Provincial government committed to improvements in National Employment Insurance Program

Intergovernmental Affairs Minister Walter Noel said today that the Government of Newfoundland and Labrador has been working on improving Canada�s Employment Insurance Program to meet the needs of Newfoundlanders and Labradorians.

The minister, responding to comments by MHA Roger Fitzgerald that government is standing idle while the unemployment situation in rural Newfoundland and Labrador gets worse, said that he is anticipating a meeting soon with HRDC Minister Jane Stewart to discuss the issue.

"Government is working to make a real difference, "said Minister Noel. "I advised the minister of our serious decline in the number of eligible recipients as a result of decreased access and increased entrance requirements, as well as lower benefit rates and shorter collection periods."

"The aggregate impact of reform measures has been crippling to individuals and communities. It has caused tremendous individual hardship related to the increased entrance requirements associated with the hours-based approach, as well as the combined impacts on their benefit rates of the intensity and divisor rules," Minister Noel said in his letter to Minister Stewart.

Government has been working since July 1996 to prevent unacceptable changes to the program. Successive ministers of Development and Rural Renewal have worked for change, as well as Human Resources and Employment Minister Julie Bettney, also co-chair of the national Forum of Labour Market Ministers. Furthermore, Premier Brian Tobin has raised these issues during the past three Annual Premiers� Conferences. All premiers have called on the federal government to find long-term solutions to seasonal unemployment, and to make available Part II employment insurance funds to finance new measures to extend employment opportunities for seasonal and part-time workers.

"While there are many individuals and parts of our province not sharing in the economic renewal evidenced by strong growth in GDP and employment, Mr. Fitzgerald does the province a disservice by dismissing the real progress we are making as �fairy tales�," said Minister Noel. "Government is cutting taxes and helping reduce the cost of doing business in our province, and many citizens are having real success in developing new businesses. We will soon be updating our strategic economic plan as a result of the work of the committee of ministers responsible for consulting with citizens in recent months on our Jobs and Growth agenda."

"Government is working effectively to develop our economy, create jobs, and get changes we need in federal programs," said Minister Noel.

Media contact: Lynn Barter, Communications, (709) 729-0084.

2000 02 28                                                     4:50 p.m.