Madam Speaker, the hon. member is mistaken when he suggests that employment insurance has increased poverty.
The first major reform in 25 years is fundamentally about helping Canadians get back to work quickly. The old system encouraged ongoing dependence and did not address structural unemployment. The new reform invests in people who are prepared to invest in themselves. It is fair, balanced and reflects the job market of realities across Canada.
The employment insurance system combines income support with practical results oriented, active employment measures. To help unemployed Canadians get back to work, an additional $800 million will be reinvested annually in re-employment measures, bringing the federal funding to more than $2.7 billion annually by 2000-2001.
In addition, a three year transition jobs fund is now in place to help create lasting jobs in the high unemployment rate regions of this country. Co-operation with provincial and territorial governments and the private sector in developing and delivering these benefits is an essential part of the EI system.
Labour market agreements with 11 provinces and territories will reduce the overlap, duplication of efforts and ensure that employment programs meet local and regional needs. As well, decisions on the most appropriate forms of assistance to help the unemployed get back to work will benefit from the insights of those most closely in touch with local markets.
The government with EI reform ensured that the new system was fairer and more equitable. The new system provides a family income supplement to help those with children. Because the entrance requirement is now based on hours of work instead of weeks, 500,000 additional part time workers will have their work insured for the first time.
Labour market conditions are now substantially improving. As 1998 begins the unemployment rate has dropped to its lowest level in seven years. More than one million—