NEWS RELEASE  

October 21, 1994    For Immediate Release 

REFORM PREFERS WORKER/EMPLOYER RUN UI SYSTEM  

In response to enquiries received recently, Garry Breitkreuz, MP for Yorkton-Melville and Reform critic for Unemployment Insurance, wants to set the record straight about the party's position on proposed changes to the UI Program. "For years our Party's Blue Book has had a clear position on reform of the Unemployment Insurance system; namely, return UI to a true insurance program, administered by the workers and employers who pay the premiums," reported Breitkreuz. "We also support the immediate elimination of discriminatory program elements such as regional entrance requirements and regionally extended benefits." 

Breitkreuz explained, "If you return Unemployment Insurance to true insurance principles, it would mean that seasonal workers who make frequent claims on the program would have to pay higher premiums. He continued, "Employers would also be "experience-rated" meaning that their premiums would increase with the number of lay-offs they have." 

"Whether UI premiums are paid by the worker or the employer, they come directly out of the worker's pocket. Each worker in Canada pays an average of $1,500 a year in premiums. I believe that Unemployment Insurance premiums are just another form of taxation. The Liberals are milking this cash-cow; basically, picking worker's pockets without their consent and doing anything they want with the money - even though it may be contrary to what the majority of workers actually want. I also believe workers should be given a choice about where they want to invest their hard-earned money. Workers should have the choice about the type of insurance they want to buy and how much coverage they need," said the Reform critic. 

More than anything Reformers want an open and honest review of all social programs including all of the options for reforming the UI system. "Unfortunately, Lloyd Axworthy has not put all the options on the table. He has based his options for reform on the premise that the federal government should continue to operate the program. "Government should only run the UI program if that is what the workers and employers want," stated Breitkreuz. 

Reformers want to open up the debate by asking taxpayers, workers and employers the following key questions: 

• Do taxpayers, workers and employers think the government should continue to control the UI program or should Unemployment Insurance be administered by the employees and employers who pay the premiums? 
• Should workers be given a choice about where to invest their UI premiums? Would workers get a better return on their investment than the government run UI program offers them? 
• Do taxpayers, workers and employers think the UI program should be compulsory as it is now, or voluntary? 
• Should the UI program be turned into a self-financing corporation administered by the employees and employers who pay the premiums? 
• Should unions and employers be permitted to opt-out of the government run UI program by establishing a privately administered unemployment insurance program for the benefit of their workers? 

"Only 34% of the respondents to a June 1994 Angus Reid poll trust the federal government to make the changes that are necessary to reform our social programs. With such a low credibility rating, we don't think the federal government should automatically assume that the Canadian people want them to continue to have total control of the Unemployment Insurance program. If we are going to discuss reform options, we must make sure Canadians are aware of all the options not just the ones that benefit the bureaucrats and politicians," concluded Breitkreuz. 

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For more information please call: 

Ottawa:- (613) 992-4394