Bill C-308 (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 the qualifying period to a minimum of 360 hours of work, regardless of the regional rate of unemployment;
(b) increases the benefit period;
(c) increases the rate of weekly benefits to 60%;
(d) eliminates the distinctions between a new entrant and a re-entrant to the labour force;
(e) eliminates the presumption that persons related to each other do not deal with each other at arm’s length;
(f) increases the maximum yearly insurable earnings to $42,500 and introduces an indexing formula; and
(g) adds a new Part VIII.01 to the Act relating to self-employed persons.

Private Members' Business

[The Speaker, Liberal, Peter Milliken]

The Chair would like to take a moment to provide some information to the House regarding the management of private members' business.

As members know, after the order of precedence is replenished, the Chair reviews the new items so as to alert the House to bills which at first glance appear to impinge on the financial prerogative of the Crown. This allows members the opportunity to intervene in a timely fashion to present their views about the need for those bills to be accompanied by a royal recommendation.

Accordingly, following the May 27 replenishment of the order of precedence with 15 new items, I wish to inform the House that Bill C-290, An Act to amend the Income Tax Act (tax credit for loss of retirement income) standing in the name of the member for Richmond—Arthabaska; Bill C-308, An Act to amend the Employment Insurance Act (improvement of the employment insurance system) standing in the name of the member for Chambly—Borduas and Bill C-395, An Act to amend the Employment Insurance Act (labour dispute) standing in the name of the member for Berthier—Maskinongé give the Chair some concern as to the spending provisions they contemplate.

Hon. members who wish to present their views regarding the need for a royal recommendation to accompany these bills, or any of the other bills now on the order of precedence, are encouraged to do so at an early opportunity.

I thank the House for its attention.

Employment Insurance Act

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

Mr. Speaker, I am particularly pleased to be able to have an opportunity to speak today on C-280, An Act to amend the Employment Insurance Act.

As you know, the Bloc Québécois defends the rights of workers who have lost their jobs with unequalled determination here in this House. Our desire to see a thorough reform of the employment insurance system is not, therefore, dictated by circumstances, such as a looming election, but is instead a constant. Since the founding of our party it has been our concern 365 days a year.

The employment insurance program is inadequate. We are not the only ones to say so. The OECD, the C.D. Howe Institute, the TD Bank, all of the labour congresses and workers' coalitions, and many others, are unanimous on the need to reform this program of worker protection, particularly in a period of economic crisis.

By beefing up this anemic program, the government would be killing two birds with one stone. First, it would be helping the hundreds of thousands of men and women who lose their jobs and find themselves ineligible for benefits and are therefore forced into the untenable position of having to find a new job in tough economic times. Second, as if the first point were not sufficient, we need to realize that EI benefits constitute one of the best ways to stimulate the economy, twice as much as any tax reductions, of course. Yet all that would be needed to significantly improve the employment insurance program is a mere fraction of the amount the government has distributed as income tax reductions.

I should make it clear from the start that I am absolutely in favour of the principle of this bill, as my opening remarks ought to have made clear. It contains a number of measures that we in the Bloc Québécois have been proposing for some time. I would, however, like to express at least some of the reservations I have about the bill.

Unlike the motion introduced in this House by the NDP on one of their opposition days, this bill does not include any measures to increase the rate of benefits to 60%, but rather maintains it at 55%. For the Bloc Québécois, such an increase is absolutely crucial and that is why we are suggesting that the committee take a closer look specifically at this matter and that the rate be adjusted to 60%.

In addition, concerning subclause 7.1, the bill refers to a relaxing of the eligibility criteria for people who have violated the rules of the EI system. We are in favour of such a measure, but the new criteria appear rather arbitrary. At the very least, clarifications are needed concerning how thresholds are established in the bill.

Apart from those two reservations, as I was saying, we fully support the principle of this bill. I would like to discuss the measures it proposes one by one.

First, setting the minimum eligibility threshold of 360 hours to qualify for regular or special benefits will be particularly beneficial to the workers who are currently unable to exercise their rights, even though they have paid into the system, day after day and week after week. At this time, that threshold varies between 420 and 910 hours. That is much too high, and that is the main reason why so many unemployed workers are excluded from the coverage offered by the system.

These rules penalize seasonal workers in particular, who experience the spring gap that some call a “black hole”, that is, that time of the year when they find themselves with no income, while they wait for their work season to return. The rules also penalize those who hold unstable jobs or work in non-standard employment. Many such workers are women, including single mothers who already have difficulty making ends meet, and who increasingly bear the brunt of these misguided policies.

With the number of hours set at 360, which the Bloc has long called for, an estimated 70% to 80% of unemployed workers could collect benefits, and the level of coverage would be returned to what it was 20 years ago. It has to be said, the most urgent difficulty with the employment insurance system is the coverage it provides to workers. In fact, in 1989, or 20 years ago, the claimant/unemployed ratio, used by everyone except perhaps the Minister of Human Resources and Skills Development, was 84%. Today, according to the most recent estimates from the chief actuary of the Employment Insurance Commission, it is 46%. What is the reason for such a dramatic drop?

We have no choice but to lay the blame at the feet of the Liberals who, in the 1990s, literally cut off access to the system by making the eligibility criteria so stringent that almost 40% of workers were excluded. In many cases, it was the same Liberals who today denounce the unfairness and express outrage after finally opening their eyes to the reality that they created. But as the saying goes, only a fool does not change his mind. Popular wisdom will now suggest that the fools have been joined by the Conservatives who, on the surface, despite the combined efforts of the opposition parties, do not seem to see the obvious: the employment insurance system is inadequate.

There are so many problems with the system, and that is why the member for Chambly—Borduas introduced Bill C-308, which would make major changes to the system to turn it back into what it is meant to be: a real insurance plan rather than a tax by some other name, as it was under the Liberals, or a way to punish the unemployed, as it is under the Conservative government.

One of the punitive elements in the system is the waiting period, which is absolutely unjustifiable because it is based on the idea that claimants are all potential fraudsters.

I want to make it clear that eliminating the waiting period would not mean paying out two extra weeks. It absolutely does not conflict with adding five weeks to the maximum benefit period. It would just eliminate the very long and very unnecessary two-week delay before people receive their benefits.

Imagine a worker who suddenly loses his or her job—that is not hard to do—and who has to wait 60 days for the claim to be processed—which happens all too often—and who then has to wait another two weeks before collecting his or her first employment insurance cheque.

The statements made this afternoon in oral question period by the Minister of Human Resources and Skills Development are totally incorrect. It is not true that 82% of contributors to the plan can receive employment insurance. In the latest report on employment insurance coverage, the department's figures were much gloomier. In fact, barely 68% of contributors had access to EI benefits. That is completely unacceptable.

The minister compared the employment insurance system to a private system, which is rather cynical because she reduced the state's role to that of a corporation motivated solely by financial gain.

Following that logic, it would mean that an insurer could decide not to compensate 32% of its clients. Nobody would stand for that kind of attitude. Such a company would be accused of scandal, fraud, theft and mean-spiritedness, and with good reason.

As a member of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, I can also add that all the witnesses we have heard since I have been sitting on that committee—all of them, without exception—have called for EI reform and a complete overhaul of the system, so that it will actually help them, especially in these tough economic times.

In closing, I would remind the House that the Bloc Québécois has once again proposed an economic recovery plan. Our plan is costed, realistic and pragmatic. It would fix the holes in the social safety net, restore confidence, stimulate employment and investment, support Quebec and the provinces and stimulate strategic spending on things like measures to reduce oil dependency.

I invite all parliamentarians to read it. Unlike others, members of the Bloc Québécois do not hide when it is time to take a stand on ways to get Quebec and Canada through the economic crisis.

Our plan will reassure workers who lose their jobs by providing them with a more accessible and generous employment insurance program, and it will stimulate household spending by enabling workers who have lost their jobs to get the benefits they need to keep the economy going.

I believe that the measures in Bill C-280 will help achieve those same goals, so it is my great pleasure to support this bill.

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

Mr. Speaker, in order to put those listening to us in the right context, it would be wise to remind them that we are discussing Bill C-279, which provides that pension benefits, vacation pay and severance payments are not to be included in earnings in order to give people access to employment insurance benefits immediately. This strikes us as totally fair under the circumstances.

What we feel is unfair is the present situation. Like my colleague who spoke before me, I wish to congratulate the member for Welland for bringing this bill before the House, a bill that I feel will result in a little more humanity in our employment insurance program.

It is also a good time to remind hon. members that the Bloc Québécois has intervened in a number of ways over many years in order to correct this program which has, over time, been gradually destroyed by the two parties each in turn. With respect to benefits when there is money owed to the worker after he leaves, the Conservatives are the ones who imposed that limitation on benefits in 1985. From the 1990s on, the Liberals in turn adopted various measures to limit as much as possible any access to EI. This is one such measure.

Fortunately, as we have just heard from our colleague from Dartmouth—Cole Harbour, the Liberal Party has rethought its position. That member has brought in some slightly more equitable thinking in order to remedy this situation, which is absolutely unfair to the unemployed. One of the measures in which our colleagues have participated, particularly those in the Liberal Party and the NDP, were discussed at the time of the 2005 examination of employment insurance reform.

Recommendation 23 was focused specifically on correcting that shortcoming. The committee wanted to see the EI regulations not include in calculations of income for benefit purposes any pension income, severance payments or vacation pay. This measure has therefore been in existence since 2005 and two successive governments have not acted on it. I must also indicate, as the preceding speakers have done, that this is only one of the measures that needs to be put in place in order to restore the employment insurance program.

There are currently a number of bills before the House of Commons about this issue. The Bloc introduced four of those bills, and I myself introduced one on behalf of the party. Bill C-308 calls for the following amendments. It would change the qualifying period to 360 hours of work. People would have to work 30 hours per week for a period of 12 weeks to accumulate 360 hours. This measure would eliminate the existing disparity that excludes unemployed workers based on unemployment rates in each region.

The bill would also increase the rate of benefits, which is currently 55%, to 60%. Unemployment organizations, anti-poverty organizations, unions, and even the three opposition parties, if their participation in the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities is any indication, are unanimous in their support of this initiative.

This bill, Bill C-308, eliminates the distinctions between a new entrant and a re-entrant to the labour force. That distinction discriminates against women because they are often in unstable jobs and are more likely to be laid off. Also, many women work in so-called atypical part-time jobs. This bill also eliminates the presumption that persons related to each other do not deal with each other at arm’s length; the department must prove it. The bill also increases the maximum yearly insurable earnings to $42,500. That is all in Bill C-308. It is useful to bear these bills in mind.

Then there is Bill C-241, introduced by my Bloc colleague from Brome—Missisquoi, which eliminates the waiting period. I am not the first member to have raised this issue. Tomorrow, in the late afternoon, we will be voting on this bill at second reading. I would urge my colleagues in the House to vote to refer Bill C-241 to committee so that we can eliminate the waiting period, which is yet another measure to prevent as many people as possible from collecting benefits.

Bill C-336, introduced by my colleague from Berthier—Maskinongé, changes the way in which the qualifying period is calculated in the case of a labour dispute. I am thinking about the dispute that took place in Lebel-sur-Quévillon. The employer claimed that it was not a plant closure. He put off closing the plant as long as possible by locking out the employees. When he finally announced that the plant was closing, the employees had been locked out for more than 200 weeks and therefore did not qualify for employment insurance benefits. This is another serious injustice that must be corrected. We will correct it with Bill C-336, another Bloc bill that will soon be studied at second reading.

Bill C-339, introduced by my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, extends the maximum period for which special benefits for illness, injury or quarantine may be paid from 15 weeks to 50 weeks.

These are the Bloc Québécois bills that are being examined and that are designed to correct what has been done to the employment insurance system in recent years. As a result of the changes that have been made, close to 60% of unemployed people are currently excluded from the employment insurance system.

The employment insurance program is a measure supposed to prevent people from growing poor or even living in misery as they lose their job. However, it is not what is happening right now. In committee, with my colleagues who spoke earlier, we are studying the question of poverty. Different witnesses give us their opinions on this subject.

For example, this morning, we heard the following national and pan-Canadian groups: the group for the abolition of poverty, the Canadian Centre for Policy Alternatives, Citizens for Public Justice. These are the most important groups. They have a lot of expertise on the state of poverty. And, as far as measures to fight poverty are concerned, employment insurance is at the top on their list.

Poverty exists because there are impoverishment factors, and one of the factors which makes it now more difficult to get out of poverty is the fact that close to 60% of the workers who lose their job are being excluded and are not entitled to EI benefits.

I will conclude by reminding the House that we will vote in favour of Bill C-279 because delaying employment insurance because the employee is still owed some last amounts is simply unfair.

I encourage my colleagues to vote in favour of Bill C-279.

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

Concerning your recommendations, you no doubt know that the Bloc Québécois has already taken steps in that direction, by introducing Bill C-269. In any case, there is a general consensus regarding the recommendations made to improve the system.

I brought the bill to the human resources committee for debate...

I remember taking the bill to the human resources committee, where it was introduced and debated, and I remember being stunned and shocked by the response we heard from the government, a response I had also heard in the House of Commons, namely, that changing or improving the system would encourage idleness and laziness. I wanted to share that with you.

Your recommendations are in line with that bill. As you know, we are raising the issue again with Bill C-308.

That being said, will the five weeks added by the government make the system more equitable for women?

Opposition Motion—Employment Insurance

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

Madam Speaker, I will be sharing my time with the hon. member for Laval.

It is a great pleasure for me to take the floor today in this House because I am particularly concerned by the issue raised by my hon. colleague from Hamilton Mountain. I believe it is absolutely crucial for those who will be hardest hit by the economic crisis we are currently experiencing, namely the unemployed.

To begin, I want to say that I am completely in favour of this motion, which covers a number of the main themes that the Bloc Québécois has been defending for many years in connection with employment insurance, as well as Bill C-308 which was recently introduced by my colleague from Chambly—Borduas on February 10.

We know that the measures proposed in this motion are not new. Four years ago, the Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities adopted a report recommending these same measures: elimination of the waiting period; introduction of a qualifying period of 360 hours regardless of the regional rate of unemployment; increase of the salary covered from 55% to 60% based on the best 12 weeks; and introduction of a provision allowing self-employed workers to contribute voluntarily to the employment insurance plan.

We in the Bloc Québécois also believe that these measures would substantially improve the employment insurance system, which for about 15 years now has been but a shadow of what it used to be. This is to be vigorously condemned for as long as this injustice persists.

In the last 20 years, the coverage rate of the employment insurance system has been cut by half. The ratio of recipients to unemployed has fallen from 84% to 46% because the qualifying criteria were substantially and unfairly tightened in the 1990s.

We all know what followed: the government misappropriated staggering surpluses from the employment insurance fund, surpluses whose size was due solely to the tightening of the qualifying criteria. It is high time that the government finally recognized this injustice and did everything in its power to remedy it. This injustice is denounced not only by the Bloc Québécois and the NDP, but also by all the unions and all the groups advocating for workers’ rights. This injustice has resulted in the aberration of an employment insurance plan that does not even cover half of the persons unemployed.

The statements made this afternoon in oral question period by the Minister of Human Resources and Skills Development are totally incorrect. It is not true that 82% of contributors to the plan can receive employment insurance. In the last report on employment insurance coverage, the department’s figures were much gloomier. In fact, barely 64% of contributors had access to EI benefits. That is nothing less than unacceptable.

The minister compared the employment insurance system to a private system, which is rather cynical because she reduced the state's role to that of a corporation motivated solely by financial gain. Following that logic, she is saying that the insurer could decide not to compensate 36% of its clients. Nobody would stand for that kind of attitude. Such a company would be accused of scandal, fraud, theft and mean-spiritedness. And rightly so, I might add.

So why does the government think that it has the right to just ignore the dire straits in which 36% of the people who contribute to the fund and then lose their jobs find themselves? Why? What for? Nothing justifies that kind of attitude, which demonstrates the government's alarming indifference to its social responsibilities.

The Minister of Human Resources' new title is very telling. By replacing “social development” with “skills development”, the Conservatives have made their position clear: no more compassion, no more social safety net. The Conservatives have found the fastest, easiest way to eliminate “social” anything from their list of responsibilities: just take it out of the title. The Bloc Québécois will continue to remind them of their responsibilities in that respect, and they will not soon forget.

And now, back to the motion before us. Exactly five weeks ago, I had an opportunity to talk about a bill introduced by my colleague from Brome—Missisquoi, who proposed eliminating the waiting period. As I said then, the waiting period is, quite simply, a way to punish the unemployed for losing their jobs. This is a completely unjustifiable policy that merely exacerbates the already unbearable situation in which the unemployed find themselves.

People are waiting longer and longer to receive their employment insurance benefits, often longer than four weeks, and the waiting period adds two long weeks to that time. This is not about extending the employment insurance benefit period by two weeks. This is just about changing the time when benefits start flowing so that people who have lost their jobs are not placed in an unendurable situation for those first two weeks.

According to numbers from Human Resources and Skills Development Canada, this measure would cost some $900 million.

Well, $900 million is a far cry from the $57 billion denied workers over the past 20 years. This $900 million would be injected in its entirety into the Canadian economy, as the government itself admits in its evaluation of the economic impact of the measures relating to employment insurance in the recent budget.

In this recession, it is $900 million that would benefit both the unemployed and the businesses where the unemployed would be spending the sums they received.

The other measure in this motion I would like to discuss today is the reduction of the number of hours needed to qualify for employment insurance benefits. At the moment, the number of hours varies between 420 and 910. That is far too much. This is the main reason so many unemployed people do not benefit from coverage under the plan. According to the CSN, some 39% of the workforce works fewer than 35 hours a week. This 39% then is not eligible under the 12 week minimum. With the number of hours set at 360, which the Bloc has long called for, an estimated 70% to 80% of those unemployed could collect benefits, and the level of coverage would be returned to what it was 20 years ago.

Once again, this is a measure that has the support of all the unions and all the groups defending the rights of the unemployed and it was given support on a number of occasions by the committee on human resources and—social or skills—development, according to whether the social mission of the government is to be kept or dropped.

It is perhaps not supported by the former director of the Bank of Canada, whom the member for Huron—Bruce quoted, but I prefer to stick with the opinion expressed by people close to the concerns of the unemployed, who work not only with figures but with people in difficulty.

In conclusion, I would like to express a reservation about this motion, one that the NDP knows well, where Quebec is involved, but does not always include. It concerns respect for the jurisdictions of Quebec and the provinces established under the constitution. If we in the Bloc support the government's investing in the training and re-training of the workforce, it must be done by transferring the amounts involved unconditionally to the Government of Quebec.

These are provincial jurisdictions, as everyone knows, and there is no question of our backing off on this matter or of supporting a measure that would force the Government of Quebec to report to the federal government. I also take this opportunity to strongly criticize the federal government's attempts in this regard in its current negotiations with the Government of Quebec on the transfer of $700 million over six years for workforce training.

Apart from this reservation, I am delighted to support the NDP motion.

Opposition Motion -- Employment Insurance

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

Madam Speaker, I do not doubt the sincerity of my colleague from Madawaska—Restigouche. Knowing him, I consider his remarks very sincere. We must question the position of his party, though. I would remind him that it was not the opposition that unseated them, but the public. The public did not vote for them and brought in the Conservatives. That phase will not last long, given the way they operate.

My question is as follows. The Bloc Québécois has tabled two bills, namely Bill C-241, to remove the waiting period, and Bill C-308, to improve the system. Will the Liberals follow the same logic, support these bills and ensure that the Prime Minister does not call for a royal recommendation?

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

Mr. Speaker, I also want to thank my colleague from Hamilton Mountain on proposing this motion this morning.

The debate we are holding today could be called “the dignity or deceit debate”. Allow me to explain. When I refer to dignity, I am talking about the dignity we need to give the unemployed, who did not choose to lose their jobs. When I refer to deceit, I am talking about how, since the early 1990s, the unemployed have been robbed of the tool the government created to support people who lose their jobs: the employment insurance fund.

The employment insurance fund used to be called the unemployment fund. The unemployment insurance program paid benefits to people who lost their jobs. That program was changed and given a new look. We did not want that change. Two successive federal governments changed that concept, in order to use the program in a different way.

As I said, the employment insurance fund is the only tool the unemployed have. Workers and their employers are the only contributors to this fund, which will help workers if they are unfortunate enough to lose their jobs. That is why the EI fund is also known as an insurance policy. I will not go on too long about this. I just wanted to remind this House about the nature of this tool.

This tool is structured to cover unforeseen circumstances. The unemployment rate is sometimes very high. Depending on the region, it has sometimes fluctuated between 8% and 9%, and it has reached 18% in some areas. There are even places where it has climbed to over 20%. Every time, the fund has fulfilled its commitments to the unemployed. Today, contributions are $1.73 per $100, but they have been as high as $3.20 per $100. When unemployment was higher, contributions automatically increased. Sometimes, the government came to the rescue for brief periods when contributions were not enough to cover benefits. But each time, the fund paid the government back.

In the mid 1980s, the Auditor General said that it might be a good idea to move the fund to the national budget, so it could be administered along with it. The accounting of it has, however, always been separate in order to meet obligations. The recommendation was made in 1985-86. In 1988 or 1989, the government accepted the recommendation.

Things became complicated when Canada found itself with an exponentially growing debt. When the Conservatives arrived on the scene, I think the Canadian government debt amounted to $93 billion. While the Conservatives were in office, they drove the debt to a little over $500 billion. Shortly before, Mr. Trudeau and his government had also contributed significantly to increasing the country's debt. This lack of concern over controlling the debt gave rise to public pressure, and the government had to do something.

Instead of looking for new sources of funding, however, the government dipped into a source not intended for the purpose. Beginning in the 1990s, the Conservatives began dipping into the fund. Subsequently, the Liberals made substantial use of it to the point that, by 1997, the fund had generated a surplus of $7 billion. Incredible.

And how did the fund generate a surplus of over $7 billion? The Liberals limited the conditions of eligibility so that accessibility to the plan, which was capable of providing benefits to 88% of people who had lost their job, was limited to 40% of the unemployed. According to the human resources department, the figure now is 46%.

This spells disaster for people who lose their job, their family, the regions and the provinces concerned, such as Quebec. The approach is totally disgraceful. The government paid off the debt little by little by appallingly taxing people who lost their job. They were denied a source of income that would provide a living for them, to the tune, today, of $57 billion. This is money taken from the employment insurance fund.

That is unacceptable. I find it hard to understand how the two major national parties are so comfortable with this situation. Not only are they comfortable with it, but they created it, are perpetuating it and continue to defend it. It is a huge swindle.

In legal terms, the Supreme Court ruled on it and said that, technically, the government was entitled to do what it was doing, because it had the power to collect taxes in different ways. This is one approach. Technically, the Supreme Court said it could. Ethically and in terms of its justice, however, should we tolerate this situation and allow it to continue—justice being our first concern—or should we not change tack today and correct the situation?

The deceit continues. Yesterday's vote on Bill C-10 will not correct the situation. With this budget, the two major parties have given the government the green light to keep contributions to employment insurance at their lowest level since 1982. What does that mean. It means that the government is putting a lock on any possibility of improving the employment insurance plan. Things are now twice as difficult.

We listened to our Liberal friends this morning. I am pleased with what they said but I am not pleased about what they did yesterday. It makes us skeptical about their discourse. Are they aware that what they are saying today cannot be taken to its logical conclusion without turning around and authorizing increases in contributions to keep step with needs, especially in an economic downturn such as the one we are experiencing now.

That would be quite in step with the recommendations made by groups concerned. These groups are the employers who also contribute to the fund, and the unemployed or the unions. We have to improve the employment insurance system and improve its accessibility.

The House of Commons Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities, in a December 2004 report completed in February 2005, made 28 recommendations, including the measures proposed in this morning's motion. Thus, both governments, the previous Liberal government and then the Conservative government, did not follow through. They found all manner of subterfuges to not follow through. That is also a form of deceit. There is no getting around it. It is a serious economic crime.

Every riding is out an average of $30 million annually. Not only does this impoverish the unemployed, it impoverishes their families, the regions, the provinces and, as I was saying earlier, Quebec. In the end, people contributed to an employment insurance fund in order to have an income if they had the misfortune of losing their job. But they do not get their money because Ottawa is holding it back. Thus, the province has to step in and support these people who do not have an income. At that point, welfare kicks in. The same people pay twice for a service provided by their province even though the latter should not have that responsibility. But it is forced to assume it because the federal government has sloughed it off. And the fiscal imbalance increases even further.

Thus, responsibility rests with the two major parties, as I mentioned earlier.

I will begin the second part of my speech by referring to something which most of our mothers have probably told us. In any case, it is something that my mother often said to me: “My boy, if you are not able to keep your word, if you are not able to honour your signature, if you dishonour your family, then of course you dishonour yourself”. In this Parliament, there are parties that have not honoured their commitments, not kept their word, and not honoured their signature.

I will give two examples. Let us take the Liberal Party. During the election campaign, it made a formal commitment, hand on heart, to help to ensure that this Parliament adopts measures to make employment insurance more accessible and to eliminate the waiting period—a formal commitment. In a joint platform signed by the three opposition parties on December 1, 2008—three months ago—the Liberal Party undertook to ensure that the program for older worker adjustment, POWA, was restored, that the waiting period was eliminated, and that the employment insurance fund would henceforth be used only to assist unemployed persons. This was barely three months ago. The Liberal Party’s vote yesterday on Bill C-10 is flatly contrary to that—three months later. Therefore that party has not kept its word, not honoured its signature.

As a result, the other opposition parties are very much afraid that they will be unable to depend on the word and the signature of the Liberal Party. Under the circumstances, given that this motion expresses an opinion to the government, that it is not binding on the government and does not create any constraints, we are very skeptical that the Liberal Party will again honour to the end its signature and its commitment.

It is very important to continue this debate and to continue to focus on the behaviour of the Liberal Party, to make sure that it understands that the three opposition parties form the majority and that they have a mandate from the population to see to it that the Conservatives do not act as if they were the majority and do not continue to implement their ideological decisions and programs. That should be the framework of the Liberals at this time. We have a responsibility. The mandate the people have given the majority opposition is to keep an eye on the government and ensure that the programs proposed are actually carried out. That is why we were elected.

In December, the coalition’s platform was created on the basis of these programs. The opposition parties looked in their programs for points in common, constituting a platform which would gradually take us out of the economic crisis. The objective was to kick-start the economy, so that in four years we might again have a balanced budget with a deficit of $23 to $27 billion during this period, with a very specific program.

There is something here that does not respect electors' wishes. The Liberals’ behaviour denies us the mandate we have been given. This I stress very strongly—more so than the content of the employment insurance program. For it will determine the way things turn out. If the Liberals are not going to honour their commitment to the end, we will never be able to rectify the employment insurance program. This injustice must be corrected.

This injustice can be corrected, formally, by voting for two bills, among others, which the Bloc Québécois has already introduced. That is why we are pleased that the NDP is joining us on this platform. I refer to Bill C-241 introduced by my colleague from Brome—Missisquoi, which concerns the elimination of the waiting period and which, incidentally, does not create enormous costs since these are only administrative expenses and there is no addition to the number of weeks.

We must therefore carry this through to the end and vote in favour of Bill C-241, which is presently in second reading. We must also vote in favour of Bill C-308 which it has been my honour to introduce myself, and which covers all the other elements of today’s motion so as to make the employment insurance system more accessible and improve it in a manner that respects the dignity of unemployed Canadians.

[Dominic LeBlanc, Liberal, Beauséjour, NB]

Mr. Speaker, my colleague from Chambly—Borduas talked about Bloc bills relating to employment insurance.

During the last Parliament, we supported bills. I understand the distinction he is making between an opposition motion and a bill. During the last Parliament, I personally supported the Bloc bill to improve employment insurance.

I also intend to support Bill C-308 because it puts pressure on the government to do something now. What I find so deplorable is that the Conservatives will bring up technicalities to prevent this bill from being passed at third reading during the final vote.

I want to assure my Bloc colleague that the most important thing is that the next government, a Liberal government, will table a budget in the House that improves employment insurance. We will deal with the two week waiting period and we will improve employment insurance for people who depend on it when they lose their jobs, which is what is happening because of this economic crisis.

I look forward to the day when we have a Liberal government that will make employment insurance a priority, as my colleague said, and will continue to improve not only the benefits paid, but also access to benefits, which is a critical problem in many regions of the country.

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

Mr. Speaker, I am happy to hear our Liberal colleagues say that they will vote for this motion. However, I cannot help but feel a little skeptical.

A motion in the House on an opposition day is a motion of intention. It is an invitation. It says “in the opinion of the House”, so it is not binding on the government. It is, however, a very strong message to the government urging it to proceed.

The Bloc Québécois introduced Bill C-308, which reiterates the motion's objectives almost entirely. Will our Liberal friends support it? This time, will they see this through and ask the Prime Minister to give the royal recommendation, which has been his objection thus far? Will they see it through this time?

Budget Implementation Act, 2009

[Luc Desnoyers, Bloc, Rivière-des-Mille-Îles, QC]

Madam Speaker, it is my pleasure to speak to Bill C-10 on the Bloc Québécois' behalf.

I feel that I have to briefly review the situation. Last fall, we were given a throne speech and economic statement that were ideological, empty, antisocial, anti-union, anti-women and anti-youth. The Conservatives often question the opposition's usefulness. At the time, had we not created a coalition, we would not have had a budget, and the Prime Minister would be doing whatever he pleased today and would have used the money however he liked.

So we formed a coalition. The Bloc Québécois was one of the only ones to recommend a stimulus package addressing several demands from Quebec to the government. I have to emphasize that because Quebec is important to the Bloc Québécois. There was a lot of pressure. The Conservatives were afraid of losing their limousines and their privileges, so the Prime Minister rushed over to Michaëlle Jean's place to ask for prorogation. That slowed things down considerably, and now they are trying to say that the NDP and the Bloc Québécois are preventing this budget from passing, even though the Conservatives themselves are the ones who engineered this situation in the first place.

I want to emphasize, once again, that Quebeckers gave all of the Bloc Québécois members sizeable majorities in their ridings so that we could work for Quebec.

From Quebec's perspective, this budget will take away a billion dollars this year, and a billion dollars next year because of equalization. That is $2 billion. That is a lot of money to Quebec. That money would have been spent on health and education, and we all know how important having an educated and healthy population is to a province, to a nation. A healthy, educated population is an important factor in economic development.

When investors are figuring out where to invest, they look for places with educated people and good health systems. To them, those are indicators that they should invest in Quebec. The Canadian divisions of GM, Ford and Chrysler have always said that health and education systems are among their primary criteria when investing.

I have no doubt that the Bloc will continue to fight hard for justice in terms of the fiscal imbalance. For years, we have been asking for the money Quebec is entitled to, and we will continue to do so. Unfortunately, this year's budget includes some serious cuts.

Giving $170 million to Canada's manufacturing and forestry industries is a joke. That barely represents 22% for Quebec. It is nothing in terms of a major economic investment. These industries are in crisis and need financial assistance more than ever. Unfortunately, the Conservative government is refusing to give them the help they need in order to develop.

We are seeing layoffs in Quebec at Pratt & Whitney, Bombardier, Kenworth and Prévost Car. We are also seeing the attitude of this Conservative government and the Liberals who are supporting this budget. Who got the contracts for the latest military trucks? An American company. Six to eight hundred jobs could have been saved in Quebec and Canada at other truck manufacturing plants, yet they refused to award the contracts to Canadian workers. Military buses could have been built by Prévost Car, Nova Bus or New Flyer, in Winnipeg. These companies could have made the buses, but the contract was awarded to a German company. The contracts for new rescue planes will be awarded to American companies, but that significant economic boost should have been given to Quebec. As usual, we got nothing but crumbs.

The Bloc is always accused of asking questions. They are good questions. It is an intelligent way of demanding things for Quebec instead of being content to blather on about newspapers or laughing from the other side of the House about the work the Bloc has been doing for many years. That is why we are re-elected in election after election.

The same is true in the parts sector. Every riding in Quebec has seen major layoffs, including the ridings in which Conservative members were elected. They are not concerned about it, though, because they only care about their own interests. But there have been major layoffs in that sector. The Bloc Québécois has been making serious demands from this side of the House, and clearly, we will continue to do so.

The aerospace industry is one of the motors of Quebec's industrial sector in terms of economic development. It is being gradually shut down by the lack of proper support. Immediate investments must be made in this sector in order to ensure the industry's future in Quebec over the next 15 years. The current government is doing nothing to help it.

As for employment insurance, tens of thousands of workers have been laid off and they need to receive money right away, without the two week waiting period. Over 40% of these workers have access to employment insurance. The Conservative government and the Liberals prefer to add five weeks to the end of the benefits period, although we know that this will affect very few people.

The Bloc Québécois introduced a bill recently, Bill C-308, to improve the employment insurance system. In a crisis situation, the employment insurance fund becomes an important economic tool. We must allow workers to benefit from it, whether through an assistance program for older workers or through work sharing. We would like to extend the latter by more than a year, in order to keep the expertise in the factories and allow employers to have it when work resumes. Unfortunately, it was decided to extend it for only a short time.

A number of factories in Quebec and the Quebec City region have major problems, and they do not have access to work sharing. In the short term, the most recent improvement does nothing to help the workers in that sector.

The new coalition of the Liberals and the Conservatives continues to make its mark by attacking workers. Consider the federal government's position with regard to its own employees. The Conservatives and the Liberals decided to legislate to take away their right to strike and to bargain. More than 100,000 public service workers have already approved a collective agreement in good faith. Others had negotiated a collective agreement with a 2.5% salary increase. The government decided to take money out of their pockets retroactively to stimulate the economy. This government is creating a climate of insecurity in the federal bureaucracy, and workers are neither happy nor satisfied. A private sector employer or multinational would never dare do such a thing, because it would lose important expertise.

I could talk about pay equity, but my colleague spoke at length about it. It is completely unacceptable to attack women in this way. This is being felt in Quebec and all across Canada.

Having made cuts in this area, the government is handing out tax breaks. Many economists are saying that it is a huge mistake to make tax reductions that will do nothing. People are saving much more than they are spending at present. Workers who have lost their jobs need money. The billions of dollars in tax reductions should be invested to save jobs and build an economy.

In conclusion, the Bloc Québécois will keep on fighting for Quebec as it has always done. It is the only party that fights for Quebec in this House. The other members from Quebec, who sit opposite, do not do anything. They support a budget like this one, which hurts Quebec. We will keep on building Quebec.

Employment Insurance Act

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

moved for leave to introduce Bill C-308, An Act to amend the Employment Insurance Act (improvement of the employment insurance system).

Mr. Speaker, I would first like to thank my hon. colleague from Saint-Lambert for seconding this bill.

This bill is without a doubt extremely important for unemployed workers, since it improves the employment insurance system. The priority remains improving access to the system, since over 55% of unemployed workers are excluded from it at this time. We would therefore like to reduce the qualifying period to a minimum of 360 hours of work.

We would also like to increase the benefit period, which is currently 45 weeks. The budget increases that period by five weeks, but we would like that increase to 50 weeks to become permanent. The bill also increases the rate of weekly benefits to 60% of a claimant's revenue.

In addition, we hope to eliminate the distinctions between a new entrant and a re-entrant to the labour force. Those distinctions are completely discriminatory. We must also eliminate the presumption that persons related to each other do not deal with each other at arm’s length, and increase the maximum yearly insurable earnings to $42,500.

The bill also adds a new part to the act relating to self-employed persons, including them in the employment insurance system.

As I said, it is an extremely important bill. All parties in this House have agreed that access to the employment insurance system and the benefits themselves must be improved. Our bill aims to do just that. I encourage all members to support it.

(Motions deemed adopted, bill read the first time and printed)