Mr. Speaker, I represent Thunder Bay—Superior North and more than 85,000 northern Ontarians who have seen high rates of unemployment thanks to NAFTA, the recession of 2008 and the collapse of the forestry industry. Unfortunately, the Conservatives have consistently limited access to EI and residents who are struggling to make ends meet are forced to pay the price.
Sadly, the Conservative attack on EI is nothing new. The Conservatives are simply taking a page from the playbook of the Liberal government that came before them. In 2000, the Liberals were the first to limit access to EI. They established a huge surplus for the government's benefit to pad the government's pockets with workers' money and the money of small businesses. Later, the Supreme Court ruled the Liberals had illegally turned the EI fund into a tax grab.
I had hoped that the Conservatives might be serious about ending the Liberals' excessive premiums for employers and workers, but in 2010, the Conservatives showed their real colours and followed in the footsteps of the Liberals.
The government of the current Prime Minister made it increasingly difficult for EI claimants to access benefits, all while hiking costs to workers and employers. The EI rate was increased 9% between 2008 and 2013. The Conservatives, after three successive years of EI premium hikes, have now elevated rates well above what the program actually costs, with no regard for the consequences the average Canadian will face.
When the Minister of Finance first announced a slight rollback in EI premiums for small-business owners in September, I was somewhat hopeful. As a small-business owner myself, I am keenly aware of how important small businesses are to our economic growth. Under the Conservatives, big businesses get plenty of subsidies. Meanwhile, small and medium-sized businesses are responsible for the lion's share of job creation and economic activity in Canada.
The Parliamentary Budget Officer found just this month that the Conservative approach to the EI will cost Canadian workers an incredible 9,200 jobs, almost 10,000 jobs, through mismanagement. What's more, their small business credit would cost $0.5 million and would only generate 800 jobs over the next three years.
However, the government claimed the credit would create 25 times as many jobs as that. Once again, as is frequently true, the Conservative claims are at odds with the facts. Even conservative economists are slamming the government's bad plan. Jack Mintz, from the University of Calgary, says that EI premiums should be lowered across the board, which would make sense given the years of unnecessary hikes.
The extra EI money could have been used to extend benefits to those who need them. Instead, the Conservatives are slashing benefits. The surplus could have aided an additional 130,000 workers over the next three years, or they could have used it to boost the economy, health care or education, including job training. Keeping unemployed workers from slipping into poverty makes good economic sense. Each dollar dispensed to EI benefits sparks $1.60 in economic growth.
It is incredible to me and to logical Canadians that the Conservatives keep reiterating their blarney about jobs, economic prosperity and long-term solutions, when all they ever seem to do is pad their own government pockets with taxpayers' money.
When and how will the Conservatives end their legacy of carelessness and damaging employment insurance policies?