Canada to cut employment insurance premiums -report

Thu Sep 11, 2014 8:21am EDT
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TORONTO, Sept 11 (Reuters) - Canada's Conservative government on Thursday will announce that it will lower employment insurance premiums for some businesses and workers in an effort to boost hiring, the Globe and Mail newspaper reported on Thursday.

A spokesman for the finance ministry declined to comment on the article.

The report, citing an unnamed senior government official, said the cut will be "significant" and will be called the Small Business Job Credit. It added that the cut will take effect Jan. 1, 2015.

Canadian Finance Minister Joe Oliver is scheduled later Thursday to announce new actions the government said would help small businesses grow.

Canada's employment insurance program provides some income to workers who qualify after losing their jobs. It is financed through premiums charged to workers and employers.

The finance minister said last month he wanted to cut personal taxes further in next year's budget.

The Conservative government, which relied on large budget deficits to help Canada avoid the worst of the recession, has projected it will have a surplus of C$6.4 billion ($5.81 billion) in the 2015/16 fiscal year.

The next federal budget is due in late February or early March of 2015. The Conservatives have cut taxes several times since they took power in early 2006. (1 U.S. dollar = 1.1016 Canadian dollar) (Reporting by Jeffrey Hodgson; Editing by Jeffrey Benkoe)