Thank you, honourable member.
You're right, there is a deficit in the employment insurance fund, a crisis deficit. This isn't the first time in its history that the unemployment insurance or employment insurance fund has run a deficit following a crisis. The premiums paid by workers and employers fund the EI program and will therefore reduce the deficit.
According to last fall's economic statement and the Parliamentary Budget Officer, the deficit could be eliminated by 2026‑27, through a minimum increase of 5 cents a year to the premium rate, which would bring it to $1.83. That way, the deficit would be eliminated in a few years.
Instead, in this budget, we see what appears to be a gift to employers. Even though that was not what was announced last year, the decision was made to freeze the premium rate at $1.63. As a result, the government is depriving itself of revenue that should be paid into the EI fund and, in this case, that would be used to pay down the deficit. The government is also depriving itself of revenue going into the EI fund because there are maximum insurable earnings. In other words, that's the maximum salary at which people pay into employment insurance, which is indexed every year by a few thousand dollars. The last time, from 2022 to 2023, it was increased by only $1,200.
This isn't a gift to workers, because we have just limited, frozen, their benefit rate. It's a gift to employers because they also have to pay into employment insurance. They lobbied hard against the reform, changes and increasing the premium rate. By the way, we currently have the lowest contribution rate since 1982, so in 40 years. In other words, we're depriving ourselves of revenue when we could resolve this with some new revenue and a little imagination. A number of solutions were brought up during the consultations. We could improve this program, get it back on track and fix the social safety net.
I'd like to conclude by saying that we believe the Liberal government has given in to the Conservative rhetoric with respect to improving this program that plays a key role in workers' lives.