:
All right, is there any discussion on this?
I'll call the question, then, on L-16.1.
(Amendment agreed to [See Minutes of Proceedings])
(Clause 5 as amended agreed to)
(On clause 6—Report)
The Chair: We have a proposed amendment on page 19, the next page in your handouts, and it is L-18.
Once again, Mr. Kennedy, I'll turn the floor over to you to discuss that amendment.
:
Is there any discussion on amendment L-18? No.
(Amendment agreed to [See Minutes of Proceedings])
(Clause 6 as amended agreed to)
(On clause 2--Definitions)
The Chair: Now we're going to come back to the clauses that we stood down. On clause 2 we have an NDP motion, NDP-1, so we're going to turn back to the first page in your handouts again, to NDP-1 on page 1. If we're all there, then I will get Ms. Leslie to talk to the amendment, then we can have any discussion there is.
First, I do want to have it on the record that the parliamentary secretary has made assumptions about our decision not to challenge the decision of the chair, and those are just assumptions.
But I would like to seek your advice about clause 3 of the bill, as it stands. Paragraph 3(3)(c) states:
provides access for those with different needs, including, in an appropriate proportion, access for the elderly and the disabled, and reasonable design options;
What I would like to know from the clerk is whether, if we agree, we could amend paragraph 3(3)(c) to say, “access for those challenged by age and disability”. Would that be enough to trigger the ability to amend the definition?
:
Mr. Chairman, our colleague, Mr. Kennedy, is perfectly right in saying that this is not a matter of partisanship. There is much wisdom, I suggest, in what he has brought forward. Once I am finished with this, I will not utter another word, I promise. Our colleague, Ms. Leslie, made a suggestion that is to my mind more appropriate. Age and disability are not factors that disadvantage a person; these are factors that create new challenges. Therefore, to state that a person is disadvantaged by age is pejorative, Mr. Chairman, and amounts to ageism.
My challenges, for example with regard to physical strength, are not the same as those of Mr. Savage, because he is a sturdier man. I am not disadvantaged; these are simply challenges. It is the same thing for an elderly person. In the case of a public building with a heavy door, accommodations must be made in order for the operation of the door to be compatible with the physical strength of the people who will be using it, because it is a challenge for them.
That is all, Mr. Chairman. I would respectfully submit to you that there is much wisdom in the suggestion made by our colleague, Mr. Kennedy. It would be much more appropriate to talk of challenges due to age, one's physical condition, etc.
:
I think that's pretty close.
Anyway, I'm going to go back, then, if that's all the discussion on that. I don't think I'm going to have unanimous consent to withhold the bill at this stage, so I will ask the question.
Should the bill as amended carry?
Some hon. members: Agreed.
The Chair: Shall I report the bill as amended to the House.
Some hon. members: Agreed.
The Chair: Last, shall the committee order a reprint of the bill? I really hope we have a reprint of this bill or we're going to be in trouble.
Some hon. members: Agreed.
The Chair: Thank you very much, everyone, for the cooperation in moving through that.
Yes?
:
Okay, perhaps I could get all the members back to the table. It's now ten after four, so if we could get started, then we could probably be finished by ten after five, although I realize bells are probably not going to be until about 5:22.
What I'm going to do is just read in the motion that this committee adopted. It reads:
That an independent actuary of the choosing of the opposition be invited to appear before the Committee for one hour before Christmas 2009 to give an independent analysis of the soundness, the rate setting, premium setting, and cost estimates of Bill C-56, An Act to amend the Employment Insurance Act and to make consequential amendments to other Acts.
So I will welcome Mr. Bédard right now.
Sir, welcome. You have an opening statement, so we'll turn the floor over to you, and then, as usual, we'll go through our questions from the members of Parliament.
Welcome, sir, the floor is yours.
:
Thank you, Mr. Chairman.
My name is Michel Bédard, and I thank you for your invitation to testify before the Committee concerning Bill . I am an actuary by profession and I am appearing in my personal capacity. I was Chief Actuary to the Employment Insurance Commission from 1991 to 2003. I have also completed a number of missions for the International Labour Office as an employment insurance consultant.
I support the principle of the bill, namely the extension of special employment insurance benefits to the self-employed, but several aspects of it are problematic. My first comments relate to the financial aspects of the plan.
First, the new benefits would cost about $305 million in 2014, with about $212 million in parental benefits, that would be paid totally outside of Quebec; $93 million in sickness benefits, that would be paid out countrywide; and less than one million dollars in compassionate care benefits. The cost of these benefits represents 2.5% of insurable earnings in the case of parental benefits, and 0.9% in the case of sickness benefits, for a total of 3.40%.
These calculations are based on data from Human Resources and Skills Development Canada, as supplied to your committee. In broad terms, the Department assumed that all those who joined the plan in order to receive parental benefits would ultimately receive them, or leave the plan, whereas in the case of sickness benefits, only 10% of the newly ensured would receive benefits.
What does Bill C-56 propose?
In 2014, a deficit of $86 million outside Quebec and a surplus of $18 million in Quebec, with contribution rates of 2.33% and 1.96% respectively. A rate of 1.96% in 2014 for self-employed workers in Quebec would thus represent double the forecast cost for this protection alone, the cost being 0.9%. This would be four times the rate now applicable to wage-earners for sickness and compassionate care benefits. This rate presently sits at 0.41%. We can calculate that at 1.36%, which was the rate in 2010, revenue in Quebec would already exceed costs. A representative of the Department confirmed this, stating before the Senate Standing Committee on National Finance that with a rate of 1.36%:
[English]
The typical self-employed individual in Quebec will receive benefits roughly equivalent to what the individual pays in premiums.
[Translation]
If so, why expect the rate to rise in the future? Together, these financial impacts therefore constitute the first stumbling block, in my opinion.
Second, the voluntary nature of the proposed system requires the government to impose strict conditions on those who wish to take advantage of it, in order to protect against opting out and abuse. There would accordingly be a waiting period of 12 months, which is much longer than what private schemes apply. Even in California, the comparable period is six months, for those who join the voluntary scheme for self-employed workers, and which it too is a disability insurance plan.
A third aspect that poses a problem, and will discourage participation in the plan, is the rule that would commit for life those who have received even minimal benefits, particularly for sickness. Have we ever seen income insurance that demands a lifetime of contributions after a minor claim? In California, the voluntary portion of the public disability insurance plan allows withdrawal after two years.
Fourth, if someone joins the plan mid-year, Billwould require that they wait 12 months for coverage, but would require them to pay benefits for the entire year. Why not arrange to prorate contributions in such cases? As an alternative, the plan provides for those who register from January to March 2010 to qualify for benefits from January 1, 2011. Why not provide a similar clause for every year?
Fifth, and last, the employment insurance plan already includes a refund of contributions for those earning under $2,000 a year, since they do not qualify for benefits. Should there not be a similar clause in this voluntary plan, but based on a level of $6,000?
What are we to make of all of this?
Firstly, financially, with regard to these new benefits, it is inappropriate to adopt artificially the general rate for employees. Rather, we should select a funding mode that is proportional to the cost of the new benefits, and relatively stable.
Secondly, in order to fund a social benefit, namely parental benefits, while making it voluntary, the government found it necessary to impose strict limits. Among other things, these limits will have the effect of discouraging many potential participants, and make the system much less effective as a way of protecting incomes.
That is the gist of what I had to say.
[English]
I'll be pleased to answer any questions.
Thank you.
Thank you, Mr. Bédard, for coming and for coming a couple of weeks ago when you flew standby. Today you had a guaranteed ticket. Thank you for coming back. I appreciate that.
I certainly don't agree with Mr. Lobb. There's a whole bunch of information in this, certainly, that wasn't made available to us when we had a look at this bill.
I've raised questions about the premium setting. I've raised a lot of questions about the deficit that will be on this fund, which we weren't given initially and were only given in response to our questions. Madame Folco has talked about the premium rates. My colleague Ms. Minna has spoken about the gender inequities, potentially, in this bill and how it relates to regular EI.
You've given us a lot of information. When I saw this this morning, I thought there was a lot of stuff here that would be of interest. If you were still the chief actuary of the EI Commission, if there were still the EI Commission as it was and you were still the chief actuary, would you sanction Bill ?
:
Thank you, Mr. Chairman.
I would also like, at the outset, to thank Mr. Bédard for sharing his experience with us. Not only is he an independent actuary, given his retiree status, but he is one of the most relevant witnesses with regard to Bill C-56, because I know that he himself was chief actuary for 12 years.
Mr. Chairman, I would like to add that Mr. Bédard's appearance here required a lot of courage, given the climate of adversity that we sense within the committee, on the part of our colleagues. This is deplorable, and I say this to you as a friend. There is a minimum amount of courtesy and respect that we must show to those people who come here to appear before us, unselfishly and with no self-seeking interest.
Mr. Bédard, you say that the costs for Quebec are too high...
:
Mr. Chair, I don't have any questions, but I do have a couple of comments, if you don't mind.
I'd like to thank you for coming. You've certainly clarified a lot of issues and brought another very reliable perspective on this piece of work. It certainly confirms my sense of why I supported the Bloc with their amendment.
It is a different scenario in Quebec, and this creates a disparity that I think at some point needs to be addressed. It could have been addressed had the government been willing to accept some amendments that would have improved this piece of legislation when we were doing clause-by-clause. But nevertheless, here we are.
We had committed to getting this bill back into the House before the end of the term, and in fact, that's where we are. I think had the government been open to it, it would have been the intelligent thing to do. We have people on this side of the House who I think have a lot of sincere and valuable contributions to make. When they are not accepted, it's unfortunate.
Also, I think the numbers in here confirm the concern that the CLC and CAW brought, which is that the larger employment fund at the end of the day will end up paying for some of this because we haven't made it mandatory. That's unfortunate as well.
I moved an amendment in committee that was ruled out of order, but that would have asked the government to consider.... And maybe if Ed would hear this, I think it's important. I don't know. But I'm offering it in all sincerity and I think it would be helpful if this expert panel, which has been talked about now on a number of occasions, might be brought in as a further amendment by the government. It could be done at third reading in the House, to establish an expert panel so that we could quickly deal with some of the inequities that I think will almost immediately begin to show themselves as we begin to work with this important piece of public policy, which extends a benefit to a group of people who are obviously in need of it.
Those are my comments.
I want to thank the witness for coming.
I also want to thank the chair for providing this opportunity and Mr. Komarnicki and Mr. Savage for having come to this agreement to actually have him come before us today.
:
Thank you very much, Mr. Chairman.
I wish to thank you, Mr. Bédard, for being with us.
I am happy to hear my colleague opposite speak about fairness, given that we are talking precisely of fairness, or rather of unfairness.
You are in agreement with the principle, as we are as well. From what I understand, you recognize that this bill establishes a certain inequality between the self-employed outside of Quebec and those of Quebec. I would like to underscore, for my colleague's benefit, that we are talking here of compassion and sick benefits for workers in Quebec, but of all of the benefits, including parental benefits, for those workers living outside Quebec.
In your document, you make the following recommendation: “Rather, we should select a funding mode that is proportional to the cost of the new benefits, and relatively stable.“
Must we take that as meaning that you are recommending the same benefit rate for all self-employed workers?
:
Do the analysts have a response?
A voice: We're still looking.
The Chair: Okay, they're still looking.
Mr. Bédard, I want to thank you very much, once again, for taking the time out of your schedule to be here today. You can step back from the table whenever you want.
I want to remind committee members that when we come back in the new year we have Bill , 's bill. We have Bill . We have our report on poverty, which we're still working on. And we have a motion that came forward in terms of dealing with some studies. It's motion M-386 regarding adoption and things like that.
When we come back in the new year I'm going to suggest that we have a subcommittee meeting right away to determine the order of preference of business and try to map out a plan.
I wanted to throw that out to the committee since this is our last meeting before we break for Christmas.
I see a couple of hands.
Mr. Martin and then Ms. Minna.
:
I appreciate your putting that on the table, Chair.
I am hopeful for a couple of things when we get back. I know we have business that will be imposed on us by the House because of the priorities of committee and having to deal with bills.
The work we've done on poverty so far has been very good. I have certainly appreciated the cooperation of everybody around the table. The trip we took to western Canada was very valuable. In the new year I'll talk with everybody a bit about the opportunity I had on the Friday to visit the Aboriginal Centre of Winnipeg, which is quite phenomenal. If you get a chance and you're out there, you should go.
As we had hoped to do in this session, I would hope that when we come back we would have the Senate committees come before us and that we would look at aboriginal poverty in a more serious way. Perhaps we could consider some visits to communities that are suffering deep poverty. But perhaps we could also visit communities where they're doing innovative and positive things that are lifting people out of poverty so we could make appropriate recommendations to government around that. I hope that would be possible.
Also, I believe I still have a motion on the table to set up a subcommittee to deal with some disability issues. I think that would be a good way to deal with this new piece of work we're going to have to do on autism, which was brought forward by the member for . That might be a way to actually get it done and maybe deal with some other issues that are still waiting to be addressed around the issue of people living with disabilities.
Thank you very much.
Very quickly, I have three things. I was fortunate to be able to go to Nunavut, not officially as a member of this committee but for other business. Together with from the Bloc, I was able to meet with a number of organizations and visit a number of places to do with the poverty issue we're looking at. I am hoping that when we get back I might be able to give a one-pager to the committee as part of the information, The committee didn't travel there and I was able to do the work for us, so I would be happy to do that when we come back.
The other thing is that with the exception of the specific study that just mentioned about the aboriginal community—which of course could be a subsection in our own report to pay some focus to it—having done what I would think are the bulk of the consultations, if not all of them, I wonder if the chair has given any direction to staff to draft a report. It would be nice to have the draft report prior to budget time, or to have at least finished the report, so there could be some thinking on the part of government and others to integrate some of the needs in that budget. Certainly it would be nice to finish it and not have it drag on. It's been going on for quite some time and I'm concerned. I would like to see it come to a positive end.
:
I appreciate Mr. Komarnicki's good wishes. Of course, we wish you all the best as well.
In my view, the fall was quite a busy time for the committee. Indeed, we had a lot on our plate, as our colleague, Mr. Martin, was saying. There are bills relating to employment insurance as well as the issue of poverty.
With regard to poverty, the reason why I wanted to do the tour before the Holidays was so as to allow the drafters to begin their work after the Holiday season, in January.
We must not neglect an aspect that was brought up by Ms. Minna, even if the drafting work has begun. I believe that a whole portion of the report should be devoted to Aboriginal communities, in order to see how we will be tackling this situation head on, given that it is very specific.
When we were in Winnipeg, I believe, Mr. Fontaine, one of the band leaders, strongly suggested to us that we visit reserves. We have however not visited any reserves to date. I would therefore suggest that we go and visit one; we could undertake this visit upon our return. It would be a visit to the Lac Barrière reserve, in Parc de La Vérendrye. It is situated two and a half to three hours from here, at most. We could go there by bus and get a first-hand look at the situation in that community.
For some of us who have not had the opportunity to live this experience, I think it will be a revelation. Personally, I have often had the opportunity to go into reserves and, each time, I have been surprised to see to what extent the situation not only has not improved, but has deteriorated.
This is why I am coming back with this suggestion that we visit the Lac Barrière reserve upon our return, after the break. I believe it should be a priority, as should be seeing Richard Desjardins' film entitled The Invisible Nation. As a matter of fact, I have often invited you to view this film, and perhaps some of you have done so. Without having to go anywhere, you would have an overview of the situation of Aboriginals.
Those are my renewed suggestions.