Mr. Speaker, the Minister of Human Resources Development has indicated on many occasions that his department is conducting a review into why the percentage of unemployed Canadians receiving benefits is declining. We do not believe it is simply due to changes in the EI system. We believe the problem is far more complex than the hon. member is suggesting.
It may be that changes in the economy and labour market are resulting in more self-employed workers who are not eligible for EI. It could also be discouraged workers returning to the labour market as the economy improves. They have no recent work experience and therefore are not eligible for EI. That is why we are focusing on re-employment measures.
In terms of making changes to the employment insurance system, as the member knows, the former unemployment insurance program was 25 years old and in need of a massive overhaul to meet today's new demands. Canadians would not be satisfied with a step backward to an obsolete system as recommended by the opposition. Instead the federal government is working with the provinces to provide real solutions for unemployed Canadians.
We will spend an additional $800 million per year on active employment benefits under EI bringing federal funding to more than $2.7 billion annually by the year 2000-01. These benefits are about helping Canadians with the assistance they need to get back into the workforce.
We are also creating more new durable jobs by using the three year, $300 million transitional jobs fund that is now in place to help high unemployment regions.
We are also co-operating with provincial and territorial governments to deliver these benefits in the best possible way. Labour market development agreements are now in place or under discussion in all provinces and territories. Decisions on the best way to help the unemployed get back to work must benefit from the knowledge and insight of those most closely in touch with local markets.
We have confidence that these measures will be successful in helping the unemployed return to productive employment. As employment growth continues and the number of unemployed falls, the ratio of benefits to unemployed should also rise again.