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

[The Deputy Chair, NDP, Carol Hughes]

I am sorry, but the time is up.

The hon. member.

[Kody Blois, Liberal, Kings—Hants, NS]

Madam Chair, I appreciate we have to have a similar amount of time for the answers and the questions, but I do hope you will let the hon. minister answer the questions if she has the ability to do so.

I want to ask about our government's overall vision. I know the minister had to speak in two forums in Montreal and Toronto. For my constituents who might not have been able to see that, my question is this: What is the government's economic vision moving forward?

We have done a very good job trying to put out measures to help support businesses and individuals. There is a lot of uncertainty about what the future looks like, but can she summarize for my constituents and all Canadians about where our vision is in the days ahead?

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

Madam Chair, I would summarize our plan this way: Right now the focus for all of us needs to be fighting the second wave of the coronavirus, and for the government and all members of the House to be supporting Canadians and Canadian businesses as we get through that fight. Then, once the virus is vanquished, it is going to be time for all of us to turn our attention to investing for a roaring-back Canadian economy. We have been talking about that, too, a lot tonight, and that is going to be something we are going to be well positioned to do, and I know that we are all going to contribute to that effort.

[Kody Blois, Liberal, Kings—Hants, NS]

Madam Chair, as the hon. minister mentioned, I come from a rural riding. I am very proud to be the rural caucus chair of our governing party.

Agriculture is an industry that matters across the country, but indeed in my riding of Kings—Hants we have a very diversified mix of commodity groups. I will go on record saying that when it is safe to do so, I hope the hon. minister will consider coming and having a Tidal Bay glass of wine down in Kings—Hants. We would love to see her.

As it relates to the agricultural sector writ large, I know we have had investments. Can she speak to how it would be important for our government in the days ahead to partner with the industry to make sure it is part of the economic recovery?

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

Madam Chair, agriculture is so key to the Canadian economy. It is key to Canadian society and Canadian communities. I think we should all be proud of our farmers, and of course agriculture and our farmers are going to be a key part. They are a key part of our economic—

[The Deputy Chair, NDP, Carol Hughes]

The hon. member for London—Fanshawe.

[Lindsay Mathyssen, NDP, London—Fanshawe, ON]

Madam Chair, before I ask questions, I just want to acknowledge that the NDP has worked hard on this to push the government to improve its legislation, and I wanted to thank my colleagues for that. Sadly, it took a long time, but I also want to speak to the incredible resilience of the small and medium-sized businesses in my riding. They have shown dedication to their craft, and loyalty to their clients and their employees. I want to also give special thanks to the Argyle and Hamilton Road BIAs. They have often advocated for their members throughout this pandemic and fought alongside them for their survival.

In London—Fanshawe, I also wanted to tell the House about Matilda, who owns Enchanté Hair Studio, and Melanie, who owns Madison's Boutique & Consignment. Their landlord refused to apply for the government's first failed commercial rent program.

What is the government doing to make sure this new program undoes the damage of the first?

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

Madam Chair, I would like to thank the member opposite for her visible hard work on behalf of her constituents and the businesses in her riding.

What we are talking about tonight is a very substantial, comprehensive set of measures that will help Canadian businesses, like the ones the member opposite has described in her riding, going forward. The rent subsidy means 65% of rent covered and up to 90% if they are subject to a local lockdown, and that goes back to September 27. The wage subsidy is up to 65% of wages covered, and, of course, there is CEBA, which we are going to expand so businesses can get a 60% loan—

[The Deputy Chair, NDP, Carol Hughes]

The hon. member for London—Fanshawe.

[Lindsay Mathyssen, NDP, London—Fanshawe, ON]

Madam Chair, there is also an incredible Lebanese restaurant in south London. The owners are still trying to catch up on debts because they were not eligible for CECRA. They are just one example of so many in my riding.

Will the minister ensure this new rental subsidy program is retroactive from the start of the pandemic to help these businesses recover?

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

Madam Chair, the member opposite makes me want to go dine in London, Ontario with that description.

This program will apply from September 27. It is focused on the future and provides really generous support for businesses.

[Lindsay Mathyssen, NDP, London—Fanshawe, ON]

Madam Chair, the minister has said that the answer for companies that need help is they should go further into debt. Is that her only solution? Does she truly believe that is the most help her government can provide?

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

Madam Chair, we are talking tonight about providing really significant support for enterprises, with up to 65% of wages covered. That is a grant, not a loan.

[Lindsay Mathyssen, NDP, London—Fanshawe, ON]

Madam Chair, businesses cannot take on bigger loans. It just puts them further into debt. She does not understand.

There are several cultural clubs in my riding that provide an incredible connection for their members through their history, culture, language and identities. Several clubs survive by hosting events, celebrations and ceremonies and that cannot happen now because of COVID—19.

These clubs own their own land and their buildings, so they are not eligible for the programs under the former or the currently proposed programs, and they are drowning in debt from other fixed costs. Is there a plan to help these clubs?

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

Madam Chair, I will conclude my answer to the last question, because it is important for Canadians to understand. Neither the wage subsidy nor the rent subsidy involve additional debt for businesses. These are straight grants from the government to Canadian enterprises. I agree that is what Canadian enterprises need. That is why we are going to be there for them.

I would also like to point out a new feature of the rent support program. It is available not only to enterprises that are renters but also to support enterprises and entities that are—