For Protection or Perception

Figures don't lie, but ...

Niagara Falls, Ontario - Friday, June 21, 2002 - by: Joe Hueglin

surplus
It was the truth, not lies, when Finance Minister Manley stated on June 19th there will

be an estimated $6 billion surplus for fiscal 2001-2002, a total of $41 billion pay down of

the debt, and "our fifth consecutive surplus" ⁽¹⁾.

insurance?
But it was not the whole truth for unstated is the irrefutable fact they have come about

through higher than necessary Employment Insurance Premiums.

not
a
premium
These premiums, paid by every employee and employer in Canada, while listed as

deposited into the Employment Insurance Account actually go directly into the

Consolidated Revenue Fund and are spent.

$40
billion
On paper this Account has a projected surplus of $6.170 billion for 2001 and an

accumulated surplus of $40.101 billion built up since 1995 ⁽²⁾ ...figures uncannily similar

to those Manley stated as accomplishments of his government.

Auditor
General
Figures don't lie. True. But those paying premiums should be aware that the Auditor

General has stated

"The Canada Employment Insurance Commission has not

provided an adequate justification for the size and the

rate of growth of the accumulated surplus." ⁽³⁾

wage
earn
surplus
A surplus estimated to increase by an additional $5.300 billion in 2002 above what is

necessary to provide protection to those paying premiums, but vitally necessary for the

Finance Minister to be able to say "our sixth consecutive surplus" next year.

Joe Hueglin

Reference:

1
-
Statement by the Honourable John Manley, Deputy Prime Minister and Minister of Finance, to the House of Commons Standing Committee on Finance

2
-
-
-
-
-

Human Resources and Development Canada Outlook for EI Premium rates in 2002 Surplus (deficit): http://www.hrdc-drhc.gc.ca/ae-ei/loi-law/pr2002_e.pdf 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 PROJECTION

- annual (1,208) 2,283 4,267 4,999 6,294 7,291 6,844 7,836 6,170 5,339
- cumulative (5,884) (3,601) 666 5,665 11,960 19,251 26,095 33,931 40,101 45,440

3
Office of the Auditor General of Canada 2001 Report ˜ Chapter 13

Employment Insurance Commission web site

Employment Insurance web site, to make applications and communicate with department



Figures don't lie, but ...

Niagara Falls, Ontario - Friday, June 21, 2002 - by: Joe Hueglin

surplus	It was the truth, not lies, when Finance Minister Manley stated on June 19th there will
	be an estimated $6 billion surplus for fiscal 2001-2002, a total of $41 billion pay down of
	the debt, and "our fifth consecutive surplus" ⁽¹⁾.

insurance?	But it was not the whole truth for unstated is the irrefutable fact they have come about
insurance?	through higher than necessary Employment Insurance Premiums.

not a premium	These premiums, paid by every employee and employer in Canada, while listed as
	deposited into the Employment Insurance Account actually go directly into the
	Consolidated Revenue Fund and are spent.

$40 billion	On paper this Account has a projected surplus of $6.170 billion for 2001 and an
	accumulated surplus of $40.101 billion built up since 1995 ⁽²⁾ ...figures uncannily similar
	to those Manley stated as accomplishments of his government.

Auditor General	Figures don't lie. True. But those paying premiums should be aware that the Auditor
	General has stated
	"The Canada Employment Insurance Commission has not
	provided an adequate justification for the size and the
	rate of growth of the accumulated surplus." ⁽³⁾

wage earn surplus	A surplus estimated to increase by an additional $5.300 billion in 2002 above what is
	necessary to provide protection to those paying premiums, but vitally necessary for the
	Finance Minister to be able to say "our sixth consecutive surplus" next year.

	Joe Hueglin

*Reference:*
1 -	Statement by the Honourable John Manley, Deputy Prime Minister and Minister of Finance, to the House of Commons Standing Committee on Finance

2 - - - - -	Human Resources and Development Canada Outlook for EI Premium rates in 2002 Surplus (deficit): http://www.hrdc-drhc.gc.ca/ae-ei/loi-law/pr2002_e.pdf 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 PROJECTION - annual (1,208) 2,283 4,267 4,999 6,294 7,291 6,844 7,836 6,170 5,339 - cumulative (5,884) (3,601) 666 5,665 11,960 19,251 26,095 33,931 40,101 45,440

3	Office of the Auditor General of Canada 2001 Report ˜ Chapter 13

	Employment Insurance Commission web site

	Employment Insurance web site, to make applications and communicate with department