Mr. Speaker, first and foremost, Bill C-542 asks the House to do what has already been done. However, what I guess is most surprising about the bill is that it does not take into consideration, or even mention, any of the actions our government has already taken to help the most vulnerable workers in our society. I refer specifically to the EI program. The bill proposes a number of changes to the EI program.
Let us not forget that the employment insurance system provides temporary income support to workers who become unemployed through no fault of their own or are off work for things like pregnancy, childbirth, parental or sick leave or to take care of a child or other loved one who is seriously ill.
Under this bill, we are supposed to improve access to EI benefits. However, the bill does not take into account all of the important measures that our government has already taken to improve the equality, flexibility and responsiveness of the employment insurance system. It also does not take into account the system's current ability to adapt to variations in the economic conditions in our various regional labour markets.
When the unemployment rate in a region goes up, entrance requirements go down and the length of benefits increases. In fact, Statistics Canada data from 2013 shows that among EI clients who either lost their jobs or quit with just cause, eligibility rates have increased from about 81% to 86%.
The bill also suggests that we reduce the waiting period for claimants before they can get EI. Currently, it is two weeks and following the same best practices of other insurance programs, is similar to the deductible portion of private insurance plans. The elimination of the waiting period may also not help those most in need of additional benefits. Removing the two-week waiting period would only result in an additional payment of two weeks for claimants who found work quickly and did not use all their EI benefits.
The estimated cost for a change like this is in the range of $1 billion, or $1 billion on the backs of EI premium payers. The bill also says that the government should lower requirements needed to qualify for EI. This is another unnecessary change and reminds me of the time the opposition proposed a $6 billion 45-day work year that would be paid for by job-killing payroll taxes.
The EI system already has variable entrance requirements depending upon regional unemployment rates. When a region's unemployment rate rises, the entrance requirement is reduced and the duration of benefits increases.
Therefore, the amount of assistance provided increases and support adjusts to the changing needs of regions and community. In the absence of any details in the bill, I am curious as to what might be considered an acceptable number of work hours needed to qualify for benefits.
Currently, the minimum threshold for eligibility is 420 hours. It is higher in areas with lower unemployment rates. If we were to consider using a standard rate of 420 hours for regular benefits across the whole country, it would cost the program an additional $600 million annually. What if we lowered the 420 hours to 360 hours, or a 10-week work year, and applied it to all claimants regardless of any regional differences. This has been suggested by the NDP.
A 2010 Parliamentary Budget Office report looked exactly at this question and stated that doing so would cost over $2 billion annually. That is $2 billion out of the hands of hard-working Canadians and employers. Simply put, changes like this need to be founded on sound analysis of the evidence with careful consideration being given to labour market impacts.
The bill also says that we should improve income security for self-employed people. Thanks to the changes brought in by our government, self-employed individuals can already opt-in to the system on a voluntary basis and take advantage of a range of special benefits.
I was very surprised that the bill did not even mention the working while on claim pilot provided under the EI program. Working while on claim allows EI claimants, including low-income EI claimants, to take on work and earn extra money, while keeping some of their EI benefits.
The recent budget announced that the pilot would be extended for another year, with early results showing that claimants are working more while on claim. It provides over $50 million and helps claimants, including low-income and marginally employed individuals, stay connected to the workforce so they may return to work sooner.
It is benefits like this that remove disincentives to finding work, and put money in the hands of those who need it the most, low-income workers, whether they live in rural or urban areas.
I think it is important to consider the impact of the changes this bill proposes. Our government is spending billions of dollars on initiatives to help Canadians better prepare for the labour market. These initiatives are on top of existing programs, such as employment insurance. We regularly modify these programs as society and the workforce evolve.
For example, in our latest budget, we announced expanded eligibility for student grants. This reflects the fact that more people are going into fields like the trades, which typically involve a course of study that is vastly different from the one needed for an undergraduate degree. Training is critical for success in the job market. It is even more critical that employers and educators come together to design training that actually works in the real world.
That is why the latest budget is investing $65 million over four years to support partnerships between employers and educational institutions to develop curricula and programs that are aligned with the specific skill needs of our labour market.
Our government has also introduced the Canada job grant, which provides shared funding with private sector employers to train employees, and the Canada apprenticeship loan, which provides interest-free loans for apprentices who need to leave their jobs for a time to complete their studies.
It is also why our government is making substantial investments in labour market information, including $14 million per year for a new job vacancy survey and a new national wage survey to provide timely accurate information on occupation demand and wages by region.
The list of the initiatives we have taken to help urban and rural workers enter or stay in the job market is very long. The bill before us vaguely outlines the measures the government must take. In fact, some of these proposals would do absolutely nothing to improve the situation. This bill could even make matters worse for urban and rural workers. I do not think that Canadians want that.
I therefore hope all my colleagues will join me in continuing to improve supports for working Canadians and vote against this bill.