Mr. Speaker, last Friday, the government announced a reduction in employment insurance premiums, which represents a tax break of $1.4 billion.
Starting January 1, 1998, the contribution rate for workers will drop from $2.90 to $2.70 per $100 in insurable earnings. As for the employers' share, their contribution rate will drop from $4.06 to $3.78. These reductions are the result of more optimistic federal government forecasts relating to its public finances. The government, moreover, has indicated its desire to reduce contribution rates in future as much as possible.
This government action is part of a broader objective to take every approach possible to ensuring the growth of the Canadian economy. That growth is linked to job creation and the maintaining of optimum conditions for public and private investment.