Mr. Speaker, the UI premium rate for 1994 has been set at the minimum rate required under the Unemployment Insurance Act. The rate will not be increased during 1994. Furthermore, the government will introduce legislation to prevent the UI premium rate from rising in 1995 as would otherwise occur under the provisions of the Unemployment Insurance Act.
The UI program is self-financing from premiums paid by employees and employers. The federal government temporarily finances UI deficits but premium revenues must eventually match UI costs. We therefore might have paid for the freeze by allowing the deficit in the UI account to rise, thus postponing the day it would return to balance, but we decided that would be imprudent.
There is widespread recognition of the need for a comprehensive reform of Canada's social security programs. No department or government on its own could design all the appropriate changes. Therefore we hope members of the House from all parties will participate in the reform of social programs including unemployment insurance.
As the Minister of Human Resources Development said in response to the hon. member's original question, the review of the social security system that was launched in the House on January 31 will consider the issues of unemployment insurance rates and premiums in a broader context.
The hon. member will agree that the problems facing Canadians in the 1990s go far beyond the financing of the UI system. Unemployment, poverty, global competitiveness, changes in the work place and skill shortages are only some of the factors we must consider in the process of rebuilding the social security, labour market and learning framework of our country.
The scope of the review will include UI but will extend beyond it to include training and employment programs, social assistance and income security, education and learning, labour practices and rules affecting the workplace, and taxes and premiums that affect job creation.
Our goal is to reduce reliance on programs like unemployment insurance by helping people to get back to work. This is the mandate we received from the Canadian people in the October 25 election. This is our commitment and this is what the social security reform process is all about.
As the hon. member knows, the minister outlined a process for reform that will consult widely with Canadians from all walks of life on these important issues. The process respects the jurisdiction-