Mr. Speaker, the Government of Canada has embarked upon a significant reform of Canada's social security system in co-operation with provincial and territorial governments and with all Canadians. The social security review is allowing Canadians to consider options for structural reform of Canada's social programs. At the same time this review must respect fiscal realities and the government's deficit reduction targets.
The 1994 federal budget established fiscal parameters for social security reform. It announced measures that would reduce spending on unemployment insurance by $2.4 billion. It also indicated that further UI savings leading to lower UI premiums would result from social security reform.
The 1994 budget also announced that growth in social security transfers to the provinces would be curtailed by ensuring that Canada assistance plan transfers and the post-secondary education component of established programs financing are no higher in 1996-97 than in 1993-94. Savings of at least $1.5 billion will be realized from preventing the growth that would otherwise have occurred.
The social security discussion paper confirmed these parameters and makes sure that the entitlements under EPF-PSE and under CAP will be no higher in 1996-97 than they were for each program in 1993-94.
Beyond 1996-97, EPF-PSE funding will be at best kept stable at the 1996-97 level and no increase in funding for CAP or its successors should be anticipated beyond 1996-97.
If any additional savings are required to help meet the government's fiscal targets they will be announced in the 1995 budget.
In the meantime the government is listening attentively to the views of Canadians and of the parliamentary committees that are now engaged in discussions about social programs and fiscal issues.