Mr. Speaker, I thank the hon. member for Sault Ste. Marie for raising the important subject of employment insurance.
I find it amusing when he claims that the government refused to reform the EI program when it was this government that brought about the greatest and most important reforms to the EI program in more than a decade. Our government proposed reforms in budget 2008 to ensure that the pilfering of billions of dollars from the EI surplus by the Liberal Party could no longer occur.
The NDP bemoans that theft every day but when the government made moves to fix it, the NDP voted against every measure.
This government has demonstrated our commitment to ensuring that the EI program continues to serve Canadians for many years to come. The NDP, on the other hand, has supported about a dozen private members' bills that proposed more than $17 billion in new annual program spending from the EI program. Spending that amount would bankrupt the system in just a few short years. I guess that is the benefit of being a party in perpetual opposition. It does not have to worry about the long term consequences of what it proposes.
On this side of the House, we do worry about that, which is why we have made meaningful and important changes to support unemployed Canadians and the EI program now and in the future. This government promised, when we were in opposition, to fix the employment insurance and we have followed through on that commitment.
The commitment includes the announcement in budget 2008 to create a truly independent employment insurance account.
Before discussing these measures, however, I would like to remind the members of the many actions the government has taken on the EI to improve the effectiveness of the program. Our goal and this government's priority has always been to help Canadians participate in the labour market. We believe that the best path out of poverty is to provide people with the skills and the opportunity to acquire good, well-paying jobs, jobs that will allow them to support themselves and their families.
The NDP's priority, on the other hand, is to promise billions in new spending that would bankrupt an important program used by unemployed Canadians in need of temporary support and assistance.
As I said, this government has made several important reforms to the EI program. We have expanded eligibility for compassionate care benefits, making them accessible by recognizing a broader range of family relationships, and improving the administration of the benefits to ease the burden on the gravely ill and their families.
We have also launched a pilot project to examine the effects of providing additional weeks of benefits to those in high unemployment regions and we have extended EI transitional measures for two regions in New Brunswick and Quebec to provide easier access to employment insurance and longer benefits for unemployed workers in those regions.
In making the reforms that I have outlined, the government has taken a measured approach, making specific targeted changes to address specific issues or areas of concern.
The NDP, by contrast, simply supports every proposed measure to increase benefits, which would drain the EI program and leave Canadian workers without an important safety net.
In making these changes, we have always been conscious of the need to protect those individuals who need the program the most. That is why the government has made significant investments in skills development. These investments include labour market agreements with the provinces. Through these agreements, we will invest $3 billion over the next six years to help people get the training they need to find and keep good quality jobs.
In budget 2008, our government delivered on its commitment in the Speech from The Throne to improve the governance and management of the employment insurance account. Going forward, we will establish the Canada employment insurance financing board as a small crown corporation working at arm's length from the government. This will ensure that EI surpluses can no longer be used to fund the political priorities or pet projects of the government of the day. Any EI surplus funds will be used to reduce EI premiums and increase EI benefits.
For too long, EI has been just another tax on employers and employees, a tax that Liberals used to announce legacy projects at election time and a fund they dipped into shamelessly to buy votes and award their corporate friends. That is the kind of thing that will never be permitted to happen again, thanks to the actions of this government.
It is also important to note that budget 2008 committed to funding a cash reserve of $2 billion in this new account. This amount of $2 billion is being established as a contingency fund to ensure that premium rates remain stable and predictable.
In the unlikely event that the reserve is insufficient to cover any deficit in the EI account, Canadians can be assured that the Government of Canada will continue to pay EI benefits with funds from the consolidated revenue fund.
Our approach addresses concerns expressed by a whole range of stakeholders, including employers, employees, labour groups and chambers of commerce across the country.
The Canada employment insurance financing board will be run by directors who have the necessary skills and expertise to effectively carry out the organization's mandate.
The Prime Minister promised to put an end to the era of patronage in Ottawa. That is why the government has mandated that the members of this board will be selected based on merit, following recommendations from a nominating committee that includes the commissioners for workers and employers. Through this process, business and labour will play a role in ensuring that only the most qualified individuals are selected to manage decision making around the setting of EI rates and management of the reserve fund.
Our plan is one that looks to the future and ensures independent decision making regarding the management of employment insurance funds and making sure that these funds are used only to pay for employment insurance benefits. It ensures that premium rates reflect actual program costs and take into account investment returns so that Canadians pay the right premium rate, just sufficient to cover the cost of benefits received, no less, no more. It ensures that the program is on firm financial footing going forward. Finally, it ensures that the program is well positioned to withstand changing economic conditions.
These are responsible and long overdue changes. They are financially sound. They make sense for the workers and employers who pay the premiums and use the program.
I must point out that they are changes the New Democratic Party voted against. Thankfully, the Liberals have seen the error of their past ways and have allowed the budget to pass so that we can finally reform this important program.
Our approach to employment insurance financing is the same as it has been to all the improvements we have made to the EI program. We have combined sound management with good governance. We have sought to protect people while they are unemployed and provide opportunities for them to gain the necessary skills to participate fully in the labour market.
This is the approach we will continue to take. It is an approach that my hon. colleague ignored when he put this motion forward.