A “For Lease” sign hangs in a window as a cyclist walks past a commercial store, Monday August 31, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

A “For Lease” sign hangs in a window as a cyclist walks past a commercial store, Monday August 31, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

Liberals’ new aid bill faces calls for changes, and for a pause on business audits

Prime Minister Justin Trudeau said the package has been designed to be flexible

The Trudeau Liberals’ latest attempt at providing emergency aid for the country’s hard-hit companies and their employees is facing demands for change from businesses and opposition MPs.

The Liberals tabled a bill Monday that would extend the federal wage subsidy and stop a previously planned slide in the value of payments.

The bill also creates a new commercial rent-relief program to provide aid directly to businesses. The Liberals’ last version relied on landlords to apply for help, which they didn’t do in great numbers.

Prime Minister Justin Trudeau said the package has been designed to be flexible enough to help companies facing different realities.

How many businesses need the help and how much of the aid gets spent depends on the path of the pandemic, said Finance Minister Chrystia Freeland.

She also spoke about the need to keep aid flowing particularly to those affected by lockdowns. She warned that other jurisdictions have seen stimulus spending wasted by rolling back restrictions too far, too fast and having to impose fresh lockdowns.

“We will be spending more … if it turns out that the second wave is really, really rough, and people need more support,” she said.

“If we get through it, if we do the right thing … and we’re all able to keep working, then we will spend less on these programs.”

The draft legislation has been met with mixed reactions from business groups that have been begging the government for extra aid to help cover costs while their revenues lag.

For others, the concern stems from new restrictions that have limited the number of customers a restaurant can hold, or closures ordered by public health officials to slow the spread of the novel coronavirus.

The Conservatives used their time on the House of Commons agenda Tuesday to ask the Liberals for extra flexibility in the federal wage subsidy and commercial rent-relief programs, and for a pause until next June on federal audits of small businesses.

“Can you imagine a small business holding on by a thread and having the tax collector descend on you with an audit? I think it’s horrible. It’s unfair,” Conservative Leader Erin O’Toole said during a morning press conference.

“We’re trying to show that we can improve the response … and I hope the government sees this.”

READ MORE: Canada on track to see 8,000 new COVID cases a day if contacts not cut by 25%

The government’s bill, known as C-9, would revamp the rent-relief program to cover up to 65 per cent of rent or commercial mortgage interest on a sliding scale based on revenue declines, with an extra 25 per cent available to the hardest-hit firms.

The Canadian Federation of Independent Business, which represents thousands of small and medium-sized companies, sounded a positive note about the legislation but wanted to make sure all firms subject to lockdowns or restrictions would qualify for the extra help.

The association also asked the Liberals to allow companies to apply for rent relief retroactively if their landlords failed to apply in the last few months.

“Rent relief is critical to the survival of many Canadian small businesses, especially with some provinces entering a second lockdown and requiring businesses to close again,” said Laura Jones, the association’s executive vice-president.

Alla Drigola of the Canadian Chamber of Commerce said the legislation, as written, doesn’t remove arbitrary caps on rent relief that had been a key concern raised with the Liberals as the government revamped the program.

“This punishes businesses that have several locations, especially those in expensive downtown cores,” said Drigola, the chamber’s director of parliamentary affairs and of policy for small and medium enterprises.

She also said that businesses are hopeful the government will up the base wage subsidy from 65 per cent to at least 75 per cent, which is what the Liberals provided during the first wave of the pandemic.

MPs on the House of Commons status of women committee were told in a Tuesday meeting that the wage subsidy should be extended to include hiring in home daycares so female entrepreneurs can return to work.

“Female business owners continue to indicate that child care is their No. 1 issue,” said Penny Wise, president of 3M Canada. “These are some easy, practical and incredibly helpful actions that the government could undertake now.”

The latest federal figures on the wage subsidy show it has paid out almost $45.3 billion in subsidies to 340,210 different companies.

Jordan Press, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusLiberals

Just Posted

The Abbotsford International Airshow is back for 2021 with the ‘SkyDrive’ concept.
Abbotsford International Airshow returns for 2021 with ‘SkyDrive’

New format features a drive-in movie type experience, show set for Aug. 6 to 8

A young couple walks through the Othello Tunnels just outside of Hope. (Jessica Peters/Black Press)
Hope’s Othello Tunnels fully open to the public

Geological testing proved the area safe enough to open for the first time in more than a year

FILE
70 per cent of people aged 12 and older in Agassiz-Harrison have been vaccinated

More than 80 per cent of adults aged 50 and older have been vaccinated, as of June 10

Raeya Evie Duncan was the 100th baby born at Chilliwack General Hospital for the month of May. She is seen here with her parents Alysha Williams and Andrew Duncan on June 12, 2021. (Jenna Hauck/ Chilliwack Progress)
Baby boom in Chilliwack as record number of infants born at CGH in May

‘COVID babies are coming out,’ says dad of 100th baby born at Chilliwack General Hospital last month

Agassiz Agricultural Hall hosts COVID-19 vaccination clinics every Wednesday. District officials reported more than 300 doses are administered per week. (Adam Louis/Observer)
Walk-in COVID vaccine clinic scheduled for Wednesday

Walk-in appointments available while supplies last from 3 p.m. to 6 p.m.

Maxwell Johnson is seen in Bella Bella, B.C., in an undated photo. The Indigenous man from British Columbia has filed complaints with the B.C. Human Rights Tribunal and the Canadian Human Rights Commission after he and his granddaughter were handcuffed when they tried to open a bank account. THE CANADIAN PRESS/HO-Heiltsuk Nation, Damien Gillis, *MANDATORY CREDIT*
VIDEO: Chiefs join human rights case of Indigenous man handcuffed by police in B.C. bank

Maxwell Johnson said he wants change, not just words, from Vancouver police

A woman wears a vaccinated sticker after receiving a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. ranks among highest in world in COVID-19 first-dose shots: health officials

More than 76% of eligible people have received their 1st shot

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.’s Indigenous language, art and culture

Advisor says initiative supports the urgent need to preserve Indigenous languages

An artists conception of the new terminal building at the Pitt Meadows Regional Airport.
Air travel taking off in B.C., but lack of traffic controllers a sky-high concern

There will be demand for more air traffic controllers: Miller

Canadian Armed Forces experts are on their way to North Vancouver after a local homeowner expressed worry about a military artifact they recently purchased. (Twitter DNV Fire and Rescue)
Military called in to deal with antique ‘shell’ at North Vancouver home

‘The person somehow purchased a bombshell innocently believing it was an out-of-commission military artifact’

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Amy Kobelt and Tony Cruz have set their wedding date for February, hoping that more COVID-19 restrictions will have lifted. (The Macleans)
B.C. couples ‘gambling’ on whether COVID rules will let them dance at their wedding

Amy Kobelt and Tony Cruz pushed back their wedding in hopes of being able to celebrate it without the constraints of COVID-19

A plane is silhouetted as it takes off from Vancouver International Airport in Richmond, B.C., May 13, 2019. THE CANADIAN PRESS/Jonathan Hayward
Report calls for airlines to refund passengers for flights halted due to COVID-19

Conclusion: federal help should be on the condition airlines immediately refund Canadian travellers

Most Read