Mr. Speaker, I thank the member for raising this important issue. The government is very sensitive to the concerns of families caring for persons with disabilities. Many Canadian families face additional costs related to the care of a dependant relative such as an elderly parent or an adult child with a disability.
In budget 2004, the government modified the income tax rolls to allow caregivers to claim up to $5,000 of the medical and disability related expenses they incur on behalf of their dependant relative. Building on that measure, in budget 2005 we proposed that the maximum amount of medical and disability related expenses that can be claimed by caregivers be doubled to $10,000 from $5,000, beginning with the 2005 taxation year. This measure alone is estimated to increase tax assistance by $15 million in 2005 and 2006, growing to $20 million by 2009-10.
This measure represents but the first step in the government's broadly based commitment to increasing support for caregivers. The government is working with the provinces and territories to develop a comprehensive caregiver strategy involving a range of different supports for spouses, for children, for close relatives, for friends who care for seniors and for persons with disabilities.
One of the Canada Revenue Agency's responsibilities is to rule on whether or not an employer-employee relationship exists that would qualify workers for benefits under legislation such as the Employment Insurance Act or the Canada Pension Plan. These benefits include such things as job security during maternity leave, employment insurance benefits if they lose a job or disability payments if they are unable to work.
Anyone who is an employer must remit EI premiums and CPP contributions based on the insurable and pensionable earnings of the employee. We can understand why the administrative and financial responsibilities involved with employer status might be of concern to a family with limited resources relying on a grant to engage a caregiver, but that cannot justify denying hard-working employees the benefits of Canada's EI and CPP programs to which they are entitled in law.
When a ruling is required on the employment status of a worker, the Canada Revenue Agency applies the common law principles established by the courts to reach such a determination. The ruling on employment status can be appealed and is subject to an independent review within the agency. If the ruling is confirmed, it can be appealed further to the Tax Court of Canada.
In conclusion, let me say that I think it is important to highlight the remarkable work done by the Minister of National Revenue with respect to this issue. I have had the chance to get to know the Minister of National Revenue as a colleague. In fact, we sat together on the other side of the House when we were elected in 2000. He is a man of great compassion. He is very sensitive to these important issues. He is making enormous efforts to sensitize his department and the employees to the very important needs of these caregivers.
After all, these people are looking after some of the most vulnerable people in society. They need the government to be sensitive to their needs. Many of these people, including those in my own constituency, are not wealthy people, and the Canada Revenue Agency needs to continue to do what it can to make policies and apply the legislation in a way that is sensitive to the special needs of these people while at the same time respecting the application of the law.