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 river behind the ball field. (Tyson Whitney - North Island Gazette)
Pulled by the flow: river stirs up childhood memories

Gazette editor makes trek through Port Hardy wilderness to swim in the river

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

Black Press file photo
RCMP seek suspect in Vancouver Island-wide crime spree

Crimes stretched from Deep Bay to Qualicum, Ladysmith, Chemainus and Youbou

Alert Bay council has decided to cancel Canada Day celebrations. (Alertbay.ca photo)
Alert Bay council cancels Canada Day celebrations

The decision was made in wake of the mass graves being found at former residential schools

Things are looking up for Vancouver Island as zero COVID-19 cases have been reported for the first time since October. THE CANADIAN PRESS/Darryl Dyck
Island records zero new COVID-19 cases for the first time since October

For the first time since October, the province is reporting zero new… Continue reading

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

One Reconciliation Pole and two Welcome Figures were unveiled during a ceremony in honour of truth and reconciliation on National Peoples Indigenous Day at the Vancouver School District in Vancouver, B.C., on Friday, June 21, 2019. THE CANADIAN PRESS/Chad Hipolito
Horgan marks Indigenous Peoples Day by urging recognition of systemic racism

National Indigenous Peoples Day has been marked in Canada since 1996

A man makes his way past signage to a mass COVID-19 vaccination centre at the University of Toronto’s Mississauga campus during the COVID-19 pandemic in Mississauga, Ont., on Monday, May 17, 2021. THE CANADIAN PRESS/Nathan Denette
Canadians encouraged to see mRNA shots as interchangeable as more 2nd doses open up

Doctos urge people not to hesitate if offered Moderna after getting Pfizer for their first shot

Chief of Defence Staff Jonathan Vance sits in the front row during a news conference in Ottawa on June 26, 2020. THE CANADIAN PRESS/Adrian Wyld
Defence committee rises without report on Vance allegations

Committee had been investigating the government’s handling of complaints against former defence chief

The Coquihalla Lakes washroom is getting upgrades. (Submitted)
Coquihalla to get upgrades to aging washrooms

The Ministry of Transportation is providing $1 million in funding to upgrade 3 rest areas

The Crofton trailer park home where the bodies of two people were found. (Photo by Don Bodger)
Mom still waiting for answers after daughter and her fiance found dead in Crofton

Pair discovered dead in their Crofton home in May identified as Rachel Gardner and Paul Jenkins

The Sacred Hearts church on PIB land burned Monday morning. (Theresa May Jack/Facebook)
Two churches on First Nation land in South Okanagan burn to the ground

Sacred Hearts church on Penticton Indian Band land was reduced to rubble

Tl’etinqox-lead ceremony at the site of the former St. Joseph’s Mission in Williams Lake, B.C., June 18, 2021. (Angie Mindus photo - Williams Lake Tribune)
‘We are all one people’: Honouring residential school victims and survivors

Love, support and curiousity: Canadians urged to learn about residential schools and their impact

Indigenous rights and climate activists gathered outside Liberty Mutual’s office in Vancouver to pressure the insurance giant to stop covering Trans Mountain. (Photo by Andrew Larigakis)
Activists work to ensure Trans Mountain won’t get insurance

Global campaign urging insurance providers to stay away from Canadian pipeline project

Most Read