Mr. Speaker, let me begin by stating my support for Bill C-12 as it now appears before the House.
With this legislation, the government has lived up to its commitment to reform the unemployment insurance system and bring in a fair and balanced regime that accommodates the needs of Canadians in all regions.
As a member of the Standing Committee on Human Resources Development, I was pleased to take an active part in the amendments to this bill. I wish to compliment not only the government and the minister for their approach, but also two of my opposition friends for encouraging and pushing us in the direction in which the explanations and the discussions have helped to improve this process.
The minister, in appearing before us, invited us to make suggestions for improvements. I am pleased that he has been responsive to the amendments that were put forward: the divisor used for calculating benefits; the question of gaps in earnings; the so-called intensity rule governing reduced benefit rates for past claimants. These have all made the bill a far better one. I encourage all opposition members to support this final decision.
I want to focus on three areas that I think are important at this time to bring before my friends in this debate. Bloc members charged that higher entrance requirements for EI will make it tougher for women who are re-entering the job market and force them on to welfare.
In setting the record straight, let me say that it is true that women are more likely to be new entrants or re-entrants to the labour market. However, new entrants and re-entrants will now need 910 hours of insurable work to quality to benefit. However, if they work at least 490 hours in their first year in the labour force they only require a minimum of 420 to 700 hours to qualify the following year.
The government recognizes how difficult it can be for a woman to jump back into the job market after taking time out to raise a family. That is why it has extended access to EI's employment benefits to any Canadian woman who has collected maternity or parental benefits over the past five years.
Employment benefits will help women boost their earnings, contribute to their job stability, forge new trails in new and emerging sectors. These benefits will be delivered in the woman's own community. They will encourage other women to participate and take into account the needs of the local workforce.
Child care support will be available to women who are taking part in these employment benefits. Under EI's hours based system, many women with part time jobs or several small jobs will be able to qualify for maternity benefits for the first time. Women will still need only 700 hours to qualify for special benefits such as maternity benefits.
Not only will EI enhance employment opportunities for women, but it will actually create work. EI reforms are expected to generate between 65,000 and 115,000 new jobs funded by an $800 million investment fund. On top of that, modernization will create 150 jobs and a transition job creation fund is expected to provide work for 15,000 more Canadians.
The Canadian workplace recognizes the importance of women's participation and the EI legislation reflects the realities of this modern system. One of these new realities is that women are working part time. In fact, women currently make up 70 per cent of Canada's part time workforce. Under EI they will be covered from the first dollar earned for the first time.
Women also make up a slight majority of those holding multiple jobs. Again, under EI many will be insured for the first time. While more women will be insured, many others will have their premiums refunded. About 700,000 women who earn $2,000 or less a year will receive a refund, including 495,000 who premiums today.
The government has also implemented special measures to help offset the impact of the reform on low income claimants, many of whom are women. Benefits for single parent families, most of which are headed by women with incomes below $26,000, will actually increase by about 13 per cent on average under the new system. Benefits to low income families with children will go up by 12 per cent on average.
The family income supplement will boost the weekly earnings of many low income families. It will provide an average of about $800 to each family with an income below $26,000.
The new rules also mean that low income women will be able to increase their weekly income without jeopardizing their EI claim. The increased earnings exemption will mean women are able to earn up to $50 a week or 25 per cent of their earnings, whichever is higher, while on claim. This means that EI not only encourages work efforts, but also enhances women's employability.
I have a few points on the issue of young Canadians. Some Bloc members have charged that higher entrance requirements for EI will doom young Canadians to living off welfare and moonlighting at night. The truth is that new entrants, many of them youth, will now need 910 hours of work to qualify for benefits.
The entrance requirements have been raised for a very important reason. We want to discourage young people from becoming dependent on a handout. We want to encourage more young people to stay in school instead of dropping out early to take unstable jobs. Too many young Canadians use up their UI benefits without upgrading their education or acquiring new skills. They are stuck on a hopeless treadmill, one of short periods of work alternating with UI claims.
Evidence shows that some young people are drawn into the job market before they finish their education due to easy access to UI. In fact, the working group on seasonal work and unemployment insurance stated: "Something has to be done to stop young people from leaving school to take advantage of the specious, short term benefits of UI to the detriment of their future and their career prospects".
Increased entrance requirements will ensure that youth will develop a stronger attachment to the labour market. It will ensure that young people stay in school to get the skills they need for the jobs of the 21st century.
It is true that high entrance requirements will affect some young workers, but they will also allow many youths who work part time or who earn a living at several small jobs to insure their work for the first time. It is estimated that 39,000 of them who cannot qualify for UI today will qualify for EI benefits.
These reforms are primarily designed to actively help people find and keep stable employment. This includes young people. EI's active employment measures will help young people gain the skills they need for the changing job market.
These are some of the reasons for my colleagues to be convinced that this is good legislation. This is legislation that needs to be supported. I call on all members, despite the discussion and the arguments, to support Bill C-12.