moved:
That, in the opinion of the House, employment insurance premiums paid by employers and workers must be used exclusively to finance benefits, as defined by the Employment Insurance Act, for unemployed workers and their families and that, consequently, the government should: (a) protect workers' and employers' premiums from political interference; (b) improve program accessibility to ensure that unemployed workers and their families can access it; and (c) abandon its plan, as set out in Budget 2015, to set rates unilaterally, in order to maintain long-term balance in the fund while improving accessibility.
Mr. Speaker, we often hear members say, “I am pleased to rise in the House to speak to such and such a subject.” I rise today not because it pleases me but out of necessity. I suspect it is that necessity that has prompted so many of us to express an interest in speaking to this motion today, a motion that could only have been moved by the New Democratic Party. As we will see throughout the presentations being made today, both Liberal and Conservative governments have a dismal record on employment insurance.
I wish to announce at the outset that I will be sharing my time with the member for Dartmouth—Cole Harbour so that as many people as possible can have their say and discuss the ins and outs of this measure, with the hope that through the exchange of ideas and as a result of discussion and debate, we might have a unanimous vote, when the time comes, in favour of workers who sometimes face the unfortunate reality of being unemployed. We want employment insurance to be there to get them through those difficult times.
This motion is especially crucial considering that it directly affects thousands and thousands of people all across Quebec and Canada. No one in the House can claim that they do not know someone, whether a family member or friend, who has been affected recently by a job loss, given the current economic situation. The motion put forward by the NDP today is the beginning of meaningful reparation. It is a first step towards creating a fairer, more equitable society, one that reflects the NDP's policies and vision for future development.
I would like to read the general thrust of the motion:
That, in the opinion of the House, employment insurance premiums paid by employers and workers must be used exclusively to finance benefits, as defined by the Employment Insurance Act, for unemployed workers and their families...
That seems pretty obvious to me. We are talking about an employment insurance plan. Is the point of insurance not to voluntarily pay premiums in order to be prepared when catastrophe strikes? We hope it does not. We all readily agree to pay for car insurance, for example, but hope never to need to file a claim. The same goes for home insurance. We are prepared to pay for our entire lives to protect this colossal investment, while hoping never to need to file a claim. However, when it comes to employment insurance, the Conservative government is completely distorting the meaning of insurance. Instead of attacking unemployment, which is the main problem, the Conservatives have been attacking the unemployed ever since the 2013 reform. The Conservatives would have us believe that using employment insurance in order to work a few weeks a year and then take the rest of the year off has become a way of life for many Canadians. That is totally ridiculous. I have a statistic that says otherwise: the average duration of employment insurance benefits is less than 20 weeks. It is clear to us that people want to work all year. In the famous words of our Quebecois singer, Félix Leclerc, “The best way to kill a man is to pay him for doing nothing.” That is not the problem with employment insurance. This is not a question of identifying those who want to be paid for doing nothing.
What are we now proposing to ensure that this general objective is achieved? Point (a) of the motion proposes to “protect workers' and employers' premiums from political interference”. It is fairly clear that there has been interference over the years. Oddly enough, the employment insurance system will turn 75 in 2015. It is not unreasonable to think that the system may need to be adjusted given that the job market has really diversified in 75 years. That is not the approach taken by the Liberals and the Conservatives over the years. With each reform, reorganization or re-engineering—call it what you will—the objective was the same.
The objective was always to reduce services and benefits and to generate colossal surpluses in the employment insurance fund, which disappeared and became a line in general revenues. Here are some figures. I am not going to give many because I do not have a lot of time.
The Conservative government's last budget reported a surplus of approximately $1.4 billion. This budget obviously includes employment insurance revenues because they are now part of the consolidated revenue fund. The “employment insurance” line alone for 2015 shows $3.4 billion in accumulated surpluses. Somehow $2 billion is missing. For months and months the government has tried to tell us that this money is not used for anything else. You do not need a business school course or a degree in economics to figure out that the $2 billion has been diverted.
The Conservatives keep telling us that that $2 billion has not been used for other purposes, that it is a partial reimbursement of the $9 billion they had to invest during the economic crisis in 2008 and that they are recouping that money over the years as surpluses build up. I really want to believe that, but supposing it is the case, let us take their reasoning to its logical end.
Before the government had to inject $9 billion into the employment insurance fund to pay out a minimum amount of benefits, the fund had a $57 billion surplus. If we subtract $9 billion from $57 billion, then there should be $48 billion left somewhere. However, that money has completely disappeared and has been used by successive Liberal and Conservative governments for other purposes.
There is every reason to believe that most of the funding for the unpopular and unfair measures, such as income splitting, that the Conservatives proposed in the most recent budget is coming from the EI surplus.
Obviously, the Liberals and the Conservatives could argue that the Supreme Court has ruled on this issue. This is yet another debate that went as far as the Supreme Court because the major unions persevered and continued the fight. The ruling indicates that employment insurance contributions are now part of the general revenue fund. The NDP believes that while it may now be legal to divert that money, it is still not the right thing to do.
We need to make sure that individuals, employers and workers who contribute to employment insurance are able to get the services that they paid for, especially since, like us, these people pay their taxes so that the government has the money to provide the services it wants to provide. People are being double taxed when both their EI contributions and the taxes they pay are being used to fund government measures, many of them solely designed to win votes. We need to protect those contributions.
Only one party has introduced a very clear bill to this effect in the House. My colleague from Dartmouth—Cole Harbour had the pleasure and honour of introducing it. I am talking about Bill C-605, which sets out very clear criteria for protecting EI contributions.
Once premiums are protected, what will happen to this tremendous economic lever? Obviously we will increase access to the program. Right now, fewer than 4 out of 10 workers who contributed to the program qualify for benefits at the worst time in their lives. If an insurance company guaranteed its customers that if they encountered a problem, a maximum of four of them would be eligible for benefits, I do not think that company would be around for long. However, that is exactly what the Conservative government is proposing, and those numbers only seem to get worse instead of better. We need to increase accessibility.
In (c) we are calling on the government to abandon its plan, as set out in budget 2015, to set rates unilaterally, in order to maintain long-term balance in the fund while improving accessibility.
I know that my time is up, so I will stop there. I still have a lot of statistics to share, but I am sure that I will have the opportunity to talk about them as we get to questions and other speeches.