Larry McCormick

[Fastball, September 25th, 1996]

Thank you, Mr. Speaker, for this opportunity to applaud the accomplishments of two fastball teams from my riding of Hastings-Frontenac-Lennox and Addington. This summer the Napanee Midget and Junior Express each displaced over 30 teams to win provincial elimination competitions and to earn places in the Canadian championship playoffs.

I am also very proud today to recognize coaches and all the volunteers in this organization who provided youth with the opportunity to develop skills and a winning attitude.

The Napanee Midget Express travelled to Prince Albert, Saskatchewan where they achieved silver medal standing. The Napanee Junior Express came home from their national playoffs in St. John's, Newfoundland with gold.

During the midget eliminations which were held in my riding I commented that while winning is wonderful, the real joy resides in playing the game. Well, winning is sweet too.

I believe that only once before have two of the winning Canadian championship teams come from the same town. Look what can be done when dedicated volunteers and energetic youth combine their talents. Please join me in extending well deserved congratulations.

[Petitions, June 12th, 1996]

Madam Speaker, pursuant to Standing Order 36, I have a petition to present on behalf of citizens from across Ontario, concerned about the national AIDS strategy.

The petitioners call on Parliament to urge the Prime Minister and the Minister of Health to commit to a renewal of the national AIDS strategy at its current level of funding.

[HASTINGS-FRONTENAC-LENNOx AND ADDINGTON, May 31st, 1996]

Mr. Speaker, thank you for the opportunity to invite my colleagues to explore the three counties of Hastings-Frontenac-Lennox and Addington this summer.

They would be greeted by friendly people and find serene beauty in the rugged landscape, charm in the rural villages and adventure in locating the ghost towns and river mill ruins that dot the region.

From the Loyalist Parkway alongside Lake Ontario in the south, through historic sites like Bedford Mills, to Algonquin Park in the north, HFL&A beckons visitors. Join us to fish for walleye in the St. Lawrence, Lake Ontario and the Bay of Quinte, the walleye capital of Canada.

Rock hounds will find more minerals in the Bancroft area than in any other location including blue hued princess sodalite. Mazinaw country offers more pictographs on a single rock face than in any other site in North America. HFL&A is also home to artists, potters and woodworkers whose open studio doors welcome visitors.

For wilderness camping, gourmet inns, canoeing, hiking or searching out artefacts, my neighbours in HFL&A and I extend an invitation to members to spend their summer vacations with us.

[Canada Talc, May 14th, 1996]

Mr. Speaker, it is particularly appropriate to rise during mining week in Canada to congratulate Canada Talc on the 100th anniversary of its eastern Ontario operation near Madoc in my riding of Hastings-Frontenac-Lennox and Addington.

As in other mining communities across the country, the Canada Talc mine has not only provided an important economic activity but has been responsible for creating well paying jobs for generations of people in Madoc.

This operation represents the long term success mining companies can enjoy by investing in Canada. Through our amendments to the resource tax allowance the government has demonstrated its commitment to facilitating the continued success of mining in Canada.

On behalf of the House, I salute the Canada Talc operation, which reaches back to the closing decade of the past century and to the beginnings of mining in Ontario. I wish Canada Talc continued success in providing high technology, environmentally sustainable development in my riding well into the next millennium.

Being a part time prospector myself, I take this opportunity during mining week in Canada to congratulate prospectors and miners across the nation.

[Employment Insurance Act, May 10th, 1996]

Mr. Speaker, thank you for the opportunity to speak on Bill C-12 today, a bill that will help Canadians help themselves.

I did not have the opportunity to speak on the previous motion put forward by the hon. member for Mercier, but I am sure the hon. member will be very glad, thinking back, when the motion is defeated. I expect her premier would be very annoyed. What would the motion do for anyone in the country?

The recent budget of our neighbouring province was designed to help people and businesses. The motion would have cost our neighbouring province of Quebec hundreds of millions of dollars for businesses. It would have put us behind the eight ball, not counting the rest of the country.

I heard great news in question period today. Exports are up by tens of billions of dollars. The Minister for International Trade shared with us that for every $1 billion in exports, 11,000 jobs are created, which is good news. It is what we need to hear. I see confidence being restored in communities across the country. Following this, investments are made.

My riding of Hastings-Frontenac-Lennox and Addington is situated between Kingston and Belleville, Ontario. In the last 12 months $1 billion has been invested. This is good news for our youth. Yet we share great concerns about our youth and future of the country.

Where does the employment insurance bill leave youth? A major objective of employment insurance is to provide equal coverage to all workers, ensuring all hours of work are recognized. This is increasingly important in a world where more and more individuals have non-standard work patterns. Not only is the number of people who work part time increasing, but the number of individuals who earn a living through a number of small jobs is increasing.

The new EI system will have minimal impact on the net income of young people but includes very important benefits for all part time workers which includes young people. The new EI system will reduce benefits by 8 per cent for youth under 25 years of age, versus 11 per cent for all Canadians, and we must consider investments made in communities.

The previous speaker said no doubt we have problems and challenges with UI in our own ridings. We do. People come into our offices every day. The bill will help these people. The tools will be available for people who need them.

Given the labour market characteristics of youth, various elements of the reform will impact differently on young Canadians than on other age groups. More stringent EI entrance requirements will affect young workers, which will prevent the development of dependency on insurance benefits early in their working lives and will encourage higher levels of employment. With youth as with other people, we can do more when we offer a hand up rather than a handout.

The hours based entrance requirement and first dollar coverage will ensure every hour of work will contribute toward a claimant's eligibility. Today four out of ten part time workers are less than 25 years old. The EI system will provide income protection for more young people if they work enough hours.

Young people working less than 15 hours a week, mainly students, will be required to pay premiums for the first time under the EI system. The amount will be less than $3 a week for someone who works 14 hours at $7 an hour. There are advantages to this type of system. Insuring everyone who works, including working students, helps to ensure a level playing field in terms of premium payments and access to jobs.

Making work by students insurable will give recognition to this labour market attachment once individuals enter the labour market on a permanent basis. After completing their formal studies, if they have sufficient work, attachment in their last year as students, for example 490 hours, they would not have to meet the more stringent 910 hours entrance requirement if they faced difficulty finding stable employment.

Premiums will be refunded to approximately 625,000 young people under the premium refund program for individuals with earnings of $2,000 or less in any calendar year. This represents 48 per cent of all individuals who will receive the refund. As well, 400,000 or 31 per cent of those receiving the refund are full time students. That represents about 40 per cent of all full time students.

It is recognized that under the first dollar coverage some employers who primarily employ part time workers will be required to pay more premiums. That is why it is being proposed that a two-year premium relief measure be put in place to offset some of the cost of the first dollar coverage for small business. As well, 300,000 small businesses will benefit from this measure.

The youth unemployment rate is 16 per cent. It is a shameful number. It is over one and a half times the national average. Many young people attend school and depend on summer and/or year round work to finance their education, as well as to obtain critical job experience.

The government recognizes the particularly difficult situation facing youth and students. A number of initiatives have been announced to address these serious concerns. Youth will benefit from EI's active employment measures. Several of EI's employment tools will help unemployed young people get back to work. Targeted wage subsidies will help young people get the work experience they need to round out their résumés and to qualify for jobs. Job creation partnerships will bring government and community organizations together to give unemployed young people and others the opportunities they need to develop new, job ready skills.

Youth will remain as a top priority for federal government programs funded from general revenues. In the 1996 budget, the government announced the reallocation of $315 million of budget savings to help create employment opportunities for young Canadians over the next three years. Funding for federal summer job placements will be doubled to $120 million in 1996-97. Most of the remaining funds are being directed to assist young people who have left school to find employment opportunities. It will be in addition to existing funding of $160 million annually for youth internship and youth service Canada.

Many of these initiatives will be targeted to those with lower levels of education. They will also focus on providing employment opportunities in new and emerging sectors.

Ontario is a diverse province. There is very high unemployment in northern Ontario. In my own riding along the south shores of Lake Ontario where $1 billion is invested there is a lower rate of unemployment. In the north part of my riding it is a much higher rate. Different parts of the province will have different entry levels for EI so we can treat the people fairly according to their area.

Employment insurance will get unemployed workers back into jobs more quickly than before. Again, workers will be encouraged to help themselves.

Ontario has had to deal with major adjustments to the emerging high tech economy. Many workers lost well-paying factory and office jobs and found themselves ill-equipped to move into new jobs with comparable wages. As a result, more Ontarians have faced longer periods of unemployment. More targeted, proactive re-employment measures will assist the workers to find and maintain employment and deal with this type of structural unemployment.

Employment insurance means a workforce better prepared to meet the challenges of the rapidly changing job market in Ontario. The national employment service will offer higher quality job market information, on-line job matching services and customized employment services. Helping Ontario get back to work more

quickly means more competitive industries in Canada's economic heartland.

I have heard people talk about these job kiosks and that they can be a positive or a negative according to where they are. My riding of Hastings-Frontenac-Lennox and Addington has more than 5,000 miles of main road. The riding reaches from Lake Ontario to Algonquin Park. There cannot be an HRD office in all of these towns, yet throughout the riding there are job kiosks. This will save people driving 50 miles to find out what is available. Statistics prove that when people are encouraged to help themselves find work, they find work.

I recently stopped at North Brook, Ontario. Even I could run the kiosk. I could punch the keys and bring up the jobs. If I could do it, I am sure anybody can run that computer. Often there are jobs listed. It is good for the people in local areas to find out what is available.

The different parts of the EI legislation have to be addressed. We will have to watch to see that it does what we want it to do. The new system will be monitored. Across the country, we will be watching to see what happens. We want to help people because people are the most important part of our economy.

[Employment Insurance Act, May 6th, 1996]

Yes, there is a lot of pride in Alberta, but I have neighbours in Ontario. I have friends in Alberta who taught school for five or six years. They have given of themselves for their education. Today, these people are gone. We are not investing in the children. We are not investing in our future. Its reformatory tactics are disgraceful. Thank goodness, we have a Liberal government, a government that will give people an opportunity to help themselves.

There are many benefits available in part II of the bill to help people help themselves. The former minister for HRD is from the Winnipeg area. I remember at committee being frowned at by a few of my Liberal colleagues and being applauded by some of the Reform Party when I said that there was some abuse in the system.

Finally, I said to the former minister: "If you want the public," this was my humble opinion, "to accept what we were trying to do, I think we should at least acknowledge the abuse". Today, the minister has done that.

From looking at the direct abuse, we are going to be able to take that money and offer it to people who want to help themselves. In all the provinces of this country, 45 per cent of the people who have fallen through the cracks-it can happen-are friends and neighbours of ours to whom it happened. If these people worked one day in the last three years, if they had a work attachment, five days following the birth of a child, they now qualify to access any one of the five tools in part II.

There are the targeted wage subsidies. This is not just subsidized jobs, but on the job training that will make a difference in their lives. It gives people some heart. We will not be cutting at random like the Ontario government will do tomorrow.

There are targeted earning supplements and self-employment programs. As a small business person I have attended some of the classes under HRD that are available since I do not know how long this job will last.

I have seen people attend the classes to get ready to start their own businesses. It has made a difference. Statistics show when a person starts a business usually he or she will employ one more person. We have to give people a chance to help themselves.

There will also be job creation partnerships, skills loans and grants. For my hon. colleagues and friends opposite, yes, the provinces will be able to make the decisions.

I have heard many people talk because of the misinformation out there about this reserve fund being used to pay part of the deficit. As we all know, that is not allowed by law. It will not make any difference to the deficit in the long run. A reserve is a very necessary part of this bill.

The other day the department furnished us with a table that showed the cumulative interest charges. More than $1 billion had to be repaid out of UI premiums because of outstanding deficits between 1991 and 1995. By contrast, twice that amount, $2.3 billion, was repaid following the previous recession in the early eighties. It makes much sense and will create jobs to have a cushion there if there is another recession.

Many witnesses appeared before us. I quote one witness who was among the last 85 to appear. Professor Alice Nakamura, a distinguished doctor in the faculty of business at the University of Alberta, put a lot of work into this bill:

I committed a great deal of time and effort to the Axworthy social security reform task force. Many of those around me told me I was foolish to do that. "Look what happened to previous attempts for reform attempts", I was told. I knew what they were talking about.

This doctor had committed time and effort to the MacDonald royal commission on the development prospects for Canada. She continued:

I was advised that the different political parties and the provinces would not be willing to pass up the opportunities for partisan gains that a UI reform attempt invariably brings.

You have proven wrong all those who told me this reform effort was a waste of time. Bill C-12 tackles serious problems with our present UI program, making use of the best available research about how our labour markets and social programs function. And it is a bill that pays careful attention to the real life problems of transition. It strikes a careful balance between the desperation of people who cannot find enough work and have depended on the income from UI benefits, and the desperation of economic analysts who recognize the threat which trends in our present UI programs pose for our economy and the future employment.

The prospects for these people will be dim, but now there is hope for many people. As the doctor reminded us, she believes future generations will look back on our efforts in deep admiration and gratitude.

Many witnesses from across the country appeared in front of the committee. We heard from unions. They complained. They said we did this wrong and that wrong, that we were going too far. We heard from other social groups that said we were not going far enough, vice versa. This is an excellent piece of Liberal legislation in which we show we have listened to the people, that we care about the people. We are not just looking after people from one province.

That would not be a fair shot to my hon. colleague. I do want to recognize that the members from the Bloc who have sat on our committee for the last two and a half years were there. I saw them burning the midnight oil listening to people in all 10 provinces, two territories and the eastern Arctic with concerns.

There is a third party in the House. I would not say its members were not present at hearings. However, I do not think it is commendable to go on hearings across the country, stay for an hour or so each day, then go on to the street to campaign and hold press conferences. It is very shameful.

With my small business background I spent time looking at this bill. There is really good news. I did many miles on the weekend. I talked to a lot of people. I talked to small business people about the GST. I would like to have seen us go further with the GST but, as the Minister of Finance says, if we do one thing wrong and we waste a dollar we cannot bring the deficit down very steadily as we are doing now.

The interest rate today in Canada is a bargain and is creating jobs. The low interest rate we have today is putting confidence back in the marketplace. Friends of mine have said they would not want to have a business because there is too much paperwork.

After Mr. Harris gets his reformatory budget on the floor tomorrow, I am sure he will start thinking about how he can help the province for the right reasons. Regarding the GST, putting the two taxes together will make for half the paperwork.

This bill does a lot for small businesses. The record of employment, the one page form I spoke about the other day, comes with a 30 page instruction manual on how to fill out the one page. This will not be necessary anymore. There will be straightforward records where the regular payroll records can be followed and put on the sheets to report them; great progress.

No wonder the bill has been endorsed by the chambers of commerce and many business groups across the country. Again, it is unfortunate that members of the parties opposite feel it is their responsibility to take misinformation from this place. For once I would like to see the second party and especially the third party support what is good for the country and for individuals and give these people an opportunity.

With this legislation we are giving people an opportunity to help themselves. What more can we do? People do want to work and take part in the workforce. They want to feel they contribute to their country. This EI bill will make it possible for them.

[Employment Insurance Act, May 6th, 1996]

Madam Speaker, I am very glad to have another opportunity to speak on Bill C-12, which will bring forward a new employment system for Canada.

I was very ashamed of some of my colleagues opposite with regard to the HRD hearings. For two and a half years we travelled across the country listening to more than 1,000 individuals and groups of people. We were there. This legislation reflects a lot of what we heard.

I remember being in Alberta. Sure, we might have been a little tired at the end of those 12 and 15-hour days. We had walk-ons, where any individual who showed up could appear before the committee. As Liberals we were willing to listen to people.

People appeared before us with tears in their eyes. There was no press. They were not trying to impress anyone. They were asking for help.

Tomorrow, in Ontario, there is going to be a reformatory budget. The budget brought by this group of people in Toronto, as in Alberta, will attack the working people, or the people who thought they were going to be working.

[Gibbard Furniture Shops, May 6th, 1996]

Mr. Speaker, I invite my colleagues to join me in extending best wishes for continued success to Canada's oldest and finest furniture manufacture, Gibbard Furniture Shops of Napanee. Gibbard designs and crafts some of the world's finest furniture.

Gibbard furniture can be found abroad in private homes and in more than 70 Canadian embassies. Most recently, Gibbard has expanded into the Japanese marketplace, where the exceptional craftsmanship and quality wood that goes into their furniture is appreciated. Bruce McPherson, Sr., tells me that the Japanese are especially interested in the solid cherry furniture produced in their historic Napanee landmark.

Founded in 1835 by John Gibbard, the company is celebrating 160 years in business. Four generations of Gibbards and, since 1940, two generations of the McPherson family have operated this firm.

Congratulations to them, their predecessors and their talented employees on achieving an exceptional and well-deserved reputation. Please join me in wishing Gibbard Furniture Shops continued success into the next millennium.

[Employment Insurance Act, May 2nd, 1996]

Mr. Speaker, I am very pleased to speak on this bill which will help many Canadians help themselves. There are going to be very positive results.

When members speak about employment insurance, sometimes I do not think we tell enough. It is not just workers who will be affected by this new income support system. The business community will also be affected. From the testimony before the standing committee we know that for the most part business is quite supportive of employment insurance.

I would like to take a few minutes to explain to the hon. members some of the implications of EI for people in business. Employment insurance is one component of the government's job strategy. The government has made it abundantly clear that its number one priority is to create a positive economic climate in which the private sector can generate growth and create jobs.

There are a number of strategies to fulfil that commitment. Among them are some of the provisions in Bill C-12. Since it is the business community, especially small business, that creates jobs in this country, it is vital that EI measures enable business people to do just that.

The government has heard on more than one occasion that the effect of escalating UI premiums discourages job creation. Business has seen increased premiums as a tax on jobs, a tax the government imposes during a recession, which is obviously the worst time that this could happen. However, it has no choice. It is obligated by law to pay benefits when the UI account is running a deficit. That same obligation will apply with the passage of Bill C-12.

The answer is quite clear. When the economy is doing well a reserve will be built in the EI account. In that way funds will be available to pay for benefits during a downturn in the future and premiums will remain stable. Premiums will not have to rise when business can least afford them because there will be a cash reserve to draw on.

Some members opposite have criticized the government's plan to build a reserve in the EI account. They come up with bogus and misleading statements about how the government is going to use the reserve to pay down the deficit, which is not true because the reserve has no impact on the deficit over the long term. Insurance funds can only be used for purposes spelled out under the act: insurance benefits, employment benefits and their administration.

There are positive signs for the business community. When economic indicators are positive, business is better able to preserve jobs during tough economic times and create new jobs when there is an upswing in economic activity. In the future we must ensure that these fundamentals are always there.

I hope all members agree that we want a stable premium rate for the new EI program. Let us look at the implications of the proposed new rates which is down from $3 last year to $2.95 this year. With this rate, more than two-thirds of small firms will pay the same or less in premiums during 1996 compared to 1995.

While a decision is yet to be made, when EI brings in first dollar coverage in 1997, and premium rates are reduced further, the impact on small businesses will be even more beneficial.

While the Minister of Finance has assumed a $2.90 rate in 1997-I hope it is much less than that-for planning purposes in the last budget, the actual rate will be set at the end of this year.

As well, as stated by the Canadian Federation of Independent Business, about 30 per cent of their membership, small and medium sized businesses, will also benefit from the premium reductions associated with the reduction in the maximum insurable earnings.

The government has not forgotten these small business people who will experience some adverse affects because of this new legislation. These hard working men and women will be helped to adjust to EI through a two-year premium relief program. The program will begin in January 1997. It will coincide with the introduction of first dollar coverage and the calculation of MIE earnings on an annual basis. Here is how it will work.

An employer whose UI premiums in 1996 are less than $30,000 will be eligible for a premium rebate. Employers who face an increase of more than $500 can have up to 50 per cent of the increase rebated in 1997 and up to 25 per cent in 1998 to a maximum of $5,000 a year rebate. This measure will provide premium relief to about 30,000 small businesses. This year the reduced premium rate and the lower maximum insurable earnings will save business $730 million in premium payments.

As well, individual employers will pay $520 million less in premiums in 1996, enabling them to retain more of their income which also helps the business community. It gives people more spending power. Those are significant savings and members opposite should give them due consideration.

The business community is also pleased with the proposed employment insurance system because it goes a long way toward reducing the administrative burden of the current UI structure.

Beginning in 1997, premiums will be collected based on total earnings and total hours from the first dollar and the first hour. That means employers will no longer have to track weekly wages and hours and maintain very complex files in order to determine when, and how much, premiums are payable each week.

As well, business people describe the record of employment as an absolute nightmare to administer. I have spent many hours late at night filling out ROEs. I would probably make a small mistake on some line and whether I did or not, the government always seemed to be sending them back.

The present system has been a real nightmare. The one-page form comes with a 35-page instruction manual. The weekly reporting system often means that employers must report earnings differently than their own pay periods. It has been a jungle.

Under the EI, the record of employment will be more like an employer's payroll. Employers will only have to report an employee's first and last days of work, total earnings and total hours. As well, the ROE can be used for post-audit verification.

With the changes I have outlined, plus the other provisions of Bill C-12, it is estimated that once fully implemented, the new employment insurance system will reduce administrative costs for businesses by between $100 and $150 million annually. That is a lot of money that could be used to create sustainable employment.

I am absolutely certain that once people get through a period of adjustment, employment insurance will prove to be one of the most productive pieces of legislation that this House has ever passed. It will be good for business and, in turn, it will be good for Canadians who are striving to become self-reliant, contributing members of the community.

To close, I would like to quote Tim Reid, president of the Canadian Chamber of Commerce, during his appearance before the standing committee: "We are pleased to see that the government's overriding goal in revamping the unemployment insurance program is very much in line with the Canadian Chamber's business expansion and jobs for Canadians".

I encourage the opposition parties to quit misleading Canadians on the benefits of Bill C-12. I encourage them to get behind this progressive legislation.

[Business Connections '96, March 25th, 1996]

Mr. Speaker, it is a pleasure to invite my colleagues in the House to attend Business Connections '96.

Built around a change and technology theme, Business Connections '96 promises to be a very exciting all day event. This initiative promotes rural economic development, helping to secure our future and guarantee the quality of life we value into the next century. From agricultural research on the ground to the information highway in cyberspace, my constituents are involved.

Over 50 exhibitors will display their products and services, representing micro businesses, high tech, retail, service based and large industries. Keynote speakers and panellists will share their knowledge and experience.

Sponsors include Gibbard Furniture Shops, in its 160th year, Celanese Canada, Goodyear Canada, Lafarge Canada, Municipal Trust, Scotiabank and Strathcona Paper. We have also gained the endorsement of four area chambers of commerce.

I am especially pleased that the Secretary of State for Science, Research and Development will join us to discuss science and technology opportunities.

We hope that everyone will come to Napanee on April 13. I guarantee them an informative and exciting event.