Mr. Speaker, I appreciate the question from my colleague. I am surprised because he was sitting in the House when the Liberal government was elected in 1993.
The member referred to the unemployment fund. The first measure that the government undertook in 1993 was to stop an increase scheduled by the Tory government before we were elected. Then under three subsequent budgets we reduced the EI contributions, once, twice, three times. We reduced them in every succeeding budget. For the member to suggest that we increased them, I wonder where he has been for the last three and a half years. Certainly he has not been studying the legislation.
I would like to continue on that point which he opened the door for and reiterate very firmly so all Canadians understand, that we will have a fund. It will be a tax deductible contribution by Canadians. It will pay for the CPP benefit. It will be administered by a separate body. Not one penny of contributions will go to the general revenue fund. They will go to the CPP fund and will be used to pay for benefits down the line.
It is important for Canadians to understand that there were changes made in the 1989 legislation that allowed more people to qualify for CPP and increased the flat rate. We actually increased the rates that people could receive under the CPP and we set up the plan for more people to qualify. As a result it affected the bottom line of the fund historically. That is one of the reasons that it is not able to pay for the costs in the future.
These minor alterations will set that balance straight and maintain an appropriate balance so all seniors will be allowed to receive CPP.