Mr. Speaker, I will continue my remarks from yesterday evening. It is important that all Canadians acknowledge and realize that this system pertains nationwide. It is not limited or directed to any one region of the country.
The problems that exist in the system currently could very much be improved if the government took the time to listen to seasonal workers and to its own employees who handle EI problems in places such as the maritimes. They have suggested on more than one occasion that one method of improving the system and improving the method of determining EI benefits over a pay period would be to have it scrapped and replaced with a system of declaring hours worked on a weekly basis. If people do not work during a certain week they do not declare the particular week.
It is obvious that the EI system has major inadequacies that are placing Canadians who need help into tremendous debt. I have written personally to the current minister and the previous minister on a number of occasions, and I have not had the pleasure of a response, sadly.
On the issue of undeclared earnings, I wrote the HRDC minister over two years ago but have not received a response. Even then public concern over the inequity was growing. I have subsequently written again and the minister has not responded.
The Conservative Party is generally supportive of Bill C-2, but our support is conditional on the bill going before the committee so there will be further analysis and hopefully the opportunity to put forward amendments and changes, if necessary.
We are supportive to the extent that the bill will remove the existing intensity clause and will be committed to fixing the so-called repeater's rule which made it virtually impossible for a woman to receive employment insurance if she left a job to have a second child. However the Conservative Party does not support the government's refusal to deal with artificially high EI premium rates.
We would welcome the opportunity at committee to enact some of the changes we proposed and put forward during the recent federal election. Those included support for the continuation of an independent employment insurance commission and its role in recommending sustainable EI premiums.
The current legislation would give cabinet the power to set premiums for 2002 and 2003, which actually gives the government a further year to study the premium setting. This was the case with the previous Bill C-44. The thought of having this provision removed from the independent body and handed to the cabinet and the finance minister is unacceptable.
Other groups, such as the Canadian Restaurant and Foodservices Association, have spoken out against the move. The Conservative Party supports the CRFA and its opposition to the Liberals' approach, which is seen as very paternalistic and a manoeuvre that would create more problems than it would address.
We are also committed as a party to the investigation, with the employment insurance commission, of a proposal that would move toward the establishment of an individual EI account and an EI rebate program that would enable workers to roll a portion of their EI contributions into an RRSP upon retirement.
There is no reason why EI rates are so high. At the end of last year the EI account had a cumulative surplus of over $35 billion. The $2.25 employee premium rate will drive the cumulative EI surplus above the $40 billion mark by the end of 2001.
The recent auditor general's report blasts the government for the way in which it has handled the account. The auditor general rightly points out that the EI surplus is well over twice the maximum amount that the chief actuary of HRDC considers sufficient as a reserve for the account. This is because of the unnecessarily high premiums that the government refuses to significantly reduce.
As seasonal workers in Atlantic Canada and across the nation suffer from the Liberal cash grab, it becomes very frustrating for a member of parliament who represents an area with many seasonal workers and high unemployment, such as Guysborough. There is great frustration among those workers and employers when premiums should and could be reduced to the $1.90 mark from the current level of $2.25.
There is ample opportunity for the government to correct the inadequacies in the bill. We look forward to the opportunity at committee to bring forward amendments that would improve the legislation.