EI crisis adds pressure for Campbell to chart new economic course

Joining B.C.'s labour movement in calling for significant reforms of our employment insurance system is an important step for Premier Campbell to take.

In fact, with his proposed $495 million budget deficit looking increasingly unrealistic, the Premier would be well advised to dial up pressure on Prime Minister Harper to improve EI payments for Canadian workers who have been hurt by the economic downturn.

Why? Because B.C. could soon face a tidal wave of unemployed workers who have exhausted meager EI benefits. Many more won't even qualify, while others face lengthy delays to get their claims processed.

These jobless workers will have no choice but to turn to income assistance to support their families until the economy picks up.

Offloading will cost B.C. millions.

The buck-passing of responsibility from the feds to the provinces will create significant added cost pressures on the B.C. budget.
Already we see signs of the impending crisis. Unemployment claims have risen by 80 per cent since October. Meanwhile, the number of people receiving income assistance is up by 14 per cent overall, and an astronomical 58 per cent in the last year among able-to-work applicants - those who don't qualify for EI or who have received their final cheques.

Yet income assistance funding is set to increase by only four per cent in Campbell's much-discredited February budget. Even if the caseload increase remains constant at 14 per cent - which is unlikely - Victoria will need to find another $100 million to cover the higher assistance costs.

And in welfare offices, added caseloads will put even more pressures on front-line workers whose ranks will be reduced by a mandated five per cent cut.

Time for new economic course

The rise in EI and welfare rolls is one more reason for the B.C. Liberals to chart a new economic course. My advice to the Premier? Get over your deficit phobia. Be honest about how long it will take the economy to recover, and be flexible by tabling a budget with added spending, and no public service cuts.

The vast majority of British Columbians support a higher deficit. So step up investment in stimulus projects and social infrastructure spending to get the economy moving, create jobs and insure that our citizens can rely on vital public services to help us all weather the economic crisis.