Mr. Speaker, I congratulate you on your appointment to the chair.
Bill C-2 was known in the last parliament as Bill C-44 and is known more by its unofficial title of the Liberal Atlantic Canada re-election strategy. The parliamentary secretary has explained some of the details of the bill so I will not go into them. However, I will say that the official opposition does not support the approach the government is taking on these amendments.
We are not alone. There are people and organizations across the nation who feel that this is not the right direction to take: the Canadian Restaurant and Foodservices Association, the Atlantic Institute for Market Studies, the St. John's Board of Trade on the east coast, the Vancouver Board of Trade on the west coast and probably all the boards of trade in between. Even the Canadian Federation of Labour has problems with the bill.
When the bill was first introduced last fall, this is what Catherine Swift, president of the Canadian Federation of Independent Business, had to say:
After several years of making some steps in the right direction on EI policy, this is a U-turn that hearkens back to the 1970s—a big spending government promoting dependency on programs, instead of solid economic growth. We thought they had learned something from the mistakes of the past.
We also have the International Monetary Fund report. Last week the finance minister was bragging about how the IMF supports Canada's economic incentives and economic and fiscal policies and said that he had received high praise from the IMF. However, he chose to ignore paragraph 8 in the report, which I should like to read into the record. It states:
Comprehensive reforms enacted during the 1990s to the Employment Insurance (EI) system and to social assistance programs and the introduction of the National Child Benefit have enhanced the flexibility and efficiency of the labour market, boosting employment growth and helping to reduce structural unemployment. Pressures to ease the impact of some of these reforms—particularly the 1996 EI reforms—have intensified as they have become more binding. The Government has mitigated the intended effects of some of the reforms and has proposed to rollback others. In particular, the IMF staff sees the proposed elimination of the intensity rule, which was designed to discourage frequent use of the system, as sending the wrong signal. Frequent use of the system, along with the provision of extended EI benefits for high unemployment regions for a prolonged period of time, has had adverse effects on the behaviour of both workers and employers, has significantly raised reservation wages in high unemployment regions, and has reduced labour mobility. In addition, the recent experience in the United States suggests that labour market flexibility is an important factor in fostering the rapid adoption of productivity-enhancing new technologies. Therefore, the IMF staff continues to endorse the implementation of new measures to reduce the frequency of EI use (such as experience rating of the EI premium rate, which would tie the rate for individual firms directly to the use of the system by their workers) and the elimination of regional extended benefits.
This quote is from the International Monetary Fund, which the finance minister seems to think is highly supportive of government policies. This is one area in which it has recommended and suggested to the government that the change in direction is not in the best interests of the economic future of our country.
If IMF support is so important in all other areas and if its recommendations are so valid in all other areas, why does the government turn its back on the recommendations that the IMF put forward on the EI insurance program?
The question is, with this coming from the IMF, why would the government go in this direction which retreats from the very policy that the IMF claims is having a beneficial economic impact on Canada.
We in the official opposition feel that it is extremely important to get the bill before the standing committee on human resources so that the committee can hear witnesses and have an indepth study to look at the EI program and the benefits and lack of incentives that are being proposed.
We would like to put Bill C-2 before the House of Commons and have the government, which said it was in favour of parliamentary reform, let the bill pass through to committee in a very real and meaningful way.
Let us see whether the government will seriously listen to all aspects of the discussion from witnesses who have a lot to say about the legislation. Let us see whether the Liberal government will actually allow committees to do their job, to listen to witnesses and to come up with recommendations to change the legislation and make it more meaningful.
The Canadian Alliance would like to see whether or not the government is willing to look at some of the concerns that have been expressed. One concern that has been expressed is that the legislation is taking the control or responsibility from the EI commission and placing the rate changes in the hands of cabinet.
There is a real concern out there, not only in the Canadian public, among workers and employers alike, but in labour commissions and labour organizations, that the government is trying to control this fund to a degree that we have never seen before. Instead of having the employment insurance program at arm's length from government, the government is reaching in and bringing in total control over the EI program.
One has to ask oneself why this would happen. Why would the government want to have this kind of control? A surplus of $40 billion may be all that is needed to see why a government would want to do this. The EI fund is reaching the point of having a $40 billion surplus. I think the government would like to see this as its personal slush fund to use at will rather than for the purpose it was intended.
The chief actuary for the fund has indicated that a $15 billion surplus is all that is required in the program. I would like to look at last year alone. EI premiums last year were $18.511 billion. That is money coming in. EI benefits paid out were $9.3 billion. That leaves a $9.211 billion surplus in this fund which the cabinet wants to control. I suggest that is the wrong direction for the country to take. It is wrong from the employer point of view and from the employee point of view. It is wrong from every way we look at it for the cabinet of a government to have control over that kind of money, which was put in place for a specific reason.
I am sure the poor working person who is paying employment insurance premiums does not want to continue paying an inflated amount of money so that the government has access to a huge surplus fund to use whenever it wants. When these surpluses were brought to the attention of the government, what did it do? It reduced premiums by 25 cents, a small, piddly amount.
The reality is that every worker could stop paying EI premiums for two years and we would still have the surplus in the account that is required, according to the chief actuary, to have a stable fund. We could go two years without any premium payments and the fund would be where it should be.
We must ask ourselves why the government is so intent on keeping employment insurance premiums to a level that gives it surpluses every year, to the point of building a surplus fund of $40 billion. The reason is so that the government can balance its books. It is balancing its books on every working person and on every business person who provides jobs for working people. That is not fair. It is not right and it has to stop.
In its August 1999 unemployment insurance bulletin, the Canadian Labour Congress states “The UI fund must be separated from the government accounts, and the authority and autonomy of the UI commission must be strengthened”. That needs to be brought before the committee of parliament. It needs to be reasoned out. We need to find a way of strengthening the EI commission, of putting it at arm's length from government and taking control of it away from the Canadian government and cabinet.
This is only a drop in the bucket for the government, which takes things out of the public eye, away from commissions that do business up front, and puts them behind the doors of a cabinet meeting. It puts things beyond the reach of ordinary Canadians to understand or to know what is going on.
It is distressing to me to see that we will be continuing this direction with a government that has told Canadians it will be more transparent and more open. We see that the very first legislation to be introduced in the House of Commons is doing precisely the opposite. The government is taking something that is open and transparent and putting it behind closed cabinet doors.
More than anything else, the thing that distresses a lot of Canadians and me personally is the importance that the government places on making small amendments to the employment insurance legislation rather than looking at creating an environment of long term permanent jobs for Canadians across the country from coast to coast.
Five years ago the Liberals announced changes to EI. The Prime Minister stated “we wish to provide an incentive for people to work instead of receiving social benefits”. We have to wonder why the government is turning away from that challenge.
The Minister of Finance, the Minister of Human Resources Development and the Prime Minister have said that the best way to help unemployed people is to put them to work, to give them jobs, to have jobs created so that they can find employment. I suggest that the government has done little to create any employment. The parliamentary secretary claimed that there were 400,000 jobs created in Quebec and 2.1 million jobs created across the country. I challenge her, in that it was not the federal Liberal government that created those jobs. The small business community and the business community created those jobs.
The Minister for International Trade pointed out last year that 85% of these new jobs were created due to trade. Most of the increased trade is due to the free trade agreement and NAFTA, and let me remind Canadians of elections past when the Liberals opposed the free trade agreement and NAFTA. They violently opposed free trade and NAFTA until they formed the government.
There are some things that the government could do. The first is to substantially reduce personal income tax.
By leaving money in the hands of consumers, the government could have increased the purchasing power of Canadians. It does not take a rocket scientist to know that by increasing the purchasing power of Canadians one increases jobs. There are provinces that have shown that this works. There are provinces that had the courage to do what had to be done and they saw the benefits. The federal government did not have the courage.
If the government really wanted to do something concrete, something that would benefit the economy, it could have developed a vision for a national transportation infrastructure strategy program.
I am amazed that the government has such little insight and foresight and such little incentive to place the country in a position where we can compete in the North American marketplace and compete internationally.
The Liberal government is not even paying lip service to the development of a national transportation strategy. While our economy has grown, we are still relying on a transportation system that was built almost a half a century ago. We think the system should be adequate enough to service our people and our goods. In many places, the movement of people and goods is in total gridlock while the government sits back and does nothing.
The port of Halifax is a very good example of what could have been. Two years ago Halifax was bypassed as this continent's Atlantic super port. Halifax has an excellent port. It is much more convenient to Europe. Why was it bypassed? It was bypassed because there was no adequate infrastructure to move the goods from the port to the North American trade market, to the cities and towns that would be using the materials brought in. There was no adequate railroad access to the market. Why did New York get it instead of Halifax? It was because there was no adequate infrastructure program in place to support the Halifax bid.
Think of the jobs that the transportation infrastructure strategy would have created, not only in Atlantic Canada but in the north, long term jobs that would have benefited the future economy. Where is the strategy, the planning and the insight? The strategy is not there. The vision is not there.
The government wastes money on grants and all kinds of things, but it does not put money where it would have a meaningful impact on the growing economy of our nation. It is not just Atlantic Canada and Quebec, it is also the north. The north has the capacity and the potential of some major developments and megaprojects. The north is an area of traditionally high unemployment and it is waiting for something to happen.
The aboriginal community in the Northwest Territories is prepared to negotiate for the Mackenzie River pipeline. There is also talk of a gas pipeline from Alaska coming down through the Yukon to join the existing pipeline network that currently extends as far as northern Alberta. Alaska is also seeking a rail link from that state to join our northern rail lines that only go as far as Fort Nelson and Dease Lake in northern B.C.
People in the Northwest Territories are also talking about extending the Mackenzie Highway from its current northern terminus at Wrigley all the way to Inuvik. The extension of this highway would assist in opening up the vast untapped mineral reserves of the Northwest Territories.
Let us not forget our new territory, Nunavut, which would like a road link with the rest of Canada. While these projects would undoubtedly cost billions of dollars, they will also return billions of dollars to the federal government coffers through taxes and royalties. Equally important is that they would provide hundreds of thousands, if not millions, of man years of employment, good paying long term employment.
If the Liberals were truly interested in an employment strategy for the country, they would be in extensive negotiations with the territories, the western provinces, the American and Alaskan governments, northern aboriginal communities, environmentalists and the business community on how they could develop our north. However there was not a passing reference to this kind of development in the Speech from the Throne, not even a mention of developing the north.
Instead of co-ordinating projects that would employ thousands of individuals, they tinker with the EI bill by making minor amendments. They are more concerned about keeping people on employment insurance than they are in providing them with good, long term, full time employment.
Nevertheless, because of the Liberal's lack of vision we are limited to debating a handful of amendments to the EI act. There is no vision of moving forward in a strong dynamic way by making great changes and great projects. We are talking about minor changes to an existing bill that does not address the serious problems of employment.
We will not spend a lot of time on the details of the bill at second reading. We want to move the legislation before a committee. We want to see whether the Liberal government is intent on opening up the process of reforming parliament to allow real discussion and real debate on employment insurance and what it should be doing and what it is doing. We want to see whether things can work differently and better.
We want the first bill being debated in the House of Commons to go to committee. We in the opposition will make a commitment to go there with an open mind. We hope the government will go there with an open mind as well, so that we can hear witnesses and people who specialize in this area and, if necessary, make changes to make the legislation better. I would like to see the bill serve as an indication of the willingness of the House to do things differently for the good of all Canadians.