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   From: Panca@nyet.ca   
      
   The Canadian Press Posted: Nov 20, 2014   
      
   EI rate cut: Ottawa skipped internal study in favour of interest group report   
      
      
   The Harper government passed up conducting its own internal analysis on the   
   job-creation potential of its $550-million small-business job credit, relying   
   instead on numbers produced by an interest group, the finance minister revealed   
   Wednesday.   
      
   Joe Oliver told the parliamentary finance committee that Ottawa's decision to   
   introduce the measure was based on the research of the Canadian Federation of   
   Independent Business.   
      
   "The department does not analyze every measure that we introduce," Oliver told   
   the hearing as he responded to a question.   
      
   "If we don't do it, we look to those who have expertise and we did in this case   
   to the Canadian Federation of Independent Business."   
      
   The Canadian Federation of Independent Business estimated the credit would   
   generate 25,000 person-years of employment over the next several years.   
      
   A job that employs a worker for one year amounts to one "person-year."   
      
      
   Cut costs $555K per new 'person-year' of employment: PBO   
      
   But Canada's parliamentary budget office has argued the credit will create only   
   800 net new jobs in 2015-16, while a freeze in employment insurance premiums   
   could cost the economy 10,000 jobs over the same period.   
      
   The budget watchdog's study said that overall, the credit would create about   
   1,000 "person-years" of employment with a price tag of $555,000 for each   
   person-year.   
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   Beginning in 2015, the Conservative government's measure will effectively lower   
   EI premiums for small businesses with annual contributions of less than   
   $15,000. Oliver estimates about 780,000 Canadian businesses fall into that   
   category.   
      
   Critics of the job credit have said Ottawa should have gone further and made a   
   direct cut to premiums.   
      
   They believe it would provide an immediate benefit to all businesses and   
   employees.   
      
   Ottawa has indicated a broader reduction to payroll taxes won't happen until   
   2017.   
      
   Opposition parties have accused the government of delaying the cut in order to   
   bankroll announcements aimed at pleasing voters ahead of next year's election.   
      
   	   
        Pricey EI rate cut will yield only 800 jobs: PBO report   
        EI premium cuts a double-edged sword for job growth   
      
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