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Government to spend $7.4B transitioning to new pandemic support programs: Freeland

Government to spend $7.4B transitioning to new pandemic support programs: Freeland

CBC
Thursday, October 21, 2021 6:03 PM GMT

The Liberal government says several existing pandemic support programs for individuals and businesses will end this weekend, while billions of dollars will be spent transitioning to new "targeted measures" leading into the spring.

Deputy Prime Minister and Finance Minister Chrystia Freeland said in Ottawa today that Canada is in a "new phase" following the darkest days of the pandemic and has recovered 100 per cent of the jobs lost to the crisis.

Freeland said that with high vaccination rates and the economy rebounding, the new measures — which come with an estimated price tag of $7.4 billion between Oct. 24 to May 7, 2022 — should mean the "final pivot in delivering the support needed to deliver a robust recovery."

Five key support programs were set to expire on Oct. 23.

Two that provide help to businesses — the Canada Emergency Rent Subsidy and the Canada Emergency Wage Subsidy — will come to an end as scheduled.

Freeland said the government will extend to May 7 the Canada Recovery Hiring Program — a subsidy that covers up to 50 per cent of the extra salary costs of eligible businesses and was set to expire on Nov. 20.

Pointing to an "uneven recovery" that has seen the economic activity of some sectors restricted by "health measures that are saving lives," Freeland said Liberals will bring in new targeted programs that will run until May.

The first would provide the hard-hit tourism and hospitality industry with wage and rent subsidies until May — something Liberals promised on the campaign trail this summer. The Tourism and Hospitality Recovery Program will provide support to hotels, restaurants, travel agencies and tour operators at a subsidy rate of up to 75 per cent.

There will also be another measure — the Hardest-Hit Business Recovery Program — to provide wage and rent subsidies of up to 50 per cent to businesses that can show "deep and enduring losses," Freeland said.

Applicants for the tourism and hospitality program must show average monthly revenue losses of 40 per cent over the course of 12 months of the pandemic and a loss of 40 per cent in the current month.

Those applying for the "hardest-hit" program must demonstrate an average monthly revenue loss of 50 per cent and a loss of 50 per cent in the current month.

Businesses that face temporary new local lockdowns will also be eligible for "up to the maximum amount of the wage and rent subsidy programs" regardless of losses over the course of the pandemic, says the Department of Finance.

Of the three other existing programs that support individuals, one — the Canada Recovery Benefit —  will expire on Oct. 23.

The CRB largely replaced the Canada Emergency Response Benefit last year and provides income support for those not covered by employment insurance.

Read full story on CBC
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