Mr. Speaker, I am pleased to have this opportunity to address the concerns expressed in Bill C-218 by the hon. member for Saint-Hubert.
The hon. member's bill purports to correct an injustice she perceives in section 3(2)(c) of the Unemployment Insurance Act. I know the hon. member has brought this matter forward with the very best of intentions.
The government appreciates the hon. member's concern. After all, we are striving to make sure its rules and regulations are fair and equitable for everyone. It pleases me to say that this particular provision is an example of the equality we are trying to achieve.
The section of the act that the hon. member is concerned about addresses the situation whereby relatives work for one another. Some hon. members have argued that this section of the act discriminates against relatives of employers. This is simply not so. The provisions simply act to make sure that those individuals who work for a spouse or for a mom or dad have the same access to this important government program as any other worker. Perhaps I can alleviate the hon. member's concern by pointing out the intent of this arm's length employer-employee relationship.
The government recognizes that more so today than ever before individuals are starting their own businesses working out of their homes and providing services that may involve family members. What we can call non-standard employment is on the increase. Last year more than 60 per cent of all new jobs were part time. Therefore I think the hon. member will agree with the necessity of having UI regulations that allow a relative or common law spouse to be an employee.
This section of the act entitles these individuals to pay premiums and collect benefits if their contracts are similar to those of workers not related to their employer. As well the employee of a corporation in which he or she has shares may also be eligible to pay UI premiums and collect benefits.
All the unemployment insurance program is asking in this regard is that relatives employed by relatives ensure that this is a legitimate employer-employee relationship. This is not discriminatory because all employees related or not must also do the required paperwork to satisfy the commission that they are legitimate employees. I say to the hon. member for Saint-Hubert that the only real distinction is a few additional forms to fill out. This is but a minor inconvenience. It is a reasonable measure because it protects the integrity of the UI program for everyone.
The hon. member has quite rightly pointed out that the majority of individuals affected by this section of the act are women but that is why the section was amended in the first place. It used to be that spouses, the great majority of whom are women, were not eligible for UI benefits. This is no longer the case. Women are not discriminated against in this regard. They
are however required as any other employee to show there is a legal employer-employee relationship if they wish to pay UI premiums and to be eligible to collect benefits.
In a related matter this government recognized that many women are entering the workforce. We know that many women are the main providers for their families. To address this evolving situation, the government introduced the dependency benefit rate of 60 per cent. This rate is for claimants with low incomes supporting a dependant or who have a spouse supporting a dependant. Without this, people in this situation would receive a 55 per cent benefit rate.
I believe that if the hon. member for Saint-Hubert considers the matter, she will see that this government is totally committed to fairness and compassion in applying its programs.
The thinking behind any adjustment to unemployment insurance is to guarantee that all potential UI recipients are treated fairly. That is one of the reasons we are looking at UI as part of the social security reform. Our surveys have shown that the great majority of Canadians support the concept of unemployment insurance, but the key word is insurance.
Canadians want this program to be used for the purpose for which it was originally intended, the purpose being temporary financial support between jobs and not as a supplement to a regular income. People understand that UI is a major component of social security and they want to see that it works fairly and equitably.
During previous debate on this bill one hon. member referred to the government's initiative to use UI development funds for training and upgrading skills. He suggested that by supporting the hon. member's bill we will enable workers employed by relatives to take advantage of training programs.
Individuals who qualify under this section of the act are as eligible for training programs as any other recipient. They are not being denied training because they have to fulfil an obligation, an obligation that guarantees that the business arrangement with their spouse is a true employer-employee relationship.
I say to all hon. members that a review of our social security system will give them ample opportunity to present their ideas on reforming our unemployment insurance program. The government's proposals are detailed in the discussion paper and we more than welcome constructive input. Social security reform is a partnership. It is a partnership that needs helpful suggestions if we are to develop new social security programs that will be fair and beneficial to all Canadians.
In summing up I thank the hon. member for Saint-Hubert for raising concerns over what she perceives to be discrimination. The government appreciates her attention in this regard. However in studying the matter I see no grounds to assume there is discrimination under this section of the UI Act. Therefore, regretfully I cannot support the hon. member's bill.