Mr. Speaker, I am pleased to rise in support of our Conservative government's economic action plan 2012 to be implemented through today's legislation, Bill C-38, jobs, growth and long-term prosperity act.
This is a positive plan that would ensure Canada's economy continues to emerge from the global economic recession better than nearly all other industrialized countries. Indeed, Canada has seen nearly 700,000 net new jobs created since July 2009, the strongest job growth among all G7 countries. Even better news is that 90% of those jobs have been full-time jobs.
What is more, both the independent IMF and the OECD are forecasting that Canada will be at the head of the pack for economic growth in the G7 in the years ahead.
Clearly, those are all positive signs that we are on the right track for Canada's economy and for Canadian families. It is little wonder that a recent editorial in The Wall Street Journal praised Canada's economic leadership saying that “Canada is focused on private economic growth”, and also pointing out our “sound policies as a model for the world to follow”.
However, our Conservative government recognizes that we still have considerable global economic turbulence, especially in Europe where we see that continues, and too many Canadians are still looking for work. That is why economic action plan 2012 takes responsible action to support the economy now and over the long term while also keeping taxes low and returning to balanced budgets in the medium term.
Despite what the NDP and others would have us believe, economic action plan 2012 has been warmly greeted throughout Canada, especially in my region and riding of Kitchener—Waterloo.
I would like to share with the House and Canadians who are watching some of the positive feedback that has come from my region.
First, from the Kitchener-Waterloo Chamber of Commerce, it says:
We are pleased that [the Minister of Finance] has extended the program that allows small businesses to receive a credit of up to $1,000 against employment insurance...premium increases. ...this extension will provide an incentive for additional hiring. ... The Chamber strongly supports measures proposed to restrain government spending and return the federal budget to a balanced position by 2015-16. Other positive measures include no tax increases or cuts in transfers to the provinces, which are critical for health care and other social services.
Overall, the government wants the private sector to step forward, create jobs, and compete on global markets.
Iain Klugman, the chief executive officer of Communitech, a local technology association, said:
I'm really encouraged to see the focus on job creation, innovation. I see a real acknowledgement of the importance of business commercialization.
I could not agree with Iain more.
Kitchener mayor, Carl Zehr, stated:
We're encouraged by the fact they [the federal government] have yet again confirmed a commitment to have an infrastructure plan in place when the Building Canada Fund expires in March 2014.
As one last example, this is what a Waterloo Region Record editorial declared. It said that economic action plan 2012 was:
...an intelligent and visionary plan to preserve a progressive, prosperous Canada in a global landscape filled with both upheaval and promise. And for this reason it is the most ambitious and important federal budget in a generation. Underlying it all is an astute recognition of how this nation and the world around it are changing.
...the budget envisions a scaled-back government that leaves people free to do more in their lives and with more of their own money. But it will still be an active government that aims to grow Canada’s economy with generous venture financing and research and development funding for businesses.
It is clear that economic action plan 2012 sets out a comprehensive agenda to bolster Canada's fundamental strengths and address the important economic challenges confronting the economy over the long term.
I am pleased to have the opportunity today to spotlight a handful of the measures in today's bill that would accomplish that and play a significant role in securing the well-being of Canadians today and in the future.
The first area I will focus on is targeted reforms to the employment insurance program, or EI. EI, as we know, is Canada's single largest labour market program, providing income replacement to help individuals and their families, as well as training and other labour market support to help Canadians return to employment.
Today's bill would make a number of targeted changes that would make EI a more efficient program, one that would promote job creation and quickly connect people to jobs that would improve the quality of life and Canada's economy.
Our Conservative government recognizes that Canadians want sustainable EI premium rates and a transparent rate-setting mechanism. That is why we will ensure predictability and stability with the EI premium rate.
Over the next few years, we will limit annual rate increases to 5¢ until the EI operating account is balanced. Once the account has returned to balance, the EI premium rate will be set annually, on a seven year break-even rate to ensure that EI premiums are no higher than needed to pay for the EI program itself. After the seven year rate is set, annual adjustments to the rate will be limited to 5¢.
Along with sustainability, matching workers with available jobs is critical to supporting economic growth and productivity. In the words of the Canadian Federation of Independent Business, the CFIB, which plotted our reform in this area, “There was some major progress on employment insurance”. It went on to say:
There was...early action on changing the EI rate-setting process. Any future increases will be capped at 5¢ for employees and 7¢ for employers, which will provide a great deal more certainty to job-creating small businesses.
Also, EI rates will be allowed to break-even on a seven year basis, which will help keep rates smooth and avoid the creation of large surpluses.
However, there is more in economic action plan 2012, including a $21 million investment to connect EI claimants with the necessary skills with available jobs in the same local area, including through targeted information and compliance sessions. Along with providing relevant and timely job information, the government will strengthen and clarify what is required of claimants who are receiving regular EI benefits and who are looking for work.
Through our measures, our government is helping Canadians who are looking for work, but we realize that true success only occurs when they can find work with minimal delay. The evidence backs that up. EI claimants who stay active in the labour market find permanent jobs faster than those who do not stay active. That is why our government will invest $74 million in a new national EI pilot project to ensure claimants are not discouraged from accepting work while receiving EI benefits. This new pilot project will cut the current earnings clawback rate in half, to 50% of earnings, and apply to all earnings while on claim.
Those three amendments would keep our economy strong. I am sure the opposition, if it is predictable, will perhaps vote against it yet again, after all, that is what it has done in the past. Every time our government moves to protect jobs, the NDP and the Liberals oppose it, as they opposed extending the EI hiring credit to help over 500,000 employers defray the cost of new hiring.
In that spirit, I urge all members to vote in favour of today's bill, which would help Canadian families, businesses and the Canadian economy grow and help fuel more job creation.