(Ottawa) The Canadian economy is improving and the Trudeau government is adjusting assistance programs for businesses and workers affected by the pandemic in a more targeted manner.
In the case of businesses that are still hard hit by the restraint measures such as the tourism industry and restaurants, the federal government is proposing to extend the wage subsidy program and rent assistance until May 7, 2022. In principle, these programs were to end on Saturday.
The grant to these businesses will be “highly targeted” and will start at 40% for applicants with a 40% loss of income. The subsidy rate will increase based on the loss of income, said Finance Minister Chrystia Freeland.
“We are aware that some companies are unable to resume all of their activities due to the necessary health restrictions that are still in place,” she said.
The minister also announced Ottawa’s intention to extend the hiring program to revive Canada at a rate of 50% of workers’ wages, also until May 7.
At a press conference in Ottawa with Prime Minister Justin Trudeau, Mr.me Freeland also confirmed that the Canada Economic Stimulus Benefit (CEP) will end on October 23. But she intends to create a new targeted program for employees who cannot get to work in certain regions because of containment measures imposed by health authorities.
This emergency containment benefit will allow a worker to get $ 300 per week, or $ 1,200 per month, the same amount offered under the PCRE program.
“We are making some adjustments to the income support programs created in the context of the pandemic to align with the new phase of the recovery. As is the case with business support measures, we are moving from general programs to more targeted support, ”noted Minister Freeland.
This package of measures, which will end next May, will cost the Canadian tax authorities $ 7.4 billion.
“We are now in a new phase which is very different from the darker days of our fight against COVID. We have recovered all the lost jobs. Immunization rates are high and will increase as it becomes possible to immunize more of our children. The borders are reopening and the fourth wave seems to be under control in many parts of the country, ”Mr.me Freeland.