Mr. Speaker, the government is committed to job creation and economic growth and it is making considerable progress on that front. Evident from a steadily declining unemployment rate, we intend to see this downward trend continue. The EI premium rate must ensure that there is sufficient revenue each business cycle to pay EI costs at relatively stable rates.
The current surplus makes prudent provision against rate hikes in the event of unforeseen economic and global changes. It also allows the government to address unemployment where it is most severe. For example, similar in concept to the 1997 and 1998 new hires program, the 1998 budget gives employers who hire more young Canadians in 1999 and 2000 an EI premium holiday.
We must also remember that just three years ago the federal government's deficit was $42 billion. At that time the government looked at all aspects of the fiscal situation and there is no denying that EI surpluses played a role in restoring fiscal health. This was not done in isolation, however, and complemented other difficult decisions.
EI premium rates have been declining since 1994. This year's decrease from $2.90 to $2.70 will save Canadians $1.4 billion in 1998 and premiums will continue to decline as the fiscal situation permits.