Canada's NDP

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September 8th, 2015

NDP REALITY CHECK: Liberals cut benefits and raided $50 billion from the EI fund – and Justin Trudeau says this was the right decision

From 1993 to 2006 the Federal Liberals raided more than $50 billion from the EI fund and radically reduced benefits.

This was money collected from workers and companies, which was supposed to be used to protect workers and their families, used instead to cut corporate taxes.

In fact, the Supreme Court ruled unanimously that the Liberals broke the law when they reduced EI rates without authorization from Parliament.

Liberal record:

  • Access rates fell dramatically during the 1990s from 80 % of unemployed Canadians being covered in the late 1980s to the present 40 %. Fewer and fewer unemployed Canadians qualified for EI.
  • Liberals drastically cut insurable earnings from $845 to $750, meaning workers faced a steep drop in benefits if after they lost their jobs.
  • The Liberals nearly doubled from 400 to 700 hours the amount of time workers had to accumulate in order to qualify for EI (Lop, 1999).

What does Trudeau say about Paul Martin’s cuts? Trudeau said they "were the right decisions.”

While Trudeau is now making new promises to workers, his fiscal plan includes tens of billions in deficits – and billions in budget cuts in his last year.

Canadians have every reason to be skeptical of Liberals coming bearing gifts – while also having large holes in their fiscal costing.