FOR IMMEDIATE RELEASE: May 28, 1998
Klein's advice to Martin on EI surplus is "extremely hypocritical"
EDMONTON -- Premier Ralph Klein is being extremely hypocritical when he argues that the federal government's huge Employment Insurance (EI) surplus should be "returned to working people", says AFL president Audrey Cormack. "Here in Alberta, the government has recorded more than $6.5 billion in budget surpluses over the past four years. But how much of that money has gone back to working people?" asks Cormack. "The answer to that question is zero. Every single penny of the Alberta surplus has gone to the banks. Nothing has been spent on services for people -- like health care and education." Given the Alberta government's track record on the spending of surplus dollars, Cormack says Klein is in no position to take the moral high ground. "Klein is no different from Martin when it comes to spending. They are both attempting to balance their budgets on the backs of ordinary citizens," she says. "The only difference is that Martin is taking money away from the unemployed and Klein is taking money away from hospitals and schools." Cormack says she agrees that the surplus in the EI fund is too large -- but she disagrees with Premier Klein on what should be done about it. "The reason that there is such a large EI surplus is not that premiums are too high, as people like Klein and Ontario Premier Mike Harris would have us believe," says Cormack. "The real reason we have a surplus is that the federal Liberals have reduced benefits and made it much more difficult for unemployed workers to qualify for EI. As a result only about 40 per cent of unemployed Canadians currently qualify for benefits -- down from 87 per cent in 1990. This situation is totally unacceptable." Instead of cutting premiums, Cormack says the surplus should be used to increase benefits for unemployed workers. "The unemployment insurance system was established to help both individuals and communities weather economic downturns and bouts of unemployment," she says. "Unfortunately, as a result of all the cuts, EI is no longer performing that role. That's why the surplus should be used to shore up benefits. We have to make sure the EI system is there for Canadians when they need it."
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