Before resuming debate on this bill, I am prepared to rule on the point of order raised by the Parliamentary Secretary to the Leader of the Government in the House of Commons on September 14 concerning the requirement for a royal recommendation for Bill C-308, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), standing in the name of the hon. member for Chambly—Borduas.
I would like to thank the parliamentary secretary for having raised this important matter, as well as the hon. member for Chambly—Borduas for his remarks concerning the bill.
In presenting his concerns with respect to the bill, the parliamentary secretary noted a number of its provisions which, in his view, infringed upon the financial prerogative of the Crown. Specifically, the bill reduces the qualifying period for benefits, permanently increases the benefit period, increases the benefit replacement rate to 60%, alters the benefit calculation formula, and increases the level of maximum yearly insurable earnings as well as introducing an indexing formula that would further increase benefits.
Furthermore, he pointed out that the bill would expand the employment insurance system to provide benefits for the self-employed.
In support of his contention that the bill requires a royal recommendation, the parliamentary secretary made reference to a Speaker's ruling concerning Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), presented during the 39th Parliament, found at page 4719 of the Debates of November 6, 2006. That bill was found to require a royal recommendation.
In his intervention, the hon. member for Chambly—Borduas put forth arguments very similar to those put forth in the debate regarding Bill C-269, mainly that the funds in the employment insurance account are paid by workers and employers and therefore do not constitute government funds.
The Chair has carefully examined Bill C-308, and compared it with Bill C-269 from the 39th Parliament and has also reviewed the reasoning in the earlier Speaker’s ruling. The Chair notes that Bill C-269 contained a number of provisions either identical to or substantially the same as those in the bill in the present case.
In my view, it is clear that Bill C-308 alters the terms and conditions of the existing program under the Employment Insurance Act. As for whether the funds in question are government funds, I refer hon. members to the ruling of June 13, 2005 at page 6990 of the debates which stated that:
Sections 71 to 77 of the Employment Insurance Act establish the operation of the employment insurance account as part of the consolidated revenue fund. Amounts are paid out of the consolidated revenue fund and charged to the account--
It is evident that the bill seeks to increase employment insurance benefits, thus increasing the expenditures under that Act. As the House is aware, such provisions can only be put to the House for a final decision if they are accompanied by a royal recommendation as set out in Standing Order 79(1).
Consequently, the Chair will decline to put the question on third reading of the bill in its present form unless a royal recommendation is received.
Today's debate, however, is on the motion for second reading and this motion shall be put to a vote at the close of the current debate.