Madam Speaker, first I want to remind the hon. member that, as the Minister of Human Resources Development recently pointed out, the last federal budget and the main estimates already contain a great deal of information on the employment insurance fund.
This being said, there is no great mystery about the reserve in the employment insurance fund. A reserve is necessary because it allows us to set more stable contribution rates throughout the economic cycle, so that we do not have to increase these rates should a recession occur. It also helps us ensure there is enough money to pay the benefits when these benefits are most needed.
Let us take a look at what happened during the last recession. Within a period of two years, the employment insurance fund went from a surplus of $2 billion to a deficit of $6 billion, and the government had to increase contributions by 30% at a time when it was already difficult to create jobs. Given these facts, the government believes it is wise to have a reserve in the employment insurance fund.
The reserve itself can vary at any given time. It goes up and down with the payment of benefits. Right now, it is estimated to contain about $12 billion. However, this amount is going to be reviewed and the government will soon announce its decision in this regard.
Let us remember that the money is held in the account against future expenditures that could be required under the program. As for the interest, it is credited to the employment insurance account. As indicated in the Main Estimates for 1997-98, the interest this year was $345 million.
The employment insurance premiums paid by workers and employers make it possible to offer income protection, which is very important for those who unexpectedly lose their jobs. But best of all, employment insurance helps the unemployed to obtain stable jobs as quickly as possible. That is why—