Madam Speaker, I appreciate the opportunity to speak on this very important piece of legislation. This bill illustrates once again the progressive agenda of the government.
The agenda was set with foresight in the beginning and has been followed consistently ever since. This is an agenda that was vindicated by Canadians in the last election. The critics of the government claim that the contents of Bill C-2 represent backtracking on the reforms introduced in 1996. Nothing could be further from the truth.
If members will recall, it was generally agreed during the early days of this government that the unemployment insurance scheme had to be replaced. Everybody agreed to that. After much consultation with Canadians and despite the outraged cries of the opposition, the government brought in a program to replace the old regime with the employment insurance program.
The new plan was designed to be sustainable, to be fair, to encourage work, to reduce dependency on benefits and to assist those in need and help workers get back to work and stay at work. These goals are being achieved by the employment insurance program.
The program was implemented with the knowledge that being new it would not necessarily be perfect. We knew that time would show up areas requiring improvement. The legislation allowed for a period of continuous monitoring and assessment of the program to measure its impact on people, communities and the economy.
This is not the first time adjustments to the EI regime have proven necessary. The government acted quickly in 1997 to launch the small weeks pilot project in order to correct a disincentive for some people to work weeks with low incomes. Our studies and discussions with Canadians have shown us that while many parts of the EI program are working well, there are some provisions that have proven ineffective or in some cases, punitive, particularly toward seasonal workers.
We have always had and always will have seasonal industries in Canada. These industries are in fact vital to our economic well-being. Because these industries by definition employ people for only part of the year, we must ensure that our economic and social programs include these workers.
While EI aims at helping all unemployed workers, we also have to recognize that some groups, such as seasonal workers, have particular needs and that the program does indeed have special features built in to benefit seasonal workers. The hours based system, for example, takes into account the fact that seasonal work often includes long hours of work over a short number of weeks. As a farmer I can attest to that.
As I have mentioned, one of the intentions of the EI program is to reduce dependence on benefits by all Canadian workers, including of course seasonal workers. The so-called intensity rule was therefore introduced to discourage the repeat use of EI benefits by reducing the benefit rate of frequent claimants. It was designed to encourage people to take work.
However, we have gone through a period of unprecedented economic growth and not all Canadians have benefited equally. Seasonal workers tend to be among those whose fortunes have not improved in step with the overall economy. Some regions still experience double digit unemployment rates. This is reflected in our monitoring and assessment reports. They indicate that the proportion of benefits paid out to frequent claimants has remained stable at around 40% since the introduction of the intensity rule.
The unavoidable fact is that many seasonal workers may have little choice but to resort to EI benefits. There simply may not be enough job opportunities available to them in the off season. In other words, what was intended as a disincentive to rely on benefits has become a punitive measure where there are few alternatives available. That is why Bill C-2 proposes the removal of the intensity rule.
Meanwhile, to provide a real solution to workers in these circumstances, the EI program retains one of its most important provisions, the active measures under part II, the employment benefit support measures.
Using these instruments, the government will continue to work with the provinces and the territories and at the local level to develop long term solutions that will diversify local economies and make them self-supporting in providing jobs. The long term solutions require a concerted effort by all levels of government, businesses, community leaders and other Canadians to develop effective measures.
We need measures to ensure that the necessary education and training opportunities are there for the workers in the seasonal industries. We need measures to promote economic diversity in communities that rely on seasonal work. We need measures to build the capacity of communities to become economically self-sustaining. The government continues and will continue to work in partnership with all Canadians to ensure that these measures are developed and put in place. That is our commitment.
In the meantime, we should not forget that the new EI system introduced in 1996 and subsequently improved remains effective, equitable and responsible. The hours based eligibility system provides access to benefits to people who were not previously covered, including some seasonal workers and part time workers.
The first dollar coverage introduced by EI has removed the incentive for employers to limit part time work in order to avoid paying premiums. The changes contemplated in Bill C-2 will improve the plan even further, helping to ensure fairness and to serve the interests of Canadians in the labour market.
The EI reforms of 1996 represented the most fundamental restructuring of the unemployment insurance scheme in 25 years. While debating the proposed areas of adjustment, we should bear in mind that the core elements of EI are being maintained because they work. I want to stress that. Why throw something out when we know it works. That does not mean that the program is fixed in amber.
The government will continue to monitor and assess employment insurance and make changes if it becomes apparent. It is just being flexible and that is what the government has always been all about.