Our government will be there to support Canadians and businesses until the end of the pandemic; we are ready to quickly deploy vaccines and to support and enable provinces to offer the necessary health services; and our green economic recovery plan will be deployed in a fiscally responsible manner. This is how Minister Bibeau summarizes the economic statement presented on Monday in Ottawa.
Marie-Claude Bibeau Swearing in ceremony/ Cérémonie d'assermentation
Ottawa, ONTARIO, on 2019-11-26.
© HOC-CDC
Credit: Mathieu Girard Photographe, House of Commons Photo Services
Supporting Canadians During the Pandemic
To help Canadians cope with the second wave of the virus, assistance benefits for the self-employed, family caregivers, and people ill or in isolation due to COVID-19 will be extended until fall 2021. Since last September, all unemployed people eligible for Employment Insurance are again served by the regular program, rather than emergency benefits. Based on their income, families eligible for the Canada Child Benefit will receive additional assistance of up to $1,200 per child aged 6 and under. In order to create professional opportunities for young people, significant investments will be made in various employment, internship and training programs.
Supporting Businesses Towards Recovery
To help businesses and organizations affected by COVID-19 keep their workers employed, the federal government is extending two major grants until Spring 2021. For businesses and organizations that have had to reduce their activities due to COVID-19, the Canada Emergency Rent Subsidy can cover up to 90% of eligible fixed expenses, and the Canada Emergency Wage Subsidy can reimburse up to 75% of salaries.
The Emergency Account for Businesses is also being enhanced. Eligible businesses can obtain an interest-free loan of $60,000, of which $20,000 is forgivable under certain conditions. For the agriculture sector alone, this can represent over $1.7 billion in direct payments.
The federal government is also establishing a Credit Program for hardest hit sectors such as tourism, hospitality, the arts and entertainment. Therefore, Ottawa guarantees low-interest, 10-year loans to these businesses if they have a business plan that demonstrates their long-term viability. A new investment of $181.5 million through Canadian Heritage and the Canada Council for the Arts will help artists and artisans.
More good news for local businesses on tax fairness, the federal government will increase its revenues from web giants and online business platforms by also including them in the GST.
A vaccine for all Canadians
The federal government has already invested more than $1 billion in research and development of COVID-19 vaccines. To date, 429 million doses of seven promising vaccines have been secured. This portfolio—the most diverse in the world—will ensure effective, safe and free vaccination for all Canadians.
To help provinces better protect seniors and other residents of long-term care facilities, the Government of Canada is committing up to $1 billion towards the creation of prevention and control fund infections. This investment comes in addition to more than $24 billion transferred by the federal government to provinces since the start of the pandemic. Overall, for every $10 spent by governments across the country to deal with COVID-19, the federal government has invested more than $8.
Building back better
The government's priority remains to protect Canadians. A more detailed green stimulus plan will also be presented next Spring. The Fall Economic Statement made it clear: "Investing in nature and its protection is among the most effective climate actions a government can take.” With this on his mind, the Government of Canada will invest:
The Statement also provides $631 million to restore ecosystems, protect wildlife and improve resource management, and a new $100 million fund will finance natural climate solutions in the agriculture sector.
A prudent plan for a sustainable recovery
These salutary yet temporary measures are essential to bring the economy back to its pre-pandemic level. While Canada has already recovered four in five lost jobs, compared to one in two in the United States, there is still a million to be created. “Our government favours the public spending over personal debt. Despite—or rather because of—major investments in emergency programs and an ambitious but responsible green stimulus plan, Canada remains the country with the lowest debt ratio of the G7 countries. This is not a time for austerity. We must invest in the future of our young people, our businesses and our environment in order to foster a rapid and sustainable economic recovery,” stated the MP for Compton-Stanstead, Marie-Claude Bibeau.
