Libby speaks out against the Budget Implementation Act – Libby Davies

 

Libby speaks out against the Budget Implementation Act

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House of Commons

 

HANSARD

 

May 3, 2012

 

Ms. Libby Davies (Vancouver East, NDP):

 

Mr. Speaker, I will be sharing my time with the member for Western Arctic.

 

I want to begin my remarks today on Bill C-38 by saying, and it should be said, that this clearly is not only a budget implementation act.

 

I found it very interesting to listen to the parliamentary secretary’s comments just a few moments ago when she chided the Liberal member for the record of the Liberal government, bringing in a massive omnibus bill as well. I remember that bill, C-43, but it is curious, because I seem to remember that the Conservatives in opposition at that time certainly had lots of concerns about what was hidden in that massive bill. I think it was about 1,000 pages. I remember the debates in this House about how the Liberals were trying to hide things and rush them through.

 

Here we are today in 2012 with another budget implementation bill, which is anything but. It has become a massive cover for putting through major public policy issues under the guise of a budget implementation bill.

 

I want to say, just for the record, that it is really bad public policy. It is a terrible way to make decisions. It is a direct attack on the ability of members of Parliament to examine legislation.

 

Much of the stuff that is in the budget implementation bill should be coming to the House as stand-alone legislation. When we go through the list, go through those 422 pages that comprise the current budget implementation act, we can just see how far-ranging the directions are in the bill.

 

For example, we know it is raising the age of eligibility of OAS and GIS from 65 to 67, something that the Prime Minister never campaigned on in the last election. For heaven’s sake, it repeals the Kyoto Protocol Implementation Act, meaning that the government is no longer required to report on its emissions under the act. That is in a budget bill? The Conservatives are putting that through in a budget bill? Is there something they want to hide from Canadians? I think so.

 

As we have heard many times in the House, it guts the environmental assessment regime and fish habitat protection. Again, this should be stand-alone legislation that the government should have the guts to bring forward on its merit and be willing to debate in this House, instead of trying to sneak it through in a budget implementation bill.

 

Just in terms of the changing environmental assessments, this would have a major impact on my province of British Columbia, on things like the Enbridge pipeline, where there has been incredible public interest in being involved in a democratic public process to comment on the environmental impact and assessment of that project.

 

What is the government doing? It uses the budget and the budget implementation act to actually shut down and to gag the public and say that not only is it putting short timelines on these major assessments but it will also delegate authority to other authorities, including the provinces, so it is basically narrowing the opportunities people have to comment on these important things.

 

To add insult to injury, not only does the bill gut environmental requirements; it also goes after civil society organizations by saying that the Canada Revenue Agency will tighten up what kind of political activities they can be engaged in. There is an attack on both sides, by legislation and by trying to fetter and gag the work that very important organizations do in our country to bring awareness to these major environmental projects that have a huge impact on all of us.

 

Here are a few other little gems in the budget. It would repeal the Fair Wages and Hours of Labour Act. I am familiar with this, because as a city councillor in Vancouver over many terms, we actually used the federal fair wage act to set a benchmark for what we did municipally to pay fair wages to municipal contractors.

 

Now all of a sudden this act is gone. It has been there for decades. I do not know how far it goes back, but it has been a benchmark of what is considered to be fair wages.

 

Presumably this is now being completely eliminated because the Conservatives want to give more handouts to their corporate buddies and they want to undercut union wage rates. This is an attack on labour, just like we have seen with Bill C-377, where the government is attacking labour and trying to allege that they are not transparent organizations when we know they are. This is hidden in a budget implementation act.

 

It would also amend the Employment Equity Act so it would no longer apply to federal contractors. This is a major shift in public policy. I was part of the standing committee that reviewed the Employment Equity Act. It has to be reviewed every five years. The federal government is mandated to cover employment equity both in terms of its own direct services and of all the areas it covers like transport, airlines and banks. To amend the Employment Equity Act so it no longer applies to federal contractors is just a sheer gift and bonus to the Conservatives’ buddies in saying that things like employment fairness, fair wages and ensuring diversity in the workplace would not count anymore and they would not have to worry about it. This is a major and dramatic shift in public policy.

 

I also want to mention a few local things that are very concerning to me, such as the cuts to the CAP program, which is purely mean-spirited. Low-income people who can currently gain access to the Internet through the community Internet access program would no longer have access to that. This is just a small thing, but it really does affect people. We live in an Internet age but there are lots of Canadians who still do not have their own computer or access to the Internet and they use the community access program to have that opportunity and capability. Why on earth would the Conservatives go after that? Why would they target people in that way?

 

As the health critic for the NDP, I want to speak briefly about some of the health aspects in the few minutes I have left.

 

We have said in this House many times how absolutely staggering a $31 billion decrease in health transfers to the provinces would be. This is a massive shift. The Conservatives unilaterally made a decision about health transfers in this country without any negotiation, debate or co-operation with the provinces and territories. It is something that is unheard of. This is a major assault on our health care system.

 

It goes even further than that. One of the little sneaky things that is in the budget is the amendments to the Food and Drugs Act to give the Minister of Health more power, supposedly on the basis of streamlining and improving the efficiency of various classifications of foods and drugs. However, it would basically give the minister more power to set up her own regulatory process and go outside the system. Again, this is something that should be coming forward in its own piece of legislation.

 

I will conclude by talking about what the budget does not address.

 

I live in Vancouver, and in Metro Vancouver probably the greatest issue we face is the lack of affordable housing. I have met with the Canadian Rental Housing Coalition in Metro Vancouver, which by the way, is made up of building owners, apartment owners, tenant groups and co-op housing groups. It is a broad coalition and they are all saying the same thing: the federal government must be part of a solution to build affordable housing in this country.

 

Where do we expect workers to live if they are paying 50% or 60% of their income in rent? The hotel workers and the people who work in the stadiums, on the waterfront or in the service industry can no longer afford to live anywhere close to where they work. This is a major issue in Metro Vancouver and also in other Canadian cities, yet there is not a single word in the budget implementation act that would make this a priority. It is just zero. It is as if it does not exist anymore.

 

We look at the contrast of the handouts to the Conservatives’ friends in the corporate world while ignoring the real priorities of Canadians for basic human needs like housing, shelter, good pensions or even access to the Internet. All of these things have either been ignored or cut.

 

This is a terrible budget, a terrible bill. We should be offended as parliamentarians that this budget implementation bill is so broad. It has so much in it that we cannot even begin to debate, especially now that there is a gag order on the time we have for debate, which was passed earlier today. What an affront to parliamentary democracy.

 

We are here to stand up to say we oppose the bill and will use everything we can to oppose it all the way.

PDF Files

Speaking Out Against Conservative’s $54 Billion EI Theft

Speaking Out Against Conservative’s $54 Billion EI Theft

Ms. Libby Davies (Vancouver East, NDP):

Mr. Speaker, I am pleased to rise in the House today to speak to these amendments at report stage of Bill C-50. My colleague from Acadie—Bathurst is the NDP EI critic and all of us in the NDP caucus are very concerned and disturbed about what is taking place on Bill C-50 and the significant changes that are taking place to the Employment Insurance system.

We have previously debated changes that would take place to the immigration system and we had a lot of concerns about that. Certainly on the amendments that are now before us, which will delete sections from the bill that have to do with setting up the new corporation for crown corporations, we think this is a wrong move by the Conservative government.

When we look back over the last 10 or 15 years, we see how much the employment insurance system has changed. It is very frightening. When workers in this country go to work, their EI deductions are made and employers pay their premiums. It is a system that workers believe in and feel they should be able to have faith that the system will work for them, that it will be there to help them through difficult times of being laid off or unemployed, particularly if they are seasonal workers.

That system previously worked. That system is paid for by employers and workers. There is not a penny of public funds or a penny from the government coffers in that system. It is a system designed to protect the interests of workers.

We know that today only about four in every ten male unemployed workers are collecting EI benefits at any given time. That is down from 80% in the 1990s. It is now down to 40%. It is even worse for women. Only one in three unemployed women is collecting benefits at any given time. That is down from 70% in 1990. Only 20% to 25% of unemployed workers in most major urban centres like Toronto or the Lower Mainland in Vancouver, British Columbia now receive benefits.

These are the statistics, but behind those statistics are unbelievable hardship cases. People who, in good faith, work and pay into the EI fund and then when they apply for coverage because through no fault of their own they are laid off or unemployed, they find out suddenly that this system has, in effect, crashed. It is a system that does not work for them any more. In my own riding of East Vancouver there are many cases involving Employment Insurance. People come to my office who cannot understand why it is so difficult for them to get benefits and why they do not qualify any more.

Clearly, what has happened since the 1990s is that coverage has shrunk because there have been so many changes in the program rules. It began with the Liberal government and has now continued with the Conservative government. They are changes that have made it near impossible for workers to collect something that is their right, which are their unemployment insurance earnings.

In all urban centres except Windsor, people now require 630 to 700 hours minimum to claim for 22 weeks or less. The threshold for new entrants is even worse. They need 910 hours and that really impacts young people, recent immigrants or women who are returning to work. All of these barriers exist to collecting something that people should have by right.

Under the current system the basic benefit that is paid is 55% of the insured earnings, with a level of insured earnings averaged over a 26 week period, to a maximum of $423 weekly. That is not enough to live on. Is it any wonder that the income gap is growing between people who are affluent and doing very well and people at the bottom, working people particularly, who are really struggling? People who go on EI basically live below the poverty line. They struggle to support their families. Then end up going to food banks. These are the kinds of cases I have seen in my riding.

We know that the replacement rate for insured earnings was cut in 1996 from 57% to 55%, itself the result of a cut from 60% in 1993. That was a cut from 66% in the 1970s.
We can see that we have an insured earnings rate that went from 66% down to 55%. These are really appalling figures and they really tell the story of how bad things are under the EI system. So we want to bring this to light and to show how this is impacting millions of workers in this country. I want to congratulate the Canadian Labour Congress and many affiliates of the CLC who have valiantly kept pace, done the tracking, done the monitoring of what is happening to the EI system. Many of these figures come from the Canadian Labour Congress. If we did not have that independent research being done, I do not think we would have any idea just how bad things have become.

We know that in this budget bill the government created the Canada employment insurance financing board act and we know that it has set up this separate crown corporation, but to add insult to injury is the fact that the surplus in the EI account is now at $54 billion. I cannot visualize that amount of money, but I know it is money that is being robbed from workers. I know it is money that has gone into general revenue that is being used for other purposes. Again, the previous government started it and the current government is continuing it. There are so many questions about what it will mean in terms of this new crown corporation.

One of the basic questions we have is why is it that this crown corporation has only been set up with a fund of $2 billion, when even the Auditor General of Canada says that what is required for insurance purposes is closer to $10 billion to $15 billion. So we are very concerned that not only has the system so fundamentally changed in Canada over the last 15 years, but even this new setup that we are dealing with today is going to do a great disservice to workers. It is going to be a situation where yet again workers get cut out. Workers lose entitlement and rights, and there will be no oversight from Parliament. At least now we have had some parliamentary oversight of the goings on and the scandal really, and I do call it a scandal, of what has happened to EI. Now with this arm’s-length crown corporation, where will that parliamentary oversight be?

We are very concerned about these changes in the budget implementation bill. Our leader, the member for Toronto—Danforth, when he was at the Canadian Labour Congress convention just last Thursday, spoke on this issue to the 1,800 delegates who were there representing all of their affiliates across the country. He pointed out that the former government treated the money in the EI fund like money that it found and could use it however it wanted. He pointed out that the $54 billion from the EI fund was used to pay down the debt. That was money that was owed to workers. That is money that belongs to workers.

We see this as the biggest theft in Canadian history. There is a great deal of anger among working people within the organized labour movement about what is taken from EI. I want to assure the affiliates of the CLC and all of the labour partners that we are not going to let this issue go. We are going to fight this tooth and nail, because we think it is pretty scandalous the way workers are being ripped off in this country.

I know for example that the building trades, at their recent policy convention here in Ottawa, raised the issue of EI. The Liberals did not have any answers for them. The Conservatives did not have any answers for them, even when they asked basic questions as to why the new board would only be allocated $2 billion.

We have made these amendments today under Bill C-50 because we are so outraged about the budget bill generally, how it is really robbing workers of very basic entitlements – to feel secure, to feel safe and to feel like they have something that they can rely on when they are hit by hard times.

I know that all of us in the NDP will be fighting these changes, and I hope that other colleagues in the House will rethink their position. It is pretty appalling that the Liberals are willing to sit on their hands and to let this terrible bill pass through the House. That is what they have done and that is what they are prepared to do again today. It is pretty appalling that they are going to let workers down that way. We should be fighting for these rights. That is what we intend to do.

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