Mr. Speaker, as we all know, employment remains Canadians' number one concern.
They returned this government to office with a mandate to continue its work to promote economic growth and the creation of jobs. In fact, the job strategy makes these issues the main priority of the Government of Canada.
This government rightly considers its role is to create a context promoting investment and development of the private sector and, in particular, small and medium business, the real motive force in job creation in Canada's economy.
No one today can deny the enormous progress that has been made in achieving these major economic objectives so important to Canadians.
Since this Liberal government was elected in 1993, two million new jobs have been created, half of which have gone to women.
The unemployment rate has dropped by over 4% across the country. I would add with pride that in Quebec the drop in the rate is greater than the national average. There, the rate of unemployment, which was 8.4% in August, has dropped by five points.
Nearly 400,000 more Quebecers are employed today than were in 1993. Never have the prospects of the country as a whole for short and long term economic growth been so good considering, among other things, the announced reduction in employment insurance contributions, the seventh in as many years, and the $58 billion in reductions in income tax, which will remain in the taxpayers' pockets.
Four years ago the government put an entirely new employment insurance system in place with the very specific purpose of helping people return to work as quickly as possible.
One of the great innovations of the employment insurance program introduced in 1996 was to provide not only temporary income support in the form of benefits but also active employment measures to promote permanent integration of the unemployed into the labour market.
These measures were designed to be flexible enough to meet the specific needs of the unemployed, based on the local economy, through partnerships with the various levels of government, community organizations and employers.
In the year 2000 alone, more than $2.21 billion were spent on active employment measures, including $594 million in Quebec.
People now realize that this initiative was crucial, as evidenced by the fact that the federal government has since then signed 11 labour market agreements with the provinces and territories about the delivery of these active employment measures funded through the employment insurance account.
Through this initiative, the federal government was also able to give Quebec something it had been demanding for 30 years, namely full jurisdiction over manpower training.
Today, we are bringing forward several changes to EI. One of the changes proposed by the minister in this bill would eliminate the intensity rule.
As we know, the amount to which a claimant is entitled is 55% of his or her insurable earnings. The intensity rule, which reduces the benefit rate down to a minimum of 50%, was designed to discourage people from using employment insurance frequently and for extended periods.
However, we have noticed that in several regions, particularly in those where the economy is based mainly on seasonal work, workers who are already penalized by these annual and always deplorable seasonal layoffs are also penalized because they have no other choice but to rely on employment insurance to make ends meet.
Under the proposed change, the basic rate will stay at 55% of insurable earnings for all claimants, whether they are frequent claimants or not, whether they are seasonal workers or not.
Needless to say this change will benefit people in fishing regions, particularly in the Maritimes, but it is important to note that it will apply to all frequent claimants in all regions, throughout Canada, which means that it will apply to much larger pools of seasonal workers. In fact, this change will have a great impact in Quebec, where 41% of claimants are subject to the intensity rule.
We are also proposing to change the rules governing the clawbacks on benefits. At present, tax recovery applies to all claimants whose net income exceeds $48,750 and to frequent claimants whose net income exceeds $39,000.
These recipients have to pay back 30% of the amounts received, regardless of whether these are regular or special benefits. Those who are forced to call upon employment insurance frequently can be required to reimburse up to 100% of their benefits.
We are proposing that, in future, only the highest wage earners, that is those with a net income in excess of $48,750, be required to pay back benefits. Even then, there would be an exemption for first-time claimants and recipients of special benefits such as maternity, parental or sick benefits. Once again, this will be a change that will benefit the workers of Quebec.
Overall, we feel that the new employment insurance program has had good results so far. The government made a commitment to monitor the application and effects of the new program and to remedy any possible weaknesses. This is, in fact, what it is doing by introducing this bill.
Let me add that we will always be working together with the provinces and territories, business groups and communities to diversify the economy and help generate jobs and growth.
All my parliamentary colleagues, along with the entire Canadian public, acknowledge that economic development, skills development and permanent job creation are the best solutions in the long term, as the minister has indicated.
What all Canadians want first and foremost is jobs. They want to work so that they can improve their situation and their own feelings of self-worth, while contributing to the collective effort of society.
This is true as much for seasonal workers as for all other working men and women throughout the length and breadth of Canada.