>In today's news: > >EI and welfare need radical revamp, group says > >Norma Greenaway, CanWest News Service; Ottawa Citizen >Published: Monday, July 03, 2006 > >OTTAWA -- The cornerstones of Canada's system for providing income >protection Employment Insurance and welfare have failed and should >be replaced by a more effective and comprehensive plan, says a >report advocating a new package of adult benefits. >The authors admit the proposed package, described as a "radical" >revamping of the current system, would cost more than the $24 >billion spent annually on EI and welfare. However, they say it would >be a more labour-market-oriented option for Canadians who are >temporarily out of work, and also a more effective safety net for >disabled Canadians who might be unable to work. >"It's a total revamp of our entire security system aimed at adults >of working age," Michael Mendelson, one of the authors, said in an >interview. "There has been a lack of a comprehensive vision of what >income security needs to be in a modern globalized economy." >The report, published by the Caledon Institute of Social Policy, >proposes the broad outlines of a three-tier income-security system >that, it acknowledges, is a work in progress and still missing a >price tag. >"It might require more money to implement the architecture we are >talking about," Mendelson said. "But we think there would be more >payback per dollar spent." >Tier one would replace EI, which is limited to people who have >contributed to the plan and who have a significant connection to the >workforce, with a temporary income program. Unlike EI, the new >program would be a non-contributory benefit funded out of general >federal revenues. >The idea is to provide income security to people who are temporarily >unemployed and actively seeking work, but who are now excluded for >one reason or another from collecting EI, and who may have no >recourse other than to go on welfare. >Tier two, dubbed employment preparation, would be financed by the >provinces and is aimed at people who lack enough skills to find a >job and maintain it. Flat-rate payments would replace the current >welfare system, and focus on longer-term training if necessary. The >employment-preparation payments might continue for several years for >some recipients, but they would not be expected to provide permanent >income support. >The third tier is billed as basic income, an income-tested safety >net for people who cannot reasonably be expected to earn an adequate >income from employment because of severe and prolonged disability. >There would be no time limits on the benefit, financed out of >federal revenues. >The report says the cornerstone of the new system is a well-funded >National Child Benefit. Under the plan, the current federal payment >of almost $3,000 per child a year would have to increase to $5,000 a >year. >Mendelson said ensuring that children are covered frees the system >to provide a highly simplified benefit schedule that is oriented >towards an adult benefit similarly to a wage. >"You don't get a wage adjusted to the number of children you have," >he noted. "Treating people like adults, we think, is one of the >fundamental cornerstones of the reform." > >Mendelson says the draft plan should appeal to federal and >provincial governments across the political spectrum. >"For the left, it's providing better income security," he said. "And >for the right, it's saying people need to get jobs and we need to >enable them to get jobs." >He suggested concerns about labour shortages, especially as the baby >boomers age and retire, should spur governments to seriously >consider ditching the current system of EI and welfare. >Mendelson also said the plan, which would require the federal >government to fund two of the tiers, would partially address the >"fiscal imbalance" between the revenue-raising powers of the federal >and provincial governments. > >Ottawa Citizen > >http://www.canada.com/topics/news/national/story.html?id=306b0ecb-df3a-491b-99d7-e1231fc3bd71&k=10214&p=2
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