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

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

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

For immediate release

Ottawa, June 16, 2008 -

Today, Dean Allison, MP for Niagara West - Glanbrook and Chair of the Standing Committee on Human Resources, Social Development and the Status of Persons with Disabilities, tabled a report in the House of Commons entitled Strengthening the Employment Insurance Premium Rate-Setting Process.

This report pertains to the federal government’s proposal, contained in Part 7 of Bill C-50 (Budget Implementation Act, 2008), to strengthen the Employment Insurance premium rate-setting process. The Committee held hearings on this matter between May 1 and May 27, 2008, during which employer and employee representatives and other parties interested in Employment Insurance financing matters presented their views on the government’s proposal to: establish a new Crown corporation, called the Canada Employment Insurance Financing Board; create a “reserve” to be managed by this Board; and implement a modified premium-rate setting process.

The Committee’s report contains six recommendations that deal with the Board’s structure and mandate, the size of the proposed reserve, the premium rate-setting reference period and the elimination of discretionary wording regarding advances to the Employment Insurance Account. Specifically, the report calls for:

• more clarity regarding the Board’s mandate;

• employee and employer representation on the board of directors;

• more flexibility in terms of the information that the Board may use to determine the premium rate;

• greater assurance that the Board’s operating costs and governance structure correspond to its focused mandate;

• a larger reserve and longer forward-looking rate-setting reference period; and

• greater certainty that, if necessary, the federal government would advance funds to the Employment Insurance Account.

The Committee requested a comprehensive response from the federal government within 120 days.