Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities

HOUSE OF COMMONS CHAMBRE DES COMMUNES OTTAWA, CANADA K1A 0A6

Comité permanent du développement des ressources humaines, du développement des compétences, du développement social et de la condition des personnes handicapées

For immediate release

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NEWS RELEASE

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Restoring Financial Governance and Accessibility in the Employment Insurance Program

Ottawa, February 15, 2005 -

Today, Mrs. Raymonde Folco, MP for Laval-Les Îles and Chair of the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities, tabled in the House of Commons, a report entitled Restoring Financial Governance and Accessibility in the Employment Insurance Program. The report includes a dissident opinion.

This report was prepared by the Subcommittee on Employment Insurance Funds, chaired by Mr. Rodger Cuzner, MP for Cape Breton-Canso. It contains 28 recommendations designed to restore integrity to the Employment Insurance (EI) Program. For several years now, the Federal government has collected far more EI revenues than it has spent on this program. The Committee has called on the government to halt this practice and establish a new approach for governing EI finances.

Specifically, the report calls for:

• the creation of a new EI fund that is dedicated exclusively to EI, has the capacity to maintain premium rate stability, and is managed by an independent EI Commission that is broadly representative of EI contributors;

• the gradual return of the EI surplus to program contributors; and

• a new premium rate-setting process that ensures program solvency and premium rate stability on a five-year, look-forward basis.

Other financing-related changes suggested by the Committee include the implementation of a $3,000 yearly basic earnings exemption to replace the current premium refund for contributors with low earnings, and the development and introduction of a means for refunding premiums paid by employers that correspond to over-contributions to EI from employees.

The Committee also made many recommendations to enhance access to EI benefits and the level of support provided to eligible workers under the program. In this respect, the Committee recommended, among other things:

• the creation of a 360-hour uniform qualification requirement, irrespective of regional unemployment rates and the type of benefit;

• an increase in maximum regular benefit entitlement from 45 to 50 weeks of benefits;

• an increase in the benefit rate from 55% to 60% of average weekly insurable earnings;

• the adoption of a new rate calculation period equal to the qualifying period, and a new approach for calculating average weekly insurable earnings based on the best 12 weeks of insurable earnings; and

• greater access to and spending on Employment Benefits and Support Measures.

“We strongly believe that our proposals fully protect EI premiums and ensure that they are used to support the needs of unemployed workers throughout the country,” said Raymonde Folco. She also praised the members of the Subcommittee on Employment Insurance Funds for their “hard work and recommendations that will substantially enhance access and support for workers under this very important program.”

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For more information, please contact: Danielle Bélisle, Clerk of the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities Tel: (613) 996-1542 E-mail: HUMA@parl.gc.ca