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

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Mr. Speaker, today, we are talking about how to support Canadians through the pandemic. As Remembrance Day approaches it is important to be thinking of our veterans.

I was shocked and outraged this morning to read that Whole Foods, a grocery chain owned by Amazon, was telling its employees they could not wear a poppy. I was particularly outraged by the lame excuse it offered that it was not in keeping with its uniform policy and seen to be supporting a cause. I think today in the House we saw all parties agree unanimously to motions calling Whole Foods onto the carpet for this ridiculous policy, because showing respect for the fallen and remembering the horrors of war is not a particular cause. That all-party support was good to see today on the floor of the House of Commons. I am wondering if my colleague would like to comment on that.

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

Mr. Speaker, I want to thank my colleague for that important question, which is relevant to today's debate.

The whole reason we have democratic institutions, this opportunity to talk about helping Canadians and the freedoms we enjoy is because of the sacrifices made by Canada's military and RCMP veterans and their families. For Jeff Bezos, the owner of Amazon and Whole Foods, to direct his employees and prohibit them from honouring our veterans, which is sacred to Canadians and important to our value system, is absolutely appalling and shameful.

I hope the Minister of Veterans Affairs or the Minister of Industry calls Jeff Bezos and asks him to apologize to his employees, all Canadians and especially to all military and RCMP veterans and their families, because that is what he needs to do immediately. No one should be prohibited from standing up and honouring the very people who have put their lives on the line and made sacrifices for our democracy and freedoms.

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Mr. Speaker, I am joining members virtually from the traditional unceded territory of the Snuneymuxw First Nation.

It is an honour and privilege to speak here today on behalf of the constituents of Nanaimo—Ladysmith.

As we watched the COVID-19 pandemic unfold across this planet, this Parliament came to the realization that we needed to take drastic action in Canada to avoid a severe outbreak here. Our first priority was to protect the lives of Canadians, particularly those among us who are most vulnerable to succumbing to this virus: seniors, people with disabilities and people who are marginalized.

From the start of the pandemic, the Green Party suggested that we look at the measures other countries were taking to limit the spread of the virus. In particular, I highlighted the situation in Taiwan and how it closed its borders and used masks and hand sanitizer to stop the spread of the virus. At the beginning of the outbreak, Taiwan was in the top 10 of countries affected by COVID-19. Those simple technologies, masks and hand sanitizers, were very effective, and now Taiwan is ranked at 178th of the countries affected by COVID.

Unfortunately, we did not have the supplies of personal protective equipment we needed across the country for our health workers, never mind a supply of masks for Canadians. We were told by public health officials that masks were not an effective solution to slowing the pandemic. Thankfully, that advice has since changed.

Instead, the drastic action we took included a complete lockdown of our communities and our economy. We took the precautionary approach as we learned about the COVID-19 virus, and we put human lives ahead of money and our economy. We knew that we needed to limit the spread of the virus through social contacts.

As our economy shut down across Canada, we also knew that we needed to do everything we could to protect the workers who had to stay at home and the businesses that needed to lock their doors. As a Green Party MP, I pledged to my constituents that I would work across party lines to do what is best for my constituents and for Canadians, and as the pandemic unfolded in Canada, the Green Party caucus did exactly that. We stood proudly as members of team Canada and did everything we could to put the interests of Canadians first during the pandemic.

We put forward good ideas, such as the guaranteed livable income, to ensure that no citizen would be left in dire economic circumstances in which they could not pay their rent or mortgage, or could not put food on the table for themselves or their families. This is a program we have championed for over a decade, and we are happy to see other parties and MPs picking up on the idea. Unfortunately, the government has not adopted a guaranteed livable income. Instead, it has created a flawed, patchwork system to help individual Canadians.

My riding of Nanaimo—Ladysmith is like many ridings across Canada. Small and medium-sized enterprises are the engine of our local economy. They employ almost 90% of the private-sector workers. These small and medium-sized businesses needed help to get through the economic crisis that was created by the lockdown. They needed help retaining their workers, paying their rent and covering the hard costs associated with running a business.

The Green Party caucus looked at what other countries were doing to deal with the economic fallout of the pandemic and how they protected their workers and businesses, and we put forward those ideas to the federal government. When the federal government first proposed a 10% wage subsidy, we, along with other MPs, said that was not good enough. We proposed the same 80% wage subsidy that Denmark had established. The government listened and increased the wage subsidy to 75%.

We heard from local businesses, chambers of commerce, business associations and the non-profit sector that businesses were going to need help paying their rent and covering the hard costs associated with running a business. We passed those concerns on to the government, and the government responded with programs such as the Canada emergency business account and the Canada emergency commercial rent assistance program. I commend the government for taking these actions, but just like the initial wage subsidy, there were serious flaws with these programs.

Green Party MPs, along with MPs from all the parties, heard from small and medium-sized businesses, including indigenous-owned businesses, that they were not eligible for the programs for one reason or another. The parameters were too tight and the gaps in the programs too large. There were many businesses in my riding that were not able to take advantage of these programs because they did not fit the criteria. Again, the government listened, and some much-needed changes were made, but there were still problems.

Many small businesses in my riding had serious problems trying to apply for the emergency business account. The big banks kept rejecting their applications based on weird technicalities. They then passed the buck to the CRA, which passed the buck back to the banks, leaving small businesses in a lurch with stressful uncertainties and feeling like ping-pong balls.

The rent subsidy program to help small businesses also had serious flaws because landlords had to apply for their business tenants. This ended up being onerous on landlords, who had to be responsible for the declarations of their tenants. Many small businesses were unable to take advantage of the program because their landlords were not willing to take part.

As a result, many small businesses have not been able to pay their rent, or have incurred serious debt in order to do so. The new rent relief program needs to be retroactive to April 1 to help those businesses that are surviving on a razor's edge.

There are business sectors that have been hit much harder than other sectors, in particular the tourism, hospitality and entertainment sectors. They have very little hope of recovering in the near term. These businesses need sector-specific support.

If we do not support these small businesses, the goods and services they provide will be swallowed up by multinational giants, and we will see the wealth and prosperity sucked out of our communities.

In my constituency of Nanaimo—Ladysmith, many businesses have not been able to make it through the pandemic. They have already closed their doors for good. At the same time, companies like Amazon are making money hand over fist as more Canadians shop online. It is clear that companies like Amazon need to pay their fair share of taxes in Canada and contribute to our government coffers to assist Canadians through this pandemic.

We have also seen how the extremely wealthy in this country have been making huge profits during this pandemic. The richest 20 billionaires in Canada increased their wealth by—

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, point of order. I am having trouble hearing my hon. colleague from Nanaimo—Ladysmith, and I do not want to miss a syllable, as he is so darn good.

[The Acting Speaker, Joël Godin]

I thank the hon. member for her remarks.

I would like to remind all members participating remotely to turn off their microphones so we do not hear all their conversations.

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Mr. Speaker, the richest 20 billionaires in Canada increased their wealth by $37 billion in the first six months of the pandemic alone.

These billionaires clearly need to be paying their fair share of taxes. Their companies utilize the public infrastructure paid for with tax dollars, including the roads, bridges, law enforcement services, and sewage and water infrastructure. They benefit from the free education and health care their employees receive, and from the public transit their employees use to get to work.

We keep hearing that we are all in this together, but if we compare COVID-19 to a storm at sea, while it is true that we are all facing rough seas, some people are clinging to pallets without life jackets while others are in luxury liners. We have a growing wealth disparity in this country, and nowhere is it more apparent than in Nanaimo.

One can walk past a homeless camp on the way to the harbour to see Jim Pattison's 150-foot, $25-million yacht when it is docked for a visit. This yacht is almost as large as the coastal defence vessel, the HMCS Nanaimo, which also visits our port. This is obscene and ostentatious wealth.

It is time that Canada's ultrawealthy do their fair share to help Canadians during this pandemic. It is time for a wealth tax in Canada, and for taxes on extreme profits gleaned during the pandemic.

Interest rates are at a record low and Canada's big banks continue to make massive profits, but we have still not seen any relief in credit card interest rates, credit card charges or banking fees for Canadian small businesses or consumers. The big banks continue to fleece Canadians during this pandemic.

During the financial crisis in 2008, these same big banks received taxpayer-funded bailouts reported to be as high as $114 billion. It is time that Canada's big banks returned the favour and do their fair share to help Canadians during this pandemic. They need to reduce credit card interest and banking fees now. Throughout this pandemic, these have caused economic hardship.

The Green Party caucus has listened to constituents, local businesses, labour unions, chambers of commerce, organizations and associations. We are now in the second wave of this pandemic. We need to do all we can to ensure that our small businesses are protected as further measures are taken to ensure the most vulnerable members of our community are kept safe from this virus.

The Green Party supports this legislation, which introduces the new Canada emergency rent subsidy—

[The Acting Speaker, Joël Godin]

The hon. parliamentary secretary to the government House leader.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the President of the Queen’s Privy Council for Canada and to the Leader of the Government in the House of Commons]

Mr. Speaker, I think it is really important to emphasize that it appears all political entities in the House will be supporting the legislation. It is nice and encouraging to see that in terms of how important the two programs of the rent assistance and the wage subsidy, in particular, have been for our small businesses.

At the same time, we need to recognize that there is a suite of programs that have been introduced in the last eight months to support small businesses. When we take a look at this bill, it is a substantive piece of legislation that looks at modifications to programs that will ultimately continue to support entrepreneurs and small businesses in all regions of the country.

Could my colleague provide his thoughts of how important it is, when we take a look at the suite of programs, that we be flexible about making the changes that will continue to help our small businesses through the second wave and beyond?

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Mr. Speaker, I appreciate the suite of programs we have available for small businesses across the country, but we need more flexibility built into them. That is what we have been asking for all along.

As these programs have been introduced, we have seen problems with them. We have seen hard lines and parameters that make it difficult for many small businesses to eligible, so we have asked for the flexibility. Granted, the government has provided some flexibility in these programs and improved them. It is taking an awful long time, though.

The problem we are seeing with many small businesses in my community and in other communities is that this aid is coming too late for many of them. We need to figure out that issue, because people are losing their livelihoods and life savings. It is crucial that we provide support to people who have really poured their lives into their small businesses.

[Laurel Collins, NDP, Victoria, BC]

Mr. Speaker, I thank the member for Nanaimo—Ladysmith for his words in support of small businesses and in support of making the wealthiest pay their fair share.

Like the member, I have heard from countless small businesses that are struggling, for which the wage subsidy was a lifeline. Many are now facing having their doors shut forever. They cannot afford their rent, because they did not qualify for the flawed program put forward by the government.

This is a step in the right direction, but I am curious if the member agrees that these changes should be retroactive. Businesses that did not qualify for the rental subsidy, because their landlords did not participate, should get the same fair treatment as those businesses whose landlords participated before.

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Mr. Speaker, I absolutely agree with the hon. member for Victoria. Yes, these programs should be retroactive. There are small businesses that did not get this rent subsidy because their landlords refused to apply. As I said, some small businesses have already shut down. It is too late for them, but others have racked up huge amounts of debt. Some of that is credit card debt that the banks have padded their wallets with. Again, we are seeing huge profits by big banks. If we do not protect these small businesses, we will have more multinationals taking care of the goods and services in our communities and sucking all of that wealth out of them and putting it offshore.

We absolutely need to protect our small businesses. These programs should be retroactive.

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

Mr. Speaker, I want to thank my colleague for standing up for small businesses as well.

Jon Shell of SaveSmallBusiness.ca gave quotes from people during this crisis. One person said, “I have so much fear. How will I feed my family?” Another person said, “I’ve stopped working to save lives, but am about to lose everything I’ve built.” Another stated, “This is scary as ... I have employees to pay. Kids to feed.” These businesses are still in the same situation. They need the rent program backdated to April.

Could the member talk about constituents in his riding who were prohibited from accessing the rent program because their landlords would not apply?

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Mr. Speaker, I want to thank the member for Courtenay—Alberni because both of us are fighting for our local first nations businesses, owned and operated by first nations, to get their companies eligible for these programs as well: the wage subsidy and the business loans programs. I could provide a list of companies that were unable to get the help with the rent subsidy. I am sure the member has a list from his riding as well.

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Mr. Speaker, I appreciate the opportunity to stand today and speak to Bill C-9, an act to amend the Income Tax Act.

The legislation has three main components to it. The first is to create the Canada emergency rent subsidy, which would provide rent relief for qualifying businesses until June 2021. The second is to provide some lockdown supports, providing a top-up from the Canada emergency rent subsidy. The third is to extend the Canada wage subsidy until June 2021. All these pieces have been called for by the business community, as a whole, due to the conditions they are facing during this pandemic.

I will talk about some of the concerns the opposition had with the legislation. These things could have been dealt with had Parliament been sitting, as the opposition was calling for. Members may recall that the Conservatives were the only party consistently calling for the return of the House to deal with the hundreds of billions of dollars that were literally going out the door with little to no debate. Of course this caused some problems.

In the last rent program, in order for businesses to qualify, they to prove that had a 30% drop in revenue. That caused a number of problems. Obviously, a great number of businesses, mostly small business, had that hurt.

In part, this was due to provincial restrictions as they were told to lockdown. I will not even go into the side of the debate where the big box stores were allowed to stay open, many of which provided the same service small businesses provided. However, the mom and pop shops and stores on main street were told to lockdown and their employees were told to stay home. However, the big box stores continued to operate, most likely stealing some market share on top of what they already had and increasing their profits as a result, while almost breaking the backs of small business.

In order to qualify, businesses had to show that they had a 30% revenue drop during this pandemic. Obviously, some sectors are doing very well during this pandemic. Some sectors are hurting. What it did is it caused some businesses to watch that 30% line that had been drawn by the government. If a business earned $1 more, it would not qualify for that subsidy.

The other problems we had were that the initial rent subsidy only covered about 10% of businesses across the country, which left 90% of businesses without that coverage. If anyone needed more proof that this was a complete disaster, the Prime Minister initially gave control of this program to the Canada Mortgage and Housing Corporation, which does residential mortgage insurance and not commercial rent. Incapable of running that program, the Crown corporation subcontracted that to a company whose vice-president was married to the Prime Minister's chief of staff.

We have businesses that are hurting, trying to get by and figuring out a way through. They are being hampered because of problems with government legislation. As I have mentioned before, the House was not back in a meaningful fashion to debate these pieces of legislation.

Early on, we saw problems with the CERB. We had problems with the wage subsidy. When it first was announced, the government said someone would only get 10% of the initial wage subsidy. Thankfully, through opposition parties, business communities and stakeholders alike, they were able to raise that level. Other countries such as Germany already had upward of 70%.

These key pieces in the legislation should have been debated. However, Parliament was then prorogued. The Liberals said that they were so focused on looking at the programs and developing them. This was done basically in a silo because Parliament was not sitting and legislators were not allowed to debate in this place.

As we move forward, we need to talk about recovery and how we do that. Rapid testing is a key part. Rapid testing has been approved in numerous countries around the world. There are products available in the European Union and the United States, but not approved here in Canada. If we want to return our economy and give it the firepower it needs, without a cure, vaccine or treatment, tools like rapid testing are our path forward.

We can imagine tourism, which has been massively impacted. We can talk about local marathons or running events. Any event and any kind of travel has been severely impacted. Hotels are feeling it. Restaurants are feeling it. However, if people can get on an airplane knowing they can take a test and in a few minutes have their result, it is our path forward. They can know the results with confidence because a number of these tests have a higher accuracy rate than the swabs that are being done now. Anyone who has had a swab knows it is not the most pleasant feeling in the world. This is our path forward. If people want to go on a cruise ship, they could go with confidence, knowing that everyone was tested and everyone had a clean result, yet the government continues to drag its feet on this.

Yes, we are in a pandemic and yes, Canadians were told to stay at home, lock down and stay safe and we continue to do that. However, we also need to talk about those businesses that are able to reopen in a safe manner because, at the end of the day, outside of all the printing the government is doing of hundreds of billions of dollars out of thin air, we still need the tax revenue coming in to continue to spend into the future. If the businesses shut down, where is the government getting the money from? If people who are working in these businesses are unemployed, where does this money come from?

The simple truth through all of this is that if we want to ensure economic expansion as we move forward, and we talk about it all the time, we need to ensure that we are prepared for this.

A number of anchors within our economy, such as the oil and gas industry and the mining industry, have taken a hit because of the current government's policies. I can name a few: Bill C-69 and the tanker ban. I could go on and on. We have, coming up, the clean fuel standard, which would significantly increase the price of food that is produced in our country. Of course, I am sure the government will come up with yet another program to solve the problem it caused in the first place, and around and around we go.

When the economy is firing on all cylinders, more people are able to keep more of their money, and that means more spending outside their necessities of housing, clothing and food. They have more discretionary spending. With discretionary spending, people are able to make purchases beyond those needs that I just listed. There are some people who believe it is just frivolous. Why would anybody want anything extra? It is because we like it. It gives us joy in our lives.

If our factories are shut down, people are not able to go back to work because we have seen uncompetitive advantages that the government has brought in through the tax code, that are forcing jobs elsewhere. I can give an example. Here in the province of Ontario, where there are some of the highest electricity prices of anywhere in North America, manufacturing is running out the door. During the Ontario Liberal rule, we lost 300,000 jobs in manufacturing.

As we go on, we need to ensure that businesses remain strong, that these programs are debated in legislatures such as this, and that the provinces work with the federal government within their own jurisdictions to manage this pandemic. Also, we need to work to ensure that we are able to safely reopen the economy. Rapid testing is one way, but so is ensuring that the programs, as in Bill C-9, are implemented in the best fashion possible. We do that through debate back and forth in chambers like this.

I appreciate the time and I look forward to the questions.

[Maninder Sidhu, Liberal, Brampton East, ON]

Mr. Speaker, today Stats Canada updated job numbers show that Canada's labour market gained another 84,000 jobs and 2.3 million Canadians have returned back to work after losing their jobs. That means the supports for our businesses, such as the CEBA, the Canada emergency wage subsidy and our rent assistance programs, are working. The hon. member opposite presented a very dim picture and I would like to hear what he has to say about today's job numbers and the positive way the trend is moving.