Good morning and thank you, Mr. Chair, vice-chairs and committee members. It's a pleasure to be here this morning to make an appearance regarding certain divisions of part 5 of Bill C-19.
I'm speaking today from Ottawa, the traditional unceded territory of the Algonquin Anishinabe peoples. I go by the pronouns “she”, “her” and “elle”. Today I am wearing a light blouse, grey sweater and grey glasses. My hair is pulled back and I am attending virtually with a blurred background.
I'm speaking on behalf of the Canadian Chamber of Commerce, which is the voice of Canadian business. We represent 200,000 businesses across the country, across sectors and across sizes, including our network of 450 local chambers and boards of trade from coast to coast to coast.
Today, I have two interventions to make and the first is with regard to division 26.
It's very important to remind ourselves that the EI program is estimated to have a debt of $29 billion for fiscal year 2022-23, and that is as it is, before we add any additional pressures into the system. The eligibility expansion for support measures and employment services within division 26 is no doubt well intended and might not look like much in and of itself. However, what has happened continually over the years—in fact, the past eight decades—is recurring drops in the bucket that have a cumulative burdensome impact on the program.
As the Government of Canada is starting phase two of its EI modernization consultations tomorrow, we at the Canadian Chamber have urged that this be a truly comprehensive review, not more nibbling at the edges, as it were. We have said that this is our once-in-a-lifetime opportunity to really look at the program and set it—and future generations of Canadians—up for success.
Importantly, this includes part II of the EI program, referred to as active measures, which involves the over $2 billion transferred to the provinces and territories annually for employment services and skills training, alongside a plethora of pan-Canadian programs and initiatives. This is not to say that we don't think skills, education and training aren't important. It's quite the opposite.
When I appeared in front of this committee in the early days of the pandemic, back in May 2020, I stated, “we need to identify the reform needed to build a system that can respond to current and future workforce needs to ensure Canadians remain connected to the labour force, and that includes strong upskilling and reskilling training components.” It's not the importance that we're questioning; it's the suitability and efficacy of having support measures and employment services funded by EI dollars. EI doesn't need to—and can't—fund everything, and if it does continue, the business community, which contributes seven-twelfths to the program, would like greater transparency and input into how that funding is spent.
The second intervention I have this morning is with regard to division 32 and the EI board of appeal. Our recommendation is to remove division 32 from Bill C-19 for a separate and focused review. This is not the first time you have heard this and it likely won't be the last. Importantly, you have heard this from labour and business representatives. The institutional structures that underpin the EI system are critical for a well-functioning system that meets the needs and expectations of Canadians.
The employment insurance board of appeal would be complex, and the changes proposed in Bill C-19 are significant and do not necessarily align with the tripartite principles and framework that had been agreed upon before the onset of the pandemic. The changes included in division 32 are not the ones we thought we would see, and they need to be examined and discussed in a more deliberative manner.
Thank you, and I look forward to answering any questions.