Mr. Speaker, I think it is indeed the wrong approach to oppose unemployment and deficit as if both could not be fought at the same time. For example, if the federal government had really decided to thoroughly review its spending in various areas, it could have reduced the deficit without also having to generate a UI fund surplus that is somewhat artificial and designed to make the federal government look good. The government can then brag about reducing its deficit. This money, however, is not being used productively but merely collected in this fund.
There may be a reserve fund-the amount is now pegged at $5 billion for this year. There is a need to put this money back into circulation. One approach would be to make premiums low enough so that employers and employees can have money in their pockets allowing them to consume and thus stimulate the economy. And by reducing their costs, employers would be able to develop their businesses and create more jobs.
We are going through a very particular situation in which economic growth does not necessarily lead to job creation.
In this regard, we should perhaps start as we did with the deficit by setting clear objectives. We could set a target employment rate for January 1, 1998 and plan departmental actions accordingly. It is not a matter of creating artificial jobs, but of making sure that every departmental employee will be concerned about maximizing human potential.
When the government goes before the electorate two or three years from now, it should be judged on how it helped people to work, to develop their potential; we would then have a clear, objective criterion. As far as the employment issue is concerned, this government can be criticized for never making clear commitments and being lulled by an economic growth that never led to additional jobs.
Proposals should be put forward with respect to the reduction of overtime or to work sharing. Even the UI reform has some perverse effects in this regard. Reducing the maximum wage on which premiums are paid encourages large corporations with highly paid staff to raise their salaries and increase overtime a little, with the net result that they hire fewer people.
There is much thinking to be done in this regard, but we must act quickly. This will not be done by creating a department such as the new Department of Human Resources Development.