Mr. Speaker, let me address the preamble to the question. I agree with the hon. member. I think an unemployment system that covers only 42% is a real problem. The government and all members of the House need to turn our attention in a creative way to making constructive suggestions on how to change the EI system so that it covers more Canadians.
However, I think we should learn from the lessons of the past. Perhaps writing someone a cheque on a biweekly basis may or may not make them more job ready for the economy that is coming as we move into the next century. We have to find ways to use the EI fund in a more creative manner. We have to find ways to use it so that it supports appropriate training or retraining in the adult workforce and people can find meaningful long term jobs.
By using the surplus in valid legitimate ways which will help people find lifelong jobs that pay decent wages is something we need to turn our minds to. I agree with the hon. member on that.
The argument about whether to lower premiums or increase benefits to unemployed people is somewhat a phoney debate. We can afford to do both. Certainly we do not want to lower premiums to the point where we have to raise them again if the economy goes into a recession. We have to be mindful that this is the worst time to be raising premiums.
They ask for empirical evidence to show that when premiums are lowered jobs are increased. We must remember that we compete at the level of the firm, a starting point in economics. When the cost to firms of doing business is lowered it gives them the opportunity to make investments, to expand their production and to hire people.