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

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Chair, the minister earlier cited that she wanted to be forward thinking. Does she agree and believe that these small businesses that did not get any rent help for six months are coming forward with them?

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

Mr. Chair, let me point out the help that will be available if we can pass this legislation.

Starting from September 27, up to 65% of wages would be paid, up to 65% of the rent would be paid, and if one is subject to a local lockdown restriction, 90% of the rent would be paid. That is real support and our—

[The Chair, Conservative, Bruce Stanton]

The hon. member.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Chair, I ask for just a yes or a no. Does the minister understand or agree that the money, the debt, comes forward?

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

Mr. Chair, we have been clear that the program goes from September 27 forward.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Chair, does she believe it is an injustice for those who did not qualify because their landlords would not apply?

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

Mr. Chair, I think it is entirely appropriate for us to listen to the businesses in our ridings. I also think it is appropriate for the government to focus on businesses in the future, viability in the future.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Chair, can she tell us how much money the mortgage company MCAP got paid to administer the CECRA program?

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

Mr. Chair, my focus as finance minister is putting this new rent support program in place, where the support will go directly to tenants.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Chair, has the minister costed out what it would cost to help the two-thirds of businesses that did not qualify for the government's flawed program?

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

Mr. Chair, the key issue here is a question of focus. My focus is on tomorrow, not on yesterday. My focus is on helping businesses get through the second wave.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Chair, does the minister feel that small businesses have to focus on the six months where they got no help, yes or no?

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

Mr. Chair, businesses have had help since the beginning of the pandemic. They have had loans, including a significant forgivable portion through CEBA. They have had access to the wage subsidy. Going forward, they will have an additional expansion of CEBA.

[Gord Johns, NDP, Courtenay—Alberni, BC]

Mr. Chair, many mom-and-pop businesses actually did not get any help with the wage subsidy and they were counting on commercial rent. Does the minister believe that it was an injustice that they did not get any help?

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

Mr. Chair, that is one of the reasons we put CEBA in place, so that the smallest businesses in our country can get support. That is why we are adding another $20,000, including $10,000 forgivable. It is also—