Bill C-9 (Historical)

An Act to amend the Income Tax Act (Canada Emergency Rent Subsidy and Canada Emergency Wage Subsidy)

This enactment amends the Income Tax Act to revise the eligibility criteria, as well as the level of subsidization, under the Canada Emergency Wage Subsidy (CEWS) as part of the response to the coronavirus disease 2019. It also extends the CEWS to June 30, 2021. The enactment further amends the Income Tax Act to introduce the Canada Emergency Rent Subsidy (CERS) in order to support those hardest hit by the coronavirus disease 2019. This subsidy provides relief in respect of rent and interest on debt obligations incurred to acquire real property used by businesses, charities and not-for-profit organizations in the course of their businesses or other activities. The rent subsidy is effective as of September 27, 2020.

Income Tax Act

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Chair, if they needed this legislation, why was it not introduced right after the Speech from the Throne and why did the government prorogue for six weeks? Businesses have been sitting with no support and they have been closing their doors. How many businesses had to close their doors in July, August and September, while those guys dithered with their legislation?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, businesses do need this support and that is why we are debating this legislation late into tonight. I would like to remind members, as I know they well know, that the support will be retroactive to September 27, so people will be covered for October. This is support our businesses need and support I hope together we can get for them.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Chair, I have always found that having a few hours and a few panels of expert witnesses actually improves legislation. The minister insists that we have to move fast because Liberals moved so slow. Why are they so reluctant to hear from a few people who really understand what is happening and who might actually improve the legislation, by refusing throughout this pandemic to have a reasonable process for billions in spending?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, I am a little puzzled by the contradictions embedded in that question. On the one hand, the member opposite is quite rightly pointing out that businesses need support now. I could not agree more. On the other hand, the member opposite is asking why we want to pass this legislation with alacrity. The first half of the question answers the second half.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Chair, let me go back.

We had six weeks' prorogation so that the Liberals could plan for COVID and have proper legislation in place. We have come back to this House. We have been in this House for six weeks, and what have we been discussing? We have been discussing legislation about judges. As important as that is, and the other legislation, it is nothing compared to the business owners' needs.

When I talk about a couple of hours to hear from experts, I am talking about three months ago, and they would have improved this minister's programs. Why are the Liberals so reluctant to allow proper process in this House to scrutinize billions and billions in spending?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

As I said, Mr. Chair, we need to decide what matters most. I am firmly convinced, and I actually believe that in their hearts of hearts everyone in this House shares the conviction, that at the end of the day what matters the most is getting support to our business owners now, and getting support to them with alacrity. That is what we are committed to doing. These programs are good programs that would provide essential support as we fight the second wave of COVID. I hope the members opposite will join us in supporting them.

[Monique Pauzé, Bloc, Repentigny, QC]

Mr. Chair, the Canada emergency wage subsidy is still available to political parties under the Bill C-9. The Liberal government puts forward programs, and then the Liberal Party takes advantage of them.

A poll conducted in June found that almost half of the population was against the practice. Even Liberal voters were against it. There is a real uneasiness at seeing all the federal parties, except the Bloc, taking advantage of a measure voted for by elected officials. The wage subsidy is there for the economy and for businesses, not for political parties.

Does the Deputy Prime Minister and Minister of Finance not think that what the Liberals have done is unjustifiable?

[Chrystia Freeland, Liberal, Deputy Prime Minister and Minister of Finance]

Mr. Chair, I thank my colleague for her question.

The Canada emergency wage subsidy is designed to help employers protect the jobs that Canadians depend on and to rehire employees who have already been laid off. The support applies to employers of all sizes in all sectors, including not-for-profit organizations that have been hard hit by COVID-19.

To date, more than 3.8 million employees across the country are being supported by the wage subsidy. It is a good program.

[Monique Pauzé, Bloc, Repentigny, QC]

Mr. Chair, in the poll, 57% of respondents called for the amounts to be paid back.

Will they pay it back?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, I would once again like to note the importance of the wage subsidy program for the 3.8 million Canadians.

[Monique Pauzé, Bloc, Repentigny, QC]

Mr. Chair, we agree on Bill C-9 because for months, SMEs have needed urgent assistance.

On April 11, the Bloc Québécois started calling for support for fixed costs. Let's talk about the Canada emergency commercial rent assistance program. That program was poorly designed. It was too restrictive and too rigid. For example, chiropractors in Repentigny could not receive that assistance because the property owner did not apply.

Why did the government wait until November to support our businesses and their employees when help was and still is urgently needed?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, I obviously agree that we must now provide assistance directly to the businesses to help with fixed costs and rent. That is why are introducing a bill that does exactly that. I am pleased that the hon. member agrees that this is a good step to take. I hope we can do this quickly.

[Monique Pauzé, Bloc, Repentigny, QC]

Mr. Chair, I thank the minister for her reply.

The government has a record of announcing programs well before they are voted on and implemented. Bill C-9 was introduced one month after it was announced. That said, better late than never.

However, businesses need predictability, and several hard-hit sectors, including the aerospace industry, hotels in urban areas, culture, festivals and even sugar shacks, need targeted programs.

How will the government ensure that no sector falls through the cracks?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Mr. Chair, that is another good and important question.

I will start with the rent subsidy because I want to point out a new component that is really important for Quebec, and that is targeted support for businesses subject to new lockdowns. I am very supportive of the measures that the Province of Quebec has taken to combat the coronavirus, and this additional assistance will help the province make the right decisions. This is an innovative component that I am very pleased with.

[Monique Pauzé, Bloc, Repentigny, QC]

Mr. Chair, my question focused much more on targeted programs.

Because the emergency commercial rent assistance program was ill-conceived, businesses lost a lot of money between March and September. I know that other members have asked the same question, but I will ask it once more to highlight the importance of all the telephone calls we received about this, as well as the importance of small and medium-sized businesses.

Has the government considered making the new measure retroactive to March 2020?