Liberals Table Motion Supporting EI Premium Exemption Plan

September 23, 2014

OTTAWA – Today, Liberals introduced an Opposition Day Motion calling on all parties to support an Employment Insurance (EI) premium exemption plan focused on creating more jobs for Canadians after years of anemic economic growth.

“Canadians deserve a plan for jobs and growth,” said the Deputy Leader of the Liberal Party of Canada, Ralph Goodale. “That is why Liberals have tabled a motion in Parliament urging the government to redirect resources it has set aside for a poorly-designed EI plan and use those funds to offer employers an EI premium exemption for every new job that a business creates.”

“The Conservatives’ recently-announced proposal gives a greater incentive for employers to fire workers than to hire new ones. Experts have shown that the government’s plan can give businesses a benefit of over $2,000 a year when a worker is laid off, but only $200 when they hire one. By cutting off eligibility based on the total EI premiums a business pays, the credit effectively acts as a cap on jobs and growth.”

“The Liberal proposal will directly reward and encourage job creation and growth. Under our plan, businesses would receive a benefit that can reach as much as $1,300 for each new job created,” said Liberal Finance Critic, Scott Brison. “This approach has worked before, including in the 1990s under the previous Liberal government. With the money that the Conservatives have earmarked for their EI proposal, our plan could help create over 175,000 new jobs starting this January. I encourage all my colleagues in the House of Commons to stand up for Canadian workers and support our motion.”

Background:

The Liberal Opposition Day Motion is as follows:

That, in the opinion of the House, the Employment Insurance (EI) plan announced by the government on September 11, 2014, and which will begin on January 1, 2015, will not create jobs and growth but will instead provide a financial incentive for employers to lay off workers; and therefore, the House urges the government to re-direct those resources by providing employers an EI premium exemption on newly-created jobs in 2015 and 2016.