006 I delivered a ruling in response to a point of order concerning the requirement for a royal recommendation for this bill. At that time, I came to the conclusion that spending was being sought for initiatives that: reduced the qualifying period for benefits; increased the weekly benefit rate; repealed the waiting period for benefits; increased the yearly maximum insurable earnings; and extended coverage of the Employment Insurance Plan to the self-employed.

In addition, I mentioned that the bill summary listed three further ends which appeared to involve other increases to expenditures.

The standing committee made an amendment to clause 5 which dealt with qualification requirements and to the schedule which dealt with the weeks of benefits. Neither of these amendments removed the requirement that C-269 be accompanied by a royal recommendation.

Therefore, I will decline to put the question on third reading of Bill C-269 in its present form unless a royal recommendation is received.

With regard to Bill C-278, in a ruling delivered on November 10, 2006, in response to a point of order on the need for a royal recommendation, I stated:

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.

As the standing committee did not make any amendments to the bill, I will therefore decline to put the question on third reading of Bill C-278 in its present form unless a royal recommendation is received.

I thank the House for permitting me to make this announcement.

Employment Insurance

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

Mr. Speaker, the bill to improve employment insurance is compromised because the government refuses to give a royal recommendation.

Will the government listen to the arguments of the union leaders, workers and unemployed who have gathered on Parliament Hill today to ask that it remove the final obstacle to the adoption of Bill C-269 by giving a royal recommendation?

Hazardous Materials Information Review Act

[Marcel Lussier, Bloc, Brossard—La Prairie, QC]

Mr. Speaker, this afternoon I will speak about Bill S-2, An Act to amend the Hazardous Materials Information Review Act. This bill originated in the Senate and had already been tabled. It was formerly called Bill S-40. It has been renumbered and is now S-2.

This bill aims to improve the current process of the Hazardous Materials Information Review Act, and it has three main objectives.

The first objective is to allow companies that want to be exempted from the general rules concerning the listing of hazardous ingredients to make a declaration that information in respect of which an exemption is claimed is confidential business information, and that information substantiating the claim will be provided on request, rather than de facto providing all information.

The second objective is to allow companies to voluntarily give an undertaking to the Hazardous Materials Information Review Commission to modify and to bring a material safety data sheet or a label of products containing hazardous ingredients into compliance with the provisions of the Hazardous Products Act or of the Canada Labour Code.

The third objective is to allow the limited participation of the Hazardous Materials Information Review Commission before an appeal board.

The Workplace Hazardous Materials Information System, or WHMIS, combines an assortment of legislation, regulations and procedures whose objective is to protect workers by preventing illness and injury that could result from the use of certain hazardous chemicals in the workplace.

Quebec, the provinces and the federal government are all part of WHMIS.

Under WHMIS, manufacturers and distributors of controlled (hazardous) products must provide information on the health and safety risks associated with their products, together with instructions for safe handling, storage, transportation, disposal and first-aid treatment. This information is conveyed by the product’s mandatory Material Safety Data Sheet (MSDS) and label—

Each product's MSDS must include a number of elements. It must list all hazardous ingredients in the product, its toxicological properties, and the precautions one must take when using the product. The MSDS must also indicate the necessary first aid measures for anyone exposed to a product.

When the indications that must appear on the MSDS involve trade secrets—and this is where the problems begin—and disclosure of these secrets could have serious consequences, a mechanism is in place to, on one hand, assess the pertinence of not disclosing all the information and, on the other hand, ensure that workers' rights are protected. Therein lies the conflict between trade secrets and workers' rights. The mechanism in question is the Hazardous Materials Information Review Commission.

This commission was formed in 1987 and consists of quite a few people. That is the beauty of the commission, which has about 18 people on it. There are automatically two representatives of worker interests, one representative of suppliers, one employer representative, one representative of the federal government, and various representatives of the provincial and territorial governments for a total of about 18 people, who form a review committee.

Simply put, the commission’s mandate is to “help safeguard both workers and trade secrets in Canada’s chemical industry”. So when a company wants an exemption from its general obligations in order to safeguard confidential business information—this could be the identity or concentration of a hazardous ingredient in one of its products—it must apply to the commission for an exemption. The claim is registered and it is up to the commission to decide whether an exemption is called for.

The commission’s mandate may also cover evaluating whether certain data sheets and hazardous product labels are in conformance.

There are certain problems with the current legislation. It mandates the council to make recommendations to the health minister on the methods for reviewing claims, the appeal procedures, and the fees to make a claim.

In November 2002, the council officially and unanimously recommended the amendments in the current Bill S-2 to the health minister at the time.

There are three kinds of problems: the complexity of the economic information, the lack of a voluntary process for correcting the data sheets, and finally the lack of flexibility in the exchange of information between the commission and the independent boards in the appeal process.

That is why the bill proposes three amendments. The first amendment in clauses 1, 2 and 8 proposes a change to the obligations in section 11(4) of the Hazardous Materials Information Review Act in order to specify that when companies claim an exemption, they do not need to provide all the documentation previously required. This is intended to reduce the complexity of the claims, especially when the information does not really help the commission very much in judging the economic aspects of the claims.

Under the current process, companies claiming an exemption must submit detailed information on what they have done to safeguard the confidentiality of the ingredients used to manufacture their product and on the financial impact of the possible disclosure of this information.

In her testimony given to the Standing Senate Committee on Social Affairs, Science and Technology in 2006, Sharon Watts, vice-president of the Hazardous Materials Information Review Commission, specified in which cases the commission would require full documentation.

The commission will require full documentation to support a claim for exemption from disclosure when an affected party challenges a claim or when a claim is selected through a verification scheme that we will set up to discourage false or frivolous claims

The second change is proposed at clauses 3 and 4 of the bill which amend sections 16 and 17 of the Hazardous Materials Information Review Act in order to establish a new mechanism for the voluntary revision of material safety data sheets by the companies. With this new mechanism, when a company files a claim for exemption, a screening officer may “send an undertaking to the claimant setting out the measures that are required to be taken for the purpose of ensuring compliance” with those provisions governing dangerous goods contained in the Hazardous Products Act and the Canada Labour Code.

The purpose of this second change is twofold: to ensure that changes to material safety data sheets and labels are made more quickly and that companies acting in good faith will not be issued an order by the HMIRC, as this could be misleading about their willingness to comply.

In comparison, current legislation requires the Hazardous Materials Information Review Commission to issue a formal order for compliance, even if the company seeking an exemption is prepared to comply and to make the necessary corrections after having been notified.

The legislation also provides for a rather strict and time-consuming process. Thus, where non-compliance is found, an order is issued to the company seeking an exemption. This order is then published in the Canada Gazette and it does not become binding until 75 days after its publication. Other time limits are specified in the event that the company decides to appeal the order, or to allow the company to comply with the order and submit a new data sheet.

Finally, the existing rules would still allow orders to be issued to uncooperative companies in case of non-compliance with the rules and in the absence of a voluntary undertaking.

The third amendment proposed in Bill S-2 is contained in clause 7 of the bill, which amends the former section 23 of the Hazardous Materials Information Review Act, to enable the commission to provide clarification in respect of an appeal that has been submitted to an appeal board. Clause 8 amends section 48 of the Hazardous Materials Information Review Act to permit the making of regulations “respecting the participation of the Commission in an appeal heard before an appeal board”.

According to representatives of the commission, the third amendment seeks “to improve our appeals process by allowing the commission, at the request of an appeal board, to provide factual clarification of the record to appeal boards, when needed to facilitate the process. Appeals are heard by independent boards with three members drawn from labour, industry and government. The government member acts as chair of the board. Most appeals heard to date would have benefited from additional explanatory information from the commission, but this is not permitted under our legislation”.

In short, the Bloc Québécois supports Bill S-2. The Bloc believes that when it comes to hazardous materials, it is vital to keep in mind worker safety and to base all decisions on that imperative.

The Bloc Québécois recognizes that the amendments to the Hazardous Materials Information Review Act contained in Bill S-2 were unanimously approved by the members of the HMIRC council of governors.

The Bloc, therefore, supports Bill S-2 so that the amendments called for by the principal stakeholders in this kind of workplace can be adopted.

In all its actions, the Bloc seeks to protect the interests of workers. That is why we tabled Bill C-257, which, unfortunately, died on the Order Paper; a bill dealing with preventive withdrawal would have enabled pregnant Quebec workers in companies operating under federal jurisdiction to receive the same benefits as Quebec workers—another bill that died on the Order Paper; and Bill C-269 to improve the employment insurance system.

[Luc Malo, Bloc, Verchères—Les Patriotes, QC]

Mr. Speaker, without a doubt, our societies' greatest strength, the driving force behind our economies and the factor that sets them apart, is the human capital we can rely on. This driving force is varied, dynamic and rich. We have a wealth of people whose abilities are maximized by the favourable environment we can foster and even shape thanks to the concerted contributions of individuals. When I think of the human capital we have here, I see business leaders who are tuned into small shifts and global trends and who adapt their strategies and develop the kind of clear vision that enables them to seize opportunities and use those opportunities to advance all of our communities. I think of researchers who apply their advanced knowledge to their ongoing search for better and newer ideas, thus enabling all of our fellow humans to live a better life and to dream of always living a better life. I remember whose who, every morning, leave their homes to do a job that we ask them to dedicate themselves to, and make the most of their skills to do better. These people, who do their very best every day, are the ones who enable us, as a community, to aspire to a better life.

That is why I am so pleased to rise in this House to address the Senate's Bill S-2, an Act to amend the Hazardous Materials Information Review Act. Needless to say, my party supports the principle underlying this bill because its reason for being is quality of life. Indeed, the Bloc Québécois believes that when it comes to hazardous materials, it is vital to keep in mind worker safety and to base all decisions on that imperative.

Mr. Speaker, you are probably not surprised to hear me say that. The members of the Bloc Québécois feel a profound desire to respect, listen to and protect workers, and we have intervened on many occasions in this House, as well as in the various ridings in Quebec and across Canada, to ensure that the rights of workers are respected.

Thus, for the benefit of my colleagues and our viewers, I would like to remind the House about a number of bills we have brought forward and defended in recent years, always driven by this desire to serve our fellow citizens and defend their interests.

First of all, I would like to mention Bill C-257, to ban the use of replacement workers in businesses under federal jurisdiction. Had it not been for the mysterious flip-flop by the current leader of the Liberal Party of Canada, this bill would have passed the report stage by now.

Members may recall that, when the Liberal Party leadership race was in full swing, my colleagues, the hon. member for Gatineau and the hon. member for Saint-Bruno—Saint-Hubert, had obtained the consent of a majority of the members of this House, thus allowing the bill to pass second reading and be referred to committee. As demonstrated by this favourable vote at second reading, a majority of my colleagues are in favour of the underlying principle of this bill. Therefore, I am thoroughly convinced that we will see the fruits of this important contribution from Bloc Québécois in the very near future. Perseverance and hard work are our trademark, as you know.

Additionally, looking at the Order Paper, we see a bill concerning preventive withdrawal, the purpose of which is to provide pregnant women in Quebec who work in companies under federal jurisdiction with the same benefits of preventive withdrawal as other working women in Quebec. This is a matter of fairness.

The purpose of this bill is to allow these workers to make better choices for their families by having the same options similar workers already have.

There is also Bill C-269 to improve the employment insurance system. It is disgusting that the Government of Canada—whether Liberal or Conservative, it makes no difference—is as stingy as it is when it comes to this insurance program. The government does not inject anything into this program, not a dollar, not one red cent, but it collects surpluses from the contributions paid by the employers, who earn profits on their investment, and by the employees, who earn salaries from their hard work.

I would also quickly like to talk about how the Bloc Québécois has been fighting on behalf of workers aged 55, 60, or 63, who are victims of the mass layoffs that have been plaguing Quebec for the past few years, in order that these workers can reach retirement with dignity.

Including an income support program for older workers in the last throne speech, following pressure from my colleagues and me, is the start of recognizing that these workers deserve respect and, I would hope, the beginning of the end of a crazy idea held by certain Conservative ministers. According to them, it is easy for a 56-year-old worker with very little education who has worked with his hands his whole life, to go back to school to receive training in order to work in another area of activity until he is 65. Providing one-size-fits-all training is a big mistake, not to mention disrespectful of the people who have contributed to building our society.

Thus, we believe, since we always put our fellow citizens at the centre of our thoughts, our actions and our decision making, that it is essential to use the best possible framework for managing the use of hazardous materials. It seems redundant to say so, since it is so obvious that handling hazardous materials should be done following the most specific, rigorous and comprehensive parameters, both in their wording and application. Nonetheless, I think it is important to provide a few clarifications on how hazardous materials are currently managed in Canada.

The use of hazardous materials is governed by the Workplace Hazardous Materials Information System (WHMIS). WHMIS is a combination of laws, regulations and procedures to protect workers by warning them about illnesses and injuries that could result from using hazardous chemical products in the workplace.

Quebec, the federal, provincial and territorial governments work together to implement the system.

The Hazardous Materials Information Review Commission (HMIRC) states that:

Under WHMIS, manufacturers and distributors of controlled (hazardous) products must provide information on the health and safety risks associated with their products, together with instructions for safe handling, storage, transportation, disposal and first-aid treatment. This information is conveyed by the product’s mandatory Material Safety Data Sheet (MSDS) and label—

Each product's material safety data sheet must contain certain elements: it must list all hazardous ingredients in the product, its toxicological properties, as well as any safety precautions to be taken when the product is used. The material safety data sheet must also indicate first-aid treatment required in case of exposure to the product.

If any information required for the material safety data sheet deals with trade secrets, and revealing them would have serious consequences, there is a mechanism in place to determine the relevance of not posting all the information, and also to protect the rights of workers.

That mechanism is the Hazardous Materials Information Review Commission.

Having said that, in reference to Bill S-2, it seems clear to us that the amendments to the act have been requested by the main stakeholders and, as a result, they should be adopted. These amendments have been unanimously endorsed by the members of the Hazardous Materials Information Review Commission, also known as HMIRC. The commission includes representatives of workers, suppliers, employers, and the federal, provincial and territorial governments; in other words, all the parties who are affected by this legislative measure.

Since I have started to speak about HMIRC, I will very briefly describe the commission before dealing with the substance of the bill.

The Hazardous Materials Information Review Commission was established in 1987 under the Hazardous Materials Information Review Act as part of the Workplace Hazardous Materials Information System, also known as WHMIS.

HMIRC is an independent agency that is accountable to the Parliament of Canada, through the Minister of Health. Its mandate is “to help safeguard both workers and trade secrets in Canada’s chemical industry”. It evaluates request from companies to withhold publication of some substances in certain products in order to protect trade secrets.

As a result, when a company wishes to obtain an exemption from the general obligation to disclose because it wishes to safeguard a trade secret—that might be the nature or the concentration of a harmful ingredient in a product that it manufactures—it must submit a request for exemption to HMIRC. The request is recorded by HMIRC, which determines whether the request for exemption is appropriate.

The mandate of the Hazardous Materials Information Review Commission is also to evaluate material safety data sheets and labels on hazardous materials to ensure compliance with the act.

As part of its mandate, in the fall of 2002, the council of governors of the commission formally and unanimously recommended to the then minister of health the amendments that are the subject of Bill S-2. These amendments are intended to correct shortcomings in three areas: the complexity of information of a commercial nature, the lack of a voluntary procedure for modification of a material safety data sheet, and finally, a lack of flexibility in the exchange of information between the commission and an independent board in an appeal process.

In seeking to improve the current process, Bill S-2 thus aims to achieve three distinct objectives.

First, it allows companies seeking an exemption from the general rules concerning the listing of hazardous ingredients to make a declaration that information in respect of which an exemption is claimed is confidential business information and that information substantiating the claim is available and will be provided on request, instead of de facto providing all the information.

Second, it allows the companies to give a voluntary undertaking to the Hazardous Materials Information Review Commission to make changes to a material safety data sheet or label listing hazardous ingredients to bring it into compliance with the Hazardous Products Act or the Canada Labour Code.

Finally, it allows the limited participation of the commission before an appeal board.

To address these three shortcomings identified by the HMIRC, which are—it might be a good idea to mention them again—the complexity of economic information, the absence of a voluntary data sheet correction process, and the lack of flexibility in the exchange of information between the commission and the independent boards during the appeal process, it is proposed to make three changes to the current legislation.

First, clauses 1, 2 and 8 of the bill change the requirements under subsection 11(4) of the Hazardous Materials Information Review Act, to specify that, in their claims for exemption, companies do not have to provide all the documentation previously required. The purpose of this change is to reduce the complexity of the applications, especially when the information does not help the HMIRC make a decision on the economic considerations involved.

At present, companies seeking an exemption have to submit detailed documentation on the steps they have taken to protect confidentiality with respect to the ingredients used in their products and on the potential financial implications of disclosure.

In her testimony given to the Standing Senate Committee on Social Affairs, Science and Technology on May 17, 2006, Sharon Watts, vice-president of the Hazardous Materials Information Review Commission, indicated when HMIRC would require full documentation:

The commission will require full documentation to support a claim for exemption from disclosure when an affected party challenges a claim or when a claim is selected through a verification scheme that we will set up to discourage false or frivolous claims.

Clauses 3 and 4 of the bill amend articles 16 and 17 of the Hazardous Materials Information Review Act in order to establish a new mechanism for having companies voluntarily amend the material safety data sheet. With this new mechanism, when a company requests an exemption, a screening officer may “send an undertaking to the claimant setting out the measures that are required to be taken for the purpose of compliance” with those provisions governing dangerous goods contained in the Hazardous Products Act and the Canada Labour Code.

The purpose of this amendment is twofold: to ensure that changes to material safety data sheets and labels are made more quickly and to ensure that companies acting in good faith will not be issued an order by HMIRC, as this can imply that they are reluctant to fulfill their responsibilities.

In comparison, current legislation requires the Hazardous Materials Information Review Commission to issue a formal order for compliance, even if the company that requests an exemption is ready to respect its obligations and to make the necessary changes after being served notice.

The process, under the present legislation, is time consuming and strict. Thus, when a breach is reported, an order is sent to the company that requested the exemption.

I see I only have one minute left, so I will conclude by saying that this order must be published in the Canada Gazette and is not enforceable until 75 days after publication. There are further delays to allow the company to appeal the order, or to comply with the order and produce a new data sheet.

According to members of the HMIRC, the new procedure introduced by Bill S-2 would speed up the amendment process considerably, but existing rules would still allow orders to be issued to uncooperative companies in cases of non-compliance with the rules and in the absence of a final undertaking.

If I may, I would like to skip over the third proposed amendment, and simply point out that, for all the reasons previously outlined, my colleagues of the Bloc Québécois and I support the principle of Bill S-2.

We urge the other members of this House to do the same, in the interest of workers and—

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).