An Act to provide further support in response to COVID-19

Sponsor

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

Part 1 amends the Income Tax Act and the Income Tax Regulations to extend subsidies under the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Rent Subsidy (CERS), and the Canada Recovery Hiring Program until May 7, 2022, as part of the response to the COVID-19 pandemic. Support under the CEWS and the CERS would be available to the tourism and hospitality sector and to the hardest-hit organizations that face significant revenue declines. Eligible entities under these rules would need to demonstrate a revenue decline over the course of 12 months of the pandemic, as well as a current-month revenue decline. In addition, organizations subject to a qualifying public health restriction would be eligible for support, if they have one or more locations subject to a public health restriction lasting for at least seven days that requires them to cease some or all of their activities. Part 1 also allows the government to extend the subsidies by regulation but no later than July 2, 2022.
Part 2 enacts the Canada Worker Lockdown Benefit Act to authorize the payment of the Canada worker lockdown benefit in regions where a lockdown is imposed for reasons related to COVID-19. It also makes consequential amendments to the Income Tax Act and the Income Tax Regulations .
Part 3 amends the Canada Recovery Benefits Act to, among other things,
(a) extend the period within which a person may be eligible for a Canada recovery sickness benefit or a Canada recovery caregiving benefit;
(b) increase the maximum number of weeks in respect of which a Canada recovery sickness benefit is payable to a person from four to six; and
(c) increase the maximum number of weeks in respect of which a Canada recovery caregiving benefit is payable to a person from 42 to 44.
It also makes a related amendment to the Canada Recovery Benefits Regulations .
Part 3.1 provides for the completion of a performance audit and tabling of a report by the Auditor General of Canada in respect of certain benefits.
Part 4 amends the Canada Labour Code to, among other things, create a regime that provides for a leave of absence related to COVID-19 under which an employee may take
(a) up to six weeks if they are unable to work because, among other things, they have contracted COVID-19, have underlying conditions that in the opinion of certain persons or entities would make them more susceptible to COVID-19 or have isolated themselves on the advice of certain persons or entities for reasons related to COVID-19; and
(b) up to 44 weeks if they are unable to work because, for certain reasons related to COVID-19, they must care for a child who is under the age of 12 or a family member who requires supervised care.
It also makes a related amendment to the Budget Implementation Act, 2021, No. 1 .

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-2s:

C-2 (2020) COVID-19 Economic Recovery Act
C-2 (2019) Law Appropriation Act No. 3, 2019-20
C-2 (2015) Law An Act to amend the Income Tax Act
C-2 (2013) Law Respect for Communities Act

Votes

Dec. 16, 2021 Passed 3rd reading and adoption of Bill C-2, An Act to provide further support in response to COVID-19
Dec. 2, 2021 Passed 2nd reading of Bill C-2, An Act to provide further support in response to COVID-19

Debate Summary

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This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-2 aims to provide further COVID-19 support through targeted measures, including extending existing benefits like the Canada recovery hiring program, sickness benefit, and caregiving benefit, while introducing new programs such as the Canada worker lockdown benefit, tourism and hospitality recovery program, and hardest-hit business recovery program. The bill intends to shift from broad-based support to focused assistance for sectors and individuals still significantly affected by the pandemic, offering wage and rent subsidies and income support in the event of new lockdowns. It seeks to balance economic recovery with prudent government spending and support those most impacted by ongoing public health restrictions.

Liberal

  • Targeted COVID support: Bill C-2 is designed to target specific sectors of the economy still affected by the pandemic, providing crucial assistance to those who need it most as the country transitions from broad emergency measures to more focused support programs.
  • Canada worker lockdown benefit: The bill proposes the Canada worker lockdown benefit, offering $300 a week to eligible workers impacted by local lockdowns, including those not eligible for EI, and would be in place until May 2022, with retroactive application to October 24, 2021.
  • Extending recovery benefits: The bill seeks to extend the Canada recovery sickness benefit and the Canada recovery caregiving benefit until May 7, 2022, increasing the maximum duration of each by two weeks to provide continued support for those who need to stay home due to illness or caregiving responsibilities.
  • Support for businesses: The bill would extend the Canada recovery hiring program until May 7, 2022, at a 50% subsidy rate and introduce the tourism and hospitality recovery program and the hardest-hit business recovery program to assist businesses, particularly in the tourism sector, facing significant revenue declines due to public health measures.

Conservative

  • Bill C-2 is insufficient:
  • Calls for fiscal responsibility: The Conservatives call for a return to sound money, an end to cash printing, and controlled government spending to combat inflation and create a more affordable cost of living for Canadians.
  • Government has been profligate: The Conservatives are critical of the Liberal government's unprecedented spending, asserting that Canada's debt-to-GDP ratio increased far more than other G20 countries, indicating fiscal irresponsibility.
  • Address labor shortages: The Conservatives argue that the government's programs disincentivize work and suggest the opposite approach of incentivizing job creation and business growth to address the labor shortage and boost the economy.
  • Prioritize committee reviews: The Conservatives express concern over the fast-tracking of Bill C-2 and highlight the need for thorough reviews by the finance committee to ensure responsible and targeted spending and address concerns about fraud and misuse of funds.

NDP

  • Opposes CRB cuts: The NDP believes the Canada recovery benefit should have been maintained at $500 per week. They opposed the cut to $300 per week and criticized the government for ending the CERB with only two days' notice and for not extending the CRB until November 20, as they had the option to do.
  • Targeted approach fails: The NDP argues that the government's targeted approach to pandemic support fails, particularly for self-employed individuals in sectors like tourism and hospitality, who are not covered by the wage subsidy program.
  • Low-income CERB amnesty: The NDP calls for a low-income CERB repayment amnesty, highlighting the unfairness of demanding repayment from those who were encouraged to apply for help and now face financial hardship due to clawbacks.
  • Extend CRB and sick leave: The NDP advocates for the extension of the Canada recovery benefit to $500 per week and the provision of 10 days of paid sick leave for all workers, emphasizing the need to support people during the ongoing pandemic.

Bloc

  • General support for bill: The Bloc generally supports the bill because it believes in effective spending and opposes waste, viewing government intervention with income support measures as the least bad solution during economic downturns.
  • Need for proper study: The Bloc emphasizes the importance of thoroughly studying the bill's provisions in committee to ensure the proposed percentages for sector assistance are carefully targeted and appropriate, with input from various groups and sectors.
  • Exclusion of self-employed workers: A significant concern for the Bloc is the conspicuous absence of support for self-employed workers, particularly those in the cultural sector, and questions why they were left out of the bill, needing assistance now rather than at some undefined point in the future.
  • Government's inaction: The Bloc criticizes the Liberal government for creating an urgent situation by delaying the recall of Parliament and prioritizing an election, which has led to a rushed consideration of the bill, and suggests the government should take responsibility.
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An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 1:50 p.m.

The Assistant Deputy Speaker Carol Hughes

I am sorry to interrupt the hon. member again, but the hon. member for Drummond is rising on a point of order.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 1:50 p.m.

Bloc

Martin Champoux Bloc Drummond, QC

Madam Speaker, you just intervened on this subject a few minutes ago. I am only a few steps away from my colleague, and I am having a hard time focusing on what she is saying because of the noise. I understand that question period is coming up and people are happy to see each other again, but it would be nice if everyone could respect the member who has the floor.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 1:50 p.m.

Conservative

Michael Barrett Conservative Leeds—Grenville—Thousand Islands and Rideau Lakes, ON

Madam Speaker, I rise on a point of order. I think part of the issue in this case is that colleagues entering from the opposition lobby do not want to pass between you and the member who is speaking. They are waiting to take their seats before question period. As soon as the member is done, I would expect that they will all be going to their seats, as they are now.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 1:50 p.m.

The Assistant Deputy Speaker Carol Hughes

I appreciate the clarification, but when people are coming in, there is no need for them to be having discussions. The issue is that people are having discussions not only as they are coming in, but as they are sitting down. I would ask members to please be respectful. If they wish to have discussions, I would ask them to step out, have their discussions and then come back in.

The hon. member for Thérèse-De Blainville.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 1:55 p.m.

Bloc

Louise Chabot Bloc Thérèse-De Blainville, QC

Madam Speaker, I will stay the course because this is important. There are some good measures in Bill C‑2. Some are measures that the Bloc Québécois itself proposed last spring.

After the worst of the crisis, we need to think about recovery. We need to move on to support measures that are much more targeted and much more tailored to the economic reality and the post-pandemic recovery. We must therefore focus on measures that particularly, but not exclusively, support the tourism, accommodation, food service, events and hospitality industries. I think these are good, well-targeted measures.

In addition, as my colleague from Joliette said, these are predictable measures that will allow businesses to plan ahead until May 2022. There is also the two-week extension of the Canada recovery sickness benefit and caregiving benefits. I think it is good to continue these measures in the current context.

However, some measures that are essential have not yet been considered. They were mentioned repeatedly in today's debate, and my colleague from Drummond spoke eloquently about them. I am referring to measures for the arts and culture sector.

The government will say that it intends to support this sector. The problem is that the majority of people in this sector are self-employed, no matter their line of work. We must think not just of the artists, but of all the workers in the performing arts and live arts. There are many of them.

We know that self-employed workers cannot access the regular EI system. These workers are not in a complete lockdown. However, as I was saying, they are at the end of the road in terms of work. The recovery is difficult, and they may not necessarily be getting work. Furthermore, some skilled workers have decided to switch careers, so we could be facing a labour shortage in future.

These workers still need support. They are not entitled to EI, so until yesterday, they were receiving the Canada recovery benefit. However, there is a void in Bill C‑2, which contains no measures for the many workers in this sector.

There are two kinds of solutions.

The first is a solution that we are still waiting for, since the government still does not appear to have understood that all of the emergency measures were put in place for one reason: Our employment insurance system has faults and is not comprehensive enough to cover the many 21st-century workers who are self-employed or non-standard, the majority of whom are women and young people. A meaningful measure would be to reform the EI system as soon as possible. However, there is no indication in the throne speech or the government's messaging that it plans to do so.

The second solution would be to address the needs of this category of workers by including them in Bill C‑2 and providing an effective assistance measure for them. It is unacceptable for the government to ignore them.

In conclusion, although the situation is urgent, we will insist on sending this bill to committee as quickly as possible, so that the committee has enough time to study it and, potentially, add measures or terms that will more specifically address the objective of the bill.

This feels like an acknowledgement. We had an election that the government claimed was to help us recover from the pandemic. In that case, we need to recover from this pandemic, and we need the minority government to work with the opposition parties on such an important bill to ensure that the pandemic measures are the right ones.

I do not know if the Canadian Federation of Independent Business representatives are right or wrong, but they are already saying the 40% to 50% subsidy rates are disappointing.

That is why it makes sense to ensure we have enough time to study these measures, get the committees up and running again and really give this our all and take a good, hard look at this bill.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 2 p.m.

The Assistant Deputy Speaker Carol Hughes

The hon. member will have five minutes for questions and comments when we get back to this after question period and Routine Proceedings.

I do want to remind members to please keep discussions very low as they are coming in because it is affecting the ability of members to be heard.

The House resumed consideration of the motion that Bill C-2, An Act to provide further support in response to COVID-19, be read the second time and referred to a committee.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 3:20 p.m.

Liberal

Kody Blois Liberal Kings—Hants, NS

Mr. Speaker, I will be sharing my time this afternoon with my hon. colleague, the member for Saint John—Rothesay.

It is a privilege for me to rise today to speak to extending the government's support for businesses and individuals.

Before I speak to the content of Bill C‑2, I want to highlight all of the work that the government has done throughout the pandemic to help individuals and businesses deal with the worst consequences of COVID‑19.

Our government supported Canadians, with programs including the Canada emergency response benefit, which provided support to nine million Canadians, and the Canada emergency wage subsidy, which provided support to hundreds of thousands of employees and protected millions of jobs. Our economy has recovered the jobs lost during the pandemic and our situation is much better than it would have been if the government had not intervened.

I want to take a moment to address the government's decision to take a more targeted approach. I suspect that I will be asked by some colleagues, at the end of my 10-minute speech, why the government is choosing now to move in a different direction—

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 3:20 p.m.

The Deputy Speaker Chris d'Entremont

I think there is a problem with interpretation. Let us wait.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 3:25 p.m.

Conservative

Gérard Deltell Conservative Louis-Saint-Laurent, QC

Mr. Speaker, while we are making sure that everything is working properly, I would like to commend my colleague on his impeccable French. I congratulate and thank him.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 3:25 p.m.

The Deputy Speaker Chris d'Entremont

I will look to my French colleagues to make sure that interpretation is working.

Is everything working now?

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 3:25 p.m.

Bloc

Marie-Hélène Gaudreau Bloc Laurentides—Labelle, QC

Mr. Speaker, unfortunately the interpretation is still not working.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 3:25 p.m.

The Deputy Speaker Chris d'Entremont

Is it the English to French or French to English?

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 3:25 p.m.

Bloc

Marie-Hélène Gaudreau Bloc Laurentides—Labelle, QC

It is the English to French.

An Act to Provide Further Support in Response to COVID-19Government Orders

November 29th, 2021 / 3:25 p.m.

The Deputy Speaker Chris d'Entremont

I will speak in English and hope that members will hear the French interpretation.

The problem is now fixed.

I will let the hon. member for Kings—Hants back up a little and start where he left off.