Mr. Speaker, I am pleased to have the opportunity to comment on Bill C-12. This is progressive legislation that will bring in a much improved, modern, fair and balanced employment insurance regime and basically remove the inefficiencies and inequities of the unemployment insurance system.
Further, the employment insurance regime introduces an important measure in the government's jobs and growth agenda. The employment insurance plan not only provides income support for unemployed Canadians, but it is a powerful tool to put them back to work. It creates a balance.
As the secretary of state for youth, I am particularly pleased about the effects of Bill C-12 on Canada's young people. The speech from the throne signalled the government's priority concern for youth, and the budget followed through with positive action.
Young people are particularly challenged in today's economy, many of them experiencing a catch-22 situation. No experience means no job and no job means no experience. Unemployment for people under 25 is one and a half times the national average.
We recognize that there is much to be done. I believe the words of the Prime Minister bear repeating: "Above all, we want young Canadians to become active participants in our economy. They want jobs. They deserve jobs. Young people want to embrace the future and not fear it. And it is up to all of us to create that hope and opportunity for them".
Following this vision, the government has appointed a ministerial task force on youth which has begun consultations with Canadians on the issues facing young people in making the transition from school to work. The report of the task force will form the basis of the federal youth strategy to be announced this fall.
The task force will be attending town hall type meetings across the country, hosted by local members of Parliament and senators. Members will seek the views of young people, local youth service organizations, local business representatives and other interested Canadians.
I am happy to say that such a town hall will be held soon in my home town of Yellowknife. I encourage all members to take an active interest in these very important discussions. Indeed, ensuring that young people have a strong foothold in the labour market is vital to Canada's future prosperity and global competitiveness.
In the meantime, we will have employment insurance that will be of great help to Canada's young people. There are special provisions within the bill for young people. The new employment insurance provisions contained in Bill C-12 are amended not only to be fair and balanced, but they are particularly beneficial to young people.
One of the difficulties with the current UI system is that it measures work in terms of weeks. Weeks are often a poor measure of time spent on the job, particularly for part time workers and multiple job holders, which many young people are. With the hours based system of Bill C-12, part time workers' earnings are insured. Four out of ten of our part time workers are under the age of 25.
Under unemployment insurance, employers have tended to limit part time employment to less than 15 hours per week per person in order to avoid having to pay UI premiums. This has meant that no only did these workers get less work, their earnings were not insured. Employment insurance eliminates the 15-hour job trap, since all hours will now count toward eligibility. More young people who enter the labour market after leaving school and who must rely on a number of small jobs to earn a living, will now have insurable employment.
On the other hand, employment insurance also reduces the risk of young people developing a dependency on employment insurance. Many young people enter the labour market and end up on UI benefits before completing their education. They put themselves on the all too often familiar treadmill, short periods of work followed by periods of unemployment insurance. That is what Bill C-12 will discourage. It will encourage young people to complete their education rather than dropping out to take insecure work.
The higher entrance requirements under employment insurance mean that young people must develop a stronger attachment to the labour market. Measures of this sort have been recommended by two recent government reports. The report of the Standing Committee on Human Resources Development recommended longer qualifying periods to encourage young workers to remain attached to the workforce longer and to improve their career prospects. The Working Group on Seasonal Work and UI also recommended stiffer entrance requirements for young people.
As for contributions to EI, premiums will have a minimal impact on young people. A student working 14 hours a week at $7 per hour would pay less than $3 per week in premiums. The hours will now be insured, which will help meet entrance requirements when entering the labour market full time. Further, premiums will be refunded to about 625,000 young people, 49 per cent of all those who receive rebates. Of the total young people receiving rebates, 400,000 will be full time students.
On the benefits side, whereas total benefits paid out under EI will be somewhat less than under UI, benefits paid out to young people by the year 2001-2002 will decrease by 6 per cent, considerably less than the expected overall decrease of 9 per cent.
Young people will also benefit from the employment benefits provided under EI. Several of the employment tools will be of help in getting young people back to work. For example, targeted wage subsidies will help young people who qualify for employment insurance benefits to get needed work experience to qualify for more stable or permanent jobs.
Like some of the other measures I mentioned earlier, Bill C-12 firmly supports a top priority of the government, the jobs and growth agenda. A key element of that strategy is the investment in Canada's youth.
Measures are already in place to address the needs of young people: youth service Canada, the youth internship Canada, the student summer job action program, the Canada student loans program. The budget introduced a learning package with tax and savings incentives, as well as child care support for single parent students.
The learning package provides an additional $165 million in tax assistance to students and their families. Additional tax assistance is provided to students by increasing the base for the education tax credit by 25 per cent, from $80 to $100 per month. There is also a 25 per cent increase to the limit on transfer of tuition fees and education credits to family members who provide support to students.
Saving for education is further encouraged by increases to the registered education savings plan limits. The low income, single parent students are helped through child care expense deductions. The budget took further immediate action by increasing the summer career placement program funding from $60 million to $120 million.
The government is on track with the jobs and growth agenda. More than 600,000 jobs have been created since 1993 and unemployment is down by two percentage points. With a youth strategy in place we will be able to ensure that Canada's young people share fully in economic growth.
I have had the opportunity to meet with many groups. Yesterday afternoon I met with an Elks club, members of community organizations and an RCMP officer, as well other interested citizens. They are people from all walks of life who share an interest in the wellness of young people, in their futures, in the investments we make as families and leaders to the well-being and the future of young people.
We met to discuss how to ensure a better future and a better quality of life for young people in our community. That desire is not particular to my riding but is something we all share as members. Communities take other initiatives. Government is the facilitator. It provides the legislative tools, the resources.
We have been able to encourage the public to take the leadership and the responsibility. Some members opposite have said that this bill in some sense refers to victims. It is not so much that people are victims but that they should take personal responsibility for their futures. If young people are encouraged they will not be afraid to do that.
There are many young people out there working, learning and securing a better future for themselves. They need our support.