Bill C-308 (Historical)

An Act to amend the Employment Insurance Act (improvement of the employment insurance system)

This enactment makes a number of amendments to the Employment Insurance Act. Specifically, it
(a) reduces the qualifying period to a minimum of 360 hours of work, regardless of the regional rate of unemployment;
(b) increases the benefit period;
(c) increases the rate of weekly benefits to 60%;
(d) eliminates the distinctions between a new entrant and a re-entrant to the labour force;
(e) eliminates the presumption that persons related to each other do not deal with each other at arm’s length;
(f) increases the maximum yearly insurable earnings to $42,500 and introduces an indexing formula; and
(g) adds a new Part VIII.01 to the Act relating to self-employed persons.

Employment Insurance Act

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, I listened to the minister’s speech earlier, and it would have been appropriate to ask her several questions which have not been answered. Despite the briefing session yesterday by officials from the Department of Human Resources and Social Development, certain questions remain unanswered with regard to the persons targeted by this bill. Who does Bill C-50 include and who does it exclude? These questions have still not been answered.

Yet one has the impression that the department is fully aware of the answers, since it has said that 190,000 unemployed persons will be eligible under these measures, for which there is a budget of $935 million. Therefore, we are entitled to specific answers to the type of questions I have just raised. But no, there are no answers. So we must look into the impact that this bill may have on the people who have lost their jobs.

First, let us look at what is not covered in this bill. It does not cover the nearly 60% of unemployed people who do not qualify for employment insurance right now. There is nothing to improve accessibility for all those who do not qualify. Furthermore, according to the department’s own Web site, over 55% of people are presently excluded from the system. So there is nothing for them.

Moreover, this bill excludes young people, women, the self-employed and a good many seasonal workers, for these are the categories of persons who make most frequent use of employment insurance. Let us remember the rule set forth in the bill: one must not have drawn more than 35 weeks of benefits over the last seven years. In other words, that automatically excludes seasonal workers, women and other persons who move in and out of the labour market. So this applies to quite a lot of people.

The minister says that 190,000 people will be able to benefit from this measure. Allow us to doubt this. In fact, the minister accompanies this statement with another, about the cost of $935 million. For a budget of $935 million to be needed, 85% of the people receiving employment insurance benefits would have to use all of their allotted weeks of benefits. But that is not the case, since only 25% of people use them.

So let us remember this: to arrive at the extra $935 million projected in the bill, 85% of people would have to use all their allotted weeks of employment insurance benefits.

Facts are stubborn things, and they shed the brightest light. In this case, the fact is that only 25% of people reach the limit of the number of weeks to which they are entitled. In other words, we come back to between 25% and 30% of the amounts already announced.

We were not given specific information. So we asked in writing how one could arrive at this result, but were provided no answer. So we worked it out and understood that, in fact, this will cover 60,000 persons—at the most—out of 1.5 million or 1.6 million unemployed people in the country. This also changes the number of millions of dollars. Instead of approaching $1 billion, we are closer to $300 million, at most.

Perhaps they can prove otherwise. This they have not done. They make statements without being able to show the method by which they arrived at the results they present. The calculation must be done over again. If you were to do this as well, Mr. Speaker, you would find that you end up with the same result.

My colleague from Dartmouth—Cole Harbour spoke briefly about the shamefulness of the situation, that is, why there is no pilot project.

Usually, when such a project of a specific duration is presented, the government does not have to formally table it in the House. It says that taking steps to set up a pilot project is one of its prerogatives. It could very easily do this. It does not need to come here. On the other hand, the government is well aware of the shamefulness of what it is doing. To introduce such a bill, it has to create a third category of the unemployed, what the Conseil national des chômeurs is now calling “the bad unemployed”. According to the government, there are the good unemployed and now the bad unemployed.

Some people have contributed to employment insurance at such a level that they qualify for the program and have had the good fortune not to have to claim employment insurance benefits. It is the most vulnerable who are excluded. All those who are included are those who have had the benefit—and I am happy for them—of a stable job over the last 7, 8 9, 10, 11 or 12 years, since the bill sets the eligibility rules based on the weeks to which you are cumulatively entitled, on a rising scale. The better a contributor you have been to the fund, the fewer benefits you have received, the more gold stars you earn and the more weeks you qualify for.

Fair enough. Naturally this will favour certain people. In my opinion, the employment insurance system has to be improved from top to bottom, not piecemeal as is the case at present. Some people will see an improvement in their benefits as a result of this bill. This must not be a bill that is discriminatory or arbitrary toward certain segments of society that are being favourably targeted. In fact, it is not a favour, since this it belongs to them as well. But why discriminate against the others? That is the question we have to ask.

Let us return to the idea of a pilot project. What is shameful is having the House and all the parties present vote on and sanction a bill that is discriminatory. Naturally we are not opposed to the principle of this measure. What we do not accept, and what the House must not accept, is discrimination against the majority of unemployed people.

This morning the hon. member for Joliette moved that the bill be referred immediately to committee so that this type of debate can be held and appropriate amendments made for the purpose of removing these discriminatory measures. Why?

In our view, an effort has to be made, even if this is not something that is going to reform the entire system. We believe that it is necessary to make this effort. It must not be done just any old way. We must not abandon those who are in need of the fastest assistance.

This bill also prevents us from debating the crux of the problem—the fact that the employment insurance program has become outdated and does not reflect today's reality. That has happened because it has been drained of the resources required to properly fulfill its mandate of providing benefits equitably and for enough time that people can live with dignity. We know that the former and current governments diverted billions of dollars from the employment insurance fund every year for the past 13 years. The current estimate is that $57 billion was taken out of the employment insurance fund.

A number of people who participated in this debacle would be quite happy if we stopped talking about it. But we never will because it is an injustice. It represents a serious economic crime that was committed against the unemployed, families, and regional economies and communities in every province. In Quebec, people have had to apply for social assistance because almost 60% of those who should be eligible for employment insurance have been excluded.

In recent years, we have proposed concrete measures. We have tried to make this House aware of the fact that more people must have access to employment insurance. We are looking at 360 hours. We are pleased that the Liberal Party has also taken up the cause. The Liberals rallied to our side when we debated Bill C-269 in the last session. We also made recommendations to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities in the last session.

I would like to talk about the recommendations made by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities in February 2005. The committee recommended the measures that we now find in Bill C-308, which I was honoured to introduce on behalf of my party. We had a one-hour debate at second reading this week in the House.

I can list the measures. They include, of course, the 360 hours. We must ensure that everyone, without discrimination, permanently goes from 45 to 50 weeks. We want benefits to be raised to 60% of the claimant's income. This is a sensible measure that immediately injects money into our economy. We are calling for the waiting period to be abolished. That is a measure that costs the government nothing, because the individual receives the money at the beginning of the two weeks instead of at the end. This way, people are able to receive benefits from the beginning, and it puts money into the economy immediately. This spring, the Conservatives promised to introduce changes to allow self-employed workers to voluntarily participate in the employment insurance program. They did not follow up on this, and that is also in our bill. We are demanding that there be no more discrimination against people who work for a family-owned business and are related to the owner.

When we talk about comprehensive reform that truly takes into account the difficulties that unemployed workers are facing, these types of measures are the ones we need to take, and not the piecemeal measures that discriminate against people, as we are seeing now.

A little earlier, I spoke about the fact that the employment insurance system is currently based on two criteria that help determine eligibility and access to benefits, and they are the number of hours worked and the unemployment rate in a given region. The current bill, as it stands, creates a third criterion based on contributions to and use of the system. This is the cornerstone of this bill, and that is what we must focus on in this debate.

That is why, this morning, our House leader made the recommendation to send the bill to committee immediately. However, to our surprise, the Conservatives refused, even though the three opposition parties were in agreement. Why did they refuse? As the others have already said, they were playing politics, petty politics, to stall the debate and put pressure on the opposition parties. By stalling the debate, they are effectively delaying the implementation of this bill. It is hard to find anything worse than that. Once again, they are playing twisted political games with the lives of workers, and that has no place here.

Two examples support what I am saying. The first, which we heard about earlier, is the pilot project. That approach would be perfect. So far, that is how it has always been done, since it is a short term project. The second example is the refusal to debate it immediately in committee. What does the Conservative government have to gain by that? Ultimately, by drawing out the debate, first here in the House with five hours of debate today, and sending the bill through all the normal steps, the deadline, which is mid-October, will not be met. The Conservatives can then say that it was the opposition that was stalling.

This is completely outrageous and unacceptable.

Since this time last year, 500,000 workers have lost their jobs in Canada, including 70,000 in Quebec. We have come back to this House over and over again, trying to have Parliament adopt measures to help these people right away. I cannot help but think of the forestry industy in Quebec, for instance. There is really nothing in this for that industry, which is a shame. We have been refused every time. It has been drawn out. Now the Conservative government is afraid of being ousted, so it comes to us at the last minute with vote-catching measures that take into account only certain needs, and it wants to put all the blame on the opposition for delaying this bill.

In closing, I would like to remind the House of our position from this morning. We remain convinced that Bill C-50 must be immediately referred to the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities for study. Otherwise, we will be forced to vote against it, if this course of action is not done properly. I do not see how we could go back to our constituents and say that we agreed to a bill that is discriminatory, arbitrary and that favours one option that will go on for so long.

Employment Insurance

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, we need a comprehensive reform of the employment insurance system.

Once again, the Conservatives who promised to do things differently are copying the Liberals and making the unemployed and the contributors to EI pay for the current deficit.

Instead of once again going after the unemployed by dipping freely into the fund, why does the government not look for ways to help workers by supporting the Bloc's Bill C-308, for instance, which we debated just this morning in the House?

Employment Insurance Act

[Josée Beaudin, Bloc, Saint-Lambert, QC]

Mr. Speaker, I am especially happy, for at least two reasons, to have an opportunity today to rise on Bill C-308, introduced by my colleague from Chambly—Borduas. The first, of course, is that I am deeply concerned about the flaws in the current employment insurance system and the proposals for remedying them. The second is that the Conservatives and Liberals set up a phoney committee to discuss these issues behind closed doors and it is wonderful to finally have a chance to hear the positions of all the parties in the House.

There are many problems with the current system, but we are very familiar with them all because they have been pointed out repeatedly by the various stakeholders. As early as February 2005, the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities produced an exhaustive report with no fewer than 28 recommendations to reform employment insurance from top to bottom.

But it remained largely a dead letter. Both the Liberals and Conservatives ignored its conclusions, even though they were very reasonable and appropriate. No one should be surprised, therefore, that we in the Bloc Québécois took a rather jaundiced view of the announcement that a secret committee on employment insurance would be quickly and quietly convened to save face in view of the thousands of unemployed people who would have been able to take immediate advantage of the measures in Bill C-308.

This bill does not reinvent the wheel. All it does is pull together the best proposals for finally improving the accessibility of an employment insurance system that has been strait-jacketed for far too long by the restrictive changes introduced by the same Liberals who say now in public that they are outraged but then vote in favour of a budget that does nothing.

The most shocking thing about this refusal to finally re-open the eligibility requirements is the ideologically driven insistence on seeing all unemployed people as potential cheats. The government’s way of thinking was on display as recently as last Friday in the report from the Office of the Parliamentary Budget Officer when it estimated the cost of a standard eligibility requirement of 360 hours.

The government assumes in its calculations that, in addition to the 166,000 existing unemployed, more than 180,000 people would qualify under the new standard and would try to take advantage of it by voluntarily quitting their jobs, with the connivance of their employers, after accumulating enough hours to qualify. As we know, voluntary departures have not been covered for a long time by the current system.

It is only in this way that the government is able to conclude that changing the minimum requirements would cost about $2.5 billion, or more than twice the estimate of the parliamentary budget officer. It is hard to imagine a government with more contempt for its own citizens. It is especially sad to think that this contempt and these suspicions are penalizing people who have had the misfortune of losing their jobs. The government is basically treating 180,000 Canadians, and therefore more than 40,000 Quebeckers, as potential liars and scam artists.

I have a question now for the government. If the intent to commit a crime is just as punishable as the crime itself—as it is in the Canadian Criminal code—perhaps the government thinks that it should rush out and arrest these people who might commit fraud? Let us make no mistake. This is the exact same logic behind the government's imposition of a two week waiting period. The same logic applies to people who do not deal at arm's length with the employer. It is up to them to prove beyond a doubt that they have no intention of defrauding the plan. This does not take into account the fact that the procedure can take a number of months, even a year, before the applicant is deemed to be acting in good faith. All this cynicism is extremely discouraging.

Perhaps we should remind the government of the principle underlying the seven measures proposed in Bill C-308—attempting to help the unemployed by increasing benefits and eligibility does not amount to promoting unemployment. On the contrary, these measures have a single aim—to enable the unemployed to retain some dignity despite the difficult times they face.

Let us review these measures here, one by one. The first, and perhaps one of the most important, is to introduce a standard qualifying period of 360 hours across the board. Despite the claims of the Conservatives, who clearly have not taken the trouble to study our proposal seriously, there is absolutely no question of granting the maximum number of weeks of benefits to anyone who has worked 360 hours. This is misinformation, as my colleague has just said.

One need only consult schedule I of the bill. An individual who has worked 360 hours would be entitled to between 14 and 36 weeks of benefits. Entitlement to 50 weeks, the maximum under this bill, would require over 1,115 hours of work and residence in a region with a level of unemployment over 16%.

If this measure were passed, it would substantially reduce the phenomenon known as the spring gap, the period in which many seasonal workers receive neither income nor benefits.

The second measure in Bill C-308 concerns the weekly benefit rate. At the moment, as everyone knows, the rate is set at 55% of insurable earnings, to a maximum of $41,300 a year. This bill proposes to increase it by 5% to set it at 60%.

Over 166,000 Quebeckers—nearly two thirds of whom are women—earn minimum wage, which is currently $9 an hour. This means that these workers can earn a maximum of $173.25 a week or $9,000 a year. Clearly that is far too little to live on decently.

The third measure in this bill, which perfectly complements the previous one, is to increase the maximum insurable earnings to $41,500 and introduce a guaranteed annual indexing formula. This increase would generate additional revenues and thus fund some of the improvements proposed by this bill. According to the figures of the human resources department, this increase would lead to additional revenues of $420 million and spending of $245 million resulting in a credit balance of $175 million.

Fourth, the bill also proposes finally eliminating the discrimination facing people who are entering or re-entering the workforce—the Liberals put forward that distinction in 1996. Those individuals are unfairly penalized, especially women who often leave the workforce to care for their children. That is why, according to a study by the Fédération des travailleurs du Québec, only 16% of young unemployed workers under 25 years old are receiving EI benefits, while in the early 1990s, that proportion was 52%.

The fifth measure aims to correct the problem I mentioned earlier, namely, the presumption that workers who do not have an arm's length relationship with their employers are basically guilty until proven innocent. Of course, this goes against the presumption of innocence that is pivotal in all modern judicial systems, and enshrined in the Quebec Charter of Human Rights and Freedoms and its Canadian equivalent.

Sixth, Bill C-308 amends the formula used to calculate insurable earnings; the calculation would be based on the 12 best weeks in the 52-week qualifying period.

Lastly, this bill opens the door to the possibility of self-employed workers taking part in the EI system on a voluntary basis. According to the most recent numbers, over 16% of Canadian workers are self-employed at this time, and that number has risen recently particularly because of the recession. It is high time we offered them the opportunity to enjoy some sort of income security.

These seven measures would undoubtedly correct many major deficiencies that exist in the current employment insurance system—first, by improving it, but also by removing certain provisions originally put in place to address the terrible suspicions that successive Liberal and Conservative governments have seemed to harbour against unemployed workers.

In closing, losing one's job is rarely a joyous occasion. Having to prove to the government that one is not trying to cheat the system is even more humiliating. Workers who find themselves in that situation are reduced to begging the government for assistance that they rightly deserve, assistance that they themselves have paid for, day after day, week after week.

That is why I invite all parliamentarians to look at this bill not simply as a way to improve the system, but as a way to correct certain glaring injustices.

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Mr. Speaker, I am pleased to speak today to Bill C-308 introduced by the member for Chambly—Borduas.

It is common knowledge that this bill is very important to me, just as it is to a great many workers throughout the country. This is a bill that the NDP has proposed quite a few times in the House of Commons.

Some people may not know or may have forgotten that in 1997, when I was elected, the same changes were being studied. Cuts to employment insurance were initiated by Brian Mulroney and continued through Jean Chrétien's tenure. In 1996, employment insurance cuts were disastrous for the country and for the workers.

I feel obliged to start off with a few comments. The member for Dartmouth—Cole Harbour is trying to tell us that the Liberal Party—I do not know if the members have seen the light at the end of the tunnel—wants to be the saviour of employment insurance.

At the same time, the Liberal Party is saying that this is temporary. That worries me. What does “temporary” mean? I heard the leader of the official opposition, the Liberal leader, say that temporary means “as long as there is an economic crisis”. As soon as the economic crisis is over, this temporary measure will be terminated. We are already hearing on the news that the crisis may soon be over. But we do not really know how long it will last.

The bill will set 360 hours as the number of hours required to qualify. I have a problem with the Conservatives' position on 360 hours. It is as though they have always said that it would cost $4 billion and that too many people would receive employment insurance. To hear them talk, only 15% of workers are not eligible for employment insurance. According to their data, 85% of workers pay premiums and are eligible for unemployment benefits and only 15% are not. It is as though all of Canada were applying for benefits. Come on. There are 33 million workers in Canada.

What an insult to the workers when we say to them that if we bring it down to 360 hours, they will all get on EI and they will be on EI instead of working. What an insult to working Canadian men and women and the people of Quebec. What an insult.

I was in France not too long ago, and I asked how much people were getting paid for employment insurance. It was 80% of their wages. I used the Conservative argument and asked whether they thought that at 80% of their wages, people would want to be on EI instead of working. The representative of the government said that their people love to work, that they want to go to work, but that in the meantime, they do not want to punish the family of the person who has lost his or her job, and that they invest the money in the community. That is good for the economic crisis.

When I went to France, I asked the question. People can check if they want. In France, employment insurance recipients receive 80% of their wages. I asked a question that could very well have been asked by the Conservatives or the Liberals: do you not think that people who get 80% of their wages in EI benefits would want to be on EI instead of working? The government representative said no, that people want to work and are eager to work. It is their own employment insurance system, paid for by employers and employees. He said that they are proud of the fact that they have a good income because they can spend that money within the community, which is good in tough economic times.

The government and the Liberals are saying that people are lazy, that they do not want to work. About the 360 hours, where is the government taking its figures when it says that it will cost $4 billion and that nearly everybody can get EI benefits already? This obviously makes no sense whatsoever.

I listened to what the government representative was saying earlier. The parliamentary secretary was saying that all the changes proposed by the Bloc Québécois would cost more than $4 billion. There are several changes: 360 hours; increasing the benefit period; increasing the rate of weekly benefits to 60%; eliminating the distinctions between a new entrant and a re-entrant to the labour force; eliminating the presumption that persons related to each other do not deal with each other at arm’s length; increasing the maximum yearly insurable earnings to $42,500 and introducing an indexing formula; and adding a new part VIII.01 to the act relating to self-employed persons.

Now they are changing their tune and saying that it will cost $4.1 or $4.2 billion. And they are also saying at the same time that reducing the number of hours to 360 will cost $4 billion. Which figure is the right one?

What is the right number? The 360 hours are supposed to cost some $4 million, and the parliamentary secretary of the Conservative government said that all the changes of the Bloc would cost $4 million. I would like to hear the right number.

The real figures indicate that it would cost $1.4 billion. That money belongs to workers in case they lose their jobs.

I heard the Liberals say that it was terrible. I read in BC newspapers that people in that province should be treated the same way as those in Atlantic Canada, in Regina and across Canada. The 360-hour rule should apply to everyone. It was the Liberals, supported by the Conservatives, who established the varying threshold, increasing the number of hours from 420 to 700 and then to 910. That is why we are saying that there is not much difference between the Grits and the Tories. They all take their orders from Bay Street. That is where the decisions are made.

However, for those workers who lose their jobs, the decision is made on Monday morning when they no longer have a job to go to and wonder how they will support they family. They wonder whether they should get EI benefits or welfare benefits. That is where it hurts.

When people say that the country will go into debt if changes are made to employment insurance, which debt are they talking about? The former Liberal government and the current Conservative government stole $47 billion from the EI fund that belonged to workers. So we should be able to say that there is a fund with surpluses and to use that money.

We must study the possibility of making changes to EI. It is a serious issue. We must ask ourselves what we can do to help workers. People must stop telling tales and giving false figures.

It has always been said—and experts said it—that only 38% or 42% of people who contribute to EI are eligible for benefits.

Therefore, since the Conservatives keep telling us that this is false and that 85% are eligible, why are they so afraid of the 360-hour rule and why do they think that the whole country will receive EI benefits? Why are the Conservatives so worried? A mere 15% is not that much, if I am to accept the government's arguments.

It is the same thing with the workers referred to in the bill put forward by the Bloc member, those who are related to the owner of the business. We want to have small and medium sized businesses and promote them. That is the right thing to do. To build a business, one starts by hiring family members, and then, as the business grows, they start hiring outside the family. It is discriminatory to deny benefits to contributing employees when they are laid off because they are related to the owner of a business who pays his or her taxes. It is discriminatory because the decision is simply based on the fact that a family relationship exists. They have to be treated like any other employee. If they did their job, worked the hours, paid their premiums and lost their job, that is what matters. The current approach is totally discriminatory. And there are such cases.

I am thinking of the Liberals, the so-called saviours of EI. I am sorry, but that makes me laugh. They are the ones who, in 2005, voted down a motion I had put before the House of Common, asking that the 12 best weeks be used in calculating benefits in order to help the workers. The Liberals did that. They also increased to 700 the number of hours of work required to qualify and established requirements that vary across the country. To listen to some people, 360 hours is the end of the world. One should remember that all that was required previously was 150 hours.

The myth about these 360 hours allowing individuals to receive benefits for one year is fallacious, because people are entitled to benefits for a given number of weeks.

Let me conclude by saying that we will certainly support the bill from the Bloc Québécois.

[Michael Savage, Liberal, Dartmouth—Cole Harbour, NS]

Mr. Speaker, here we are back in Parliament in the fall, again speaking about employment insurance. It is almost as if we never left.

Much has happened over the summer but little has changed. We still have a Conservative government that puts politics before people, that does not see EI as the fundamental and critical part of our social infrastructure that is so necessary at a time of difficulty, but rather a government that sees EI as a political tool, a blunt instrument to divide Canadians, to divide Parliament, as part of a strategic ploy hatched to distribute false and misleading information to Canadians.

This is a government that uses false statistics and never allows facts or truth to get in the way of its goal to divide this country. These are the traits, indeed, this is the character of the government. Employment insurance is but one example.

Today we look at the work of my colleague, the distinguished member for Chambly—Borduas in Bill C-308, who today introduced his bill in this Parliament and is worthy of consideration. One of the most important things in his bill is the issue of a 360-hour national standard for eligibility. This is something that has had a lot of attention, not just from members of the House but from people across the country.

Let me just give a couple of quotes from people who might be recognized across Canada.

B.C. Premier Gordon Campbell said in August, “What we’re really saying is Canadian workers, whether they live in the Maritimes, the West or North or Ontario, we should treat them the same way”.

Brad Wall, Premier of Saskatchewan, said “Instead of 50-plus different treatments for the number of qualifying hours, we need to dramatically reduce that”.

Alberta Premier Ed Stelmach said, “An unemployed family, whether they live in Nova Scotia, Quebec or Alberta, are equally unemployed”.

The TD Bank, in July, said, “The truth of the matter is that during an economic downturn, it is no easier to find a job in a region with lower prevailing unemployment than in one with a higher unemployment rate”.

Pierre Fortin, economics professor, said of the Leader of the Opposition that his proposal of 360 hours was not a problem. It was just and it was fair.

The Star Phoenix in Saskatoon said, “Clearly, EI services should be equally applied across the country. Isn't that what being a nation is all about”?

The Canadian Chamber of Commerce, who my colleague, the parliamentary secretary referred to, said:

A measure to improve the equity of the EI system that would be consistent with longer-term smart policy aimed at improving labour mobility and flexibility would be to immediately and permanently make the duration of, and access to, benefits equal--

How about this one: “An unemployed worker is an unemployed worker and deserves to be treated the same, regardless of region of residence. We will urge the immediate elimination of discriminatory EI elements such as regional entrance requirements”. This was said in the Reform Party of Canada platform statement authored by the now Prime Minister of this country. Let me repeat the last bit, “We will urge the immediate elimination of discriminatory EI elements such as regional entrance requirements”.

Here we are. We resume Parliament more or less where we left it off in June. As the session ended last spring, we all remember that we were on the verge of an election. It was averted when our leader and the Prime Minister agreed to a joint committee that would spend the summer looking at improvements to EI, specifically two things: regional fairness, which was our issue, and the Prime Minister added the issue of the self-employed. That was the proposal from the Conservatives, part of which they had promised in the last election but had not acted upon.

We had these meetings. I was there along with my colleague from Notre-Dame-de-Grâce—Lachine, Kevin Chan from our leader's office, and three members of the opposition. The meetings were difficulty but I do not suppose that this particularly relevant. People do not care how we spend our summer time.

The bottom line is that the Conservative members of this committee stalled, delayed and brought nothing to the table, absolutely nothing serious. I do not believe this was unintentional. The Conservative members broke confidential protocols. It had been decided that there would be certain protocols about confidentiality. At almost every turn the Conservative members prevented departmental officials from giving information that we had all agreed to, including the Conservative members. That is unbelievable.

The Conservative members leaked a document that they themselves indicated should not be leaked. I am looking at it. It says “Employment insurance working group--not for distribution”. The members brought that to a meeting. The only problem was, it was already given to the media. Why would the Conservative members do that?

Mr. Speaker, I can see you are shocked. The Conservative members did it because there was false and misleading information in that document. They increased the cost of the Liberal proposal for regional fairness by over 400%, not a little bit.

I took the decision to ask the Parliamentary Budget Officer, an independent officer of this House, to review the government numbers. We now know the result of that.

The PBO, appointed by the government, came back and said, yes, the government inflated the cost and, in fact, indicated that the actual cost of our 360-hour temporary proposal was slightly under the cost proposed by the Liberals.

This is some of what the Parliamentary Budget Officer said in his report:

The government's total cost estimate overstates the cost of the proposed 360-hour national standard. The Parliamentary Budget Officer believes that the government's dynamic cost estimate is flawed. More important, the PBO also believes that only the static costs should be considered in costing the proposal, given the structure of the program and that the proposed change to the EI system is in effect for one year only. This is the independent officer of this House and this is what he came back with.

The response from the government was that it did not change anything. The government first ignored it, then continued to mislead and still used, as recently as Friday, the $4 billion, even though everybody knows that it was discredited.

That is how the summer went.

I was asked many times by people across the country, including people in my own caucus and in my riding, “Why do you keep going to these meetings? You know that the Conservatives are not serious. They have not presented anything. Why would you keep going back?” We went to every scheduled meeting, to try to find a consensus.

Canadians have more important things on their minds than to follow what is happening with an employment insurance working group. However, to the extent that they paid attention, who could blame them for saying that that was just an extension of a dysfunctional Parliament? Who could blame them for saying, “You have just dragged question period throughout the summer. You guys can't get along in the House of Commons and you can't get along in the summer”? Who could blame them for saying, “He said this and she said that; you're all equally to blame”?

We tried to make it work. We went to those committees to try to make those committees work. Yes, we had an opening position, supported by many people across this country: economists, labour leaders, anti-poverty groups, even business people, and premiers of provinces who have many representatives on the other side of this House. We had that position, we presented it, and we all agreed that we would go away and get that costed. When the number came back, it was distorted.

However, beyond that, we also asked other questions. These are the questions we tabled to the group on July 23.

What is the current deficit in this year's EI account?

What are the components of that deficit? There was no answer.

How many Canadians have seen increased access to EI by region?

What would be the incremental cost of having a 360-hour national standard for eligibility?

We also asked, at that same meeting in July, what would be the cost of a 395-hour standard and a 420-hour standard?

We asked, how many Canadians draw benefits for the maximum duration?

What percentage of claimants are expected to draw the maximum weeks? Perhaps extending benefits further is a very sensible thing.

We did not get answers to all of those questions.

We also asked, in areas where the unemployment changes the eligibility criteria, how does the time lag between job loss of people becoming eligible for benefits go into the issue of a three-month average versus a one-month average to determine eligibility?

We asked all those questions.

We followed the protocols of the working group. We established the working group, we established protocols, we followed those protocols, and we expected answers. We were told we would get answers.

At the last meeting of the group, the minister told us that he told the department not to even bother with that, not to even bother with the stuff that we all agreed with.

Many of us in this House come from backgrounds in business or labour organizations or other non-for-profit organizations. We do negotiations as a way of doing business to make perfect not be the enemy of better. However, we all know, whether we are in labour or management or any other organization, it takes two to make something happen.

Employment insurance to the government is a ploy. It is part of the game of politics.

Here today, as Parliament resumes in the fall, we are where we left off in the spring, and for the government the games continue.

[Ed Komarnicki, Conservative, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour]

Mr. Speaker, it is good to be back in the House after spending the summer seeing our economic action plan create jobs.

With respect to this bill, to put it quite simply, and with deference to my colleague, the bill is not sound policy. It is therefore unsupportable. It proposes a significant number of changes to the EI system, a veritable laundry list of the oppositions' demands with respect to the system.

Among many other changes, this bill proposes a flat 360-hour national entrance requirement, and a permanent flat 360-hour requirement at that. Not only would this bill be unaffordable and irresponsible now and in the short term, but it would also be increasingly unaffordable, irresponsible and economically damaging over the long term.

As this proposal is a big ticket item in this bill, I would like to take time to discuss it in some detail. I know my colleague from Regina—Lumsden—Lake Centre noted the substantive cost to it. My learned colleague started in the low billions and then added to that list.

This bill would permanently reduce the EI entrance requirements to only 360 hours of work for regular benefits. Let us be perfectly clear about what this means. Three hundred and sixty hours is 45 days of work, just nine weeks. In reality this is a proposal for a two-month work year supported by the Liberal opposition, specifically the member for Dartmouth—Cole Harbour. This program's history shows us that the 360-hour idea is nothing more than a return to the failed Liberal policies of the 1970s.

On August 1, in The Canadian Press, referring to this time and these negative Liberal policy effects, University of Ottawa economist David Gray said, “What happened in '71 to my mind was a policy catastrophe”. To repeat it today, he said, “would just be catastrophic for the Canadian economy”.

Shortening the qualification period for EI would be tantamount to encouraging a higher turnover of workers. The result of that kind of misguided policy could be a permanent rise in the unemployment rate.

Others agree, and I will quote the Canadian Chamber of Commerce's July 23 press release. It said:

moving to a national standard of 360 or 420 hours of work as the basis for qualifying for EI would have substantial adverse impact on Canada’s labour market--it would discourage work, increase structural unemployment, exacerbate skills and labour shortages, and stifle productivity.

All those are not acceptable. Simply put, they are ill-advised. Those are the not the sorts of policy outcomes the House should be pursuing.

Allow me to quote a few others. On August 1, the president of the Canadian Federation of Independent Business said that the flat 360-hour proposal was “just ludicrous”. It really sums it up.

On June 3, in the National Post, Jack Mintz, now the Palmer Chair in Public Policy at the University of Calgary, said that the flat 360-hour proposal is “[one] of the worst ideas...getting serious attention”. He said that, “shortening drastically the qualification period [for EI] would encourage greater turnover of workers, result in a permanent rise in the unemployment rate and impose a high economic cost”. It becomes quite clear what sorts of problems this 360-hour proposal carries with it.

The Department of Human Resources and Skills Development calculated the cost of this sort of proposal, and to put it mildly, it is costly. A 360-hour national entrance requirement including new entrants and re-entrants to the workforce, which this bill would do, and including the costs incurred by making the 360-hour standard permanent, which this bill would do, and including the related behavioural or dynamic effects of this permanent change, brings the cost of this policy alone to $4 billion. My learned colleague speaks in billions of dollars as well.

In addition to that, we would have to provide for the costs of all other changes proposed in this bill. This could be in the tens or hundreds of millions of dollars. This would not be responsible at this time.

Where do these many billions of dollars come from? They come from Canadian workers and employers; eventually that is where they come from. But the immediate effect would be to further increase the federal deficit. I think it should be clear to everyone that this 360-hour, two-month work year proposal is a very costly and irresponsible policy.

The proposals put forward in the bill would truly hurt our ultimate goal of encouraging and supporting unemployed Canadians in their efforts to get back to work. The two-month work year proposal is unacceptable as policy and unacceptable to hard-working Canadians. It is a policy change this government will not be pursuing.

I know the opposition has been talking about access to EI. I would like to point out that EI access is high among those persons for whom the program is designed. According to Statistics Canada's 2008 employment insurance coverage survey, 82% of the unemployed who have paid into the program and have either lost their jobs or quit with just cause were eligible to receive benefits. In fact, fewer than 10% of those who have paid the premiums and then lost their jobs lack the required number of hours to qualify.

These high rates of access are due in large part to the variable entrance requirement. As of September 2009, 38 of the 58 EI regions have seen their entrance requirements decrease and their benefit durations increase. That is the way it was intended to work. During this same period, more than 82% of Canadian workers gained access to EI.

Right now, the duration of EI benefits is something very much worth addressing. Bill C-308 does propose a change of duration. It proposes to make permanent the temporary five extra weeks of EI benefits this government introduced as part of Canada's economic action plan. Our government implemented this measure because we recognize that during these challenging economic times people need more time to find employment. We also temporarily increased the maximum duration of benefits available from 45 to 50 weeks. As of August 30, close to 289,000 Canadians had already received additional benefits and both of these measures will be in place for new claimants until September 2010.

While our government firmly believes that these measures are providing immediate support to workers and their families right now, we anticipate that these measures will no longer be needed a year from now when they are scheduled to lapse. Making these additional weeks of benefits permanent, as this bill proposes, may hinder economic recovery by contributing to disincentives to work and labour shortages when the economy rebounds. We do not think this policy proposal is a responsible measure to take.

Of significance, the Minister of Human Resources and Skills Development has announced that she will be introducing more measures shortly to ensure that Canadians, who have paid into the EI system for years, are provided the help they need while they search for employment. This will be an important step for Canadian workers who have worked hard, paid their taxes their whole lives, and have found themselves in an economic hardship that they did not create.

Our government has already made a number of improvements to the EI program to support unemployed Canadians to help them get back into the workforce. We are providing five extra weeks of benefits. We made the EI application processes easier, faster and better for businesses and workers. We have increased opportunities for unemployed Canadians to upgrade their skills and get back to work. We are assisting businesses and their workers experiencing temporary slowdowns through improved and more accessible work sharing agreements. More than 160,000 Canadians are benefiting from work sharing agreements that are in place with almost 5,800 employers across Canada.

We believe it is important to ensure Canada's workforce is in a position to get good jobs and bounce back from the recession. Career transition assistance is a new initiative that will help an estimated 40,000 long-term workers, who need additional support for retraining, to find a new job. Through this initiative, we have extended the duration of EI regular income benefits for eligible workers, who choose to participate in long-term training, for up to two years. We are providing Canadians easier access and training that is tailored to the needs of workers in our country's different regions.

Our government is focused on what matters to Canadians: finding solutions to help long-term workers who have worked hard and paid into the system for years but are having trouble finding employment through no fault of their own; extending benefits to self-employed Canadians; and getting Canadians back to work through historic investments in infrastructure and skills training. The temporary measures under Canada's economic action plan are well suited to respond to the economic situation.

Our plan provides support to unemployed Canadians over the short-term. It is designated to meet the needs of the current economy and to help Canadians get the skills they need for the jobs of the future.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

No, Mr. Speaker, I do not. We will invoke our right of reply another time because this morning we are just getting started with the debate on Bill C-308.

If we may, we will address the government's claims later on.

What a happy coincidence that we are debating Bill C-308, employment insurance reform, as the session begins. As everyone knows, people have been talking about this issue all summer and even earlier this year.

Before I begin, I would like to salute the people of my riding, who are celebrating the 400th anniversary of Champlain's arrival in the Chambly-Borduas area via the Richelieu River. This summer was full of festivities marking the event.

I would also like to salute my House of Commons colleagues, and I hope that we can get off to a positive start this session.

This summer, people were talking about a 360-hour provision for employment insurance benefits. We believe that this is only part of the solution to the problems plaguing employment insurance. It is time for a comprehensive overhaul of the employment insurance system, and that is why we have tabled Bill C-308.

This bill includes a number of changes to the current system, including reducing the qualifying period to 360 hours—I will discuss costs related to these measures shortly; increasing the benefit period, which is currently 45 weeks but has been temporarily increased to 50 weeks—we believe that should be a permanent change; and increasing the weekly benefit rate to 60% from 55%.

For those who did not tune into this debate the first time around, I want to point out that this bill would eliminate the presumption that persons related to one other do not deal with each other at arm’s length. Right now, people working for an employer who is also a relative must prove that they have an arm's-length relationship with company administration.

I would also note that a temporary measure was recently brought in to increase the maximum insurable earnings to $41,500. We believe that this measure should be permanent. This bill would also enable self-employed workers to qualify for employment insurance benefits.

That is an overview of the measures in Bill C-308.

Some will focus on the other measures that are not in the bill. But we have planned separate initiatives, and we have not neglected these measures, such as the waiting period, the abolition of the two-week waiting period, which is being examined in Bill C-241, introduced by my colleague from Brome—Missisquoi.

In addition, regarding the increase in the number of weeks for individuals who are on extended leave because of a serious illness, epidemic or quarantine, we would like to increase the number of weeks from 15 to 50. This bill was introduced by my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, who has left this House, but the bill was saved by a motion from the House Leader of the Bloc Québécois, the member for Joliette, so that it can be put to a vote in the House.

Motion M-285, moved by my colleague from Bas-Richelieu—Nicolet—Bécancour, would reinstate a program for older worker adjustment, for which the provinces would provide 30% of the funding and the federal government would provide 70%. This would ensure that those aged 55 and up who are not able to find new jobs receive an income until they reach the official retirement age, when they will receive income security.

The fourth additional measure is addressed in Bill C-395, introduced by our colleague from Berthier—Maskinongé. This bill would protect workers who are affected by a prolonged labour dispute—more than 103 weeks—and would ensure that these workers, who have often been paying into employment insurance for 25, 30 or 40 years, are eligible for EI benefits when their employer shuts down the company after the 103 weeks. These are the other measures we have planned in addition to Bill C-308.

Since this time last year, we now have 500,000 more unemployed workers, including 70,000 in Quebec. Nothing has been done to help these people, although we are aware of all of the problems with the current system, which already excluded nearly 60% of unemployed workers from the possibility of receiving employment insurance benefits. We all saw the show put on by the Liberal-Conservative coalition this summer about the 360 hours. In a heartfelt speech, the member for Bourassa told us in June, here in this House, that if the Conservatives did nothing, it meant they were abandoning the workers and that these workers would starve. To ensure that this would happen, the coalition set up a bogus working group that has been recognized as such and that has produced bogus results.

Today, we need to debate this issue in this House. Are the parliamentarians here aware of the problems the crisis is causing for people who lose their jobs? These are problems faced by all the families who have seen their income drop because of job losses. The crisis also means a substantial shortfall for the regional economy. Many of these people will soon be dependent on provincial programs. Quebec, of course, has programs to help people in need.

The show we witnessed this summer is a non-starter. No one from the government or the official opposition is willing to say that they are going to stand up for the unemployed and correct the situation. The department's own figures show that in 1990, nearly 84%—83.82%—of people who lost their jobs could expect to receive employment insurance benefits. Today, 46% of people can expect to receive these benefits. This means that 50% of people have been deliberately excluded. The Liberals, followed by the Conservatives, created this economic tragedy for the unemployed, while managing to produce an EI surplus of between $3 billion and $7 billion year after year.

In the past 12 or 13 years, $57 billion has been diverted from the employment insurance fund.

Where will the money come from to pay for the improvements to the system? From worker and employer contributions. Instead of using this money for other purposes, the government should have put it toward the fund's stated objectives.

This opinion was shared by all the members of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities. I would remind this House that just four years ago, in February 2005, that committee made 28 recommendations to the House of Commons, in keeping with its terms of reference. The first eight of those 28 recommendations were unanimous. In other words, the four parties in the House of Commons represented on that committee had unanimously agreed to recommend that an independent employment insurance fund be created to prevent the government from dipping further into the fund. The committee recommended that the fund be used only to cover the costs of employment insurance. It also recommended that the money that had been diverted be transferred gradually to the employment insurance fund, as the Auditor General had called for. The committee further recommended creating a premium rate stabilization reserve, to provide for sudden increases in the number of unemployed workers; introducing a mechanism to stabilize premium rates; giving the government the power to set a statutory rate and implementing a $3,000 yearly basic insurable earnings exemption.

These recommendations were all unanimous. I would also remind the House that all three current opposition parties—the Liberal Party, the Bloc Québécois and the NDP—also unanimously recommended amendments that correspond exactly to Bill C-308. It will be interesting to see if the Liberals support that, if this time, they will remain true to the work they did with other members of the House, and if they will support their own recommendations in the House of Commons.

These amendments are: a permanent, rather than temporary, maximum duration of regular benefits of 50 weeks; that is, extending benefits by five weeks. We no longer hear the Liberals talking about that; now it is the Conservatives. At that time, the Conservatives also voted in favour of calculating benefits based on the 12 best weeks. The amendments also provided for an increase in the rate of benefits from 55% to 60% of earnings between periods. Once again, the Liberals agreed with us. The other measures included allowing self-employed workers access to the EI system, removing the arm's-length relationship—this is all included in Bill C-308—and eliminating the waiting period for those engaged in approved training.

We are very curious to see how our colleagues will vote. Of course, we encourage them to vote in favour of the bill as it was introduced, which would allow them to honour their commitment in this House. The Conservatives also voted for some of these measures back when they were in opposition.

As a final point, one might wonder whether the money is there. Yes, it is there. The cost is not as high as the Conservatives are claiming. We saw that in relation to the 360 hours. This measure will not cost $4.5 billion, as the Conservatives would have us believe.

The Parliamentary Budget Officer did an approximate calculation and estimated the cost at $1.2 billion.

[Tom Lukiwski, Conservative, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I rise on a point of order. On June 2 you made a statement with respect to the management of private members' business. In particular, you raised concerns about three bills that appear to impinge upon the financial prerogative of the Crown and invited the comments of members of the House.

One of the three bills you mentioned was Bill C-308, An Act to amend the Employment Insurance Act (improvement of the employment insurance system). Without commenting on the merits of the bill, I submit that Bill C-308 contains provisions that would change the purposes of the Employment Insurance Act, would require new spending and would, therefore, require a royal recommendation.

Bill C-308 includes the following provisions that would require new government spending.

First, Bill C-308 would reduce the qualifying period for employment insurance to a minimum of 360 hours of work compared with the current variable interest requirement, which varies from 420 to 700 hours, depending upon the unemployment rate of the region.

Second, Bill C-308 would permanently increase the benefit period by five weeks.

Third, Bill C-308 would increase the benefit replacement rate to 60% of insured earnings from the current rate of 55%. The bill also proposes to change the benefit calculation from the best 14 weeks of a claimant's earnings during a 52-week period to the best 12 weeks of a claimant's earnings during a 52-week period.

Fourth, Bill C-308 would increase the level of maximum yearly insurable earnings from $39,000 to $42,500. It would also introduce an indexing formula that would further increase the level of maximum yearly insurable earnings every year.

Finally, Bill C-308 would add a new part to the Employment Insurance Act to expand benefits for self-employed persons.

The Department of Human Resources and Skills Development estimates that the measures contained in Bill C-308 would cost as much as $4.3 billion per year.

Mr. Speaker, in previous rulings, you have ruled that other private members' bills on employment insurance were out of order because they would increase government spending and therefore require a royal recommendation. In particular, I would draw the attention of members to a November 6, 2006 ruling on Bill C-269, An Act to amend the Employment Insurance Act (improvement of the employment insurance system), where the Speaker stated that Bill C-269 would reduce

the qualifying period for benefits...increases the weekly benefit rate...repeals the waiting period for benefits...increases the yearly maximum insurable earnings and...extends coverage of the Employment Insurance Plan to the self-employed. ... I have concluded that all of these elements would indeed require expenditures from the EI Account which are not currently authorized. I note as well that the summary of the bill lists three further ends which, at first glance, appear to me to involve other increases to expenditures. Such increased spending is not covered by the terms of any existing appropriation.

I must rule that...Bill C-269 requires a royal recommendation.

Bill C-308 includes provisions similar to those in Bill C-269 from the 39th Parliament, which was found to require a royal recommendation. Therefore, Mr. Speaker, I submit that Bill C-308 must also be accompanied by a royal recommendation.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

moved that C-308, An Act to amend the Employment Insurance Act (improvement of the employment insurance system) be read the second time and referred to a committee.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, I am pleased to rise today to speak on this bill, a very important bill, even though we see some flaws in it. I will follow up on the comments of my hon. colleague and address the accessibility of EI.

Seeing that my hon. colleagues from Dartmouth—Cole Harbour and Saint-Lambert, with whom I work on the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities are both here, I will take this opportunity to remind the House that the committee is currently carrying out a study on poverty in the country. One point that everyone appearing as witnesses on behalf of their various groups is making is that the restrictions to the EI program put a terrible burden on individuals, make them poorer and make things worse for them. They are unable to have access to benefits despite the fact that, in many cases, they have contributed to the program for weeks and months.

We know that many steps were taken over the years to exclude as many people as possible from the program and that, as a result, a minority of those contributing to EI actually receive benefits. Previous speakers, except for those from the Conservative Party of course, recognized that this is a major problem that has to be addressed.

We are delighted that the Liberal Party now agrees with us and recognizes the need to implement measures as soon as possible. Such measures will help those who are losing their jobs, of course, but they will also contribute to the economic recovery.

Bill C-280, which was put forward by my hon. colleague from the NDP, calls for a minimum of 360 hours of work to qualify for benefits. Adding five weeks of benefits is another measure. Some might say that those five weeks have already been granted in the last budget, but I should point out that this is a temporary measure designed to get out of the current crisis.

Missing are a number of measures we would have liked to see come about. We would have liked benefits to rise from rise from 55% of insurable earnings to 60%. The same for the two week waiting period. I will come back to that later, when the bill put forward by the Bloc Québécois, a more comprehensive bill in my opinion, comes up for consideration.

We will also have some questions for our NDP friends about how the rules will be relaxed during the economic crisis, including new criteria for people who received employment insurance overpayments previously or who have received a penalty. The rules are not quite clear. I think that when we study this bill in committee, we will have an opportunity to go into detail in this area, which is still a bit vague.

All the same, we have to be realistic about the work that needs to be done. Earlier, I mentioned that our Liberal friends had expressed their intent to vote for this bill. However, we need to know their precise intentions. The only measure the Liberal Party has proposed so far—a proposal it has made over and over—is the 360-hour rule. The Liberals think that it is a way to help us get out of the crisis. But this bill includes a permanent rule that will last as long as the House believes it to be appropriate given the state of the economy.

That is the only measure the Liberals have discussed and debated up to now. For Bill C-280 specifically, we have to urge the Speaker of the House and the Prime Minister to have a vote on this bill at third reading. Will they vote at third reading? Voting at second reading is a much smaller commitment when the Speaker announces that he does not intend to authorize third reading unless the bill receives a royal recommendation.

There is another important issue with respect to the credibility of the proposal. We have to remember that the system is what it is right now because of the previous government. The current government is making a mistake by keeping these bad measures in place. But it was the previous government that passed Bill C-17 in 1994, Bill C-12 in 1996, Bills C-32 and C-2 in 2000, Bill C-49 in 2002 and Bill C-23 in 2005.

That does not mean much, because they are just numbers. But each of those bills, which were passed and became laws, represent measures to limit access to EI as much as possible. According to the Department of Human Resources and Social Development, about 44.6% of all people who claim EI can expect to receive benefits. That is quite serious, because it affects not only those losing their jobs, but also their families, the local economy, the regional economy and the economy of the provinces concerned.

We know that someone who does not receive EI benefits will eventually find themselves on welfare, which is administered exclusively by the provinces, even though this person made contributions to the EI system and the EI fund. But the Canadian government does not contribute one cent to this fund. I would call that a serious economic crime, because access to EI is being compromised. We know now that there was a surplus of about $57 billion that the government spent on other things over the past 12 years. That means that there are hundreds of thousands of families who have suffered because of these measures, some of whom have been plunged into poverty.

The Bloc Québécois has consistently brought forward bills that, every time, have been fought by the two big federal majority parties.

In conclusion, if the Liberal Party wants to be credible—because the Conservatives are hopeless, and this is clear from their right-wing measures that take away all the means to support the economy and especially the poor—it must first vote in favour of Bill C-280. It must in particular, as of June 19, join us in studying and debating in favour of Bill C-308, which I introduced on behalf of my party. This bill of course brings back the 360 hours and the 60% of income earned, eliminates the distinctions, eliminates the presumption that persons related to each other do not deal with each other at arm’s length, and bases the calculation of benefits on the 12 best weeks.

This is my invitation to my colleagues here in the House. The time has come to fix the employment insurance system.

Private Members' Business

[The Speaker, Peter Milliken]

The Chair would like to take a moment to provide some information to the House regarding the management of private members' business.

As members know, after the order of precedence is replenished, the Chair reviews the new items so as to alert the House to bills which at first glance appear to impinge on the financial prerogative of the Crown. This allows members the opportunity to intervene in a timely fashion to present their views about the need for those bills to be accompanied by a royal recommendation.

Accordingly, following the May 27 replenishment of the order of precedence with 15 new items, I wish to inform the House that Bill C-290, An Act to amend the Income Tax Act (tax credit for loss of retirement income) standing in the name of the member for Richmond—Arthabaska; Bill C-308, An Act to amend the Employment Insurance Act (improvement of the employment insurance system) standing in the name of the member for Chambly—Borduas and Bill C-395, An Act to amend the Employment Insurance Act (labour dispute) standing in the name of the member for Berthier—Maskinongé give the Chair some concern as to the spending provisions they contemplate.

Hon. members who wish to present their views regarding the need for a royal recommendation to accompany these bills, or any of the other bills now on the order of precedence, are encouraged to do so at an early opportunity.

I thank the House for its attention.

Employment Insurance Act

[Josée Beaudin, Bloc, Saint-Lambert, QC]

Mr. Speaker, I am particularly pleased to be able to have an opportunity to speak today on C-280, An Act to amend the Employment Insurance Act.

As you know, the Bloc Québécois defends the rights of workers who have lost their jobs with unequalled determination here in this House. Our desire to see a thorough reform of the employment insurance system is not, therefore, dictated by circumstances, such as a looming election, but is instead a constant. Since the founding of our party it has been our concern 365 days a year.

The employment insurance program is inadequate. We are not the only ones to say so. The OECD, the C.D. Howe Institute, the TD Bank, all of the labour congresses and workers' coalitions, and many others, are unanimous on the need to reform this program of worker protection, particularly in a period of economic crisis.

By beefing up this anemic program, the government would be killing two birds with one stone. First, it would be helping the hundreds of thousands of men and women who lose their jobs and find themselves ineligible for benefits and are therefore forced into the untenable position of having to find a new job in tough economic times. Second, as if the first point were not sufficient, we need to realize that EI benefits constitute one of the best ways to stimulate the economy, twice as much as any tax reductions, of course. Yet all that would be needed to significantly improve the employment insurance program is a mere fraction of the amount the government has distributed as income tax reductions.

I should make it clear from the start that I am absolutely in favour of the principle of this bill, as my opening remarks ought to have made clear. It contains a number of measures that we in the Bloc Québécois have been proposing for some time. I would, however, like to express at least some of the reservations I have about the bill.

Unlike the motion introduced in this House by the NDP on one of their opposition days, this bill does not include any measures to increase the rate of benefits to 60%, but rather maintains it at 55%. For the Bloc Québécois, such an increase is absolutely crucial and that is why we are suggesting that the committee take a closer look specifically at this matter and that the rate be adjusted to 60%.

In addition, concerning subclause 7.1, the bill refers to a relaxing of the eligibility criteria for people who have violated the rules of the EI system. We are in favour of such a measure, but the new criteria appear rather arbitrary. At the very least, clarifications are needed concerning how thresholds are established in the bill.

Apart from those two reservations, as I was saying, we fully support the principle of this bill. I would like to discuss the measures it proposes one by one.

First, setting the minimum eligibility threshold of 360 hours to qualify for regular or special benefits will be particularly beneficial to the workers who are currently unable to exercise their rights, even though they have paid into the system, day after day and week after week. At this time, that threshold varies between 420 and 910 hours. That is much too high, and that is the main reason why so many unemployed workers are excluded from the coverage offered by the system.

These rules penalize seasonal workers in particular, who experience the spring gap that some call a “black hole”, that is, that time of the year when they find themselves with no income, while they wait for their work season to return. The rules also penalize those who hold unstable jobs or work in non-standard employment. Many such workers are women, including single mothers who already have difficulty making ends meet, and who increasingly bear the brunt of these misguided policies.

With the number of hours set at 360, which the Bloc has long called for, an estimated 70% to 80% of unemployed workers could collect benefits, and the level of coverage would be returned to what it was 20 years ago. It has to be said, the most urgent difficulty with the employment insurance system is the coverage it provides to workers. In fact, in 1989, or 20 years ago, the claimant/unemployed ratio, used by everyone except perhaps the Minister of Human Resources and Skills Development, was 84%. Today, according to the most recent estimates from the chief actuary of the Employment Insurance Commission, it is 46%. What is the reason for such a dramatic drop?

We have no choice but to lay the blame at the feet of the Liberals who, in the 1990s, literally cut off access to the system by making the eligibility criteria so stringent that almost 40% of workers were excluded. In many cases, it was the same Liberals who today denounce the unfairness and express outrage after finally opening their eyes to the reality that they created. But as the saying goes, only a fool does not change his mind. Popular wisdom will now suggest that the fools have been joined by the Conservatives who, on the surface, despite the combined efforts of the opposition parties, do not seem to see the obvious: the employment insurance system is inadequate.

There are so many problems with the system, and that is why the member for Chambly—Borduas introduced Bill C-308, which would make major changes to the system to turn it back into what it is meant to be: a real insurance plan rather than a tax by some other name, as it was under the Liberals, or a way to punish the unemployed, as it is under the Conservative government.

One of the punitive elements in the system is the waiting period, which is absolutely unjustifiable because it is based on the idea that claimants are all potential fraudsters.

I want to make it clear that eliminating the waiting period would not mean paying out two extra weeks. It absolutely does not conflict with adding five weeks to the maximum benefit period. It would just eliminate the very long and very unnecessary two-week delay before people receive their benefits.

Imagine a worker who suddenly loses his or her job—that is not hard to do—and who has to wait 60 days for the claim to be processed—which happens all too often—and who then has to wait another two weeks before collecting his or her first employment insurance cheque.

The statements made this afternoon in oral question period by the Minister of Human Resources and Skills Development are totally incorrect. It is not true that 82% of contributors to the plan can receive employment insurance. In the latest report on employment insurance coverage, the department's figures were much gloomier. In fact, barely 68% of contributors had access to EI benefits. That is completely unacceptable.

The minister compared the employment insurance system to a private system, which is rather cynical because she reduced the state's role to that of a corporation motivated solely by financial gain.

Following that logic, it would mean that an insurer could decide not to compensate 32% of its clients. Nobody would stand for that kind of attitude. Such a company would be accused of scandal, fraud, theft and mean-spiritedness, and with good reason.

As a member of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, I can also add that all the witnesses we have heard since I have been sitting on that committee—all of them, without exception—have called for EI reform and a complete overhaul of the system, so that it will actually help them, especially in these tough economic times.

In closing, I would remind the House that the Bloc Québécois has once again proposed an economic recovery plan. Our plan is costed, realistic and pragmatic. It would fix the holes in the social safety net, restore confidence, stimulate employment and investment, support Quebec and the provinces and stimulate strategic spending on things like measures to reduce oil dependency.

I invite all parliamentarians to read it. Unlike others, members of the Bloc Québécois do not hide when it is time to take a stand on ways to get Quebec and Canada through the economic crisis.

Our plan will reassure workers who lose their jobs by providing them with a more accessible and generous employment insurance program, and it will stimulate household spending by enabling workers who have lost their jobs to get the benefits they need to keep the economy going.

I believe that the measures in Bill C-280 will help achieve those same goals, so it is my great pleasure to support this bill.

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Mr. Speaker, in order to put those listening to us in the right context, it would be wise to remind them that we are discussing Bill C-279, which provides that pension benefits, vacation pay and severance payments are not to be included in earnings in order to give people access to employment insurance benefits immediately. This strikes us as totally fair under the circumstances.

What we feel is unfair is the present situation. Like my colleague who spoke before me, I wish to congratulate the member for Welland for bringing this bill before the House, a bill that I feel will result in a little more humanity in our employment insurance program.

It is also a good time to remind hon. members that the Bloc Québécois has intervened in a number of ways over many years in order to correct this program which has, over time, been gradually destroyed by the two parties each in turn. With respect to benefits when there is money owed to the worker after he leaves, the Conservatives are the ones who imposed that limitation on benefits in 1985. From the 1990s on, the Liberals in turn adopted various measures to limit as much as possible any access to EI. This is one such measure.

Fortunately, as we have just heard from our colleague from Dartmouth—Cole Harbour, the Liberal Party has rethought its position. That member has brought in some slightly more equitable thinking in order to remedy this situation, which is absolutely unfair to the unemployed. One of the measures in which our colleagues have participated, particularly those in the Liberal Party and the NDP, were discussed at the time of the 2005 examination of employment insurance reform.

Recommendation 23 was focused specifically on correcting that shortcoming. The committee wanted to see the EI regulations not include in calculations of income for benefit purposes any pension income, severance payments or vacation pay. This measure has therefore been in existence since 2005 and two successive governments have not acted on it. I must also indicate, as the preceding speakers have done, that this is only one of the measures that needs to be put in place in order to restore the employment insurance program.

There are currently a number of bills before the House of Commons about this issue. The Bloc introduced four of those bills, and I myself introduced one on behalf of the party. Bill C-308 calls for the following amendments. It would change the qualifying period to 360 hours of work. People would have to work 30 hours per week for a period of 12 weeks to accumulate 360 hours. This measure would eliminate the existing disparity that excludes unemployed workers based on unemployment rates in each region.

The bill would also increase the rate of benefits, which is currently 55%, to 60%. Unemployment organizations, anti-poverty organizations, unions, and even the three opposition parties, if their participation in the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities is any indication, are unanimous in their support of this initiative.

This bill, Bill C-308, eliminates the distinctions between a new entrant and a re-entrant to the labour force. That distinction discriminates against women because they are often in unstable jobs and are more likely to be laid off. Also, many women work in so-called atypical part-time jobs. This bill also eliminates the presumption that persons related to each other do not deal with each other at arm’s length; the department must prove it. The bill also increases the maximum yearly insurable earnings to $42,500. That is all in Bill C-308. It is useful to bear these bills in mind.

Then there is Bill C-241, introduced by my Bloc colleague from Brome—Missisquoi, which eliminates the waiting period. I am not the first member to have raised this issue. Tomorrow, in the late afternoon, we will be voting on this bill at second reading. I would urge my colleagues in the House to vote to refer Bill C-241 to committee so that we can eliminate the waiting period, which is yet another measure to prevent as many people as possible from collecting benefits.

Bill C-336, introduced by my colleague from Berthier—Maskinongé, changes the way in which the qualifying period is calculated in the case of a labour dispute. I am thinking about the dispute that took place in Lebel-sur-Quévillon. The employer claimed that it was not a plant closure. He put off closing the plant as long as possible by locking out the employees. When he finally announced that the plant was closing, the employees had been locked out for more than 200 weeks and therefore did not qualify for employment insurance benefits. This is another serious injustice that must be corrected. We will correct it with Bill C-336, another Bloc bill that will soon be studied at second reading.

Bill C-339, introduced by my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, extends the maximum period for which special benefits for illness, injury or quarantine may be paid from 15 weeks to 50 weeks.

These are the Bloc Québécois bills that are being examined and that are designed to correct what has been done to the employment insurance system in recent years. As a result of the changes that have been made, close to 60% of unemployed people are currently excluded from the employment insurance system.

The employment insurance program is a measure supposed to prevent people from growing poor or even living in misery as they lose their job. However, it is not what is happening right now. In committee, with my colleagues who spoke earlier, we are studying the question of poverty. Different witnesses give us their opinions on this subject.

For example, this morning, we heard the following national and pan-Canadian groups: the group for the abolition of poverty, the Canadian Centre for Policy Alternatives, Citizens for Public Justice. These are the most important groups. They have a lot of expertise on the state of poverty. And, as far as measures to fight poverty are concerned, employment insurance is at the top on their list.

Poverty exists because there are impoverishment factors, and one of the factors which makes it now more difficult to get out of poverty is the fact that close to 60% of the workers who lose their job are being excluded and are not entitled to EI benefits.

I will conclude by reminding the House that we will vote in favour of Bill C-279 because delaying employment insurance because the employee is still owed some last amounts is simply unfair.

I encourage my colleagues to vote in favour of Bill C-279.

Opposition Motion—Employment Insurance

[Josée Beaudin, Bloc, Saint-Lambert, QC]

Madam Speaker, I will be sharing my time with the hon. member for Laval.

It is a great pleasure for me to take the floor today in this House because I am particularly concerned by the issue raised by my hon. colleague from Hamilton Mountain. I believe it is absolutely crucial for those who will be hardest hit by the economic crisis we are currently experiencing, namely the unemployed.

To begin, I want to say that I am completely in favour of this motion, which covers a number of the main themes that the Bloc Québécois has been defending for many years in connection with employment insurance, as well as Bill C-308 which was recently introduced by my colleague from Chambly—Borduas on February 10.

We know that the measures proposed in this motion are not new. Four years ago, the Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities adopted a report recommending these same measures: elimination of the waiting period; introduction of a qualifying period of 360 hours regardless of the regional rate of unemployment; increase of the salary covered from 55% to 60% based on the best 12 weeks; and introduction of a provision allowing self-employed workers to contribute voluntarily to the employment insurance plan.

We in the Bloc Québécois also believe that these measures would substantially improve the employment insurance system, which for about 15 years now has been but a shadow of what it used to be. This is to be vigorously condemned for as long as this injustice persists.

In the last 20 years, the coverage rate of the employment insurance system has been cut by half. The ratio of recipients to unemployed has fallen from 84% to 46% because the qualifying criteria were substantially and unfairly tightened in the 1990s.

We all know what followed: the government misappropriated staggering surpluses from the employment insurance fund, surpluses whose size was due solely to the tightening of the qualifying criteria. It is high time that the government finally recognized this injustice and did everything in its power to remedy it. This injustice is denounced not only by the Bloc Québécois and the NDP, but also by all the unions and all the groups advocating for workers’ rights. This injustice has resulted in the aberration of an employment insurance plan that does not even cover half of the persons unemployed.

The statements made this afternoon in oral question period by the Minister of Human Resources and Skills Development are totally incorrect. It is not true that 82% of contributors to the plan can receive employment insurance. In the last report on employment insurance coverage, the department’s figures were much gloomier. In fact, barely 64% of contributors had access to EI benefits. That is nothing less than unacceptable.

The minister compared the employment insurance system to a private system, which is rather cynical because she reduced the state's role to that of a corporation motivated solely by financial gain. Following that logic, she is saying that the insurer could decide not to compensate 36% of its clients. Nobody would stand for that kind of attitude. Such a company would be accused of scandal, fraud, theft and mean-spiritedness. And rightly so, I might add.

So why does the government think that it has the right to just ignore the dire straits in which 36% of the people who contribute to the fund and then lose their jobs find themselves? Why? What for? Nothing justifies that kind of attitude, which demonstrates the government's alarming indifference to its social responsibilities.

The Minister of Human Resources' new title is very telling. By replacing “social development” with “skills development”, the Conservatives have made their position clear: no more compassion, no more social safety net. The Conservatives have found the fastest, easiest way to eliminate “social” anything from their list of responsibilities: just take it out of the title. The Bloc Québécois will continue to remind them of their responsibilities in that respect, and they will not soon forget.

And now, back to the motion before us. Exactly five weeks ago, I had an opportunity to talk about a bill introduced by my colleague from Brome—Missisquoi, who proposed eliminating the waiting period. As I said then, the waiting period is, quite simply, a way to punish the unemployed for losing their jobs. This is a completely unjustifiable policy that merely exacerbates the already unbearable situation in which the unemployed find themselves.

People are waiting longer and longer to receive their employment insurance benefits, often longer than four weeks, and the waiting period adds two long weeks to that time. This is not about extending the employment insurance benefit period by two weeks. This is just about changing the time when benefits start flowing so that people who have lost their jobs are not placed in an unendurable situation for those first two weeks.

According to numbers from Human Resources and Skills Development Canada, this measure would cost some $900 million.

Well, $900 million is a far cry from the $57 billion denied workers over the past 20 years. This $900 million would be injected in its entirety into the Canadian economy, as the government itself admits in its evaluation of the economic impact of the measures relating to employment insurance in the recent budget.

In this recession, it is $900 million that would benefit both the unemployed and the businesses where the unemployed would be spending the sums they received.

The other measure in this motion I would like to discuss today is the reduction of the number of hours needed to qualify for employment insurance benefits. At the moment, the number of hours varies between 420 and 910. That is far too much. This is the main reason so many unemployed people do not benefit from coverage under the plan. According to the CSN, some 39% of the workforce works fewer than 35 hours a week. This 39% then is not eligible under the 12 week minimum. With the number of hours set at 360, which the Bloc has long called for, an estimated 70% to 80% of those unemployed could collect benefits, and the level of coverage would be returned to what it was 20 years ago.

Once again, this is a measure that has the support of all the unions and all the groups defending the rights of the unemployed and it was given support on a number of occasions by the committee on human resources and—social or skills—development, according to whether the social mission of the government is to be kept or dropped.

It is perhaps not supported by the former director of the Bank of Canada, whom the member for Huron—Bruce quoted, but I prefer to stick with the opinion expressed by people close to the concerns of the unemployed, who work not only with figures but with people in difficulty.

In conclusion, I would like to express a reservation about this motion, one that the NDP knows well, where Quebec is involved, but does not always include. It concerns respect for the jurisdictions of Quebec and the provinces established under the constitution. If we in the Bloc support the government's investing in the training and re-training of the workforce, it must be done by transferring the amounts involved unconditionally to the Government of Quebec.

These are provincial jurisdictions, as everyone knows, and there is no question of our backing off on this matter or of supporting a measure that would force the Government of Quebec to report to the federal government. I also take this opportunity to strongly criticize the federal government's attempts in this regard in its current negotiations with the Government of Quebec on the transfer of $700 million over six years for workforce training.

Apart from this reservation, I am delighted to support the NDP motion.

Opposition Motion -- Employment Insurance

[Yves Lessard, Bloc, Chambly—Borduas, QC]

Madam Speaker, I do not doubt the sincerity of my colleague from Madawaska—Restigouche. Knowing him, I consider his remarks very sincere. We must question the position of his party, though. I would remind him that it was not the opposition that unseated them, but the public. The public did not vote for them and brought in the Conservatives. That phase will not last long, given the way they operate.

My question is as follows. The Bloc Québécois has tabled two bills, namely Bill C-241, to remove the waiting period, and Bill C-308, to improve the system. Will the Liberals follow the same logic, support these bills and ensure that the Prime Minister does not call for a royal recommendation?