Madam Speaker, I am pleased to announce from the outset that we support the principle of Bill C-406, which is to relax the employment insurance eligibility rules and to enhance both the benefits and the benefit period. A number of clarifications and changes will, however, need to be considered more closely and made in committee.
I will elaborate on a few points where we feel minor changes would be beneficial. I have touched on this earlier, in speaking with my hon. colleague from Acadie—Bathurst, who has looked at the Bloc's recommendations with an open mind.
First, I wish to say that the fact that 800,000 workers are not eligible for employment insurance is totally unacceptable. These are workers, all 800,000 of them, who contribute to the EI program and yet cannot benefit from it. When I take out an insurance policy, I do so to make sure that, should something happen to me, I have something to fall back on. With EI, workers pay into the fund but they end up being told that they are not eligible because they did not work enough hours to qualify, or they are penalized because the work they do is seasonal, or for some other reason.
This should not still be happening, especially when we see the billion dollar surpluses in the employment insurance fund. This is totally unacceptable. I would have liked to see, in this House, a more unified front from the opposition on an issue as important as this one. We have been fighting for years to ensure that everyone is treated fairly and equitably, and that is not how they are being treated.
A case in point is something very close to my heart, which I have been pushing for in this place for years now: preventative withdrawal from work for women who are pregnant or breastfeeding. The government has yet to do something, anything, on this issue. The amounts involved are not huge; all it would take is political will, but there is none here.
The point we are wondering about is the arm's length relationship. The Employment Insurance Act states that employment is not insurable if the employer and employee are related and do not have an arm's length relationship with each other. The Minister of HRDC, however, has discretionary power that enables him to consider employment of a relative as insurable employment if the claimant can demonstrate, given all the circumstances, that they would have entered into a substantially similar contract of employment if they had been dealing with each other at arm's length. Despite this discretionary power, the law's practical application remains harsh. The burden of proof is always on the claimant. My hon. friend's Bill C-406 puts the burden of proof regarding the arm's length relationship between employer and employee on the Employment Insurance Commission.
In its report, the Standing Committee on Human Resources Development recommended that the government amend the Employment Insurance Act to eliminate the presumption of guilt in cases of non-arm's length relationships between employers and employees.
My party's position is this: the Bloc Quebecois, like the Law Commission of Canada—since the commission made the same recommendation—proposes that the act be amended so that employment by a related person is not presumed to be uninsurable. Bill C-406 will not go that far and an amendment would be required to cover this.
In regions such as mine or that of my hon. colleague, there are often small family businesses. Particularly in Quebec, many small businesses are run by families. Both spouses may work for the same company, often alongside their sons, daughters or cousins. When one of them needs employment insurance for a period of time, or for any reason, this person is instantly refused; the onus of proof is on the person. This should not be. Just because two people are related does not mean that they are trying to beat the employment insurance system. Having to prove one's case can be very difficult.
I know people who have had to wait two years before their case was settled. Not too long ago, I learned of a very good strong case. But these people are being harassed, and this is unacceptable. Their case has been pending for three years. This does nothing to help the family or a situation where employment insurance is at issue, and this certainly does not help a company survive. These people paid into employment insurance like everyone else. This kind of thing must be addressed and changed.
Bill C-406 talks about creating a separate fund. The bill creates an unemployment insurance trust fund to replace the employment insurance account, which comes under the Treasury Board. Obviously, the goal is to increase the transparency of the employment insurance fund.
Furthermore, an independent commission would replace the current commission and serve as trustee of the fund. The members of this independent commission would be appointed by the governor in council from lists of persons nominated by labourorganizations and employer organizations selected by the minister.
A bill introduced in the past by the Bloc Quebecois called for the creation of an employment insurance fund separate from the current consolidated revenue fund.
Four objectives were pursued: contributors must control the fund and play a part in determining the premium rate; any surplus in excess of the $10 billion to $15 billion reserve must be returned to contributors in the form of greater flexibility in the act, or lower premiums; the money paid into the fund by contributors must not be used to finance other government programs, and thus not to pay down the debt; finally, the surplus accumulated since 1995 belongs to the contributors and must be credited to the new independent fund.
In this connection, Bill C-406 is a bit unclear as far as the creation of this fund is concerned. Few details are given on the trust aspect of the fund. What will the real implications of this be? What will be done with the surplus? How will it be credited?
Moreover, the mechanisms for appointment of the independent commission suggest that it will not be all that independent. The reference to labour and employer organizations selected by the minister makes us wonder whether there might not be a way to make the process even more democratic.
As for the rate of weekly benefits payable to a claimant, Bill C-406 says that it is 66% of their weekly insurable earnings, based on the average of the 10 weeks during the 12 months period preceding the week in which the interruption in earnings occurred. The 10 weeks taken into account must be the ones in which the claimant received the highest earnings.
The Standing Committee on Human Resources Development recommended in its report to only take into account the weeks with the highest earnings. It did not say anything about the rate of benefits. In the report of the Standing Committee on Human Resources Development, the Bloc Quebecois also specified it wanted the average rate of benefits to be increased from 55% to 60%.
Bill C-406 goes a little bit further than the report of the Standing Committee on Human Resources Development and the Bloc Quebecois, but the principle of more generous benefits remains the same. Therefore, I do believe that on this issue we are on the same wavelength. Adjustments are always possible.
Bill C-406 makes the maximum benefit period 52 weeks. We had asked for 45 to 50, so we are on the same page there.
I do not have time to go into them all, but I think we will certainly have the time in committee to find some areas of agreement. What is important is that we came back with an independent fund with the possibility of creating one that will belong to all working men and women. There are 800,000 Canadian workers who do not have access to EI at the present time, but who pay in to it and must be able to draw from it. That will be our goal in supporting the bill of my colleague for Acadie—Bathurst.