-- Martin and Pettigrew Sill Hoarding $5.9 Billion EI Surplus --

OTTAWA: The Canadian Taxpayers Federation (CTF) reacted to today's announcement that the federal government will reduce Employment Insurance (EI) premiums for the 1999 taxation year. Finance Minister Paul Martin and Human Resources Development Minister announced that EI premiums will be reduced for employees by 15 cents and for employers by 21 cents for the 1999 taxation year.

"Martin and Pettigrew are trying to fool us by claiming their cuts will put $1 billion back into the pockets of Canadian workers and employers," stated CTF federal director Walter Robinson. "But with the fund originally projected to run a $7 billion surplus for 1998, all this means is that Martin and Pettigrew are still stealing almost $6 billion from us!"

Robinson painted the federal shell game another way. "It's like walking down the street with $70 in your wallet and getting mugged, but the mugger smiles and says he only needs $60 and leaves you with a ten spot. At the end of the day your head still hurts and you're out 60 bucks."

The CTF reiterated its call for premium cuts to substantially lower the employee contribution rate to the $1.90 to $2.00 range and the employer rate (1.4 times the employee rate) into the $2.66 to $2.80 range

"These are token cuts. The trust of Canadians workers and employers continues to be violated. The federal government plans to use the EI surplus for new spending and illusory tax relief in the next budget," added Robinson. "This shell game is not lost on Canadians and will only serve to propel our national CUT TAXES NOW! campaign to new heights."