Thank you.
Our Conservative government knows that families are the foundation of this great country. And now self-employed Canadians will no longer have to choose between their family and work responsibilities. Like all workers, self-employed Canadians facing important life events need peace of mind regarding their financial security. This bill provides them with just that.
Madam Chair, let me briefly explain how the system would work.
Overall, special benefits for the self-employed would mirror those available to salaried employees under the EI system. Under the proposed legislation, self-employed Canadians who opt into the program would pay the same EI premium rate as salaried employees. For 2010, that premium rate would be $1.73 per $100 of insurable earnings. They would not be required to pay the employer portion of premiums as they would not have access to EI regular benefits. They would face similar benefit duration periods, income replacement rates, maximum insurable earnings, treatment of earnings, and waiting periods.
However, there would be some differences. Those who choose to take advantage of special benefits would be required to opt into the program at least one year prior to claiming benefits. They would also be responsible for making premium payments for the tax year in which they apply to the program. For example, someone registering in May 2010 would be able to claim benefits on May 1, 2011.
However, we are providing some room for the first year. Those who apply before April 1, 2010, would be able to collect benefits as early as January 1, 2011.
To access EI special benefits, self-employed individuals would need to earn a minimum of $6,000 during the preceding calendar year. As the self-employed do not report hours of work, this number has been arrived at by converting 600 hours on an earnings basis using a representative minimum wage of $10 an hour, since 600 hours is the number of hours required by salaried workers to access existing EI special benefits.
It's important to note that the self-employed could opt out of the program as long as they've never claimed benefits. If they've claimed benefits, however, they would need to continue to contribute on self-employed earnings for as long as they're self-employed. This treats the self-employed in the same way that the regular EI program treats paid employees. We think this is fair.
In the province of Quebec, our Conservative government is offering the self-employed that ability to take advantage of the sickness and compassionate care benefits for the first time in history. Currently, the only choice Quebeckers have if they need to take care of a gravely ill relative, or if they fall ill themselves, is private insurance which can be very expensive.
Our government is offering peace of mind with a more affordable option. This bill takes into account that, in Quebec, self-employed residents already have access to maternity and parental benefits through the Quebec Parental Insurance Plan.
Rates in Quebec have been adjusted to take into account the provincial maternity and parental benefit plan. Self-employed workers in Quebec who choose to take advantage of the program would pay the same EI premiums as other employees in the province. The 2010 EI premium rate in Quebec will be $1.36 per $100 of insurable earnings.
I want to reinforce that the decision to opt into the EI program is entirely voluntary. There is no obligation for the self-employed to take advantage of these new benefits.
This bill is yet another example of how our government is providing support and choice to Canadian families. Our government believes that self-employed Canadians should not have to choose between their families and their business responsibilities, and this bill will have a significant impact on their lives and their families.
Don't just take it from me: the response to this bill has been overwhelmingly positive. The Grain Growers of Canada, the Canadian Federation of Independent Business, the Coalition of BC Businesses, the Certified General Accountants Association of Canada, the Alliance of Canadian Cinema, Television and Radio Artists, and the Independent Contractors and Businesses Association are just some examples of organizations that represent self-employed Canadians and that support this important bill.
This is one of the most significant enhancements to the EI program in a decade. It is part of a series of timely enhancements that we've already made to ensure that the employment insurance program remains responsive to the needs of Canadians.
Our economic action plan is geared towards helping Canadian workers and their families get through this global economic downturn. We're providing a timely and unprecedented investment of $8.3 billion to strengthen EI benefits and enhance the availability of training, including outside EI.
In closing, Madam Chair, I'd like to thank the committee for its work on our last bill, Bill C-50, which recently passed. It provides between five and 20 additional weeks of EI to long-tenured workers who've worked hard and paid premiums for years, but who now need a hand up.
I urge all members of this committee to support self-employed Canadians and their families by supporting Bill C-56.
I'd now be pleased to answer your questions. Merci.
