Mr. Speaker, I rise today to support the motion brought forward by the member for Ahuntsic. It is well timed and well received by the House. We are certainly going to support it.
It gives me great pleasure to address Motion No. 395 in regard to indexing of the family supplement. Motion No. 395 represents everything that the government stands for. It represents our firm belief in supporting children and families. It represents our commitment to providing financial support to those in need and it represents the government's effort to ensure a fair society.
These claims are not an idle boast. Since forming the government in 1993, there have been a number of measures on a number of fronts that have improved the lives of families and children. In 2002-03 alone federal investment and child benefits through the national child benefit and the Canada child tax benefit amounted to $8.2 billion. Approximately $5.9 billion of this sum went to low income families.
The Canada child tax benefit is already indexed to inflation. This indexing indicates that the government is not adverse to the idea presented in Motion No. 395 with respect to the family supplement. Budget 2003 also reflected that support to children and families as a fundamental plank in the government's program. The budget increased the national child benefits supplement to $965 million a year by 2007, and committed $900 million over five years to improve early learning and child care programs and services.
Employment insurance also plays a major role in providing families with low income support in their time of need whether it is owing to job loss, sickness or temporary maternity or parental leave from work. The current employment insurance program is a reflection of the government's willingness to take action to keep government programs and services in tune with the current needs of Canadians.
When the government replaced unemployment insurance with employment insurance, after extensive consultation with citizens, it committed to monitor and assess the new program to ensure that it kept abreast of the changing needs. That is precisely what we are doing now in discussing this motion on indexing the family supplement.
The family supplement was implemented as part of the major 1996 reform. It replaced the UI dependency provision and was designed to provide more targeted support to unemployed low income families. Under the previous legislation, eligibility was based solely on the income of the claimant and not total family income or the earnings of the spouse.
The EI family supplement, however, is based on family income. Only one spouse in a family can receive the family supplement at a given time. This method has been proven by the EI monitoring and assessment report to be a more effective targeting to low income households than the dependency provision under UI.
The family supplement tops up the benefits to employment insurance claimants in low income families with children whose annual family income is less than $25,921, thus providing these families with added support.
As well, for those who receive the family supplement, the employment insurance benefit rate is 80% of insurable earnings compared with the regular rate of 55%. Recipients of the family supplement also receive the Canada child tax benefit. The 2002 employment insurance monitoring and assessment report indicated that the family supplement was effective and was responding as it was designed to do.
The 2001-02 family supplement benefits amounted to $176 million. The number of low income people receiving them was 187,000. This translates into 10% of all employment insurance recipients receiving a higher benefit as a result of the family supplement.
Indeed, the proof is in the pudding, as the saying goes, and as a result of the introduction of this reform, benefits for families receiving the family supplement are 38% higher than they were under the old system prior to 1996.
There is no argument that the family supplement works. The question then is, is it working as effectively as it might? The income ceiling for receiving the family supplement has been frozen at $25,921 since 1996. In the intervening years, inflation and salary increases have eroded the number of recipients eligible for this benefit.
Let me close by congratulating the member for Ahuntsic for bringing forward this motion. I know it will receive broad support. Certainly the people of Haliburton—Victoria—Brock support it 100%.