Mr. Speaker, I am pleased to have the opportunity to speak to Bill C-2. To begin, I would like to comment on the last remark about Canada's embassies around the world.
Canada's embassies are very important, and the hon. member opposite knows that. They are important in terms of trade relationships and creating jobs, which the bill is indeed related to. Never mind the malarkey in terms of trying to make a fuss about the cost of an embassy. They are an important part of the Canadian government. I am glad they are there to represent Canada in our business relations and other relations around the world.
I also wonder why the hon. member opposite is so excited about our embassy when Quebec is out there setting up its own embassies and duplicating what is already there. That is where the real waste is, in terms of the embassies that the Quebec government is establishing.
As I said, I welcome the opportunity to speak on Bill C-2. I especially welcome the amendments to the act. It is a very good step forward to improvements on the original bill.
Quite a number of members on this side of the House had serious concerns about certain parts of the bill, especially the intensity rule. That is why, in 1996, we welcomed the proposal to monitor the impacts of the bill. Bill C-2, which is all about making positive changes where needed, is a result of that monitoring.
We want EI to work the way it was intended, and that is to offer temporary support to workers who are unemployed so they can rejoin the workforce. I am pleased that for the most part the provisions of the employment insurance program are working the way they were intended.
My contribution to the debate will be to explain the proposed changes to the intensity provisions. The original thinking behind the intensity rule was to provide a greater incentive to work and to reduce dependence on EI as an income support.
Some thought the intensity rule would accomplish this by reducing the benefit rate of frequent claimants from 55% over time to 50%. In other words, the benefit rate would be reduced by one percentage point for every 20 weeks of regular benefits collected over the past five years.
The rule has proven to be ineffective. The monitoring and assessment reports indicate that the proportion of EI benefits paid out to frequent claimants has remained stable at around 40%. There is a reason for that of course, and it is the availability of work in certain areas. In a country like Canada we naturally have a lot of seasonal industries.
The government has done much in terms of creating the economic conditions for the creation of jobs. We got rid of the deficit. We have introduced new initiatives. In my region we have better utilized the regional development agency, ACOA. We are implementing the Atlantic investment partnership, and are basically there as a government trying to create more year round jobs, more full time jobs and longer periods of work for people in seasonal industries.
These initiatives and others across Canada have improved the employment picture with the creation of over two million jobs since 1993. However, Canada will always have seasonal industries which, by their very nature, require seasonal workers.
My colleague, the member for Egmont, mentioned his riding and the seasonal workers there. These are important industries. Workers in the agriculture and fisheries only work at certain times of the year because of the nature of the industries and of our climate. However, those workers are important to the economy. They contribute to the economy in a very great way.
Therefore, while the intensity provisions make sense in theory, in practice we have found that they do not curtail repeated use of the EI system, especially in areas where there are few opportunities for employment. As a result, we are quite concerned that they have become a punitive measure. I have also called the intensity rule a penalty on seasonal workers, and this bill proposes to change that and withdraw the penalty.
The bill proposes to eliminate the intensity provision altogether and to reinstate the benefit rate at 55% for all claims. These claims, as we said many times in the past, will be retroactive to October 1, 2000.
The government remains fully committed to the goals of the EI reforms introduced in 1996. The program is called employment insurance. It is designed to provide temporary income replacement and to help Canadians prepare for and obtain employment.
Yes, the Canadian economy has been doing extremely well but not all workers enjoy the full benefits of a healthy economy. Some areas in every region continue to have high rates of unemployment. Workers in those areas deserve our assistance.
I ask all hon. members in this place to note that these proposed changes will not affect just the Atlantic provinces. Sometimes we are pegged with that image. Eliminating the intensity provisions will benefit forestry workers in British Columbia, construction workers in Ontario and tourism workers in Quebec. It will put more money in the pockets of those workers so that they are better able to provide for their families.
During this debate I would ask hon. members to keep in mind that EI is just one of a number of ways to help unemployed Canadians. I think we all agree that increasing employment opportunities is a partnership exercise involving the provinces, the territories, communities, and business and labour organizations.
I know that seasonal workers very much want to increase their job prospects. They understand that long term solutions will be found through improving their skills and the economic development in their particular regions. The Liberal government will continue to strive in that direction, working with its partners to expand and diversify the local economies.
The amendments proposed in the bill will certainly help in terms of assisting those families, especially where there are seasonal industries with important workers in our economy. I encourage all members to support these amendments so that the bill may pass quickly through the House, so that those people at work can contribute to our economy, and so that those people who work and contribute to our economy in those seasonal industries and have been unfairly penalized by the intensity rule will now see it withdrawn and will be able to receive full benefits, as is intended by these amendments.