It seems the current Conservative government, determined to save Canadian taxpayers on needless public expenditures such as the long gun registry for example, has developed a unique new way of providing fiduciary prudence and management, according to a recent CBC report.
In 2008, when the EI Fund was running huge surpluses, the government established a new federal agency, the Canada Employment Insurance Financing Board whose stated purpose was threefold: 1) to set the annual employment insurance contribution rates for employers and workers. 2) invest surplus EI funds 3) managing a $2 billion EI contingency find the government promised to set up. All admirable and praiseworthy tasks one might assume.
There seem to be, however, a couple of incongruities in the whole plan. According to recently published reports the new board has allegedly become a watchword for waste and mismanagement primarily because, not only has it allegedly failed to meet any of it's stated functions, those functions don't actually appear to exist. With the government setting and capping EI contribution rates, the new board has never had to do so. As for managing any EI surplus, any such surplus doesn't exist as the current EI balance shows an $8.8 billion deficit. The highly touted contingency fund was never established. In short, the report alleges, "the board has no rates to set, no surplus to invest and no contingency fund to manage and little chance any of that will change in the near future."
Currently, it's reported, the new board has incurred a $3.3 million expenditure for new offices, computers, furniture, executive and staff salaries, expense accounts, travel budgets, board meetings and consultants.
The board's published budget for the current year includes $1.8 million for new offices, and healthy raises for all involved, it is further noted. There also appears to be some question as to why, for example, would the board budget $200,000 to pay an investment manager if there is nothing to invest?
If taxpayers are to assume any confidence in the government's stated financial management, a review might well be in order to determine whether the Canada Employment Insurance Financing Board does, in fact promise to provide a valuable service to Canadians or whether it might well end up as potential Conservative version of the 'Sponsorship Scandal'.
