Mr. Speaker, employment insurance reform was designed to minimize the number of people who will not be eligible for income benefits. In fact, the new hours based entrance system opens up eligibility to people who were previously not covered by unemployment insurance.
In addition, while some individuals receive benefits for shorter periods, more individuals will have increased duration. This will have a net positive impact on social assistance.
The family supplement means benefits will increase by 7 per cent on average for claimants in low income families with children. By protecting those most in need, impacts of the reform on social assistance will also be lessened.
HRD has estimated the impact of employment insurance reforms on social assistance across the country will be in the order of $75 million by the year 2000. However, this impact will be offset by both the $300 million jobs transition fund and the $800 million reinvestment in direct re-employment assistance. About 45 per cent of current social assistance clients will meet the new eligibility requirements for these measures.
I would like to remind the hon. member that these employment benefits will give people meaningful employment and keep it. By doing that, the reforms will again reduce, not increase, the burden to provincial social assistance.
Further, the government realizes the interaction between employment insurance and social assistance clientele is a complex one. Departmental officials are now in the process of talking to the provinces in order to get their feedback on this impact analysis. They have now met with five provinces and will meet with the remaining five over the next two weeks. A key purpose of this reform is to create needed jobs and help people increase their employability.
Another issue that the legislation addresses is that of a business environment that is conducive to job creation. Lowering premiums for employers and employees is a step in that direction. That, when considered with the job and growth agenda, will help create more jobs and this will further reduce social assistance rolls.
Over all, many elements of the new employment insurance legislation benefit low income Canadians. Therefore, I urge the hon. member who professes to be concerned about the fate of this group to support the legislation and thereby be of real help to Canadians most in need.