Madam Speaker, the government is following the implementation of EI reforms very closely and, where necessary, is making the required changes to maintain the effectiveness of the program.
Fundamental changes introduced in 1996 continue to produce results and to help Canadians. Recently we proposed amendments to Bill C-2 in light of the recommendations made by the auditor general who feels that the process for setting premiums is not sufficiently transparent.
On February 22 the auditor general told the Standing Committee on Public Accounts that over the next two years work would be done on how the rates should be set in the future.
I therefore think that the bill buys time so that we can find a better way of calculating the rates paid by employees and employers. The Standing Committee on Finance has also indicated that the process should be reviewed.
Under these circumstances the government felt it was inappropriate to ask the commission to continue to set the rates.
In order to ensure stability and predictability the government will be suspending the commission's authority to set rates for a period of two years so that a thorough review of the process used can be conducted.