Mr. Speaker, I thank the hon. member opposite who asked for clarifications on such a complex issue. In spite of his good intentions, I would like to correct some of the points he made, which I feel are completely wrong.
Allow me first of all to say that we have taken a balanced and careful approach in our management of the employment insurance account, improving the benefits and reducing the premiums.
In fact, the employment insurance plan is working well. It is strong and meets the needs of Canadians when they need help. According to the 2000 Employment Insurance Monitoring and Assessment Report, 88% of paid Canadian workers would be eligible for benefits it they needed them.
In fact the surplus in the EI account today is due largely to the fact that the economy is doing well and unemployment rates are lower. More people are paying premiums than collecting benefits, and this is good news.
Since 1986, the EI account has been consolidated with the books of Canada on the advice of the auditor general at the time. On March 19 the current Auditor General said, at the public accounts committee, and I quote, “In our view, this is the correct method of accounting and it complies with accounting standards”.
Moneys can only be charged to the EI account to be spent for purposes of the EI program but revenues in the account are available for general purposes until required for EI expenses. In recognition of the temporary use of EI revenues, interest is credited to the EI accounts when it carries a surplus.
We must be cautious in our management of the funds in the employment insurance plan in order to ensure its viability. Of course we do not want to find ourselves in the situation where we would have to increase the premiums to absorb a deficit.
The employment insurance premiums have been reduced over the last eight years. Indeed, we reduced the rates from $3.07 in 1994 to $2.20 in 2002. This decrease will allow contributors to save approximately $6.8 billion in 2002 compared to 1994.
I challenge the hon. member's comments about the employment insurance account. We have improved the benefits; we have extended from 25 to 50 weeks the parental and maternity benefits period. Mothers who apply for sickness benefits before or after having applied for maternity benefits can now get all their special benefits. The pilot project for small weeks is now an integral part of the employment insurance plan. We have removed the intensity rule and adjusted the clawback provision.
The member opposite was present at the committee meetings when we discussed this. Moreover, the employment insurance plan includes several provisions to help low income families. The Government of Canada is committed to keeping a close eye on the employment insurance plan and assessing it to ensure that it keeps meeting the needs of Canadians.