Mr. Speaker, I am pleased to respond on behalf of my colleague, the Parliamentary Secretary to the Minister of Finance.
The member's question was illogical when he first asked it in the House and it continues to be an ill-constructed sophistry.
I want to make it clear that municipalities are treated no differently than any other employers. All workers and employers are required by the Employment Insurance Act to contribute EI premiums on all insurable earnings up to an annual maximum.
The fact that the municipality as the employer raises revenues through property taxes is completely irrelevant. Municipalities are treated like any other employer.
Indeed, I would like to take the opportunity to point out that municipalities, like all other employers, have benefited from nine consecutive years of EI premium reductions. The government even reduced the premium rate for 2003 to $2.10 from $2.20.
As to legislation implemented in budget 2003, it set the 2004 premium rate at $1.98. This will mean savings for employers and employees of $1.1 billion next year compared to this year. This will represent the 10th consecutive annual reduction in EI premiums since 1994 and will result in savings to employees and employers, including municipalities, of $9.7 million next year compared to the 1994 rate of $3.07.
In conclusion, I want to reiterate that the EI program treats municipalities the same as any other employer.