Mr. Speaker, the employment insurance system set out in Bill C-12 is not just another version of the old UI program. It is in fact Canada's employment insurance system for the 21st century. It supports the government's agenda for jobs and growth. It is a system that Canadians themselves have helped to define and shape for the future.
As we have mentioned in this House before, we have had extensive consultations not only on Bill C-12 but on the whole question of social security reform over the past year and one-half. Over and over again Canadians from all walks of life, from every possible kind of business, occupation or organization repeated one message loud and clear: the best form of security is a job.
We have listened to that message. Employment insurance first and foremost is about jobs. It is about jobs in a very simple and direct way. It will make it easier for people to work longer and encourage employers to keep people in their jobs longer. It will help employers hire more workers. It will create more work and more jobs for Canadians. It will help increase the earned income of Canadian workers. Every part of this bill is focused on that goal. Let me give some examples.
With EI insurance premiums, the tax on jobs will be lower. The premium cut and reduced maximum insurable earnings will save workers and employers over $1 billion in premium payments in this year alone. Streamlined administration and reporting requirements will save employers another $150 million and some 300,000 small businesses will get a special temporary rebate so employers can afford to hire more workers.
This system will support job creation instead of perpetuating unemployment. Income benefits are structured to make it easier for people to work longer removing the barriers that sometimes keep people from accepting the jobs they need. This system is pro
employment and makes work pay. Active employment benefits are there for those who lose their jobs and need help getting back to work.
We will be reinvesting $800 million in the tools which help people help themselves and create employment opportunities for Canadians. As well, we are investing another $300 million in a transitional jobs fund to kick start employment in areas of high unemployment. Some 15,000 jobs for Canadians will be created as a result of this initiative.
When the measures described in this bill are fully implemented, there will be 75,000 to 100,000 more jobs for Canadians. That is just part of the story.
Employment insurance is an integral part of the government's broader vision for jobs and growth in this country. It is a growth agenda that sees economic growth going hand in hand with the best social security system in the world. Our agenda is based on creating a healthy economic climate for growth. We brought inflation down to its lowest level in 30 years. We are meeting and exceeding our deficit reduction targets. Our agenda recognizes Canada can compete with the best in the world.
Over the past 14 months the government's Team Canada approach to international trade has brought $20 billion worth of new deals for Canadian exports. Every $1 billion in exports means 11,000 jobs for Canadian workers. It can be seen that our agenda is beyond all doubt working. More than 600,000 new jobs have been created in this country since November 1993.
As jobs and our economy grow, we must ensure that our social safety net keeps pace. That is the fundamental message in the government's budget. We are taking action to ensure that Canadians can continue to rely on a strong social safety net that is affordable, effective and in tune with the future.
The bottom line is clear. This government is totally committed to bringing Canada into the 21st century with a strong and growing economy and the best social programs of any country in the world.
Bill C-12 is part of that commitment. We want to make sure that employment insurance is not only pro employment, but balanced and fair for all Canadians. That is why we have listened very carefully to the comments and advice from Canadians throughout the hearings on this bill.
We heard tremendous support for an insurance system that is truly focused on jobs and employment. We also heard some real concerns that the system would not be flexible enough to reflect the real job opportunities that exist in different parts of Canada. We listened to those concerns and we have taken action.
We recognize the need for a number of important amendments to the bill. For example, people from all parts of the country, from the New Brunswick Federation of Labour to the National Action Committee on the Status of Women to the Kativik Regional Government argued that the method proposed for calculating benefits was too inflexible.
The amended divisor used to calculate benefits fixes that problem. As a result, EI will be more responsive to monthly changes in local employment conditions. That is a change that makes sense. It is a change that deserves our support.
Many groups, especially those representing the concerns of workers in seasonal industries and students expressed serious concerns about the effects gaps in work would have under the new system. Under the amended system, EI claimants will have a longer reference period to put together the required weeks of work and gaps will not affect the outcome. For example, a person who needs 15 weeks of work to qualify can look back over 26 weeks and ignore up to 11 empty weeks if necessary. Again, this is a change that makes good sense.
Many people were concerned that the intensity rule which reduces the benefit rate for repeat users would be particularly hard on the most vulnerable and those in most need. In the amended system, people who receive the EI family income supplement will be exempt from the intensity rule. This will safeguard a basic level of EI income for low income claimants with family responsibilities.
We will also take steps to address concerns about potential fraud and abuse of EI with stiffer sanctions and penalties for claimants and employers who break the rules in order to get benefits they are not entitled to.
In all of these cases, we have listened closely to what Canadians are saying. The employment insurance system will be better as a result. It will be more flexible. It will be fairer. It will meet our savings targets. It will focus more effectively on our number one priority which always has been getting Canadians back to work.
Jobs, economic growth, a strong and affordable safety net: these are priorities every Canadian shares. They are priorities we are resolutely committed to as a government. Employment insurance is one part, an important part of the action plan Canada needs to achieve those goals and to move with confidence into the next century. I urge all members at the end of today to support this bill. The fundamental changes in it are going to be good for Canadians for years and years to come.