Madam Speaker, the hon. member for Malpeque gave us a great cross-section of the small weeks problem and how we are trying to resolve it.
During an earlier interchange the member for Saint John said that some people in the House need a history lesson with regard to their attitudes toward Atlantic Canada. She was responding to a question of mine. I was basically asking why the premier of Ontario was questioning whether that province should continue utilizing the employment insurance system to the extent that it does. He has often pointed out that Ontario, cash flow wise, is a net loser through the employment insurance system. It is certainly not the feeling of the government or Liberal members, but it certainly was seemingly odd that the leader of the Progressive Conservative Party here was taking major exception to the premier of Ontario whose very view that is.
Most of us understand the importance of underpinning our economy wherever it is, whether it is in Oshawa, Durham, the maritimes, Sydney and so forth. These are very important aspects. I was interested, because I thought the history lesson should be directed at Mike Harris.
The motion before us today says “in order to make adjustment projects a permanent feature of the Employment Insurance Act”. These pilot projects which are under way are to address the issue of small weeks. Most of us can see it is some kind of idiosyncrasy of the legislation that was written. This happens in many things. I worked on another issue, the Canada-U.S. tax treaty. It is amazing how many times things are written down with good intentions and when they actually get out in the public domain, they seem to have some unintended results.
This appears to be one of those very areas where it is possible that we discourage people from seeking employment because they have less than full weeks of employment. The result is that it reduces the average. Therefore in small ways they are better off not working at all than working.
I am sure the intention of the EI reforms was to make it a major incentive to gain that extra hour of employment. That is what the average Canadian would like to do. Rather than sit at home, he or she would like to be employed even if it is only part time, which is a positive thing.
The government is trying to deal with this issue. However the order today simply talks about extending it, enshrining it. I am concerned about that because here in Ottawa we do not do enough program evaluation and accountability. These two projects, while they are coming to fruition and cycling out of the system, if you will, up until November 15, it is clear we have not had the time to sit down and actually evaluate what impacts those two solutions to the problem are having.
A theory among columnists and maybe even social engineers is that people are totally conscious about how government programs affect them economically and therefore they will always react in their best economic interests. There is some concern that in fact that does not actually happen and it is really the intention of the government to ensure that those people continue to have the incentive to work.
As well intentioned as the motion by the member for Madawaska—Restigouche may be, I believe it is premature. We have not had the time to evaluate that program. We have to go through that process before we consider any concept of extending it indefinitely.
Part of the EI reforms tried to encourage the productivity of the Canadian labour force. This is something that is hard for people to measure. Canada's productivity vis-à-vis many of our trading partners is significantly lower. Some blame the unemployment insurance system; some blame other processes and some of our cultural differences.
The reality is that Canada's productivity has been increasing since this act has been changed. It is on that issue which I think it is very important that we get it right and in such a way that we do the evaluation and our homework and we ensure that we continue to be on the right course.
Obviously the minister has realized there is a problem. It is an unintended one. Obviously we do not want people to sit at home rather than work. Clearly there are some objectives we are trying to seek.
Some people look at the value of our dollar. Sometimes the value of our dollar is underpinned somewhat with the labour productivity factor. If our labour productivity factor does not improve, the Canadian dollar will continue to go down. This is the way international currency equates productivity. If we are less productive, it means that the value of our dollar is less vis-à-vis other currencies where the labour factors are more productive.
It is to that issue I think these reforms are attempting to address themselves. It is why we have to make sure we get them right.
Within that legislation were a number of ingenious concepts. One was the new hires program which the minister mentioned this morning in his lead off debate. My riding of Durham has a tremendous impact from the automotive sector and others. That program has been a great incentive for young people to get work experience because the first year of the employment insurance premiums are negated. We talk about the great surplus and so forth but right there are some people who are not paying into the premium system and it is a major bonus. By the way, it is small business week and we should be talking about that too. It is a great incentive for our small business community but it is also a great incentive for those young people to get some work experience.
We also do the same thing in our summer youth employment program. That is something which is taken advantage of by the young people in my riding to get that little bit of work experience so that they can access the labour market. I am sure most people in Durham and the rest of Canada want to work. They want to find the up ramp to the workforce.
The small weeks provision attempts to address the issue. The realization is that, although we are not sure, it may cause a disincentive for people to seek some employment rather than none at all.
Some of the members, especially in the NDP, have raised the concern about the deviation between unemployment insurance reductions and tax cuts and why somehow these reductions should go back to the people who actually put the money into the system.
Invariably tax cuts are assumed somehow to be benefits for the wealthy. The reality is that our country has a problem, which has been raised by other members, called bracket creep. In fact, the people being hit by an inflationary spiral are in the lower and middle income brackets, the workers.
It should be a policy of this government to take some of that surplus and direct it to people who make $20,000 or $40,000 worth of income. I am talking about the working poor. Some of these people hit marginal rates of tax in excess of 50% or 60% by moving from $18,000 to $20,000 worth of income. What does that do? It creates a barrier. People cannot get out of poverty. They cannot get out of that cycle of low income.
Why would it not be a great thing to shift that surplus from corporations to some extent to assist those people by giving them back the indexing of the income tax system. It would help them increase their disposable income. That is a lot more beneficial than some of the programs we talk about simply giving it back to the corporations which paid 60% of the employment insurance premiums in the first place.
In conclusion, as well intended as it may be, I believe this motion is premature. The motion should be rejected because we need to do our homework before making any decisions.