Bill C-2

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

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 .

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

[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—

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.

[Louise Chabot, Bloc, Thérèse-De Blainville, QC]

Thank you, Madam Speaker. I am trying not to lose my train of thought.

I was saying that, in 2020, a similar bill, Bill C-2, an act relating to economic recovery in response to COVID-19, also sought to urgently pass economic measures. We were being asked to take urgent action because the House had been prorogued, not just for a day or two, but for five weeks. We therefore found ourselves in a situation where the House had to rush to support businesses and workers. In that case, we did not have enough time because we had wasted time on ethics issues.

Now, in November 2021, we have before us a similar bill with the same number, Bill C-2. Once again, we are being asked to urgently pass measures. This time, it is because the Liberals called an election rather than allowing us to continue our work in the House, even though there was nothing preventing us from doing so since the opposition parties were co-operating appropriately on the issues being examined. The Liberals decided to call an election anyway, which I think was useless and irresponsible.

We also had to wait two months before the House resumed sitting. In fact—

[Louise Chabot, Bloc, Thérèse-De Blainville, QC]

Madam Speaker, I would like to begin by sincerely thanking the constituents of Thérèse‑De Blainville for placing their trust in me again in the last election. I also want to thank my team, the wonder team, and my volunteers for their tremendous support during this campaign. As I say to my constituents of Thérèse‑De Blainville, I am always on the go and proud to be a strong voice for them here in Ottawa.

I am pleased to rise to speak to Bill C‑2 before us. Since the beginning of the pandemic and during the last Parliament, as the critic for employment, labour and skills development and inclusion of persons with disabilities, I have stood many times on issues that directly affect businesses, shops, overcoming this crisis, but also workers and their employment situation.

The government is telling us that Bill C‑2 is essential. I agree. It is also urgent. When it comes to the urgency of the matter I feel like I have seen this film before. We are told about the urgency, but we are not upstream of the questions being asked because it is past the eleventh hour. We are behind. The situation has become urgent because the measures in place came to an end. We are being asked to hurry up and adopt new measures to ensure that there is no interruption. I feel like I already saw this scenario play out because in September 2020, Bill C‑2, An Act relating to economic recovery in response to COVID‑19, proposed three new economic benefits in addition—

[Rachel Bendayan, Liberal, Outremont, QC]

Madam Speaker, I thank my colleague for his speech. From what I understand, he is working very closely with the Minister of Canadian Heritage on this program to help artists and self-employed workers in the cultural sector, and I thank him for that as well.

There was one thing that bothered me. The member said that Bill C‑2 would help businesses that have been hit hard, including those in the arts and culture sector. I hope that my colleague would agree that helping the businesses will also help the workers.

Does the member agree that when we provide assistance to businesses, we are also helping the workers and technicians he mentioned, as well as the entire arts sector?

[Martin Champoux, Bloc, Drummond, QC]

Madam Speaker, I would like to inform you that I will share my time with my colleague, the hon. member for Thérèse-De Blainville.

Before I begin my speech, I would like to come back to the answer the colleague from Outremont gave me a few minutes ago. I realize that theatres and cultural enterprises will be able to continue to benefit from these programs, but artists and workers are not included in Bill C‑2. What is in the works is not a bill, but an assistance program, which is much more complicated to put in place and could be done much more quickly with Bill C‑2. I will stop there for the time being, because we hope to have the chance to come back to it.

Since this is my first time rising in the House in this 44th Parliament, I would like to take the opportunity to thank the constituents of Drummond, who have put their trust in me a second time. It makes me feel honoured and proud, and I will prove worthy of that trust.

I also want to thank the volunteers who gave it their all, their time, energy and passion, and spent long hours working on the campaign. I am thinking of two wonderful volunteers in particular: my parents, my mother and father who are 81 years old. They gave of their time and travelled around the riding, and they were very happy to do it. I want to be young like them when I am old.

I want to thank the team in my riding office, who are so essential. I want to sincerely thank them for their support and for the excellent service they provide to the people of Drummond. I am thinking of Andrée-Anne, Marie-Christine, Marika and Jacinte. I am also thinking of my assistant Mélissa, here on the Hill, and of Alexandre, who works with us. They are invaluable, and I care about them a lot.

I will close by thanking my family and friends. I mentioned my parents earlier. My colleagues in the House are all too familiar with the effect that political life can have on a family. My children, Lily-Rose, Tom, Christophe and Alexandrine, are wonderful. I want to thank my wife, Caroline, for being in my life. A wife is completely essential in the life of a politician.

I would like to take a moment to talk about the white ribbon I am wearing this week to express my support for women as part of the campaign to eliminate violence against women and girls, which runs until December 6. This problem concerns us all, and I wear the ribbon with pride. I hope there will come a day when we no longer need to wear this kind of symbol, because such violence is unacceptable.

I also want to say a special hello to Yvette Mathieu Lafond, whom I have already talked about in the House. Last year I celebrated her 100th birthday with her. When I saw her for her 100th birthday, Ms. Mathieu Lafond and I agreed to meet up again for her 101st. We have plans to get together this Friday, and I hope to celebrate her birthday with her for many years to come.

I mentioned my family and my children earlier. My nine-year-old son Tom is very funny. When he was little and something scared him or worried him, he would close his eyes and say that it would magically disappear that way. It was quite cute. Kids do that kind of thing. However, kids are not the only ones; the Liberals are doing the same thing.

Members will recall that is what they did with WE Charity last year. They prorogued Parliament to put an end to debate about the scandal so that it would disappear. They also did it this summer when they called the election. They thought they could get re-elected without anyone ever again talking about their missteps. By trying to win a majority, they were hoping that the opposition parties could no longer put the government's feet to the fire. The Liberals closed their eyes and hoped that it would magically disappear.

Here is the difference between the Liberals and my nine-and-a-half-year-old son. He plays soccer and is sometimes the goalkeeper. He knows that if he closes his eyes when faced with three opponents who have the ball, it might be kicked in his face, so he keeps them open, waits for his opponents and, in an effort to prevent them from scoring a goal, he faces them and stands his ground. We expect the same courage from those in charge of a G7 country.

I have to admit that I let myself be taken in somewhat this summer. When the Liberals called the election, I really believed they were doing it in the hope of wiping the slate clean, coming back quickly and taking charge of the situation. I believed they were going to deal with the urgent matters caused by the pandemic, such as the labour shortage and the recovery of affected sectors such as tourism, aerospace and culture, as quickly as possible.

I thought that we were going into an election campaign and that, when we came back from the election, we would sort it out without any nonsense, but that was not the case. We had been hammering away at these issues throughout the election period.

The election took place on September 20, and we waited until November 22 to return to Parliament. Five months have elapsed since our last sitting day in June. During this time when we looked the other way, did the pandemic and all its problems disappear? The answer is no.

When the election was called, a fourth wave was on its way, and here we are now again with a new variant to worry about. If Parliament had been allowed to work, we would not need to discuss Bill C‑2 today, because instead we could have developed assistance programs according to need and put in place the expected assistance for artists and self‑employed workers in the cultural sector. We could even have resumed work on Bill C‑10 after the Senate had finished hacking it to bits.

Everyone here knows how long it takes to pass legislation and get programs up and running. We have to debate in the House and in committee, meet witnesses, conduct studies and so on.

If we had truly put the public interest ahead of political interests, we would have had a normal return to Parliament, we could have done our work as usual and brought programs up to date. We could have also brought in new programs and adapted. Unfortunately, that is not what happened, and we ended up wasting time.

In the meantime, self-employed workers and artists in the cultural sector are saying that they are no longer getting any assistance or money, and they do not know what to do. Based on the Minister of Finance's promises, we would have expected some form of assistance for workers in the cultural sector this fall. That is not what is happening with Bill C‑2.

We know that the Minister of Canadian Heritage is currently working on a program to help artists and workers in the cultural sector, who are the hardest hit. That is good, and I promised, along with the Bloc Québécois, to co-operate to ensure this happens quickly. In fact, artists and artisans in the cultural sector have not received any income or assistance for a few weeks now, and they are getting worried.

Without this pointless election and reckless belief that if they close their eyes the problems will disappear, we could have moved forward and there would have been support for everyone.

It really makes me mad. I know that while everyone here continues to receive their paycheque, skilled and essential workers in the cultural sector are looking to reinvent themselves in other industries because they no longer see any way for them to manage. Some of my friends, people with whom I worked and spoke to recently, think they will not even be able to buy a little Christmas gift for their children. Previously, these people were not working small contracts here and there; they had a good, steady income.

I have friends in the world of performing arts who are technicians. They have taken different jobs since the pandemic began and they will never return to the cultural sector. It is a tragedy, because this type of expertise is difficult to replace. It is truly sad to see that we are abandoning a category of workers and especially people who are passionate about their work.

I have a group of friends, including actors and audiovisual technicians, who decided to do something productive during the pandemic, since there was no work. They decided to get together and go shoot a documentary abroad. This was before the fourth wave. They all travelled together to Bangladesh, India and Nepal, hoping to meet ordinary people. They just wanted to chat with them, to learn more about their culture and their reality during the pandemic. They did it at their own expense and did not ask anyone for money or grants. The idea was to put their talent to good use during the crisis. Hopefully, we will get to see the results of their work at some point. The government is failing passionate individuals like these by postponing the help that could be given to them now, through programs that are not yet defined.

I support Bill C-2, because it does include some important assistance and good measures. However, workers in the cultural sector have been overlooked once again, which is really sad.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Madam Speaker, I would like to thank my Liberal colleague for her speech.

Many seniors who are on the guaranteed income supplement need jobs in order to make sure they have enough to pay the bills each month. However, they, like many Canadians, lost their jobs in 2020 when the pandemic hit this country full force.

I first brought this issue to the attention of the government in August. Here we are on the eve of December, and Bill C-2 represented a perfect opportunity to give CRB amnesty to our lowest-income seniors.

I have heard the Liberals talk about working on it, but this is an urgent situation. Could my Liberal colleague please inform the House when the government will actually help these seniors? They are having to make impossible choices right now about how they are going to pay their rent and put quality food on the table.

[Martin Champoux, Bloc, Drummond, QC]

Madam Speaker, during the campaign, and even long before that, the Bloc Québécois kept saying and is still saying that certain industries have been harder hit than others and are having a harder time recovering from the pandemic. Aeronautics, aerospace, as well as the tourism and hospitality industries are doing well, but arts and culture is not.

I heard my colleague from Outremont speak very passionately and call on us to support this bill to help hotels, restaurants, the tourism sector and all of these other industries.

Why are artists, craftspeople and others working in the cultural sector not included in Bill C‑2? Why are they being egregiously left out?

[Rachel Bendayan, Liberal, Outremont, QC]

Madam Speaker, I am pleased to rise today to speak to Bill C-2, an act to provide further support in response to COVID-19. This bill will implement some significant support measures, including measures for the sectors hardest hit by the pandemic and for the workers and small businesses that have really been struggling, for example those in the tourism and hospitality sectors.

There is no denying that COVID‑19 has had devastating consequences for workers and business owners in these sectors. They saw a nearly 50% drop in revenues, down from $104.4 billion in 2019 to $53.4 billion in 2020; in that same period, the number of jobs directly connected to the tourism industry dropped by 41%. Preliminary projections put revenues for summer 2021 at about 50% of the figures for the summer of 2019.

Despite these challenges, owners of tourism-based businesses and their employees have all proved to be tenacious and resilient, ensuring that their services will be available when the crisis is well and truly over. Many of them have said that the assistance from the federal government is the only reason why the workers in the sector are able to continue putting a roof over their heads and food on their tables. However, we know that many stakeholders in the tourism and hospitality industry are still struggling. I am talking about hotels, airports, travel agencies, cruise lines, theatres and restaurants, which are vital.

Restaurants make our main streets what they are, and members have heard me say this many times in the House. I have spoken directly with countless impacted restaurant operators, who tell me just how hard the last 20 months have been, how they were the first to close and often the last to reopen and how even now many of them are only partially open.

As parliamentary secretary for the Minister of Small Business in the last mandate, I represented the government on many different working groups, including the Restaurant Revival Working Group, where I worked closely with Restaurants Canada and heard first-hand from independent restaurateurs across our great country. The bill we have before us today responds directly to their plea for continued support from the federal government as we continue to fight COVID-19.

I now want to speak in concrete terms about the support that Bill C-2 will provide hard-hit sectors through two new main components.

First, the tourism and hospitality recovery program will support hotels, tour operators, travel agencies, restaurants and many other businesses by providing them with wage and rent subsidies of up to 75%. Second, the hardest-hit business recovery program will provide subsidies that could cover 50% of the costs of businesses that have faced deep and enduring losses. The government is also proposing to extend the Canada recovery hiring program until May 2022 at a new rate of 50%, with the possibility of extension if needed.

I find it very important to lay out some of the details of what is in the bill we are debating today because it often seems that some members in this place would like to debate something else entirely. For example, on Friday, I believe it was the member for Carleton, in his 20-minute speech on Bill C-2, mentioned inflation 33 times. That is about once every 36 seconds. How many times did he mention tourism, hospitality or small businesses? It was zero times, none at all.

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Madam Speaker, my wife and I volunteer to deliver food for the food bank, so we certainly understand the circumstances that many people are facing these days. The programs that are in place now have been a great benefit to the people who I am speaking to, and as we go forward, the targeted approach that we are planning in Bill C-2 will benefit those in the most dire need.

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Madam Speaker, I would like to start by advising the House that I will be sharing my time with the member for Outremont.

I will start by taking my first opportunity to speak in this House to give heartfelt thanks to the residents of Newmarket and Aurora for placing their trust in me a second time, to my team for its hard work in getting me here, and to my family for its continuous support.

It is an honour to rise today to speak to Bill C-2, a bill that is so important to so many across this country, one that we are all lucky to call home. We are lucky for many reasons, but especially because when times get tough, Canadians step up to help one another. It would not be any different with our government.

When the pandemic first hit, we were quick to roll out a number of broad-based programs to support those who saw their livelihoods completely change. Canadians needed help, and help was delivered. The Canada emergency wage subsidy has helped more than 5.3 million Canadians keep their jobs; the Canada emergency rent subsidy and lockdown support have helped more than 215,000 organizations cover their rent, mortgage and other expenses; the Canada recovery caregiving benefit has provided income support for over 400,000 employed and self-employed Canadians while they had to care for a child or a family member for COVID-related reasons; and the Canada recovery sickness benefit has supported over 700,000 Canadians unable to work because they were sick.

These are just a few examples of the essential support programs provided to Canadians during one of the toughest crises our country has ever faced, supports that kept businesses going through the worst days of the pandemic.

While we are seeing some better days now, there are still some sectors in our economy that need support. This is why we are moving from broad-based economic supports to targeted measures. This is why we introduced Bill C-2.

The comprehensive set of programs our government introduced has evolved as the pandemic has evolved. This has allowed us to continue to provide support to Canadians who need it the most. Right now we are reaching a turning point in the fight against COVID and in our recovery, but the recovery is uneven, and as the pandemic is ongoing, public health measures that are saving lives are also restricting some economic activity. Our focus is to protect and create jobs, so we can make sure that Canada has the strongest possible recovery. With Bill C-2, we would be better able to address the challenges that certain sectors in our economy are still facing.

To support organizations that have been deeply impacted in the tourism industry since the start of the pandemic, we are introducing the tourism and hospitality recovery program. This program would provide wage and rent subsidies up to 75% to eligible businesses with current month and average 12-month revenue decline of 40%. Other businesses that have faced significant losses but do not qualify for this program may receive support through the hardest-hit business recovery program. This is a wage and rent subsidy at the rate of 50% available to eligible businesses with current month and 12-month average revenue loss of at least 50%.

Certain programs do not need a pivot, but rather an extension, so we continue to support those in need. This is why we are proposing to extend the Canada recovery caregiving benefit and the recovery sickness benefit until May 7, 2022, and to increase both by an additional two weeks. These are programs that are working and helping self-employed and employed Canadians from coast to coast to coast. We are committed to making adjustments necessary to reflect the new phase of the recovery.

Finally, we recognize the challenges that may arise from the resurgence of this virus. Bill C-2 provides support for workers and businesses who may be subject to a public health restriction that is necessary to save lives and stop the spread of the virus.

The local lockdown program would provide support for businesses whose local public health guidelines require them to cease activities, resulting in closures and revenue losses. This is a new, targeted benefit available to businesses at a rate of up to 75%, regardless of the sector they are in and regardless of the losses over the course of the pandemic.

Additionally, to assist those who are unable to work as a result of a lockdown, we are proposing the Canada worker lockdown benefit to provide $300 a week in income support, retroactive from October 24, 2021, until May 7, 2022. This would be accessible for the entire duration of the lockdown and would be available to workers who are ineligible for EI or who are eligible but were not paid benefits through EI for the same period. These measures would guarantee that if a government-imposed lockdown occurs, Canadians can have full confidence that they will be supported through challenging times.

Last week, when the Deputy Prime Minister tabled this bill, I reached out to a constituent who owns a hotel. As a local business owner in one of the most impacted sectors of our economy, I wanted to get his thoughts on the bill but also on the economic supports provided by our government throughout the pandemic. When we spoke last week, I was happy to hear that he is currently experiencing a revenue rebound and no longer qualifies for certain programs, and he is happy about that as well. At the same time, he understands that a number of his industry colleagues still do need support, and he is appreciative of the supports and programs that are available to help them bounce back.

He also told me that one of the biggest challenges he is facing right now is finding staff, so I shared with him that in budget 2021 our government introduced the Canada recovery hiring program to help employers hire the workers they need to recover and to grow, with a subsidy of up to 50% of the additional eligible salary or wages. We are both pleased to see that this program will be extended until May 7, 2022, so that businesses in our community and across Canada can continue to receive the help they need to hire back workers, increase their hours and create additional jobs. This provides the certainty that businesses need to rehire and return to growth.

However, while the government programs and the recovery go hand in hand, they are only a part of the solution. We also need Canadians to join us in this fight against COVID-19 by doing what it takes to keep themselves, their loved ones and their communities safe. A few months ago, colleagues opposite speculated that Canada would not receive vaccines until 2030, yet it is still 2021 and we have had the largest vaccination campaign in our country's history and one of the most successful in the world. Thanks to the millions of Canadians who have gotten their first and second doses, businesses across this country are safely reopening, travel is slowly returning, the economy is rebounding, we have surpassed our goal of creating a million new jobs, and our employment rates are back to pre-pandemic levels.

We have come a long way, but we still have some way to go and all of us have a role to play. As a government, that means adapting our income and business support measures to target support to those who continue to need it. In my opinion, as Canadians, it means supporting our local businesses, helping organizations that provide services to those in need, and getting vaccinated to keep our communities safe. I want to take this opportunity to urge those who are eligible and able but have not yet gotten their vaccines to do so as soon as possible and help us put an end to the fight against this virus once and for all.

I remind Canadians that our government has been and will continue to be there for them, to provide help where help is needed.

[Mario Beaulieu, Bloc, La Pointe-de-l'Île, QC]

Madam Speaker, I would like to know what my colleague thinks of the fact that Bill C-2contains nothing for self-employed workers in the cultural sector, even though they are among the hardest hit by the pandemic.

Does he not think that there should be something in the bill for self-employed workers in the cultural sector?

[Kelly McCauley, Conservative, Edmonton West, AB]

Madam Speaker, Bill C-2 is very much a missed opportunity. It does not provide the proper targeting we believe is necessary. There will be people in need who fall through the cracks.

One of the issues we have been talking about for a year and a half now is with respect to the companies that opened just before COVID happened. It is by no fault of their own. Perhaps they started building a month before the lockdown happened and required two or three months before they could open their business. We asked repeatedly in the House for help for restaurants, hotels and other businesses. Every time, a Liberal minister stood up and said that it was under consideration, or that the government was monitoring it, which was my favourite. As if a person could pay bills by the government “monitoring it”.

This bill could have been so much better. I hope the government will take this opportunity to get it to committee to improve it for Canadians.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Madam Speaker, it is a strange time in my riding, because I have never seen so many “help wanted” signs. However, those jobs are not being filled. We had recovery benefits almost a month ago, but we have not seen the corresponding return of workers to where the jobs are. That shows me there is a disconnect in how the federal government is approaching this.

Obviously, the skill sets these jobs demand are not being met by the current workforce. With the ending of these benefits, especially the Canada worker lockdown benefit, there will be very vulnerable people who are going to be without any kinds of benefits or job prospects at a time when inflation is going through the roof. Therefore, I would like to ask my colleague this. Does he see Bill C-2 as a missed opportunity, when we could have invested a lot of money in retraining to make sure these workers have the skills that many industries in my riding and across this country are now very much looking for?

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, I listened to the brief comments the member made regarding Bill C-2. I know he spent quite a bit of time talking about and being very critical of other government subsidies, as though he did not vote in favour of them. All of the subsidies and supports that were given to Canadians, with the exception of those that came at the end of June through the last budget, were passed with the unanimous consent of the House. The member is very critical of those supports, yet he voted in favour of every one of them. Perhaps he could explain to us why he voted in favour of them if he is so critical of them.