I would like thank you for the opportunity to explain the changes to the management and financing of the employment insurance program as set out in Bill C-50, the budget implementation bill.
The creation of the Canada Employment Insurance Financing Board and a new premium rate-setting mechanism as set out in budget 2008 addresses the expectations of Canadians with regard to employment insurance and the premium rate. It also affects necessary changes to the program at a time when the Canadian economy is entering a period of relative uncertainty. As such, we are entering this period with a position of relative strength, compared to most of our partners.
The government remains committed to ensuring that the right policies and programs are in place to help Canadians, as demonstrated by the numerous measures in the budget that will certainly help weather these uncertain economic times. Within this context, the proposed Canada Employment Insurance Financing Board will help ensure that the EI program is well positioned to withstand changing economic conditions.
As noted by my colleague Monsieur Beauséjour, the new board represents a significant improvement in the management and governance in the EI account. An independent board of directors will have the responsibility each year for setting EI premium rates, using a new mechanism that will ensure the program breaks even over time. The board will be responsible for managing its own bank account, and it will maintain a real cash reserve in that account.
In our view, Canadians can have confidence in the fact that the employment insurance program will be managed on a purely cost-recovery and go-forward basis, and that the premium rates will not be higher than what is needed to pay benefits.
My colleague Tamara and I would be pleased to answer any questions from honourable committee members.