Evidence of meeting #88 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was rate.
A video is available from Parliament.
4 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
The board was created in 2008 and began establishing rates in 2010. It did so for 2010, 2011 and 2012.
4 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
So the board established a rate that it submitted to the Minister of Finance for approval. And the board will be abolished as soon Bill C-45 receives royal assent.
4 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
The abolition or, rather, the suspension of the board will be done by decree of the Governor in Council. The board is not expected to establish rates next September.
The next rate, which will be established in September 2013 for 2014, will be done by the Governor in Council.
4 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
Why talk about "suspension" and not "abolition".
4 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
The government's intention is that, once the account is balanced again, the board, which will be revived, will establish the rate under the approach that was presented and adopted in the budget implementation bill in the spring.
4 p.m.
NDP
Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC
It still isn't clear. Why does taking this approach require the board to be abolished or suspended? The board was created with a very specific objective that was, among other things, to propose contribution rates. That's what it has done for three years, based on what you said.
So now you are proposing the suspension until the employment insurance account is back to zero. Why suspend the activities? Is it simply to enable the minister to determine contribution rates?
4 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
No.
The budget stated that the rate increase of 5¢ until the balance is achieved would lead to a review of the board's mandate. The purpose of this operation was to establish the contribution rate as effectively as possible from a financial perspective.
So following that review, the government decided to suspend the board and to have the Governor in Council establish the rate, which was a more effective way of doing things. Once the account is balanced and the board can fulfill all its legislative duties, the board's activities would resume. It was mentioned that the board would then return to its role of establishing the contribution rate and its other duties relating to the investment of any surpluses.
4 p.m.
Liberal
Scott Brison Liberal Kings—Hants, NS
Thank you, Mr. Chair.
On page 146 of budget 2012, it states that, “Over the next few years, the Canada Employment Insurance Financing Board...will continue to set the rate.”
Bill C-45 obviously does the opposite. It stops the board from setting the EI rate, and it gives that power to cabinet.
When did the government change its mind or decide to break its promise in budget 2012 and hand over the board's power to cabinet?
4 p.m.
Chief, Labour Markets, Employment and Learning, Department of Finance
All I can tell you is that in the budget the government did make a commitment to look at the operations of the CEIFB and to undertake an examination to ensure that the EI rate was set in the most effective and efficient way possible. This was a decision taken by the government.
4 p.m.
Liberal
Scott Brison Liberal Kings—Hants, NS
It did say, again, on page 146 of budget 2012 that over the next few years the Canada Employment Insurance Financing Board will continue to set the rate.
You'd agree that this is a departure from that statement?
4 p.m.
Chief, Labour Markets, Employment and Learning, Department of Finance
I will agree with you that it's a change.
4 p.m.
Liberal
Scott Brison Liberal Kings—Hants, NS
Okay. Thank you.
When is the last time the government implemented without changes a rate recommended by the board?
4:05 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
It was this September.
4:05 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
It was for an increase of five cents.
4:05 p.m.
Liberal
4:05 p.m.
Chief, Labour Markets, Employment and Learning, Department of Finance
The CEIFB was originally announced in budget 2008. It took until 2009 to establish the board, to do the appropriate hiring, and to bring in all the necessary administration.
4:05 p.m.
Liberal
Scott Brison Liberal Kings—Hants, NS
How much has the government spent on the board since its inception?
4:05 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
According to the numbers I have, the forecast expenditures for the board in 2011-12 were $1.8 million.
4:05 p.m.
Liberal
4:05 p.m.
Director General, Employment Insurance Policy, Department of Human Resources and Skills Development
The previous year, for 2010-11, it was $1.4 million, but I don't have any information for years previous to that.
4:05 p.m.
Conservative
