CHRIS LOWREY
PONTIAC Aug. 5, 2020
The federal government has announced new funding for programs aimed at helping businesses, municipalities and provinces open back up after shutting down amidst the COVID-19 pandemic.
One of the major new announcements is the extension of . . .
the Canadian Emergency Wage Subsidy (CEWS) to December.
The program covers 75 per cent of an employees wages up to a maximum of $847 per week.
With a budget of $82 billion, not as many businesses have availed themselves of the subsidy as only $18 billion had been paid out.
But the government is aiming to ensure more businesses are eligible for the subsidy. Now, any business that can demonstrate a 30 per cent decline in revenues since the start of the pandemic can claim the CEWS.
It’s a two-pronged approached for the government.
The hope is that as more people return to work with the help of the CEWS, they will no longer need the $2,000 per month Canadian Emergency Relief Benefit (CERB), which will shift some costs from the government to the private sector.
“We’re trying to turn a corner,” Pontiac Liberal MP Will Amos said. “That’s the intent, to ramp employment up.”
But even with a 75 per cent wage subsidy, Amos admits that some businesses still suffered catastrophic losses.
“The 75 per cent wage subsidy is one of the most generous in the world,” Amos said. “And even a 75 per cent wage subsidy wasn’t enough.”
He pointed to several sectors, including tourism and hospitality, that have suffered far more than a 30 per cent revenue drop.
He said the government’s initial subsidy was geared towards businesses that suffered immediate losses. This extension is for those who are going to be experiencing losses for the foreseeable future.
“The hope is that they’ll employ more and more Canadians,” Amos said.
Although Amos admitted that this new round of funding will increase the federal deficit, he said it’s a necessary expenditure considering the unprecedented circumstances of the COVID-19 pandemic.
But he justified the federal government taking on the burden on behalf of provinces and municipalities because the Canadian government can borrow money at a lower rate than other levels of government.
Along with the extension of the CEWS, the government also announced an additional $19 billion in funding for municipalities and provinces to reopen as COVID-19 still rears its head.
The new funding will help municipalities cope with costs associated with reopening during a pandemic.
For instance, many municipalities will need to install plexiglass shields, social distancing reminders and additional hand sanitizer.
Of the $19 billion earmarked for reopening efforts, Amos said $7 billion will go directly to towns and cities.
On the provincial side, the funds are meant to help provinces improve contact tracing and testing – an area in which the federal government would like to see some improvement.
“The provinces need to do more,” Amos said.
Similarly, the funding is aimed at providing support to those who don’t have paid sick time by giving them 10 paid sick days.
“We don’t want people to go to work sick,” Amos said.
