HUMA Committee Report

Dissenting Opinion of the New Democratic Party

In light of this report, the New Democratic Party (NDP) wishes to express its views on the creation of the Canada Employment Insurance Financing Board (Part 7 of Bill C-50).

First of all, the NDP is opposed to the establishment of the Board as proposed by the Conservative government. The NDP objects to this move as it is merely a cover-up for the $54 million the Liberal and Conservative governments stole from workers and employers.

To set the Board on the right track, the NDP presented thirteen amendments to the Finance Committee to repair the injustice done to the workers and employers who were the victims of this theft and to improve the quality of and access to employment insurance benefits.

Unfortunately, the Conservatives and Liberals rejected the NDP’s amendments out of hand, without suggesting any compromise. The NDP seriously questions the Conservative government’s real motives and the impact they will have on the employment insurance program.

Moreover, the NDP is of the opinion that the Committee’s recommendations in this report are weak and do not sufficiently address the concerns raised by organizations defending workers and the unemployed.

The NDP therefore recommends:

1. That the accumulated surplus in the employment insurance fund (approximately $54.1 billion) be regarded as a debt owed by the Consolidated Revenue Fund to the Employment Insurance Financing Board;

2. That the Minister of Finance accordingly provide the Board with a plan to repay the amounts taken from the Employment Insurance Fund — in addition to the amount required to prevent any increase in premiums during an extended economic downturn — although the Chief Actuary has indicated that it has a credit balance;

a)     that this plan include an increase in benefits and active employment measures;

b)     that bookkeeping records be kept of this debt, with interest calculated by the Board, with no impact on the balance of accounts or the setting of premium rates;

c)     that any increase in benefits be funded from the reimbursement of the debt and not be charged to workers and employers.

3. That the reserve fund be:

a)     at least $15 billion and that annual surpluses may be added to it with no impact on the balance of accounts;

b)     confirmed.

4. That in the event of a shortfall, the government transfer the necessary funds to cover it through non-reimbursable payments:

a)     drawn from the accumulated surplus;

b)     to reimburse its debt;

c)     without claiming interest.

5. That, during the consultations conducted by the Board, the public have a say on the setting of premium rates;

6. That the Board’s board of directors have seven directors, including the chairperson, and: a) three directors chosen from the lists provided by the most representative employer associations; b) three directors chosen from the lists provided by the most representative unions; c) one director representing the federal government;

7. That in matters relating to the Board the government put the interests of Canadians ahead of economic performance;

8. That the appointment process for the Board’s chairperson and directors be subject to approval by the Standing Committee on Human Resources, Social Development and the Status of Persons with a Disability.