Bill C-56 (Historical)

Fairness for the Self-Employed Act

An Act to amend the Employment Insurance Act and to make consequential amendments to other Acts

This enactment amends the Employment Insurance Act and other Acts by establishing a scheme to provide for the payment of special benefits to self-employed persons who are not currently entitled to receive them.

Employment Insurance

[Josée Beaudin, Bloc, Saint-Lambert, QC]

Mr. Speaker, according to the former EI chief actuary, Michel Bédard, the contribution rate announced for self-employed workers in Quebec, $1.36 per $100, is far too high. It should be 41¢ to cover the real costs of the new benefits provided for in Bill C-56.

Will the minister admit that the contribution rate for self-employed workers in Quebec is three times the actual costs of the special sickness and compassionate benefits, the only new benefits they can receive under Bill C-56?

Support Measures for Adoptive Parents

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Speaker, I am very pleased today to contribute to the debate on Motion M-386 brought forward by my colleague and friend, the member for Essex. This private member's motion has to do with support for adoptive parents, which is an extremely important issue.

I find it interesting. The motion comes up for the second hour of debate at the same time a motion passed unanimously in the House, which said that we would continue to work toward ending child poverty. I would suggest that there is no more effective way of ending child poverty than having a child become a part of a family, a family that can support and wants to support the child, which is the case when it comes to adoptive parenting.

I really wanted to speak on this issue because I know, as do most people in the House, one couple in particular that has been married 10 years. The couple has tried to have children for 10 years and desperately want children. About five years ago, the couple found out that was not likely to happen. The couple then started the process of trying to adopt a family. It has been an extremely difficult process and it has not been successful so far.

The motion discusses an issue which is extremely important and emotional, not just for that couple but for everyone, I suggest, who thinks about this.

I know the joy of children. My wife, Linda, and I have five grown children.The youngest two are 26. The oldest is 31. We have two sets of twins. I know the joy they have brought us, and continue to bring us. I cannot imagine my life without our children. I know my wife feels the same way. Now there are grandchildren, which is just a lovely, wonderful experience. We are blessed that two of our children have had children. We have three grandchildren, the youngest being a four-month-old granddaughter, Claire, who is just absolutely gorgeous and a delight, as are the two, two-and-a-half-year-old grandchildren.

The joy of children and family is something that most of us understand. It is something that, quite frankly, is more important than anything else I can imagine.

I applaud the member for Essex for seeking to assist families that have been brought together by adoption.

What he has proposed in his motion, specifically, as was mentioned by previous members, is that the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities be instructed to examine current federal support measures that are available to adoptive parents and their adopted children, recognizing and respecting provincial and territorial jurisdictions in this regard, and following completion of this study, to report back to the House.

What does my friend, the member for Essex hope to get from the study? I really cannot speak on his behalf, but I know what I hope will come from this. I sincerely hope this group, after examining the situation, will come back to the House and recommend that adoptive parents be given the same maternity benefits that are now available to parents of children who are not adopted.

I believe family is the basic building block of our society. Everything starts with the family, as my colleagues who have spoken before me have said. Helping families has been a key priority of our government since 2006, and I want to talk about this a bit.

In all our actions to support family, this government has been guided by the principles of choice and opportunity. We believe Canadian parents can be trusted to be do what is best for their children. Our role is not to dictate their choices, but to give them the resources they need to act on this decision, whatever it may be.

Let me start by putting this issue into context by giving a brief outline of the benefits and plans that now exist for parents, specifically, with reference to the employment insurance special benefit system.

The system provides help to Canadians for periods when they cannot work, such as sickness, caring for loved ones or, in the case of the context here, the birth or adoption of a child. When it comes to the issue at hand, the employment insurance special benefits are intended to support parents in balancing the demands of work and family by providing the flexibility they need to stay at home and care for a newborn or newly adopted child.

I can also happily add that our government has put forward Bill C-56, which would extend all of these special benefits, including maternity and parental benefits, to self-employed Canadians, for the first time, on a voluntary basis, which is an important component. I support this measure. Hard-working Canadians do not have to choose between family and work responsibilities any longer.

Maternity benefits are available in the weeks surrounding childbirth and can start up to eight weeks prior to the expected date of birth. These benefits are available to biological mothers, including a birth mother who places her child for adoption. In effect, the 15 weeks of maternity benefits allow a birth mother to be protected from an earnings loss caused by her physical inability to work or to seek work in the weeks surrounding birth.

Some concerns have been expressed that adoptive parents do not have the same access and number of weeks of benefits as biological parents do, which is 15 weeks of maternity benefits offered exclusively to birth mothers. Who knows, this might come out of a study done by the committee.

However, in 2007 the Federal Court upheld the 15 weeks of maternity benefits when it confirmed that there was a distinction between biological mothers and adoptive parents. Biological mothers endure the physiological burdens of pregnancy and childbirth. It is for those reasons that the 15 weeks are offered. Maternity benefits are provided to replace the lost income for those reasons.

The Federal Court endorsed the constitutionality of that arrangement and the Supreme Court, in 2008, declined to hear an appeal in the case. I believe that is appropriate. It is certainly not up to the courts to make our law. That is the role of Parliament. What we are discussing here is the possibility of changing the law and making new law when it comes to this maternity benefit.

As well, all parents can access 35 weeks of parental benefits for the purpose of remaining at home to take care of and bond with their newly born or adopted child. That is available already. These benefits can be shared by both parents.

To return to adoption itself, in Canada, as many in the House are aware, this is an issue that falls under provincial jurisdiction. However, the federal government has a role. The committee that does a study and any debate that may take place in the House certainly would respect the jurisdiction of the provinces when it comes to these issues.

Our Conservative government introduced and saw pass Bill C-14 two and a half years ago. It grants permanent resident status or Canadian citizenship to internationally adopted children and makes that process much quicker and easier. This measure was widely praised and I think it is an example of a job well done by our government.

In the time remaining, I cannot go through the rest of the things our government has done to help families. In most cases, the things our government has done apply to families whether they have adopted children or not.

Once again, I thank my friend and colleague, the member for Essex, for bringing this motion to the House. I support the motion and I encourage every member in the House to support it. It simply asks for a study to be done to determine what is available and perhaps come up with recommendations on what should be available to parents who choose to adopt children.

Economic Recovery Act (Stimulus)

[Thomas Mulcair, NDP, Outremont, QC]

Mr. Speaker, I thank my colleague for his question because it is an important one.

He is right when he says that a sector of the economy that has been affected by successive layoffs and where workers needed to draw EI benefits over the years does not necessarily benefit from the extension that has just been given. However, one cannot say that Quebec workers will not benefit as much as other Canadians from the improvements included in Bill C-50. Tens of thousands of Quebec families will benefit from the bill and that is the reason why I was so disappointed to see that the Bloc voted against the measure. I really do not understand why the Bloc did that. Earlier, I alluded to the ideological approach of the Conservatives. Sometimes, the Bloc also has an ideological approach to issues.

As for Bill C-56, it has already been shown that the contributions will vary from one jurisdiction to the other. Since Quebec already pays, the contributions asked from Quebec workers will be lower than in the other provinces. I can illustrate that with the example of daycare centres that have received subsidies from the federal government. Since Quebec already had its system in place, the money was simply transferred to the province. On that issue, we succeeded.

As for the member's last question, I will say that, yes, we must once again make major reforms in the EI system in the best interest of protecting the entire population.

[Guy André, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, I would like to ask a question of our colleague from the NDP.

As we know, Bill C-50 does not meet the needs of the forestry workers in Quebec. They have told us so. The bill was designed more for automobile workers in Ontario. We are not against that, but we wanted the government to support the forestry workers as well. Bill C-56 does not help self-employed workers in Quebec at all, since they already have access to a parental leave insurance plan.

My question is quite simple. Does the member not agree that the patchwork reform of the employment insurance plan, proposed by the Conservative Party in Bill C-50, is of no help to workers in Quebec?

Second Reading

[Ben Lobb, Conservative, Huron—Bruce, ON]

Mr. Speaker, thank you for the opportunity to debate the merits or demerits of Bill C-395 today.

Let me begin by acknowledging that labour disputes do affect Canadians, and sometimes Canadians do find themselves unemployed at the end of such disputes. My colleague from the Bloc obviously cares about these workers, as do all members of the House. I am sure of this, but we must go beyond good intentions. As the old saying goes, good intentions can lead us down a path on which we would be better not to go.

We must probe the potential policy and legal impacts of these proposed amendments on the Employment Insurance Act. We must ensure that any changes to the employment insurance system are based on hard evidence, and we must look at the practical facts on the ground. When we conduct this investigation, the implications of Bill C-395 become troubling on several levels. Let me discuss some of my concerns.

First, let us deal with the practical facts on the ground. In the history of law and legislation, we have seen that another old saying is also true, that often extreme cases make bad law. I recognize that this bill is intended to protect employees who are caught in a lengthy labour dispute that ends in a firm's closure. This result of course is regrettable and often difficult on the workers affected.

We should view this in context, however. Most labour disputes are relatively short and they rarely end in the closure of a firm. Between 2003 and 2009, for example, a little more than one per cent, only one per cent, of the total number of strikes ended in a firm's closure. Moreover, the average length of a strike that ended in a firm's closure was 110 days. For lockouts, the figure was 116 days. As the parliamentary secretary noted, these figures average out to 16 weeks. That leaves plenty of time for employees to qualify for benefits under the current 52-week requirement.

By these comments, I do not want to suggest that I am or our government is unsympathetic to the plight of the unemployed, far from it. Simply, we need to take account of the facts to inform our decision-making. Here are some of the facts.

The Employment Insurance Act does not preclude workers from accepting other employment during a labour dispute. The act allows employees to accumulate the work hours required to establish a claim for benefits. Specifically, through the variable entrance requirement, employees need between 420 and 700 insurable hours to qualify for regular benefits, depending upon the unemployment rate in the applicant's region.

In other words, using existing provisions of the act, employees in a labour dispute could qualify for benefits by building up their hours through work elsewhere. For this reason alone, the provisions in Bill C-395 are inadvisable.

Let us also recall that the employment insurance system is an insurance-based program. It is designed to provide benefits to workers if they are unable to work, whether because they are unemployed, sick, pregnant, caring for a newborn or adopted child, or caring for a gravely ill family member. This regime is supported by the premiums paid by both workers and employers.

When a worker meets the qualifying requirement, benefits kick in. It is that simple. The proposal before the House goes against the guiding principle that the EI program should remain neutral during a labour dispute.

My colleague from Souris—Moose Mountain pointed out correctly that allowing the provision of benefits to workers, paid for in part by employers, during a labour dispute would disrupt the system's balanced treatment, tilting the system in favour of workers in a situation where they are negotiating with management. This bill would make changes such that the negotiating position of unions and workers would be unfairly improved at the cost of employers, who pay 58% of employment insurance premiums. I simply do not think this change is something we should undertake.

There are other related aspects of this bill which I do not think are wise. Specifically, the bill proposes to change how the EI program calculates a qualifying period in the event of a labour dispute that leads to work stoppage. As members know, the qualifying period is the time in which a claimant must accumulate enough hours of insurable employment to establish a claim for benefits.

Currently it is generally the 52 weeks preceding the beginning of a claim. In some cases the period can be shorter when there was a prior claim. The bill would extend the qualifying period to be the same as the period of the labour dispute. This would allow employees to be eligible for employment insurance benefits if they are laid off after a lengthy labour dispute is resolved.

Existing provisions allow for the extension of a qualifying period to up to 104 weeks in certain situations. These exceptions include situations in which individuals are physically unable to work, such as quarantine and sickness. Labour disputes are not considered an exception, because individuals are not physically prevented from working. They could work somewhere else. The proposals in Bill C-395 would therefore deviate from the EI program's basic insurance principle, that there must be a reasonable proximity of timing and correlation of value between premiums paid and benefits disbursed.

These are the reasons I think this bill is not wise. I welcome the chance to speak a little bit about some actions that I do think are wise. Those are the actions of this Conservative government both recently and as part of Canada's economic action plan. Since coming to office and particularly since the beginning of the economic downturn, our government has acted decisively to support unemployed Canadians and help them get back to work, but we have done so based on sound evidence that the changes are in the best interests of all Canadians.

Through Canada's economic action plan, our government has introduced measures that support all unemployed Canadians. Specifically, we have temporarily extended the duration of EI benefits by five weeks. We have made it easier to take part in work-sharing agreements, which are helping to protect the jobs of almost 167,000 Canadians. We are also helping young people get certified in skilled trades, and helping long-tenured workers make the transition into new careers.

We have frozen the employment insurance premium rates for 2010 so they will be at the same rate as this year, which is the lowest level in a quarter of a century, and we are providing an additional $1.5 billion to the provinces and territories to help support skills training. Our government has also recently passed measures in Bill C-50 that will help long-tenured workers who lost their jobs because of the global recession. These measures will now start to help ensure that approximately 190,000 long-tenured workers who have paid into the EI system for years are provided between five and 20 extra weeks of EI while they search for new employment. Surely we can identify with likely one or two businesses in every riding throughout this House. This much-needed support is in addition to the five weeks of EI included in the economic action plan. This is an important step for Canadian workers who have worked hard, have paid taxes their whole lives and who find themselves in economic hardship.

Our government recognizes that the self-employed are an integral part of our economy. We believe that self-employed Canadians should not have to choose between their family and business responsibilities. That is why in 2008 our government committed to extending maternity and paternity benefits to the self-employed. On November 3, 2009 we introduced Bill C-56, the Fairness for the Self-Employed Act, which provides all EI special benefits, including maternity, parental, sickness and compassionate care benefits to self-employed Canadians on a voluntary basis.

We have not just met our commitment to these 2.6 million Canadians, we have exceeded it. Bill C-56 has received a very positive response from a variety of stakeholders: the Grain Growers of Canada, the Canadian Federation of Independent Business, the Independent Contractors and Businesses Association, the Canadian Real Estate Association. I could go on and on.

The government has acted responsibly to enhance the employment insurance program, particularly since the global economic slowdown. For all these reasons, I cannot support the proposed amendments, and I urge all members of the House to join me in my opposition to the bill.

Economic Recovery Act (stimulus)

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Mr. Speaker, indeed, I was once again interrupted on Friday by question period. The questions were excellent. However, given the government's answers, I have to say that we might have been better off listening to speeches about bills.

However, question period did give me an opportunity to hear the Minister of Public Works and Government Services say that the Bloc Québécois is always against everything. He was not listening right before question period. I had just said that the Bloc Québécois would support Bill C-51. We are completely in favour of this measure, the act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures.

I would like to summarize what I said during the first three minutes of my speech. I said that Bill C-51 would implement the renovation tax credit. That was one of the proposals in the recovery program that the Bloc Québécois released when Parliament resumed. Every party in the House but the Conservative government recognized that we were in the middle of an economic crisis.

During the 2008 election campaign, the Conservative Party denied the possibility that such an economic crisis would hit us here, even though our American neighbours—with whom we conduct a great deal of trade, of course—were in the midst of a major crisis, which unfortunately, is still not completely over.

Everyone knew that the whole world was facing an economic crisis and that Canada, Quebec and all the provinces would inevitably be affected. No one was happy about that. However, we needed to take off our rose coloured glasses and prepare for the worst, and also bring in concrete, effective measures to deal with and mitigate the effects of the crisis.

That is why the Bloc Québécois presented such a plan, which was, I might add, commended by the Minister of Finance. The minister said the Bloc Québécois was the only party in the House to bring forward concrete measures, and he thanked us for doing so. However, thanking us is as far as he went, given that, when he presented his budget, there was not much left of the important measures the Bloc had developed and proposed.

Bill C-51 also introduces a first-time homebuyers' tax credit. That is a good measure that was also proposed by the Bloc Québécois in our most recent election platform, during the election campaign that ended on October 14, 2008.

Bill C-51 implements Canada's international commitments to the International Monetary Fund, which were signed in 2008.

It also includes some other measures, such as the temporary home renovation tax credit, the first-time home buyers' tax credit and an increase in the tax relief provided by the working income tax benefit.

What I also liked about Bill C-51, since I am the Bloc Québécois critic for agriculture and agri-food, is that it will also extend the existing tax deferral available to farmers in prescribed drought regions to farmers who dispose of breeding livestock because of flood or excessive moisture, and it will designate the eligible flood or drought regions between 2007 and 2009.

We are not talking about a measure that will make all our farmers rich overnight, but this adjustment will prove very beneficial when a catastrophe hits our farmers. In addition, this bill amends the customs tariff to relax the conditions relating to temporarily imported shipping containers.

These are the main measures contained in Bill C-51.

I heard the Parliamentary Secretary to the Minister of Finance just now and at first reading of the bill and also when the home renovation tax credit was announced, touting this as the eighth wonder of the world and that the Canadian and Quebec economies would get back on track with this home renovation tax credit.

However, they should not exaggerate. I realize that this government tends to use every opportunity for the marketing and branding of the Conservative Party, with its logo and all the rest.

This measure alone will not put an end to the economic crisis and solve all the problems that have arisen in recent months and years. They should not exaggerate and consider it the be-all and end-all.

There a number of things missing from the government's deficit control plan and we can discuss these in the next few minutes.

The federal government's comprehensive plan to fight the recession is incomplete and poorly targeted. However, given that the measures in Bill C-51 are good for Quebec, the Bloc Québécois, in keeping with its responsible approach, will support this bill.

With respect to the home renovation tax credit in particular, as I was saying, in the first phase of our recovery plan, we had proposed introducing a similar home renovation tax credit. We emphasized the conversion of oil furnaces to more energy efficient equipment. We had a very specific plan for decreasing our dependence on oil.

This measure, in addition to helping reduce our dependence on oil would also have rapidly injected money into the economy. The measure we are debating today, the government's Bill C-51, does not specifically target energy efficient retrofits but is still an effective means of quickly stimulating the economy.

The government could have gone farther, as I said, and introduced a real environmental plan that would have stimulated the economy while reducing greenhouse gas emissions and decreasing our dependence on oil.

The first-time home buyers' tax credit is also interesting, because in our 2008 election platform, we had proposed a tax credit for first-time home buyers and called for such a program. The measure the government has introduced is not as generous as what we proposed, but we feel that it is a step in the right direction. That is why we also support this measure.

Buying a home is a big step for many families. It allows homeowners to build equity and benefit from the appreciated value of their home. Quebec is significantly behind the rest of Canada in this area. Many young families often have a hard time saving for a down payment to purchase their first home. In addition, since most people who are active in the workforce see their income increase over time, they often have to wait a while before they can purchase a property.

The Bloc Québécois is proposing that the government give interest-free loans of up to $10,000 for first-time home buyers. That would have been a very significant measure, although, as I said, the tax credit is clearly a step forward.

I spoke earlier about the last election campaign. I imagine that many of my colleagues in this House and many candidates in the last election had the opportunity to meet with real estate agents, because they demanded action on the issue of first-time home buyers. While I was campaigning, I had the chance to meet with people throughout Quebec, including people in my own riding. We talked to them and listened to their suggestions. This proposal that first-time home buyers receive interest-free loans of up to $10,000 was very well received by the people I met with. They felt it could be an efficient and effective way to help people buy their first home. Real estate agents were very much in favour of this measure.

If this measure were implemented, it would complement the tax credit proposed by the government in Bill C-51 and make it easier for people to purchase their first home. Then we would have a comprehensive home buyers' program.

In terms of the economic measures presented in the budget, some of which would be implemented by Bill C-51, a bill that would put the tax credits into effect, as I started out saying just after question period, the government denied that there was an economic crisis during the last election campaign. Conservative members unfortunately showed up empty handed for the economic statement last November, which sparked a crisis. I will not dwell on it, but we came very close at one point to having a coalition government, and to returning to the polls.

They finally presented some measures, even if they were not complete, as I was saying.

We did our homework. We presented a stimulus plan that had four objectives: tighten the social safety net and restore confidence to the public, which was experiencing—and still is—an economic crisis; stimulate employment and investment; support Quebec and the provinces; and stimulate strategic spending on things like measures to reduce oil dependency.

The OECD suggested that countries with the means to do so should provide income support for workers who lose their jobs. The best way to do that, of course, is through the employment insurance system. Economists agreed that one of the best ways to stimulate the economy was to help the least fortunate and in particular, to help those who, unfortunately, because of the economic crisis, lost their jobs. Needless to say, in the forestry sector, for example, people would have benefited from more extensive and flexible measures regarding employment insurance.

We suggested improving the employment insurance system by making it easier for people who lose their jobs to collect benefits. Our proposed changes would have enabled 148,000 more people to collect benefits every year. If we eliminate the waiting period, which is something the Bloc Québécois and other parties have been calling for for a long time, people will not have to wait 14 days for their cheques. We also suggested helping the most vulnerable with an investment of about $6 billion to help seniors by increasing the guaranteed income supplement by $110 per month. And we suggested helping middle-class families by doubling the GST credit for 2009.

We know that the government has put economic stimulus measures in place. A lot of money was invested to help Ontario's auto sector. We were never against helping that sector, but according to the statistics, it is clear that the government helped Ontario at the expense of Quebec and the other provinces, but especially at Quebec's expense because its forestry sector got nothing. At any rate, there is many a slip twixt cup and lip when it comes to what Ontarians got. As of now, 100% of the $9.7 billion—nearly $10 billion—in direct federal cash for the auto industry has been spent. About 80% of the $70 million allocation has been spent developing new markets for the forestry industry across Canada. There is still a huge difference between $10 billion in support for auto workers and $70 million for the forestry sector across Canada. Moreover, while 100% of the auto sector's money has been spent, 20% of the amount announced for the forestry sector has not yet been disbursed.

So, for its economic recovery plan, it would have been in the government's interest to listen to Quebec, the provinces, the opposition parties, unions, workers and the National Assembly of Quebec. They all made urgent requests to ensure that a real economic stimulus package would be introduced, particularly for the manufacturing and forestry sectors. The Quebec forestry industry employs over 88,000 workers and is an economic driving force in many regions of Quebec.

I was talking about employment insurance earlier. We heard some good news yesterday. Unfortunately, it does not have to do with the unemployment rate. There was some bad news on that, since it increased. The good news was that here in this House, a majority—except the Conservatives, unfortunately—voted in favour of Bill C-308 introduced by my colleague from Chambly—Borduas. That bill will now go to committee. It includes several measures for a complete overhaul in the context of an economic stimulus plan. It would have been great if the government had supported those changes, which are more comprehensive than the piecemeal changes it wanted to make in several different bills.

The Bloc Québécois bill proposes improving access to the system and establishing a 360-hour threshold for everyone, which would make it easier for women and young people, who are often the most likely people to lose their jobs, as well as people with unstable jobs, to access benefits. In addition, Bill C-308 proposes a benefit rate increase from 55% of earnings to 60%.

It also recommends amendments that would give self-employed workers access on a voluntary basis to all employment insurance benefits, unlike the Conservatives' Bill C-56, which offers self-employed workers access to special benefits only. Our bill contains measures that are not only practical, but comprehensive and very effective in helping the unemployed. This is what the Conservative government could have done.

We have no problem supporting Bill C-51. It is hard to be against motherhood and apple pie, even if the pie is not all there. This bill provides one piece of the pie that will help us, namely, tax credits, including the home renovation tax credit. I cannot say that people are lining up at my three constituency offices to ask for information about these measures, but I would be lying if I said that I had not answered any questions from my constituents about this tax credit.

Obviously, we are pleased to provide them with information, and some people I know have begun to consider applying for this tax credit. That is why we are agreeing to promote this type of measure by voting in favour of Bill C-51.

Employment Insurance

[Gérard Asselin, Bloc, Manicouagan, QC]

Mr. Speaker, Bill C-50 does not meet the needs of Quebec's forestry workers. It was designed to help Ontario's auto workers. Similarly, Bill C-56 will not really help Quebec's self-employed workers, since they already have access to the Quebec parental insurance plan. Furthermore, the premiums required are too high compared to the benefits offered.

Does the government not see that this piecemeal reform of the employment insurance system is not working, and that a complete overhaul is needed?

[Ed Komarnicki, Conservative, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour]

Madam Speaker, there is no question this member raised a very technical point during her original question; however, today she speaks more generally.

As she may well know, we have Bill C-50 that would extend benefits by 5 to 20 weeks, which I understand has passed through the Senate and is receiving royal assent, or has. There is Bill C-56 for the self-employed, five extra weeks of benefits across the board, and work-sharing programs. Those are all significant improvements and there is the freezing of the EI rate.

Specifically to the question she raised and in dealing with the situation described especially in her original comments, HRSDC and Service Canada take many steps to help employers and Canadian workers. Whenever there is a threat of a company facing mass layoffs, Service Canada immediately moves in to work with the company, with the employees and with the union, if there is one, to try to reach an agreement that will help all of them get through difficult times.

It may be through work-sharing, a program we have enhanced for Canadians. It may be advising them of potential benefits, including the option for them to continue with long-term work studies so they can upgrade their skills. During this difficult time, the supplemental unemployment benefit program, or SUB as it is known, allows employers to provide top-up payments to claimants who are receiving EI benefits during a period of temporary unemployment, training or illness.

I should explain that one of the main objectives of the SUB program is to stabilize an employer's workforce. The reasoning is that workers will be more inclined to return to work when they are recalled. Moreover, if the claimants do return to their old workplace, they will be avoiding the need to go through the retraining process. So it is a win-win situation for everyone. The program is also designed to mitigate the adverse financial impacts that communities would suffer when massive temporary layoffs occur.

Please be assured that in the event of a temporary layoff, the payments under such plans are not deducted from the claimant's EI benefits nor are the payments during the waiting period. If the layoff is permanent, any employer payments to the claimant to top-up EI benefits would not be considered SUB payments.

The difference is that the workers will not be returning to work for that employer. In such a situation, the employers top-up payments to the EI benefits would be classified as earnings. As such, these earnings would be deducted from the EI benefits that were paid.

I should stress, however, that as a result of the working while on claim pilot project, claimants can earn up to 40% of their EI benefit rate before any deductions are made. This went into force December 2008. I would like to clarify that there is a short time during the mandatory two-week waiting period when there is no allowable amount of earnings. Any earnings during this period are deducted dollar for dollar.

This is the situation in the matter referred to by my colleague in her original question, and is somewhat technical in nature. As members can see, we are doing whatever possible whenever we can to ensure that the claimants do not endure unnecessary hardship. Where possible we try to work with them to make the situation better.

[Jean Crowder, NDP, Nanaimo—Cowichan, BC]

Madam Speaker, I am rising on a question that I raised in the House on June 3 of this year with respect to employment insurance. It was about the fact that the Catalyst Crofton pulp mill was laying off workers and it was in the context of a lot of other forestry sector workers that were being impacted. Specifically, I indicated that there would be no severance package for Catalyst workers and, instead, the employer was negotiating a plan to top up EI benefits, as had been done in Sudbury. I asked the minister to explain whether these sub-plans would trigger clawbacks. It is ironic that I am now raising this question again in the House.

The answer I got from the minister did not indicate what the government would be doing about the clawbacks for these laid-off workers. Since that time things have not been a lot better in the forestry sector, at least in my riding and other parts of British Columbia.

I recently received a letter from the Catalyst - Timberwest Retired Salaried Employees Association indicating that not only did some of them lose their jobs through layoffs, but some of them ended up taking retirement and now their pensions are under threat. As well, they are not getting full entitlement to employment insurance. In its letter of October 26, the association indicated:

Currently both the underfunding of the pension plan and the non-pension benefits are considered unsecured debt, and has one of the lowest claims on funds.

In a letter of October 28, one of the workers said:

I am a retiree of a forestry company in British Columbia. The quarterly financial and economic reports of our Company indicate that it is in a survival mode in an industry that no one is predicting will turn around soon. I am very concerned that the company will seek CCAA or Bankruptcy protection while my pension fund is between 25% and 30% underfunded.

If this occurs, I anticipate losing 25 to 30% of my pension and all of my medical benefits earned while I was working.

I specifically raised the point around employment insurance, but what is becoming increasingly clear is not only do workers not get adequate employment insurance when they are in a temporary layoff, but when they are in receipt of company pensions that they expected would support them for their retirement years, they are also under threat in terms of the pension.

Given the circumstances that many workers in forestry and manufacturing in this country are facing with continuing lack of productivity in the workplace and the uncertainty surrounding economic recovery, I would like to ask the parliamentary secretary if the government is entertaining some additional changes to the employment insurance legislation.

We welcome some of the changes that we have seen come forward, certainly, the additional weeks in Bill C-50, and we welcome what is happening with Bill C-56 with respect to employment insurance for self-employed workers in particular categories, but that is simply not enough.

I want to point to some of the things that New Democrats have requested: a reduction in the number of hours that are required to qualify for employment insurance; an increase in the number of weeks; some standardization across this country in the number of weeks to qualify; and an increase in the benefit rate. We know that for many workers the current benefit rate simply does not reflect the cost of living and the reality in many people's communities.

When it comes to the unemployment rate, I have mentioned a number of times in this House that we have had no movement from the government to change it, but the differential rates in calculating benefit rates simply disadvantage communities like mine.

Is the government entertaining future changes to the Employment Insurance Act that would reflect the needs in our communities?

Business of the House

[Jay Hill, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I appreciate the brief question from my hon. colleague this week in honour of the tributes that we are about to hear.

Today we began and hopefully will conclude the second reading stage of C-56, the Fairness for the Self-Employed Act. That bill is receiving rave reviews all across the land and it is my hope that it will move very expeditiously through the House.

On Tuesday, we sent another employment insurance act to the Senate, Bill C-50. My understanding is that it has completed third reading over in the other place and we hope that will receive royal assent today.

Following Bill C-56, it is my intention to continue the debate at third reading of C-27, the anti-spam bill, which will be followed by Bill C-44, An Act to amend the Canada Post Corporation Act, which is at second reading.

Bill C-56 will continue tomorrow if not completed today. Backup bills for Friday are Bill C-51, the Economic Recovery Act, which was reported back from committee this week, followed by any bills not completed from today.

When the House returns from our constituency Remembrance Day week, the schedule of bills will include Bill C-23, Canada-Colombia, and bills not concluded from this week. We will give consideration to any bills reported back from committee or new bills yet to be introduced.

Employment Insurance

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

Mr. Speaker, the minister needs to bear in mind that Bill C-56 does not take into account the fact that self-employed workers in Quebec already have access to maternity and parental benefits, for which they pay $0.86 per $100.

Does the minister realize that, by charging an extra $1.36, he is making self-employed workers in Quebec pay for those in Canada?

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

Mr. Speaker, the Minister of National Revenue says that the contributions the government wants to collect from self-employed workers in Quebec reflect the cost of the new benefits to which they would be entitled under Bill C-56. That is just not true. Sickness and compassionate care benefits constitute less than 8% of employment insurance pay-outs. The government should therefore collect just $0.32 per $100, not $1.36.

Does the minister acknowledge that the contribution rate is too high compared to the real cost of the new benefits for self-employed Quebec workers?

[Josée Beaudin, Bloc, Saint-Lambert, QC]

Mr. Speaker, Bill C-56 is unfair to Quebec's self-employed workers. They are already paying $0.86 per $100 to the provincial government for parental benefits, and now the federal government wants them to pay $1.36 more just to access sickness and compassionate care benefits, which cost the fund next to nothing compared to parental benefits.

Will the minister reduce contributions for Quebec's self-employed workers so that they are in proportion to the benefits they would be entitled to? It would only be fair.

[LaVar Payne, Conservative, Medicine Hat, AB]

Mr. Speaker, today our Conservative government introduced the Fairness for the Self-Employed Act. This bill would provide self-employed Canadians with access to maternity, parental, sickness and compassionate care benefits on a voluntary basis.

This is yet another way our government is supporting Canadian families. Could the Parliamentary Secretary to the Minister of HRSDC please explain to this House how this bill will help self-employed Canadians balance work and family?