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]

The hon. member.

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

Madam Chair, why did this government choose not to make the program retroactive to April?

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

Madam Chair, our focus is on keeping businesses that are viable today viable going—

[The Deputy Chair, NDP, Carol Hughes]

The hon. member.

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

Madam Chair, a constituent in my riding named Matthew fears the loss of his job. He works for a company that has a few franchises. In this new program proposed by the Liberals, they have placed a $300,000 cap on support provided to businesses. However, for companies that are franchises with a few locations, many rents can add up quickly and $300,000 does not cover them for very long or at all. Would the government consider increasing that cap?

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

Madam Chair, I think the New Democratic Party shares our government's absolute focus on helping the small businesses that need the support the most. That is what this program has been—

[The Deputy Chair, NDP, Carol Hughes]

The hon. member for Selkirk—Interlake—Eastman.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Madam Chair, I am going to be asking questions of the Minister of Finance. I want to really focus in on those issues that are important to my riding and have been expressed to me by many businesses and farmers.

As was already alluded to by the member for Lakeland, a lot of our farmers have had trouble accessing the CEBA account. I want to ensure the current forms of the new wage subsidy and rent subsidy will not involve any problems with people accessing them if they do not have business bank accounts, which is so important to sole proprietorships.

[Jean-Yves Duclos, Liberal, President of the Treasury Board]

Madam Chair, I appreciate the member's excellent question. The idea is exactly what the Minister of Finance said earlier, which is to make sure that everything is put into place so that businesses in his riding and across Canada have access to the type of support that they need according to their conditions in the current crisis.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Therefore, Madam Chair, in the situation of a sole proprietorship that does not have a business account, or may not even have a business registration number with the Government of Canada because as a farm it is GST exempt and is not collecting taxes on behalf of the government, will the business owner be able to access these programs if they are eligible?

[Jean-Yves Duclos, Liberal, Québec, QC]

Madam Chair, again I am very pleased to support and repeat what the Minister of Finance said very clearly earlier, which is that the objectives of this very important piece of legislation are to support business owners in a very difficult time, and to be adapted to their specific—

[The Deputy Chair, NDP, Carol Hughes]

The hon member.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Madam Chair, I am going to hold the minister to account on this because I really do believe that we want to make sure that business owners can access it. Right now, we know on the CEBA program that if people do not have a business registration number with Revenue Canada they do not qualify. To me, that is discriminatory against those sole proprietorships.

I will ask the minister one more time: Will the Liberals make sure, for these new programs as well as for CEBA, which is currently in effect, that they get rid of the requirement for business registration numbers for sole proprietorships, especially for farmers?

[Mary Ng, Liberal, Minister of Small Business]

Madam Chair, I want to thank the hon. member for that question and for his great advocacy for small business owners, particularly for those farmers who operate on a personal account. We announced, and of course it is being made available, the CEBA loan for those very business owners who operate on a personal account.

[James Bezan, Conservative, Selkirk—Interlake—Eastman, MB]

Madam Chair, I can tell the minister that I was talking to one of our local farm families, and they have been told by their financial institution that, because they do not have a business registration number with Revenue Canada, they do not qualify. Therefore, I am going to ask the minister to let them contact her. Will she make sure that they get access to the CEBA program?

I want to switch gears a bit and follow up on some of the questions that were asked by my colleague from Brandon—Souris.

In rural Canada, fairs, festivals and rodeos are the backbone of our communities during the summer. Of course, right now, they are really struggling. In 2009 and 2010, I was proud when our former Conservative government announced the marquee tourism events program: $100 million over two years. Does the Minister of Finance plan to bring forward any support for our fairs and festivals across this country?