Madam Speaker, I raised a question on October 1 to the Minister of Finance. I asked the minister to do the right thing and cut EI premiums immediately. The minister answered by saying that it is the government's intention to stay the course. He did not once answer why he would not cut EI premiums.
I come from British Columbia. British Columbia is in the midst of a recession. Most economists agree that one of the fastest ways to escape a recession is to lower payroll taxes. One of the ways to stimulate the economy and especially job creation is to lower the taxation on jobs.
Employers and employees are co-financing the employment insurance fund. Employees are paying $2.70 for every $100 of income and employers are paying $3.78 for every $100 in employee income.
Finally, last week the finance minister announced that EI premiums would be cut a measly 15 cents for every $100 of income. Well, whoop-de-do. That is like comparing the government to a schoolyard bully who robs a child of their lunch money and then gives them back a few cents, hoping the child will not feel too upset. The government should learn a lesson from this. No matter how one views it, I think it is theft.
The current EI law is clear: premium rates should be no more than needed to keep the fund in actuarial balance. The chief actuary of the EI account stated recently that a $10 billion to $15 billion accumulated surplus is more than enough. The latest figures have the surplus at a whopping $19 billion.
If EI premiums were reduced by 33% next year, the fund would still be balanced with sufficient reserve. Instead, the Minister of Finance has other liberal ideas. One, he is using the surplus to balance his books. Two, he is using the rest to pay for new programs. The government over-collects for other purposes. It is a tax on jobs and it is also against the rules.
Taxpayers paid into the fund and therefore the money belongs to them. The EI premiums need to be put back into the pockets of the payers. Instead of keeping the money in a political slush fund, the minister needs to be a wise administrator.
I would like to challenge the government to show me a small business owner in this country who believes that high payroll taxes encourage growth or is the right thing to do at this point in time.
In the November issue of Maclean's magazine one reader sent in the following letter to the editor:
When the Employment Insurance fund was short, the government cut off some recipients, lowered the benefits to others and increased the premiums of all. When the EI fund swells from excess contributions, and sacrifices of the unfortunate, the government steals the money under a scheme to buy votes from the same people they robbed. The media are pussyfooting around this profanity just like they downplayed the (Heritage Minister's) flag caper, the survival of the GST, the (P.M.'s) NAFTA boner, the (Health Minister's) paper wars with gun-toting non-criminals and the hepatitis C charity farce, the chopper flip, the Pearson airport disgrace, another Quebec armoury with no arms to put in, and the 64-cent Canadian dollar. The big-mouthed watchdogs of public good in the media all play dead for the Liberals.
The reason I am standing here today is because the Minister of Finance did not answer my question. Perhaps he could have answered my question with the statement he gave on October 17, 1994. He said then “We believe there is nothing more ludicrous than a tax on hiring. But that is what payroll taxes are. They have grown dramatically over time. They affect lower wage earners much more than those at the high end”.
Perhaps the government can explain why it does not listen to the auditor general who has commented that it would not be legal to use the premiums or make payments from the account for other purposes other than those stipulated in the Employment Insurance Act.
The minister knows the law. His parliamentary secretary knows the law. Why do they insist on breaking the law?
I will ask the question again. Perhaps the parliamentary secretary will be able to delete the rhetoric from his speech and tell Canadians why they cannot be given back the entire amount of the over-collection. When will the premiums reflect the cost? When will the government become fiscally responsible and live within its means, for surely the lowly taxpayer must? Why can the government not live within its means, just obey the rules and have premiums reflect the true cost of the plan?