Hon. Jane Stewart (Minister of Human Resources Development, Lib.)

Mr. Speaker, let me be clear that the employment insurance system is there and it is working for those for whom it was designed. Of those who pay premiums, close to 90% will be eligible for benefits should they need them.

As the Prime Minister has said, the government has created three million new jobs for Canadians since it was elected. At the same time, as we have had more people working and more premiums being paid, we have been reducing employment insurance premiums. That has saved individuals and employers a considerable amount since 1993.

Hon. Jane Stewart (Minister of Human Resources Development, Lib.)

Mr. Speaker, let us look at some of those statistics. Again, three million jobs have been created since the government took office. Half of those jobs have been created for Canadian women.

Let us understand that every single year since we have been in power, we have reduced employment insurance premiums. For the next year they will be at $1.98 for employees.

When it comes to investing in Canadians, I want to remind the hon. member that it is through the employment insurance system that we have doubled parental benefits, that we will be now introducing a compassionate leave program.

We understand our role in supporting Canadian workers.

Hon. Jane Stewart (Minister of Human Resources Development, Lib.)

a) Moving forward on the long promised review of the EI premium-setting mechanism

The review of the EI premium rate-setting mechanism is already underway. In the 2003 budget, the government launched a consultation process on a new permanent rate-setting regime for 2005 and beyond and outlined five principles upon which the consultations would be based.

--The Department of Finance and HRDC held a series of roundtable consultations with business and labour stakeholders, economists and technical experts and the EI Commissioners for Workers and Employers.

--All Canadians were also invited to provide submissions by mail or Internet to the Government of Canada before June 30, 2003.

The consultation phase of the rate-setting review is now complete. HRDC and the Department of Finance will produce a public document summarizing the views received during these consultations. Legislation will also be introduced in time to have a new rate-setting mechanism in place for 2005.

b) Bringing EI premiums into balance with EI costs

The 2004 premium rate has been set at $1.98 of insurable earnings in budget 2003. According to the private sector economic forecasts used in the budget, this premium rate should bring premium revenues in line with program costs over 2004. The premium rate for 2005 and beyond will be set as part of the new rate-setting regime. While the outcome of this process is not known, it must be emphasized that balancing EI premiums with EI costs is one of the five principles on which the future process is to be based.

c) Separating the EI fund from general revenues

Since 1986, following the recommendation of the Auditor General of Canada, the employment insurance account has been fully integrated into the overall finances of the Government of Canada as the government controls the parameters of the EI program. Separating the EI fund from general revenues is one of the several proposals that Canadians made during the premium rate-setting consultations.

At this time, it would be premature to speculate on the outcome of any particular option raised during the consultation process before all options have been thoroughly assessed.

Hon. Jane Stewart (Minister of Human Resources Development, Lib.)

Mr. Speaker, indeed I am very happy to tell the hon. member that this government is on track to introducing one of the world's first compassionate care programs on January 4, 2004.

We know how difficult workplace and family balance issues are, and we believe as a country that we have to help Canadians deal with the moral issue of going to work while at home they have a gravely ill child, parent or spouse. This is indeed a great and positive addition to Canada's unbelievably important social safety net.

Hon. Jane Stewart (Minister of Human Resources Development, Lib.)

Mr. Speaker, the hon. member's question gives me yet another chance to congratulate the members of the Prime Minister's task force for the work they did in speaking with over 1,000 women entrepreneurs.

In that report they did make reference to the importance of parental benefits. We indeed will follow up on their report and see which way is best associated to deal with self-employed workers in this regard.