Mr. Speaker, I am glad to have an opportunity to share my remarks today. I do have a question for my hon. colleague, but I will defer it.
The debate today is on EI. I am going to make sure that in this debate the context in which I make my remarks emphasizes transparency and a balanced approach. I am pleased today to share my thoughts on the motion presented by the hon. member for Acadie—Bathurst.
In February, the government announced a pilot project, which, over three years, will test whether a new method of benefit rate calculation will encourage workers to accept available work that could otherwise lower their weekly EI benefit.
This approach to benefit rate calculation involves using the best 14 weeks of income from the previous year in order to determine the employment insurance benefits paid to workers in areas of high unemployment. The hon. member's motion, as we have heard, would instead involve using the best 12 weeks of income.
As this House is well aware, EI is a key element of Canada's social safety net and economy. Last year, the EI program provided over $13 billion in income benefits to over 2 million Canadians.
The government is committed to ensuring that the EI program stays responsive so that Canadians can count on it when they need it. This is why we monitor and assess the program each and every single year. This ongoing analysis, published annually in the monitoring and assessment reports, confirms that the labour market is strong. It also confirms that the EI program, including the active measures to help people to develop their skills, is working well for the majority of Canadians.
The government also recognizes that labour market conditions vary across the country and within some sectors of the economy. Since 1996 we have been making improvements in our EI program to reflect the ever-changing labour market. These investments now total over $2.5 billion, the same number mentioned by my colleague. I think that is a substantial improvement.
These improvements have been based on the findings of the annual monitoring and assessment of the program and on the recommendations of various stakeholders.
The Government of Canada has pledged to address the most pressing challenges facing Canadians who turn to the EI program. That is why we have done what we are doing in our recently announced enhancements. These enhancements are significant measures that will invest an additional $300 million annually and benefit more than 220,000 Canadians each year from coast to coast to coast.
Our new EI benefit enhancements include three pilot projects in areas of high unemployment.
The first pilot project will test the labour market impact of reducing the eligibility threshold for newcomers to the labour market. It will enable individuals new to the workforce or who are returning after an extended period of absence to access EI benefits after 840 hours of insurable employment, rather than the current 910 hours, when linked to the EI employment programs. This pilot project is expected to benefit more than 16,000 individuals each year.
In the second pilot project, we will test the labour market impact of calculating individuals' EI benefits based upon the highest 14 weeks of income during the 52 weeks preceding a claim for benefits, or since the beginning of their last claim, whichever is shorter. I should add that this is similar to the standing committee's recommendation for a “best 12 weeks” approach to calculating benefits, but the government approach balances the need to ensure income adequacy while maintaining incentives to work.
For Canadians with sporadic work patterns, this enhancement means that EI benefit levels will better reflect their weeks of full time work. This initiative will test the labour market effects of improving incentives for individuals to accept all available work, including weeks of work that are shorter than their normal weeks. It is expected that more than 200,000 Canadians will benefit from this measure each year.
Our third pilot project will increase the “working while on claim” threshold. As this House is aware, the working while on claim provision allows Canadians receiving EI benefits to earn a certain amount from their employment without a deduction from their benefits.
To encourage people to take available work, our three year pilot project will increase this amount, allowing claimants to earn the greater of $75 or 40% of their weekly benefits before their benefits are reduced. More than 220,000 Canadians in regions of high unemployment are expected to benefit from this initiative each year.
In addition, we are continuing for a second year the pilot project introduced in 2004 that provides five additional weeks of EI benefits in areas of high unemployment. The aim of the project is to help address the annual income gap faced by workers with limited work alternatives.
We are also extending for an additional year until October 2006, the EI transitional boundaries provisions in the EI economic regions of New Brunswick and Lower St. Lawrence-North Shore, Quebec. Under these provisions, claimants in the two regions require fewer hours to qualify for EI and receive benefits for extended or longer periods.
The government recognizes that EI can only ever be part of the solution for responding to specific employment related issues that Canadians face. We know there is a need to build communities' capacity and to stimulate local economies to provide sustainable employment opportunities.
To this end, we work closely with regional development agencies, employers, community groups and labour representatives to explore new ways and new ideas to address these issues over the long term.
For all those reasons, I believe the government's approach to benefit rate calculation is a well-balanced approach that responds to the needs of Canadian workers. I can assure the House that the Government of Canada recognizes the challenges certain EI clients face on a daily basis.
We are committed to ensuring that this important program remains responsive to the needs of Canadians.