Mr. Speaker, the employment insurance program is one of Canada's largest and most visible programs. It matters to Canadians. Everyone wants to ensure that this program is one that Canadians can continue to count on.
Bill C-280 proposes amendments to the Employment Insurance Act and recommends key actions by Parliament.
It calls for the Employment Insurance Commission to explain the rationale for the premium rate and to present that rationale on an annual basis in a report that the Minister of Human Resources and Skills Development would table in Parliament.
It recommends that the employment insurance account be reconstituted as an independent account under the control of a new tripartite commission.
It also proposes that a new independent EI account begin with a balance equal to the current accumulated surplus that has been credited to the EI account over a period of 10 years through contributions from the consolidated revenue fund.
Having read and considered Bill C-280, I must say that I have strong reservations about the proposed legislation. This bill raises some very important issues.
Budget 2005 responded to many of the points raised in Bill C-280. My concern is whether the proposed amendments will help to improve this program. Canadians expect their government to run programs as efficiently as possible. EI is no exception. The bill would be costly to taxpayers, employees and employers.
The proposed legislation would require the government to contribute a cash amount equivalent to the current accumulated surplus credited to the EI account, in equal amounts, over 10 years, as soon as the bill becomes law. This change would present itself on the Government of Canada's ledger as a new and very substantial fiscal liability.
The existing federal fiscal framework would be affected and would require new money to fund it. An immediate consequence of Bill C-280 would be that the Government of Canada could lose a significant measure of control over the way employment insurance is managed and EI programs are maintained. Many aspects of EI would become the purview of an independent commission, as proposed in the bill, which would raise questions about accountability.
Changes in these areas ultimately limit the government's ability to deliver important benefits to Canadians. This would limit the significant progress that Canada has been making over the past decade.
Let us consider what EI has been able to achieve over the last 10 years.
Canadians called for a better balance of work and family responsibilities. Our government responded through EI by extending maternity and parental benefits for one full year.
We also introduced a new six week compassionate care benefit so that eligible workers can take a temporary leave of absence from work to provide care or support to a gravely ill or dying close relative.
Canadians wanted more support for acquiring skills and experience. We have eliminated multiple waiting periods for apprenticeship training programs.
In addition, the Speech from the Throne contained a commitment to review the EI program and ensure that it remains well suited to the needs of Canada's workforce. To this end, on February 23 of this year the government announced enhancements to the EI program that take into account the many recommendations put forward concerning changes to EI.
To give some examples of the action we are taking, I would like to describe the three new pilot projects announced for areas of high unemployment.
Through these projects, we are testing the labour market impact of: enabling access to EI benefits after 840 hours of work rather than the present 910 when linked with EI employment programs for new or returning entrants to the labour markets; calculating EI benefits based on the best 14 weeks of earnings over the 52 weeks preceding a claim for benefits; and increasing the working while on claim threshold to allow individuals to earn the greater of $75 or 40% of benefits to encourage individuals to take work without a reduction in their benefits.
The enhancements we are putting in place are possible thanks in part to the Government of Canada's ability to ensure that EI's policy and program framework remains responsive to the labour market needs of Canadians.
I am further concerned that Bill C-280 may not be effective in achieving positive changes in the way EI operates.
The legislation calls for the creation of a separate EI account that is not consolidated with the government's budgetary revenues and expenditures.
To do this, careful consideration would be required to change the elements of appropriate comptrollership and financial responsibility that exist, in particular, how they would correlate with measures put in place to respond to concerns expressed by the Auditor General of Canada. Since 1986 the EI account has been consolidated with the accounts of government.
Under our current system, EI program revenues and costs are tracked in the EI account and paid out of the consolidated revenue fund. The accumulated EI surplus is notional and not supported by any other assets--