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

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

Madam Chair, let me start with the premise of the question, which I think is not quite right. With this legislation, which we are all talking about tonight and voting on tomorrow, we are offering certainty to our businesses. We are saying these essential programs will be in place until the summer. That is really important, and I am glad we all support that.

[Eric Melillo, Conservative, Kenora, ON]

Madam Chair, many business owners have been speaking out about many different problems with various COVID-19 supports throughout the summer, whether they are onerous criteria, inflexible timelines or a lack of clarity. I think this is especially true for many tourism and seasonal operations in my riding and across northern Ontario.

I would like to know if the government has been consulting with these businesses to ensure the amended programs are going to work as they are intended to.

[Navdeep Bains, Liberal, Minister of Innovation]

Madam Chair, we recognize that we need to have sectoral strategies and sectoral supports going forward. That is why, through the industry strategy council, we are engaging with different sectors to better understand their unique challenges and pain points, so we can put forward tailored measures to support them, particularly the tourist sector, which has been hard hit.

[Eric Melillo, Conservative, Kenora, ON]

Madam Chair, our party brought forward many different suggestions very early on in the course of this pandemic. Why did it take the government so long to amend many of these programs?

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

Madam Chair, I am grateful for all the great ideas we hear in this House, and I am really glad we are going to support this important legislation.

[Greg McLean, Conservative, Calgary Centre, AB]

Madam Chair, the first question I have for the Minister of Finance is this: How much is budgeted to pay for the rent relief program?

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

Madam Chair, I am going to be giving specific updates in my fall economic—

[The Deputy Chair, NDP, Carol Hughes]

The hon. member.

[Greg McLean, Conservative, Calgary Centre, AB]

Madam Chair, I think it was $2.3 billion until December 31. What percentage of that is for municipal taxes to be paid?

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

Madam Chair, we have a broad understanding of the relevant expenses that can qualify for the rent subsidy.

[Greg McLean, Conservative, Calgary Centre, AB]

Madam Chair, what percentage is for mortgages to be paid to the banks?

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

Madam Chair, as I said, our objective in creating this program has been to reach a broad range of businesses—

[The Deputy Chair, NDP, Carol Hughes]

The hon. member.

[Greg McLean, Conservative, Calgary Centre, AB]

Madam Chair, has the minister thought about the unintended consequences of the 25% bump-up if a municipality goes into lockdown?

For instance, my municipality of Calgary is getting 90% of municipal taxes and the utility fees for 90% of the utility it owns, so it might be a motivation to actually cut down our economy when we do not necessarily need to. Can the minister respond to that?

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

Madam Chair, I have thought really carefully about the intended consequences of the lockdown support. What I believe this support will do is empower public health officers, mayors and premiers to do the right thing for health because that is going to be the right thing for the economy.