Mr. Speaker, I am pleased to participate in the debate on Bill C-269 which would amend the Employment Insurance Act in very substantive ways. Let me address a couple of things raised by the member for Acadie—Bathurst relating to royal recommendation.
As the member is aware, on May 31 the Speaker announced that this bill, along with nine other private members' bills on the order paper, would require a royal recommendation and that in the absence of a royal recommendation or approval from the government, there would not be a final vote at third reading, although the bill could proceed through all stages. On this bill a royal recommendation has been flagged as being very likely. Under the very strict rules, appropriation of government revenue requires a royal recommendation. On that basis, we would have to amend the BNA to get around it. This bill is not reparable in its same form.
Having said that, the bill is an important instrument of this Parliament. Questions have been raised for many years by many members throughout the House through private members' bills and in other debate.
Members will know that during the Brian Mulroney years of government, the EI fund was really a fund. Moneys contributed by employers and employees were actually put into a separate account. The premiums went in and the benefits went out and there was the balance. The rules of the game also specified that two years of surplus were required in the account to deal with a possible recession which could use up two years' worth of premiums. That is why this benefit was established.
If we look at the history we would find that the EI fund went into a $12 billion deficit. More benefits were paid out than premiums were paid into the account to provide benefits. The government basically had to finance it on the side.
The Auditor General basically said that these were government programs. Revenue was coming in from employers and employees for insurance. Revenue was coming in for a service which would provide some level of protection for employees. The Auditor General said that the government could no longer have this separate fund, which at the time was called the unemployment insurance fund. It was the same with the Canada pension plan which was also separately dealt with from government revenues.
The Auditor General said that this thing went all over the place. Because government programs can change for benefits under EI, the EI fund had to be put into the government's general revenue fund and it would be included in the determination of surplus or deficit in the government's fiscal year. Basically it was said that this was government revenue and these were government programs.
The member for Acadie--Bathurst and others have basically said that the government has no money of its own, that it really is taxpayers' money and those who pay premiums. We understand that. It is also, in terms of consideration, providing services that the Government of Canada is supposed to provide. The member may want to look at his own income tax returns. The premiums that an employee pays on EI are also eligible for a non-refundable tax credit. The government subsidizes it, similar to the CPP.
The member is shaking his head “no”. I can tell the member, as a chartered accountant, that he does get the same non-refundable tax credit that he gets on the basic personal exemption on the premiums paid for CPP and EI. Additionally, corporations which have to pay 1.4 times the EI premiums get to deduct the premiums they pay. It is part of the cost of doing business.
The Government of Canada in fact is also subsidizing the moneys paid by the employers. So it is not fair to say it belongs totally to the employees and the employers. The Government of Canada in fact has subsidized them through the tax system. Let us get that straight.
The legislation that guides the EI program provides that if there are more than two years of surplus there is a committee that recommends annually the premiums to be set. The legislation that guides this notional EI fund is still kept track of, but there is no separate bank account. It is in the general reserve. It says that there are two ways of dealing with the surplus in excess of the two-year surplus. First, is to reduce premiums; and second, to improve programs.
I can say for my own selfish reasons and advise the House that we raised the period of maternal and parental leave to a full year from six months and that was my private member's item. I am very proud of it because a lot of moms and dads have taken advantage of this opportunity especially during the first year of a child's life which we all know is very important.
There are ways to deal with this and this is the time to do it. Because of the robustness of the economy and the employment sector, no matter how much we are reducing the premiums and introducing programs, we still have to be responsible. The EI fund continues to remain at high levels. Now is the time since there is a royal recommendation requirement on this bill.
I would encourage all hon. members to support this private member's bill to go to committee, to hear from the officials and the experts about our strategy to deal with this, and why it is that we cannot enhance the benefits as proposed by the member? What would it cost?
The member does not have the tools to cost out such a complicated reconfiguration of the benefit program of EI, but the department has the resources. Why do we not find out what those are? Let us find out what this kind of thing would actually cost and let us find out if it would allow the retention of at least two years of surplus on a sustained basis so that we do not run afoul of the legislation of the land.
This issue that is facing us is important to Canadians. It is important to businesses, it is important to workers. It is important to parliamentarians as well for the simple reason that within our communities there are people who need the benefits of the programs.
We also know that the vast majority of employees who pay into the EI program through their entire working careers never collect one cent of EI benefits, and that is a good thing. It is actually the vast majority of people who have funded the EI fund who are never going to get a benefit out of it and they are very happy not to have to draw benefits.
However, there are people within our system, whether they be seasonal workers, whether they be people who are in industries which have run into distress, whether it be people who have lost their job because of downsizing or whatever it might be. We know that those employees need the help and that is why this EI program is so extremely important to Canadians because it really does help those most in need.
I believe that the debate should be carried on. Private members' hours are two hours of 10 minute speeches. That will not do this subject matter justice. I encourage all hon. colleagues and I am certainly going to encourage my own caucus colleagues to support Bill C-269 at second reading and get it to committee, so that we have the time to hear from appropriate witnesses and to fully express the positions of all of the parties.