Bill C-2

An Act to provide further support in response to COVID-19

Part 1 amends the Income Tax Act and the Income Tax Regulations to extend subsidies under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Rent Subsidy (CERS), and the Canada Recovery Hiring Program until May 7, 2022, as part of the response to the COVID-19 pandemic. Support under the CEWS and the CERS would be available to the tourism and hospitality sector and to the hardest-hit organizations that face significant revenue declines. Eligible entities under these rules would need to demonstrate a revenue decline over the course of 12 months of the pandemic, as well as a current-month revenue decline. In addition, organizations subject to a qualifying public health restriction would be eligible for support, if they have one or more locations subject to a public health restriction lasting for at least seven days that requires them to cease some or all of their activities. Part 1 also allows the government to extend the subsidies by regulation but no later than July 2, 2022.
Part 2 enacts the Canada Worker Lockdown Benefit Act to authorize the payment of the Canada worker lockdown benefit in regions where a lockdown is imposed for reasons related to COVID-19. It also makes consequential amendments to the Income Tax Act and the Income Tax Regulations .
Part 3 amends the Canada Recovery Benefits Act to, among other things,
(a) extend the period within which a person may be eligible for a Canada recovery sickness benefit or a Canada recovery caregiving benefit;
(b) increase the maximum number of weeks in respect of which a Canada recovery sickness benefit is payable to a person from four to six; and
(c) increase the maximum number of weeks in respect of which a Canada recovery caregiving benefit is payable to a person from 42 to 44.
It also makes a related amendment to the Canada Recovery Benefits Regulations .
Part 3.1 provides for the completion of a performance audit and tabling of a report by the Auditor General of Canada in respect of certain benefits.
Part 4 amends the Canada Labour Code to, among other things, create a regime that provides for a leave of absence related to COVID-19 under which an employee may take
(a) up to six weeks if they are unable to work because, among other things, they have contracted COVID-19, have underlying conditions that in the opinion of certain persons or entities would make them more susceptible to COVID-19 or have isolated themselves on the advice of certain persons or entities for reasons related to COVID-19; and
(b) up to 44 weeks if they are unable to work because, for certain reasons related to COVID-19, they must care for a child who is under the age of 12 or a family member who requires supervised care.
It also makes a related amendment to the Budget Implementation Act, 2021, No. 1 .

An Act to Provide Further Support in Response to COVID-19

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, I too represent a lot of small businesses within my region, and I think specifically of the Campbell River Association of Tour Operators, which has been very innovative and is working hard to clean the ocean and beaches during this stressful time because of the lack of tourism. We know that the labour force has been a growing concern as we see people age and, of course, COVID has pushed a lot of things further along.

I wonder if the member is interested in seeing more investment in training so that the people who are without a job will have the training to meet the needs of the jobs that are available. Also, I wonder if the member could share her thoughts on immigration and the vast challenges we are seeing across this country in terms of getting the people we need for our labour workforce here in Canada.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, first of all, I would like to thank the member and the people in her community who are out there cleaning up their communities. It is something that I am quite passionate about. Quite often I can be found picking up garbage in my community.

Because I have limited time, I will touch quickly on the immigration question.

We know there are huge processing delays right now. As one very specific example, a major tourism organization in my community and I wrote the minister to extend some specific visas. There are individuals here from other countries right now whose visas have expired and they are unable to work.

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

Madam Speaker, it is an honour to stand up in the House of Commons and speak about any issue. Of course, this particular bill, Bill C-2, is an important one that requires a lot more study.

Targeted support sounds really good, especially for the tourism and hospitality sectors, which are some of the hardest-hit sectors in our economy. Of course, I am the member of Parliament for Parry Sound—Muskoka, and many will know that tourism is a pretty significant part of our economy. Like every other member in this House, I do not just come here and hope people hear what they need to hear. I speak to folks in my community to find out what is going on.

When it came to Bill C-2, I felt it was important to find out what those sectors are saying. What is being said in the tourism and hospitality sectors and the hardest-hit sectors? Restaurants Canada is reporting that they are desperate to find people to work. Job vacancies in Canada have surpassed one million now. Employers in high-contact industries, such as restaurants and hotels, have the highest proportion of unfilled positions, at about 14.4%. They are looking for people. They are busy. They have the business, but they cannot get people to work. It begs a question: What is really going on? When I read this I thought that I needed to speak with some folks locally in my area.

There are countless local stories in Parry Sound—Muskoka of small businesses, restaurants and hotels that are open and busy with lots of business. They could be open seven days a week, but they cannot find the staff to do it.

Jamie Blake of Blakes Memories of Muskoka in Seguin township pays well over minimum wage. They are trying to hire a manager right now. It is a really good position that pays well. They just cannot find anybody, so they have to close two days a week. They can only be open five days a week and are missing out on a lot of business.

I spoke with Jeff Watson, who owns a couple of Tim Hortons in Gravenhurst. His stores went from being 24-hour operations to having reduced hours. They have hired an agency to help them find employees but have yet to receive a single application. They cannot get anywhere.

I spoke with Didier Dolivet. He is the general manager of Red Leaves Resort, a very nice resort in Minett and one of the fanciest ones in Muskoka. He said that business is great, domestic travel has gone up and Ontarians have discovered Ontario. It is great. They are travelling locally, and there is lots of business. The problem, of course, is that they cannot get staff.

Traditionally in motels, hotels and resorts, it has been a challenge really for years to find staff to work in the housekeeping department specifically, but Didier reports that housekeeping is just the start of it now. They cannot find people in every single sector of their business. As a result of the lack of staff to fill positions, such as chefs, and leadership and management positions, they are unable to maximize their occupancy because of the shortage of labour. Their inability to fully staff their resort means service levels have declined, and as a result of that, visitor satisfaction is declining. It is actually almost worse for their business right now, so they are really struggling.

The message is clear: Businesses need people to work. Should we be incentivizing people to stay home right now?

It is not just the tourism sector that has this issue. Greg Lubbelinkhof of Cedarland Homes in Parry Sound is trying to build homes to help solve the housing crisis that exists there. Despite offering full training, exceptional wages and great benefits, they cannot find people to do the skilled trades. They are putting work off up to two years. They are turning work down because they just cannot find the people to do the work.

The BDC has reported that 40% of small and medium-sized business are struggling to find employees. Statistics Canada has indicated that job vacancies have increased in every single province. It is certainly worse in British Columbia, Atlantic Canada and Ontario, but every single province is struggling to find people.

How did we get here? I have done a little reading, and I came across a special report on the high cost of living by Philip Cross. He is with the Macdonald-Laurier Institute now. He is an impressive man. If he is listening, I would like to meet him sometime and chat with him because I think I could learn a lot from him.

Philip Cross is a Munk Senior Fellow at the Macdonald-Laurier Institute. Prior to joining it, he spent 36 years at Statistics Canada specializing in macroeconomics. He was appointed the chief economic analyst in 2008 and was responsible for ensuring the quality and coherency of all major economic statistics. He also wrote the “Current economic conditions” section of the Canadian Economic Observer. This guy knows what he is talking about. He is a pretty impressive guy.

What he has illustrated is that overspending by a government during the pandemic actually created significant distortions in the economy, which drove up personal savings, particularly of the wealthier in our society, and made significant distortions in labour market choices. The programs simply were not targeted enough. He writes:

Average net savings for households in the top income quintile nearly doubled, from $12,000 to $21,322, in the second quarter of 2020. Meanwhile, average household savings in the bottom two quintiles rose by $2,000 each. Swollen household incomes and savings had repercussions for housing, labour markets and inflation.

The government's most striking distortion during the pandemic was to provide so much emergency income support that personal disposable incomes actually rose in a recession. Earned income fell sharply, but massive government support more than made up for the difference. The increases in incomes and savings show that much government aid was not needed, especially during the slow shift from the economy-wide stimulus to targeting specific sectors.

People had too much money. People were not working, and they had lots of money. We have heard my colleague say that too much money chasing too few goods means inflation, so now everything is more expensive. Families in Parry Sound—Muskoka are telling me that it is more expensive for them to drive to work, it is more expensive for them to put groceries on the table for their families, it is more expensive for them to heat their homes and many of them simply cannot find a home at all. We need our committees digging deeper into this.

I give the government at lot of credit. It came to the rescue very quickly and reacted to this pandemic, the uncertainty in our economy and in our world. It reacted very quickly, but it was sloppily done, and government members were almost hostile when Conservatives and other members of the opposition made suggestions to improve things and to make things more targeted. As a result, we are in a situation now in which it has overstimulated the economy. The rich have gotten richer, and the poor are getting poorer, and we are making life more difficult.

Targeted supports are important. I am not sure I trust the government to actually target them properly, which is why it is absolutely crucial for the House to get back to work and for committees to get to work and dig deeper into this to make sure we are analyzing these targeted supports. We need to make sure that money is not being wasted and that we are not overstimulating the economy unnecessarily in specific areas.

We have a lot of work to do. I am eager to get going on that work, and Canadians deserve a real plan to make their lives more affordable. Canadians need a real plan to dramatically increase the housing supply all across this country. Canadians need a real plan to responsibly reduce the government's inflation-causing spending. Canadian businesses need people to work and they need us to get to work, so let us get to work at committees.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, my colleague across the way referenced the fact that some of the programs that were implemented were done sloppily, but I also noticed that he talked about the fact that the government was not willing to listen to the opposition and was hostile. However, if we look back, it was actually Conservative and NDP members, if I remember correctly, who originally really pushed the government to increase the amount of the wage subsidy. That program, I would argue, was probably better because of the deliberative process in the House and the fact that the opposition was part of that. I would suggest that, on the contrary, there actually was quite a bit of collaboration.

In retrospect, is the member now saying that perhaps we gave too much through the wage subsidy? Should we have given less so that it did not create the problems that it did?

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

Madam Speaker, I would not suggest the wage subsidy amount was too high. It was probably just right. I am grateful the member cites at least one example when the Liberals actually did listen, which was a rare thing to see in those day.

It was finally an accurate amount, after they listened to us, but it was spread far too wide. That is what we are hearing from the experts, and this is not just me and my partisan interests. Actual experts, who are economists and know what they are talking about, are saying it was spread too far and wide.

[Luc Thériault, Bloc, Montcalm, QC]

Madam Speaker, since I have only 30 seconds, I would like to take this opportunity to thank the people of Montcalm for trusting me to represent them in the House for the third time. I can assure them I will do my utmost to be worthy of their trust.

Self-employed workers in the cultural sector are artisans fashioning the future of our nation. Every member of every party in the House voted in favour of the Bloc Québécois's motion to recognize the Quebec nation.

Can my Conservative colleague explain why Bill C‑2 overlooks self-employed arts and culture workers?

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

Madam Speaker, the simple answer is that I cannot explain it. The government has put together a package that seems to have completely ignored that sector. This is all the more reason for committees to get to work, so important points like this can be made, and we can make sure the truly hardest hit sectors are supported and helped. Certainly, the cultural sector is among the hardest hit sectors in this country.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Speaker, one thing I have heard loud and clear, and it is something I have definitely heard across my riding, is that a lot of small businesses are really struggling to find people to hire. Part of the challenge is that there are not any resources to help with bridging programs, which would provide training and orientation for people who do not have the skill sets those businesses desperately require.

I am wondering if this member would support any sort of movement towards having more resources for training to support people who do not have the skills required to meet the needs of the labour force in our areas.

[Scott Aitchison, Conservative, Parry Sound—Muskoka, ON]

Madam Speaker, quite simply, yes I would. Training is crucially important in our economy, and we need to be doing more of it.

There is also the issue of immigration and making sure new Canadians have access to the jobs they are fully trained to do. I will make note of the work being done in the province of Ontario right now with the minister of labour there. They are making great strides, and that is an example for the federal government to follow as well.

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, before I begin my speech, I would like to let members know that I will be sharing my time with the member for Mississauga—Erin Mills.

It gives me great pleasure to speak in the House again today and thank the people of Sackville—Preston—Chezzetcook for re-electing me for a third mandate. My objective is to continue working and advocating on behalf of all citizens in the riding of Sackville—Preston—Chezzetcook, all of Nova Scotia, and of course all of Canada.

I have to say that on March 13, 2020, I remember leaving the House of Commons, taking a plane back home to Nova Scotia, and thinking Parliament would be shut down for two weeks. That two-week period was extended, as we all know, a lot further than that. Those two weeks were the beginning of a crisis as big as the Great Depression. We had challenges. It started off slowly, but we quickly realized that we were in a very difficult situation and it would take a government that would work with all members of Parliament to make sure we were there to protect all Canadians.

We were faced with three to four million people losing their jobs overnight, things being shut down, the business community being shut down and people being scared. We went through all those stages, but I have to tell members that I was proud to be a member of Parliament during those difficult times. The reason I was proud is that every night for 67 nights in a row, I and many other Liberal MPs, along with cabinet ministers and our Prime Minister, talked about what types of programs were needed. We worked with the public service, took suggestions from the opposition and started building programs that would help all Canadians.

The reason I was proud to do that daily is that I was hearing the fears and the problematic situations that Canadians faced, but every night we talked about how we would help them. I was getting 100 to 150 emails and calls per day from concerned individuals. Some had lost their jobs, some had lost their businesses and some were worried about day care centres being closed. Those were very difficult times.

However, when we are elected and representing people, we are able to contribute to help create programs. I got information from constituents saying that the help was not working for them, was not reaching as far as they needed, or was not helping their business. We then tweaked and improved as we went along. That is true representation of the people: listening to the challenges, finding solutions with them and then helping them through that process. That is why I am so happy to speak to Bill C-2. This is the next step in the transition toward a strong recovery.

I have to say how very hard it was for Canadians who lost family members. To date, some 30,000 Canadians have lost their lives to COVID-19. It was hard for families. It was hard for seniors in long-term care homes. It was very hard for teenagers, who, as we know, really like socializing. It was hard for parents when schools closed during the crisis. It was hard for teachers, who had to change how they taught and significantly augment their ability to deliver instruction in virtual schools, which have been going on for quite some time now.

As I was saying, we lost one million jobs during the pandemic. However, if we look at where things stand today, we have recovered those million jobs. What is more, roughly one million more jobs are available now. This is a testament to the good work our government is doing and to all the MPs who contribute to ensuring a good economic recovery, prosperity and everything that goes along with it.

In Bill C‑2 we see targeted investments for businesses, individuals, and organizations that faced extra challenges or are still going through an especially tough time.

I am talking about the tourism and hospitality sectors. My son owns a restaurant and it has been very tough for him. We know there are restaurants that closed, then reopened with limits on the number of customers, that are still around. As my colleagues know, hotel operators are also having a tough time. Last week Monday and Tuesday, the Delta hotel had only 6% occupancy. Imagine how tough it must be for these businesses.

We have also seen organizations suffer in the arts, culture and leisure sectors, as well as travel agencies, mostly for the lack of clients due to lockdowns. That is why we are investing more in these sectors.

We are also investing in companies that have not been able to reopen for all sorts of reasons. These companies have specific needs. There are other organizations that may need other investments in the event of further restrictions. We will support those organizations and we will invest in businesses that continue to rehire their staff.

There are many investments in Bill C-2 that need to be delivered as quickly as possible, and our government is moving forward on those. I want to focus on the support for workers, because there could be, even tomorrow or next week, closures in certain regions that would see individuals losing their jobs again. They may have COVID and need to stay home, or maybe their children's school will close and they will have to stay home to support their children. There are many challenges of that nature. We need to continue to support those individuals. We will have some investments to support those families and those individuals.

In closing, I want to thank the public service, the people who worked with the government to get these programs established very quickly. It was very important. I want to thank the Speaker of the House. Throughout COVID, we were able to vote online, through our phones, to allow us to continue to do the work that is so crucial.

At the end of the day, the day care investment that our government is moving forward with is essential. As I shared earlier in my speech, one million jobs are available today, and we will be able to get more Canadians working because of the day care centres we will be investing in as we move forward.

[Damien Kurek, Conservative, Battle River—Crowfoot, AB]

Madam Speaker, it is an honour to stand in Canada's Parliament once again to represent the good people of Battle River—Crowfoot.

I will make this question short. The member talked about the urgency to ensure that we as parliamentarians can get to work for Canadians. Would he therefore support the immediate reinstatement of committees, so that this House can actually get to work doing things like studying Bill C-2 and the many issues that were cancelled because of the Liberal Prime Minister's unnecessary election? Would he support the immediate reinstatement of parliamentary committees, so that we can in fact get to work?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, I thank the member for his question and welcome him back to the House. As he knows, we have started with strong legislation here in Bill C-2. We want to deliver supports to Canadians, those who were hit with even more difficulties throughout the pandemic. We need to get supports to them as soon as possible. This bill will allow us to do that and we are going to move on it as quickly as possible.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Madam Speaker, Bill C-2 does contain some good measures, particularly the support that is finally being provided to carriers that offer charter bus services. Carriers in my riding have been calling for that support from the beginning. A bus costs $700,000, and then they need maintenance, which is also expensive. When they cannot be used, it becomes even more expensive.

The government has finally thought of charter operators, but it is still overlooking self-employed workers in the cultural sector, the boom operators and sound engineers and so on, who are already living in precarious situations, which have only gotten worse with the pandemic.

Will my colleague and his party commit to including self-employed cultural sector workers in Bill C-2?

[Darrell Samson, Liberal, Sackville—Preston—Chezzetcook, NS]

Madam Speaker, I thank my colleague for her important question.

We have included additional supports for self-employed workers, on top of past investments. It was difficult at the outset to address all the issues involved in this particular situation. We now want to invest in art and culture, and we will certainly take care of self-employed workers to be there for them. The purpose of Bill C-2 is to ensure that everyone can get through the pandemic and recover.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Madam Speaker, I would like to welcome my colleague back to the House. He is a fellow alumni of the class of 2015. In his speech he made mention of targeted assistance. We know that many poor seniors, such as those on the GIS, need supplemental income in order to pay the bills each month. They, like many Canadians, also lost jobs when the pandemic hit our country.

Now those seniors are in a situation where the Canada recovery benefit income is being clawed back from their GIS, meaning many of them cannot afford to make rent payments or put good quality food on the table. I have a simple question. Why, when we have this golden opportunity with Bill C-2, did the government not make any mention of targeted assistance to help the most vulnerable Canadians in this country? Will the Liberal government quickly fix this? It is an urgent problem in my riding and right across the country.