Mr. Speaker, two years ago in the first throne speech of the 35th Parliament the government promised to make Canada's social security system responsive to the economic and social realities of the nineties.
After two years of extensive and expensive travel by the Standing Committee on Human Resources Development and countless expensive studies and testimonies by bureaucrats and experts, the cosmetic changes to the unemployment insurance were a real letdown. After listening to Liberal doublespeak for the last two years I cannot say that I am surprised.
Canadians are realizing the government's idea of an action plan really only amounts to a play on words: employment insurance or unemployment insurance. Only the name has changed. The program will remain as unworkable as ever.
Consider the goods and services tax. Scrapping the GST in Liberal terms means changing the name to the federal sales tax.
The Liberal definition for maintaining universality for old age pensioners seems to be combining the old age assistance plan and the guaranteed income supplement plan to come up with a seniors' benefit that most seniors will not qualify to receive. This is truly amazing since the Liberals scoffed at the Reform Party's 1993 election proposal to base seniors' benefits on family income. At least under our plan we suggested that benefits be reduced when family income reached the level of $54,000. Under the new Liberal seniors' benefit, couples whose total income exceeds $45,000 would see a drop in their pension benefits.
The member for Guelph-Wellington suggested that parties to the right of centre have a difficult time coming up with social programs. She should look at the province of Alberta. Its main problem at the moment is what to do with a budgetary surplus. When we as taxpayers and as government are paying out some $48 billion a year in interest that severely handcuffs the government to come up with any social programs.
Canadians are catching on that Liberals make great election promises which unfortunately are very conveniently forgotten immediately after the votes are counted. When it comes to legislation they also fail miserably. Bill C-12 is a prime example of this.
It is hard to imagine how the government could come up with a plan that could anger so many people. The consensus from all sides is that this is a flawed bill. Despite the musings of the new Minister of Human Resources Development that he will sweeten the bill, it will be another step backward for those Canadians who want to reduce their dependence on government social programs. The government somehow thinks it can win votes and maintain its popularity by perpetuating the social welfare system. Insurance means insurance, whether it is called employment insurance or unemployment insurance. The reason this bill should be withdrawn is that it does not resemble insurance in any way, other than the fact that it needs to have premiums paid into it.
Let us talk about insurance the way Canadians understand the concept. For instance, if you own and operate a motor vehicle you are required by law to purchase and maintain insurance on that automobile. If you have an accident or if the car is stolen you receive some monetary compensation. Also if your house burns down and your insurance premiums are paid up, you would be entitled to some monetary remuneration as long as you did not set the fire.
The unemployment insurance program is not a true insurance plan. It includes wage supplement programs, training programs and other add-ons that drain the resources of the employers and employees who fund the program.
The day the Minister of Human Resources Development unveiled his long awaited proposal for reforming the unemployment insurance program, Statistics Canada reported that full time employment fell by 64,000. In reply to my colleague opposite who
says that government creates jobs, this shows exactly the converse. The number of people with jobs dropped by 44,000 to 13.5 million in November. This is the worst monthly performance in more than three years. The proportion of young people in the labour force is at a 20-year low of 61 per cent.
In answer to these problems and in an attempt to look like its two-year review is worthwhile, the Minister of Human Resources Development announced $800 million for training benefit programs and another $300 million for disadvantaged areas. One has to wonder if these new programs are nothing more than slush funds set up to provide temporary jobs just in time for a new election.
The former Minister of Human Resources Development said that the jobs fund could be used to support local infrastructure projects. Does this mean that there may be more make-work programs and expensive projects for seasonal exploits like perhaps bike paths or exclusive boxes in sports stadiums or perhaps a canoe museum?
The government brags about replacing 39 centrally controlled programs with five benefits. What it really did was camouflage old ideas into a new package. Shades of the GST, more renaming and more repackaging.
When I asked the Minister of Human Resources Development in December about changes to the delivery of training programs, he said that we really should be transferring resources to the people, to the private sector, to communities. I would like to know why the government does not transfer labour market training exclusively to the private sector where the marketplace can create real jobs and that way Canadians can look forward to training that is specific to the economy and the jobs that they may be entering.
How does the minister reconcile his department's continued involvement in training programs when the Prime Minister announced that labour market training would be the sole responsibility of the provinces? The provinces will have to enter into agreements with the federal government on programs and their delivery and if they do not sign a deal with Ottawa no federal training money will be spent there. Instead the money will be earmarked for other programs for the province in question.
This is an arcane idea that somehow the government believes that it can keep provinces in line by manipulating the purse strings.
When the Liberals last revamped unemployment insurance in 1971 it was a tool to redistribute income on both class and regional lines. This time is has brought in a $3 million job fund designed to create new permanent jobs in disadvantaged areas.
What it really amounts to is a pay off to Atlantic Canada premiers so they will not complain about being short changed by not receiving complete control over training programs.
The hon. member for Mississauga West complained that Ontario was tired of supporting less prosperous provinces. In that case she should support the Reform plan to turn UI into a true insurance plan.
Bill C-12 will generate huge tax revenues of over $1 billion but it will increase business costs and it will kill off the creation of part time jobs. The government is still trying to make it look as though it is fulfilling its red book promises of jobs, jobs, jobs.
When will the government realize governments do not create jobs, governments are good at creating debt and that taxation is the killer of jobs? It will be about the time that hell freezes over and Satan learns how to play hockey.
The 7 per cent payroll tax on part time workers will be used to fund the $800 million of employment benefits. It did not take the private sector long to figure out that it was to bear the brunt of yet another tax grab. As it stands, the provisions of the legislation will have a detrimental effect on both part time employers and their employees.
Take for example the fast food industry. An owner-operator of a quick service restaurant in my constituency told me his costs would increase by 30 per cent if Bill C-12 is passed into law. He employs 90 people, many of whom are students working to defray university tuition costs. He says his customers are very price sensitive. In other words, he is unable to raise his prices. He will have no choice but to cut back on employee hours and reduce the number of new people he hires in his business. Taxation kills jobs. He went on to say that implementing the payroll tax would run counter to the government's job creation objective.
As I said earlier, the real killer of jobs is high taxation. Small business people realize it, students are coming to grips with it and soon Canadian voters will tell the Liberals they have had enough taxation.
Incredibly generous benefits introduced by a former Liberal minister were left basically unchanged until the mid-eighties when attempts to tighten the system were met with cries from the left and social activists. The Tories backed away from the far reaching reforms which were required, reforms which should have taken place at that time.
Now as a result of procrastination by governments for 20 years we have a Liberal government saddled with a $579 billion debt, a debt which will have grown by $100 billion after three years of this Liberal government. It still has a social conscience that it finds extremely difficult to finance.
There is the old saying that if something is not broken do not fix it. However, the employment program is broken beyond repair. When that happens we have to park it and start over. The government only has one option: scrap it. I mean really do away with it. It should not harmonize it and it should not change its name. It should replace it with a new system that provides
Canadians with a true insurance plan to protect them in times of temporary job loss.
The amendment put forward by my colleague from Calgary Southeast should be supported by all members of the House if they have the best interests of Canadians in mind.