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

[Daniel Blaikie, NDP, Elmwood—Transcona, MB]

Mr. Speaker, there is certainly no question that we should not have had an election when we did. There was no reason for the election. There was actually an all-party recommendation on this out of the procedure and House affairs committee after it studied the question of a pandemic election. It recommended against having an election unless the government lost a confidence vote in the House, which it never did. There was also a fixed election date law on the books that said there should not have been an election unless the government lost the confidence of the House, which it did not. There is absolutely no question that we should not have had the election.

That thought occurred to me a few times in the debate yesterday when I heard the Liberals talk about this. As it happens, the New Democrats support having a hybrid capability because we recognize we are not out of the pandemic. However, it was hard to fit the Liberals' arguments about why it was okay to have an election with why we need a hybrid Parliament. That is their contradiction, not ours.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, good afternoon to you and all of my colleagues who are here in person and here virtually. I wish a happy Friday to everyone.

It is my pleasure to rise today to speak to Bill C-2, which continues to support Canadian businesses and workers from coast to coast to coast.

I will be sharing my time with the hon. member for Glengarry—Prescott—Russell. He is a big supporter of the agricultural community in Canada and a great friend.

I am pleased to take part in today's debate on this very important bill, Bill C-2, which would provide and continue to provide essential supports that are needed now to continue Canada's robust economic recovery from the COVID recession.

When the crisis hit, our government rapidly rolled out a full range of effective broad-based programs to support Canadians through our country's greatest economic shock since the Great Depression. Yes, we had the backs of Canadian businesses, we had the backs of Canadian workers and, most importantly, we had the backs of Canadian families. These actions were necessary and unprecedented in our lifetime.

These programs were a lifeline for workers and businesses across the country. They protected millions of jobs and helped hundreds of thousands of Canadian businesses get through the worst of the pandemic.

However, these emergency measures were always meant to be temporary to help us to get through the crisis. Fortunately, we are now entering a new phase that looks very different from the darkest moments in our fight against COVID‑19.

Thanks to one of the most successful vaccination campaigns in the world, including almost 90% in the region of York, the region I represent in my riding of Vaughan—Woodbridge, most businesses are safely reopening and employment is now back to pre-pandemic levels. However, we know there are still workers and businesses whose livelihoods are being affected as a result of the pandemic-related restrictions on activities. This is why it is important to pivot our support measures to more targeted measures that would provide the help where it is needed most and continue to create jobs and growth while prudently managing government spending.

I am happy to say, which I believe the Deputy Prime Minister also said, that Moody's and Standard & Poor's have reaffirmed and confirmed our country's AAA credit rating. We are only one of a few countries in the world to maintain an AAA credit rating from the rating agencies, which is great to see and is thanks to the hard work of all Canadians.

Some may wonder how we can tell we have reached a turning point in Canada's economic recovery from the COVID recession. Allow me to highlight the markers of our government's successful economic response plan that have brought us to where we are today.

Last year, in the throne speech, our government promised to create one million jobs, a goal that we reached in September of this year, when Canada recovered all of the jobs that were lost at the height of the recession caused by COVID‑19. That means three million jobs were recovered since the spring of 2022. In fact, according to the Statistics Canada labour force survey from October, the reported unemployment rate is now 6.7%, the lowest it has been since the beginning of the pandemic. The number of jobs continues to be above the pre-pandemic level.

In fact, Canada's job recovery rate is well ahead of that of the United States, which has recovered only 91% of the jobs it lost at the height of the pandemic.

It is a welcomed sight that we can all see the differences between this fall and the one prior. Shops and businesses are open in my riding and from coast to coast to coast. Canadians are doing their part to make sure we have a safe reopening by rolling up their sleeves to get their vaccines and following public health advice. Children, including two of my three children, are also back in school, enabling parents to fully participate in the workforce. The early learning and childhood agreements our government is putting in place, with a total of nine agreements signed to date with the provinces and territories, are already making a difference in the lives and wallets of families across this beautiful country.

We have accomplished all of this together while sticking to health restrictions that have saved lives and putting in place the necessary resources and supports Canadians and Canadian businesses needed to survive, the small local businesses in all our ridings that we have the privilege of representing.

However, as welcome as these economic markers and signs of recovery are, our government recognizes that it has been an uneven recovery and some of the necessary health measures that continue to save lives, while less restrictive than before, are still restricting some economic activity. What this means for our government is that we are entering what I hope and believe will be the final pivot in delivering the support needed to ensure a robust, inclusive and sustainable recovery that benefits all Canadians.

The service industry continues to drive economic recovery, but progress in the retail sector has been partly offset by losses in other sectors, such as the restaurant and accommodation sector. As the Deputy Prime Minister and Minister of Finance indicated in October, a number of business revenue support programs have ended now that the economy has reopened.

With this change, and through Bill C-2, which we are debating today and which I hope all opposition parties will support, we are moving from the very broad-based support, which was appropriate at the height of our lockdowns, to more targeted measures that would provide help exactly where needed. This would include extending the Canada recovery hiring program until May 2022, which would help us finish the fight against COVID-19 and continue to ensure lost jobs are recovered as quickly as possible.

For eligible employers with current revenue losses of about 10%, our government would provide a subsidy rate of 50% to enable employers to hire the staff they need to grow and thrive.

In addition, our government is proposing to deliver targeted support to businesses that are still facing significant pandemic-related challenges. Let us think about the businesses, such as the hotels in a typically busy tourist designation that has not seen a return to the usual amount of visitors as in years past, or alternatively, a curling club that is just beginning to see more patrons as public health restrictions ease and Canadians begin to engage more in the recreational activities they enjoyed prior to the crisis.

These are examples of the businesses that still need our support, this chamber's help and assistance as we push to fully recover from the COVID-19 recession.

That is why our government wants to provide support through three new programs for businesses still grappling with major pandemic-related challenges. The first is the tourism and hospitality recovery program, which would provide support to, for example, hotels, tour operators, travel agencies and restaurants with wage and rent subsidies of up to 75%.

Next is the hardest-hit business recovery program, which would provide support to other businesses that have faced deep losses, with wage and rent subsidies of up to 50%.

Last is the local lockdown program, which would provide businesses that face temporary new local lockdowns up to the maximum amount available through the wage and rent subsidy programs. These programs will be available until May 7, 2022, and the proposed subsidy rates will be in effect until March 13, 2022. From March 13 to May 7, 2022, the rates will be reduced by half.

In conclusion, the economy continues to reopen and jobs are being created. People are being vaccinated. Children from ages five to 11 are now receiving theirs, and boosters are being offered to eligible Canadians. Restrictions are carefully being eased in our communities and at our border. The time has come to adapt our income and business support measures to these better and happier circumstances.

I appreciate this opportunity to speak on Bill C-2. I hope all opposition parties will support this important legislation.

[Eric Melillo, Conservative, Kenora, ON]

Mr. Speaker, I thank my colleague for his thoughts on this bill. I would like to once again congratulate on his re-election.

In northern Ontario, in the Kenora riding, one of the greatest economic issues we are facing right now is a severe labour shortage. I do not believe there is much, if anything, in this bill that would address that.

I would like to ask my friend across the way if he feels that Bill C-2 would address the labour shortages across the country. If not, could he fill us in on what measures the government would be taking to do so?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, I congratulate the member on his re-election.

With regard to Canada's economy prior to the pandemic, we had what was the lowest unemployment rate on record, with a need for more newcomers to come to Canada and for more upskilling of Canadian workers, improving their human capital. We will continue to do that.

We have recovered very quickly from the pandemic. Why? Because the programs we put in place, such as the Canada emergency wage subsidy, CEBA, CERB and programs like the regional relief and recovery fund, funds that were directed across Canada to help businesses maintain that attachment between employers and employees. We did that.

That is why we recovered faster, that is why our job market is robust and that is why we continue to attract newcomers to this country, including, I believe, a northern pilot project with IRCC that is bringing newcomers to Kenora and other parts of northern Ontario.

[Yves Perron, Bloc, Berthier—Maskinongé, QC]

Mr. Speaker, I thank my colleague for his speech.

I have a few questions for him. First of all, we have heard a lot today about self-employed workers who are not getting support, particularly in the cultural sector, but there are also other self-employed people whose businesses have not recovered. Is the government open to the possibility of helping those individuals?

In addition, under the hardest-hit business recovery program, a business must have lost more than 50% of its revenue in order to obtain 10% support. Is the government open to reviewing those percentages? Perhaps 10% is enough for large corporations, but for SMEs, 50% of revenue is huge. Some additional support might be needed there.

I would like to hear my colleague's thoughts on those two questions.

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, it is very important for our government to help all businesses across the country.

It is very important for us to help all enterprises in Canada, but also all sectors. If there are ideas within the House that need to be brought forward, obviously those should bring them forward. That has been our motto since the beginning of the pandemic. That is how we have gotten our legislation even better than on the first iteration.

Most important, this hardest-hit measure that we have put in place in Bill C-2 falls under the Canada emergency wage subsidy, which I remind all members in the House assisted 5.5 million workers and literally hundreds of thousands of firms to maintain that attachment between employer and employee.

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, hopefully the member can answer this specific question.

For a business like the Windsor casino in my municipality, hundreds, if not thousands of workers were shut out of their jobs through government intervention with regard to closures. The reopening has not allowed them to get enough weeks to qualify for employment insurance and they appear not to be eligible for this program. Could the member let us know if that is the case? If not, those workers will have to go on welfare. Will the government deal with that situation? There are others, but it is a good example.

We have thousands of people who did not have the ability to get the weeks they needed to qualify for employment insurance. By the rules I see in the bill, Bill C-2, they are basically being pushed onto welfare. Is that the government's plan? Just them to push onto welfare?

[Francesco Sorbara, Liberal, Vaughan—Woodbridge, ON]

Mr. Speaker, the member for Windsor West and I have worked on Canada-U.S. relations. Our government, since day one, has had the backs of Canadian workers, Canadian families and Canadian employers. We will continue to do that until the end of the pandemic.

We are pivoting to more targeted measures. We have had very broad-based measures. We know that Canadians are back to work. We know that a lot of sector have recovered, but we will continue to assist and aid those sectors that continue to be impacted by the COVID-19 pandemic.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Mr. Speaker, as I rise for the first time in the House to discuss a bill, I want to thank all of the constituents of Glengarry-Prescott-Russell, my wife, Kathryn, and my son, who is on his second election already even though he is only two and a half. He is going to be a super-volunteer later in life.

Today we are discussing Bill C‑2, an act to provide further support in response to COVID‑19. I want to thank the Public Health Agency of Canada, which has been working hard since March 2020 and probably since February 2020 when we found out about this virus.

The situation we are in now compared to the beginning of the pandemic is good news. Our health authorities are doing excellent work. Dr. Paul Roumeliotis has done excellent work in my riding and I am sure that the member for Stormont—Dundas—South Glengarry agrees with me on that.

The vaccine is now approved for children aged five to 11, which is good news. I know that clinical trials are under way. Dr. Tam, our excellent chief public health officer, said last week that clinical trials for children under the age of five were under way. This is something that affects me personally, and I hope that these clinical trials will be successful for our children. There is no question that if the trials are successful my child will be vaccinated. That is the responsible thing to do.

The pandemic has had a huge impact on workers and small businesses. The COVID‑19 lockdown measures have been very difficult. I know that everyone has spoken to all kinds of business owners and self-employed workers. I have had a number of conversations with hair salon owners who lost all revenue overnight and no longer knew how they would pay the bills at home. That is why the Canada emergency response benefit, the wage subsidy and the rent subsidy were created.

Even in my riding, we helped several businesses move online given that people could not go out to shop and had to stay home. Our government implemented measures to help businesses grow their online services. The Prescott-Russell Community Development Corporation did excellent work at home to ensure that several businesses had an online presence.

When we made these announcements on July 1, it is true that the CERB was changing. However, everyone knew that it would end on October 23, 2021. Shortly after that, the Deputy Prime Minister and Minister of Finance, together with the Prime Minister, made an announcement about the main components of Bill C‑2, which we are discussing today.

I obviously support Bill C‑2 because I believe that it targets the crux of the problem. When we were locked down, there were no jobs available. All the stores were closed and everyone was asked to stay home. Today, we have heard from several parties that there is a labour shortage. It existed even before the pandemic, which has made it worse. We have a support program for certain people who have lost income, and that is the purpose of the programs announced today. If a province or a municipality ever has to lock down again, I am pleased to say that we will be there to answer the call.

It is called the Canada worker lockdown benefit, and it is important. Hopefully we will not go back there, but if we do, and a province decides to implement lockdown measures, then at least our constituents will have something to go back on to help them pay for groceries and whatever expenses they have related to their home.

There is another important one. We have all had discussions with the tourism sector and the restaurant sector. When the economy opened, they were not able to take advantage of a fully reopened economy because they were limited by being asked to ensure that customers were six feet apart, so they could not have as many restaurant tables in their restaurants. Obviously, that has a direct impact on their revenues, which is why the tourism and hospitality recovery program is important to help them get through this pandemic as the economy reopens.

Another important measure deals with the hardest-hit sectors of our economy. I had the opportunity to talk to people from 417 Bus Line, who told me that a good portion of their company's income is related to school transportation, which has resumed, but that they are still missing the income generated by the charter buses that transport tourists to various communities.

I am pleased to say that the measures we are announcing today will help that company. I want to tell the Laplante family that I heard what they had to say, as did the minister, our government and the Prime Minister.

It should be noted that it costs between $15,000 and $20,000 just to get a bus back on the road after it has been parked for two years. Obviously the measure that we are announcing here is not directly related to the cost of getting these buses back on the road, but it will help cover other expenses, such as the cost of rehiring workers later.

We all wish that the measures we have announced were not necessary, but we have a responsibility as a government. We have a responsibility to manage risk, and that is what these measures do. They will be available to help our businesses if necessary. These businesses will have access to programs that will help them grow or deal with costs associated with any new lockdown measures.

The opposition parties have identified some flaws in these measures, and I invite them to join the conversation. We introduced a bill, but we are definitely open to certain amendments if necessary. That is part of the debate. I would also encourage parliamentarians to discuss Bill C‑2 with their constituents. If there are flaws in the bill, it is our responsibility to find ways to correct them. I think the Minister of Finance and the Minister of Tourism and Associate Minister of Finance are open to those conversations.

In conclusion, I would like to say that Bill C‑2 is important to Canadians and our businesses. It puts forward tools to help our businesses, but it will not be the only way to meet those needs. Let me point out that we have a Minister responsible for the Federal Economic Development Agency for Southern Ontario and that we are seeing positive spinoffs. The agency is also doing excellent work by making interest-free loans available to entrepreneurs and businesses so they can buy new equipment or acquire new technology to help them get through the pandemic.

The message I want to send today is that our government has always been there to meet the needs of our business owners, our workers and our fellow citizens. In closing, I would like to once again thank the voters of Glengarry—Prescott—Russell.

[The Deputy Speaker, Conservative, Chris d'Entremont]

I want to remind members who are joining us virtually to put their hand up if they want to ask a question online.

Questions and comments, the hon. member for Edmonton West.

[Kelly McCauley, Conservative, Edmonton West, AB]

Mr. Speaker, my colleague and I have had the pleasure of serving together on the government operations committee for six years. I hope to see both of us again on OGGO, despite what he may wish.

My colleague probably knows that the last time around with the wage subsidy, we had a lot of criticism, as it was going to wealthy hedge fund managers, big corporations and Chinese communist state-owned companies. We asked the previous Treasury Board president if the $80 billion of new spending went through the required Treasury Board approval process, and the minister stunned us all by saying it had not.

I am wondering if my colleague could assure us that the new spending in Bill C-2 has gone through the Treasury Board approval process, as required by the Treasury Board framework.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Mr. Speaker, I want to thank my colleague for his question and also for his confidence in me knowing every procedure of the Treasury Board. I would remind him that I am not the president of the Treasury Board, but I know her, and I know that she would make sure that it goes through a rigorous process.

With regard to the member's previous comments about the wage subsidy, obviously we have set rules in place, and on those who have broken the rules, I have confidence that the good folks at the Canada Revenue Agency will do the work necessary to get our dollars back.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Mr. Speaker, congratulations on your appointment.

I would also like to take a moment to thank the people of the riding of Abitibi—Témiscamingue for putting their trust in me once again. I am very honoured. I would also like to thank my wife, Émilie, and my children, Léon and Jules, for all the sacrifices they make so that I can represent the people of my riding. I also want to thank my team and the volunteers who helped out during the election campaign. I am grateful for their contribution.

That being said, we could all have done without this election, especially considering the results. The government's goal was obviously to get a clear mandate to better manage the pandemic. In the end, the response from Canadians showed that what we were doing was good.

One of the first measures announced by the new government was to abolish the CRB. However, the Liberals did not talk about that during their election campaign, even though the campaign should have been used to promote pandemic management measures.

In the context of Bill C‑2, there are also self-employed workers in the cultural sector who have been left out.

The member for Glengarry—Prescott—Russell seems prepared to talk about it in order to improve the situation. What can we do to help people, the self-employed workers in the cultural sector?

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Mr. Speaker, I want to congratulate my colleague on his re-election and thank him for the question.

The Bloc's position on the possible reintroduction or elimination of CERB has never been clear. It is confusing. I could definitely quote several comments made by the Bloc leader indicating that he absolutely wanted to eliminate the CERB under the pretext of a worsening labour shortage throughout Quebec and Canada.

As for the member's question, I would remind him that the purpose of CERB was to make up for income lost because of the lockdown. This will also be the case for the Canada worker lockdown benefit.

[Mel Arnold, Conservative, North Okanagan—Shuswap, BC]

Mr. Speaker, I thank the member for Glengarry—Prescott—Russell for his presentation today.

The concerns in my riding are growing every day. I have food processors who cannot find employees. They bring them in as temporary foreign workers. Now changes are being made, and they are not tied to those jobs any more. The employers pay the cost of bringing them in, and they are leaving those jobs to go elsewhere.

Our food security and food availability for Canadians is at risk because of the policy of this government and the inability of employers to find workers. What is this government going to do to make sure that we have workers available in our food growing and processing sectors so that we can continue to feed Canadians affordably? We have seen the inflation climbing and grocery prices going out of control. What is this government going to do to bring this under control?