(Ottawa) Justin Trudeau’s government on Wednesday presented its most recent plan to support an economy that is slowly recovering from the pandemic. It offers more targeted assistance to severely affected businesses and workers in lockdown, as well as additional weeks of emergency benefits that expired just days ago.
The bill introduced in the Commons on Wednesday is one of four bills the Liberal government is keen to push through before the House adjourns for the holidays, scheduled for December 17.
The Liberals are proposing to pay $ 300 a week, until May 7, 2022, to workers laid off due to a government-imposed public health lockdown order.
This new Canada Workers Lockdown Benefit would be retroactive to October 24, when the Liberals allowed a pandemic benefit for the unemployed, the Canada Economic Stimulus Benefit, to expire (PCRE, the former PCU). ).
This benefit would be available to both workers who are not eligible for EI and workers who are eligible, provided they do not receive any EI benefits during the same period.
Patients and caregivers
PCRE’s other two sister benefits, the Canada Economic Stimulus Benefit for Caregivers and the Canada Sickness Benefit for Economic Stimulus, would both be reinstated until May 7, after expiring last weekend. with two additional weeks of eligibility.
During the same period, wage and rent subsidies for businesses would be more generous, but more targeted, in the still struggling tourism, culture and hospitality sectors, as well as a long list. businesses like cinemas, arcades, casinos and gymnasiums. Businesses would have to prove a major and prolonged loss of revenue to be eligible for federal support.
Dan Kelly, president of the Canadian Federation of Independent Business, praised the long list of eligible businesses, but worries that too high a threshold for lost revenue leaves too many small businesses out.
Likewise, Restaurants Canada has called on the government to reduce the revenue loss requirement, over concerns that many financially viable activities will not survive the pandemic.
“We have been asking for sectoral support for months and we only got a small part of what we asked for,” said Olivier Bourbeau, vice-president of federal and Quebec affairs for the association.
Hiring credit
The government also wants to extend until May a hiring credit for companies that increase their payroll by raising wages, re-hiring laid-off workers or recruiting new employees. The credit does not require such a large loss of income to qualify.
The Liberals argue that the economy is no longer in crisis as it was at the start of the pandemic, when three million jobs were lost, in March and April 2020. Employment has since rebounded to pre-pandemic levels, although the ranks of the unemployed in Canada, including those who have been unemployed for six months or more, remain higher than before COVID-19.
A mix of high unemployment and labor shortages helps explain why the federal government wants to target its aid, in the hope that it will boost hiring.
Analysis of survey data by job site Indeed found that more respondents were actively looking for work in the past month compared to July, August and September, and most qualified their search as a ” Urgent ‘.
Indeed, senior economist Brendon Bernard wrote that “urgent job searches” are generally linked to financial hardship, suggesting the results may be an early warning of stress for households.
Support from the Conservatives and the Bloc?
The Liberals estimate that this new pandemic support plan would cost 7.4 billion and the government must obtain parliamentary approval for this budgetary expenditure.
The Conservatives and the Bloc have suggested that they could support the bill – the former because benefits will go where they are needed most, the latter because this plan could support workers in the cultural sector, hard hit by the pandemic.
The NDP leader said on Tuesday his party could not support a bill that would reduce support for workers. Jagmeet Singh wanted the government to reverse cuts in income-tested benefits for seniors and low-income families who received benefits last year. This assistance increased their income, but lowered their old age and family allowances.
NDP finance critic Daniel Blaikie wrote to the Speaker on Wednesday asking him to allow an emergency debate on the issue in order to pressure the government for a plan to help “Those financially vulnerable Canadians before they lose their homes”.
During Question Period, Prime Minister Trudeau said ministers were looking into the issue.