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

[Karen Vecchio, Conservative, Elgin—Middlesex—London, ON]

Madam Chair, my lane is with Canadian businesses and I hope that the government will also do so. It is not about WE Charity. It is not about people like Mr. Silver and all of those things. It is about Canadian businesses and people losing their jobs across Canada. It is not about the friends and relatives of the Prime Minister. It is not about the friends of the Liberal government.

This said, I would like to know what I should tell the residents in Elgin—Middlesex—London, who know nobody because they are just average Canadians, who are losing their businesses today? What do I tell them when the government is saying we are here already? This program was already gone a month ago, so Liberals are late to the ball game. I am wondering what we tell businesses that are going out of business because the government has not been there.

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

Madam Chair, I would tell them that it is not about what interest rates were in the 1990s, which seems to be the obsession of the member's caucus colleague. I would urge the members on the Conservative benches to really reflect on what they care about. Is it supporting Canadian businesses or is it debt?

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Chair, the wage subsidy bill this past spring did not list political parties.

A number of parties, including the Liberal Party, chose to give it a shot, and the Canada Revenue Agency chose to pay. However, the wage subsidy is meant to help businesses offset the loss in revenue as a result of the crisis. It is not meant to line the pockets of a political party that has raised nearly $9 million so far this year.

Does the government think that the taxes and collective debt of Quebeckers and Canadians should be funding millionaire political parties like the Liberal Party?

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

Madam Chair, I thank the member for his question.

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

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

[The Deputy Chair, NDP, Carol Hughes]

Order. The hon. member for Joliette.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Chair, sometimes it is easier to not answer the question.

We proposed an amendment to the bill to exclude political parties from applying for the subsidy. Does the government support this principle?

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

Madam Chair, as I said, this program was created to help a large number of businesses and organizations across the country.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Chair, will the government support our amendment?

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

Madam Chair, as I said, the purpose of the program is to help many businesses.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Chair, will the Liberal Party commit to paying back all the money it received through the wage subsidy?

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

Madam Chair, I might add that the Liberal Party stopped accepting the wage subsidy at the end of August.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Chair, that is a step in the right direction. We will see what happens next.

Does the government think it displayed exemplary behaviour and the highest ethical standards by taking more than $1.2 million from the wage subsidy from March to August, when it has raised nearly $9 million in political contributions so far this year?

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

Madam Chair, I thank the member once again for the question.

I know the member is very familiar with the wage subsidy program. As I have already explained, this program was created to help many businesses and organizations in Canada.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Chair, the original bill did not list political parties.

When there were discussions with the former finance minister and his staff, and when we met in committee of the whole in this place, there was never any question of political parties being eligible. In my view, that does not reflect the spirit of the bill.

Yes, community-based organizations should be eligible. However, is the Liberal Party, which has raised $9 million so far this year—and the year is not even over—a community organization, or is it a political party, a money-making machine, a machine that awards contracts to its friends? That is what we have seen in recent months.

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

Madam Chair, I thank the member for his question.

I know that the member is very familiar with the wage subsidy and that he knows that this program was created for all of Canada, for all businesses, big or small, and for not-for-profit organizations. That was the purpose of the program, that is what the program did and that is what it will continue to do.