That is better than nothing, Mr. Speaker.
Bill C-280 introduced by my colleague, the hon. member for Manicouagan, is designed to put an end to government interference in the use of a fund that belongs to the unemployed. This bill establishes, on the one hand, an independent commission responsible for setting the EI premium rate annually and, on the other hand, an independent EI fund, that is separate from government funds, to be used exclusively for the stated purposes of the EI program.
During the 2004 election campaign, the FTQ, CSN and CSQ central labour bodies got together to form the Sans-chemise coalition. They displayed instructive signs in the vicinity of Liberal panels to show how outraged they were by the misappropriation of EI funds. The coalition took objection to the fund's loss of independence, with more than $46 billion having been misappropriated.
Extending the insult beyond the party, the MP for Outremont's campaign team acted in a way that was contrary to the freedom of expression and to Canadian election law by removing the signs of the Sans-chemise.
As the signs of the Sans-chemise said, “The Unemployed have been Robbed”. By setting the premium rate too high, the Liberals have accumulated huge profits at the expense of the unemployed. Indeed, $46 billion has been used for purposes other than those originally intended. This bill will ensure that the EI fund is finally a fund separate from public accounts, to be managed in the interest of the recipients of the EI program, by them and for them.
This independent employment insurance fund is designed to be used exclusively for EI purposes, with the rates being adjusted to avoid running huge deficits or surpluses, as is happening right now. In other words, the money raised for employment insurance could not be used to finance health, heritage, defence and other non-EI related programs.
Many witnesses appeared before the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities, including Mrs. Sheila Fraser. The Auditor General of Canada stated that “the government did not respect the spirit of the Employment Insurance Act” in using the money in the EI fund for something outside the program.
The workers and union representatives who appeared before the committee are in favour of Bill C-280. They all want to see an independent EI fund. These witnesses say that the surplus belongs to the people who paid into the fund.
Indeed, the witnesses who appeared before the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities are unanimous. There was also unanimity among committee members from all four parties. All these favourable responses to the idea of setting up an independent EI fund must translate into unequivocal support for this bill presented by the Bloc Québécois.
If we all agree, in committee at least, on the creation of an independent fund, we must also make changes to the employment insurance commission and to the way in which premium levels are set. This bill includes these vital elements of a sound EI plan.
The bill put forward by my colleague from Manicouagan seeks to establish a neutral and impartial Employment Insurance Commission. This bill proposes the establishment of a tripartite commission composed of 17 members where employers and employees would formed the majority. These are the people who benefit from the EI Fund and who pay into that fund, and it makes sense that they would have a majority as far as the management of the program goes. Moreover, having groups of employers and employees represented on the Commission would make it more independent from the government.
By proposing the creation of such a commission, the Bloc Québécois is responding to the request of the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities.
We still have to deal with the setting of the premium rates. The EI account is not supposed to make astronomical profits, nor is it supposed to make deficits. It should maintain a certain balance and keep a reserve in case of an economic crisis.
Currently the premium rate is too high and the surpluses are not properly redistributed. To thank the unemployed for their $46 billion contribution, last fall the government announced it was lowering premiums by 3 cents per $100 of insurable income. This was a purely arbitrary decision. This government is laughing in the unemployed workers' face.
To prevent the government from arbitrarily setting the premium rate according to which way the wind blows and what its electoral promises hold, Bill C-280 proposes that the premium rate be set by the Employment Insurance Commission.
The commission would determine a rate that would ensure a fair premium during a three-year business cycle. In this annual report, the commission would explain its decision and analysis, a decision that would ensure that there is enough revenue to pay the expenses authorized on the employment insurance account.
I remind you that, between 1972 and 1996, it is the commission, not the government, that was setting the premium rate. During these years, the employment insurance account was viable and was doing well, without merrily taking advantage of workers and the unemployed. The calculation formula of the basic premium rate was very simple. It was the average basic cost of the benefits, minus the amount required to reduce or eliminate the deficit or the surplus in the employment insurance account.
With this formula, it was impossible to have a cumulative balance such as the one that we now have. In any case, since 1990, the employment insurance system is self-supporting, because the federal treasury stopped contributing to it, but is merrily dipping into it.
Consequently, I suggest to all my colleagues who take the interests of their constituents to heart and who want a fair balance in the employment insurance system to vote for the creation of an independent employment insurance fund, for the creation of the employment insurance commission and for Bill C-280.