Thank you, Mr. Chair, ladies and gentlemen.
First of all, thanks to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons of Persons with Disabilities for inviting us to deliver our remarks about the bill.
Because we represent employers and companies from the province of Quebec, I will deliver my remarks in French.
The Quebec Employers Council operates in regular partnership with other organizations throughout the country, and, in particular, with the Canadian Employers Council. As it is not a provincial branch of a Canada-wide organization, the Quebec Employers Council has a keen independent interest in federal matters that affect Quebec employers, specifically issues of labour, development, human resources and taxation.
Employment insurance and all other payroll-based employer-funded plans are closely followed by the Employers Council. That is especially the case for employment insurance as employers fund the majority of the cost of the plan: their contribution is 40% higher than that of the workers.
We spoke publicly on the matter last September when the proposed amendment to the bill was announced. We come here today in person to reiterate the concerns that we raised then and that still remain.
The Employers Council first and foremost prefers that all enhancements made as a result of the current economic situation remain temporary. In this regard, we are pleased that the government has heard us.
Costs close to $1 billion, $935 million to be precise, amount to a major change in the plan. It is expected that, under the current rules, in other words without the changes in Bill C-50, the expected increase in plan costs could vary from 35% to 70% by 2015, according to our estimates. It would be wise to seriously consider the terms of the enhanced funding schemes being studied by your committee.
First, because it is a cyclical enhancement, we believe that it should not be funded by the Insurance Fund, but rather by the government's general revenue. That was the case for the enhancements announced in the last federal budget, and the same rule should apply to these changes.
Second, social responsibility also involves fiscal responsibility. This is not an economic context where taxpayers can dig into their own pockets any deeper to fund new public expenditures. The government should therefore ensure that any amendments have a neutral effect on the cost borne by the public purse. In other words, employers say yes to improvements to the employment insurance plan on condition that these improvements are accompanied by savings or cost reductions elsewhere in the plan.
Third, and still on the issue of funding, the Quebec Employers Council reiterates that it is important for the government to restore fairness through a 50/50 employer-worker split to fund the costs of the plan.
This brings me to a final remark. The QEC is concerned about the government taking a piecemeal approach to changes to the employment insurance plan. As I mentioned in my introduction, Bill C-50 calls for changes in addition to those already announced in the most recent budget, changes amounting to close to $4 billion. We are not against changing the plan. However, we believe that, in the future, every effort should be made to avoid making piecemeal changes and instead should make changes that take into account the concerns of all partners, and specifically those that I have just raised.
Thank you very much.