Madam Speaker, I am pleased to speak today to Bill C-280, which was introduced by the NDP member for Algoma—Manitoulin—Kapuskasing. I want to thank her for putting this bill forward. There is some controversy around it, as we have heard from the Speaker, about the cost factor.
In the midst of this recession, where so many workers who have, through no fault of their own, found themselves unemployed and today quite desperate, Bill C-280 would begin the process of setting right those aspects of Canada's employment insurance system that have been shut down for so many Canadians since the 1990s, as we heard from the previous speaker.
On first examination, Bill C-280 appears to be relatively simple legislation, but I will remind members present that it has two significant objectives. The bill would create a uniform level entry for every person who made a claim for EI benefits by lowering the threshold hours for qualification to 360 hours for people in every region of Canada.
We hear from various media outlets that the Liberal leader is proposing the same 360 hours for qualification for EI benefits, but I would point out that the Liberal leader is in fact proposing only a temporary fix to the qualifying hours for just one year.
I want to be clear. This NDP member's bill, Bill C-280, proposes a permanent change to 360 hours for qualifying for benefits. In addition, Bill C-280 would ensure benefits to people based on their best 12 weeks of earnings in the year prior to their claim. You will know, Madam Speaker, that this would be a marked improvement over the current 14 weeks that are considered to set benefit levels today.
It appears from the comments of the Leader of the Opposition that current Liberals are actually interested in reforming employment insurance. We in the NDP have called for this for years. In fact, I would say the Liberals have a particular understanding of the current EI rules because much of what we need to repair today comes from the damage that they themselves inflicted on the system in the 1990s.
We will also recall it was during that period that the Liberal finance minister, later prime minister, the former member for LaSalle—Émard, not only changed the eligibility rules for employment insurance but the very name of unemployment insurance was changed to employment insurance. Those changes included a change of philosophical view regarding the contributions of workers and employers, that they now be viewed not as premiums for insurance but as being payroll taxes. The contribution/premiums acquired then could be directed to general revenues and debt reduction.
Turning EI into a tax on working people, fed Liberal surplus budgets and helped the Liberals justify implementing corporate tax breaks. Of course this was a passion shared by their friends of the day, the Progressive Conservatives. However, in fairness, I am pleased that the Liberals have done a 180° turn and now, apparently, at least as a temporary measure, share the our goal to see the threshold for benefits lowered to 360 hours.
Bill C-280 would put an end to the regional disparity in the qualifying period. This NDP bill would ensure the flow of EI dollars to more Canadians, who so desperately need them right now.
The existing EI rules set nine different sets of criteria in terms of hours worked for nine different ranges of regional unemployment rates. Workers in Canada may be required to have anywhere from 420 to 700 hours of eligible work to become a claimant for this benefit. This inequity is not suited for the kinds of job losses we see in Canada today. Regional unemployment rates are in flux and shift from day to day and week to week. EI must be better able to respond to this challenge. Common sense should dictate this, but I find common sense just is not common in the halls of the current government, or the preceding one, for that matter.
We are hearing support for changes to EI from some non-traditional places, such as the TD Bank and the Caledon Institute, both of which are saying that lowering the number of hours needed to qualify for employment insurance is the right thing to do to further combat the global recession.
These two particular groups clearly understand that EI not only serves the individual, but serves the communities' well-being and that of our nation as a whole. They understand very well that if we hang our workers and communities out to dry, it is not only bad for business but bad for the future of our country as a whole.
Across this country, Canadians will tell us very quickly there is much more to an economy than balance sheets and mathematical equations. For instance, Canadians know that the economy is only as secure as the lives of the people who make up our country.
The TD Bank and the Caledon Institute have taken a view of our economy that is both one for the long term, as well as for the short term. They recognize that one important economic measure that will help support a hurting economy in an almost immediate way is an employment insurance system that catches more people in a safety net, not fewer.
There will be those, and even some in this place, who will contend that we cannot afford to make employment insurance more accessible.
After years of building up a $54 billion EI surplus, the Conservative government wrote it off the books last year. The government owes Canadians the EI protection that they have paid into for years. Canadians have played by the rules, and now the federal government must set EI rules that protect them.
I can hear it now, like an echo in this place, how the government has already expanded the number of weeks a person can remain as a claimant. Yes, this is certainly true. However, those five weeks mean nothing to a person, to a family, when the person does not even qualify for benefits in the first place. And those extra weeks are only a temporary stopgap added to the end of a benefit period, where statistically people are even less likely to claim them.
The NDP has told the Conservative government repeatedly how it is critically important to remove the two-week waiting period for new claimants at the front end if we want to help a majority of claimants right now.
What is clear is that we have the opportunity to not only do the right thing at a time of national need, but we clearly cannot afford to miss this opportunity to fix a discriminatory and close to dysfunctional system.
The current Conservative government often looks to the U.S. to see its experience in any given matter. I offer the chief economist for Moody's credit rating service as an example. He testified before the U.S. House Committee on Small Business last July that apart from U.S. food stamps, the best bang for the government buck was to ensure that unemployed workers had access to employment insurance benefits.
To determine the effectiveness of differing stimulus measures, he compared their multipliers, an equation that gives a dollar amount to the economic activity created by a government dollar spent to stimulate the economy. His conclusions, for some, will be shocking.
A typical right-wing solution, such as a permanent tax cut, came in as a loss, a negative equation, that saw the dollar spent fizzle to half of its value. His opinion was that they were drains on the economy.
Infrastructure spending was quite good, with a multiplier of $1.59 for every dollar spent. In his view, again, the problem with infrastructure spending is in the amount of time it takes to have the money flow to the economy, which is exactly what we are living in Canada today.
His suggestion was that the better way to get money into the community immediately was through increases in spending on unemployment insurance. With a multiplier of $1.64, that would get the job done.
I will close by saying that our first best chance to help Canadians directly and in a tangible way is through Bill C-280. I ask members to join the NDP and support this bill.