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

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

Madam Speaker, I would like to congratulate you on your appointment as Deputy Speaker.

Over the weekend, I was extremely pleased to participate in various cultural activities in my riding of Thérèse-De Blainville. If Bill C-2, which is before us today, is so important and urgent in order to continue to support workers, how is it that this bill makes no mention of essential government assistance for self-employed arts and culture workers?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, I provided comment in regard to the issue of arts and culture. We have been there in the past; I believe we will be in the future. We recognize the importance of that industry and the contribution that arts and culture make to our society as a whole. Whether it is to our social fabric or our economic activity, we appreciate the value. We will continue to be there.

The former government House leader, who I know exceptionally well, is on top of that file. I know the member opposite also knows him quite well. I am sure we can have some peace of mind knowing that he will be at the forefront ensuring that our arts and culture sector is well taken care of.

[Leah Gazan, NDP, Winnipeg Centre, MB]

Madam Speaker, I would like to start by thanking the good people of Winnipeg Centre for honouring me once again with being their representative.

The member for Winnipeg North spoke a lot about the need for disposable income. Many seniors living in poverty in this country have no disposable income, and yet the government, without notice, is cutting GIS off from thousands of seniors who benefited from the CERB and CCB, not from the government's corporate friends but from thousands of seniors living in poverty.

In my riding of Winnipeg Centre, this is resulting in seniors becoming unhoused and having food insecurity. If the member believes seniors should be treated with respect and should have what they need to live in dignity, would the member for Winnipeg North agree to immediately impose a CERB amnesty on low-income seniors?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, the government has always treated seniors with respect and will continue to do so. Whether it was the substantial increase of the GIS that I made reference to, which literally lifted tens of thousands of seniors out of poverty, or the OAS and GIS increases, the one-time payments during the pandemic, or the 10% increase for those seniors aged 75 and over, virtually from day one, the government has been there for seniors and will continue to be there for seniors. Not only do we care, but we demonstrate that care by the actions we have taken.

I am very proud of the number of seniors we have lifted out poverty because of good, sound government policy-making.

[Wayne Long, Liberal, Saint John—Rothesay, NB]

Madam Speaker, it is great to be back in the House speaking and I want to thank my friend and colleague from Winnipeg North for his impassioned speech.

I listened with great interest when he was talking about the child care program that we have rolled out across the country and the benefits of that program. Sadly, I come from New Brunswick and our province has not yet accepted the deal. I watched with great interest: Alberta signed on the deal, other provinces across the country have signed on. It is a spectacular deal that ultimately will offer $10-a-day day care and cut costs next year by 50%.

Could my friend could speak very briefly on the benefits of that program and how transformational that program will be for Canadians right across the country and in my riding of Saint John—Rothesay?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, I know my friend and colleague is a powerful advocate for Saint John and that whole region. He has identified a program that would be of great benefit for not only his residents but all Canadians. I would ask those provinces that have not signed on to that agreement to act quickly. This is a program that is tangible. It can make a difference. It will substantially decrease the cost of child care and at the same time enable so many more to participate in Canada's workforce. We hear a lot about the need for more workers in Canada. This is a great program that helps deal with inflation and helps get more people into the workforce.

[Glen Motz, Conservative, Medicine Hat—Cardston—Warner, AB]

Madam Speaker, I want to go back to the question from my colleague from Peace River—Westlock who asked why this legislation, as important as it is to the well-being of Canadians, is not before the finance committee. Could he explain that to Canadians, please?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, the procedure and House affairs committee needs to be able to convene in order to be able to strike the committees and this all comes in time and it is through negotiations that take place between the House leadership of the different political entities in the chamber. There is a little more to it, but the bottom line is that we all as individual members of Parliament also have a role to play.

If the member has some ideas that he would like to share, he could stand up during the throne speech or debates like this, or even write directly to the minister. The Minister of Finance always makes herself available inside the chamber. I often, sitting very close to her, see members from the opposition walk over to express their concerns and thoughts to her. She responds to members on all sides of the House, as ministers as a whole are very much interested not only in what government members have to say, but also opposition members.

I would encourage the member opposite, if he has some ideas, to share them. Hopefully we will get the finance committee up and running and it too at some point will play a role in the budgetary measures of the Government of Canada.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, I will be splitting my time with the member for Parry Sound—Muskoka.

I rise today to speak to Bill C-2. Specifically, I want to address the government's position when it comes to the growth and recovery of our small businesses. It is disappointing that this is my first opportunity to rise in five months to debate any legislation on economic recovery because of the shutdown of Parliament.

Despite the Prime Minister stating that the election he called this summer was the most important in decades, he took an extended vacation. It is shameful that the Liberals took two months to recall Parliament. Of course, this should not actually surprise Canadians. We cannot forget that it was the same Liberal government that prorogued Parliament just last year to escape scrutiny for its ethical scandals.

When Parliament is shut down, committees cease to exist and all ongoing work in Parliament stops. When would this legislation even be going to a committee to be studied? We have no information from the government as to when committees will be reconstituted.

Prior to the election, I was sitting on the international trade committee, which was undertaking critical studies on clean-technology exports and getting COVID-19 vaccines to developing countries. Unfortunately, reports and recommendations that were going to be made to the government simply will not happen because the election was called. That is what happens when we have a Prime Minister who puts politics before country.

When the Prime Minister called an unnecessary $600-million power-grab snap election, the Okanagan, where I live, had enhanced health measures and was at the height of its wildfire season, with ash falling from the sky in Kelowna—Lake Country. Simply put, in their typical fashion, the Liberals love to be in government but they loathe governing. It is because of this series of political choices that we are continually asked to rush legislation through to make up for the failures of ministers to manage their portfolios and the House's legislative agenda. We saw this with CUSMA and the Canada-UK Trade Continuity Agreement, and earlier pandemic-relief legislation. Like a bad dream, here we are again.

Deadlines have been missed and we can bet that the Liberals will try their hardest to somehow blame a slowdown of legislation on the Conservatives. However, Canadians are smarter than that. The Liberals can only try to play the same old tricks for so long before everyone gets wise to their tactics. Canadians know that right now it is the job of the Conservatives to hold the Liberals to account.

My Conservative colleagues and I want to ensure that government legislation does not have unintended consequences. We want to ask the tough questions at committees and make solid recommendations to ensure that legislation such as this is right for our constituents and for our country.

We should have been back in the House a month ago. The Conservatives were calling for this back in early October. We wanted to get back to work here. The Liberals wanted to avoid scrutiny. I had thought that this may be because they were taking the time to develop a real plan for Canadian small businesses to recover and grow, a real plan addressing real issues for my constituents, businesses and not for profits in Kelowna—Lake Country. The Conservatives have been writing to ministers and speaking publicly about real measures that will address the challenges facing small businesses across the country.

When budget 2021 was debated, I highlighted how the recovery support programs were not working for many businesses, and this legislation really is much of the same and does not address some of the most important issues facing small businesses, such as labour shortages, inflation, supply chain issues, hindering sales, tax increases and paying off or accessing debt. That is what happens when we have a government that does not listen to people and a government that puts headlines before policy.

Small businesses, especially micro-businesses, in the most devastated sectors are the ones with the least capacity to absorb pandemic-related disruptions and have been the most impacted and need us to focus on these important issues. To make a bad situation worse, businesses that have now started to slowly recover are facing labour shortages, as I mentioned, that could bring their recovery to a screeching halt.

The labour crisis is crippling industries in every sector in every region. According to RBC Economics, one-third of Canadian businesses are grappling with labour shortages and they expect labour shortages to get worse. Small businesses cannot continue to weather the COVID-19 pandemic without the federal government focusing on the real challenges they are facing, such as a slow economic recovery, labour shortages, rising costs and debt.

In the September 2021 report from the Business Development Bank of Canada, it states that out of a survey it conducted, 55% of entrepreneurs are struggling to hire workers they need, causing them to delay or refuse new orders; 64% say the ongoing labour shortages limit their growth; and 44% have delayed or are unable to deliver orders to clients. The government's programs simply are not working.

During the course of the pandemic, it has been reported that small businesses have also taken on nearly 170,000 dollars' worth of new debt on average. I have talked to many small business owners who have personally lent their businesses money in order for their business to survive, and this legislation would do nothing to address this potentially devastating economic issue. If the government's support programs were so successful, why are small businesses forced into higher levels of unmanageable debt?

What has become clear is that the government is failing to focus on warning signs. Its members are forgetting that it is the job of government to ensure that it creates an environment where businesses can thrive, not just survive. Reducing regulatory burdens, tackling the supply chain crisis that started before the pandemic, addressing the labour-shortage crisis through various worker visa extensions, getting people who can work back to work and halting all tax increases for businesses are just a handful of ways to focus on economic recovery. Measures like these need to be taken up urgently.

Just this past Friday, a report in The Globe and Mail said job vacancies have soared beyond one million. Statistics Canada says that nearly a fifth of all vacancies are in the hospitality sector. The government, in this debate, is choosing to boast about its recovery numbers, but members should try asking the average restaurant owner, hotel manager, farmer or construction company in my riding how they are seeing our job market. They cannot remember a time when they have needed to recruit so many workers just to keep the lights on.

The government will no doubt want to lay all these shortages at the feet of the global pandemic. However, the chief economist at the Business Development Bank of Canada recently pointed out that, “Even before the pandemic, employers had difficulties in recruiting.”

Without urgent attention to address this crisis, new and existing businesses will not have the ability to grow their reach, meet their orders or even keep existing employees on their payroll. Shortages mean fewer employees or owners trapped working longer hours, which only adds to our ongoing mental health crisis. According to Statistics Canada's most recent survey of business conditions, more than one in four businesses expects their profitability to decline before year's end. If the government does not take action to get people back into the workforce, there will not be the good-paying jobs out there in the private sector for them to go back to.

After almost two years of pandemic-related disruptions, rapidly rising inflation, serious supply chain issues, skyrocketing and automatically increasing taxes, costs and debt, international trade disputes where Canada continually ends up on the losing end and a labour shortage preventing our economic recovery, not to mention trying to maintain mental health, small businesses, the backbone of our local communities, are on the brink of collapse. For these entrepreneurs and organizations, “help wanted” has never rang more true. It is a cry to keep their entrepreneurial spirit alive. Unfortunately, the government has decided to pursue a course that would do nothing to address these underlying issues.

The Conservatives will continue to stand up for small businesses across this country. We will continue to advocate for real action that delivers concrete results. We are putting policies before headlines. I am fighting for small businesses because I have been a small business owner and know what it is like to have everything on the line.

[Wayne Long, Liberal, Saint John—Rothesay, NB]

Madam Speaker, I too was a small business owner for many years, owning the Saint John Sea Dogs, a Quebec major junior league hockey team, and an aquaculture business. I can tell members first-hand that the constituents of Saint John—Rothesay absolutely appreciated the supports that our government delivered for small businesses. Many small businesses that came to my door were appreciative of the wage subsidy and the commercial rent support.

As the hon. member was a small business owner, which supports did we get wrong and which ones would she change?

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, we are 20 months into the pandemic, and early on during the pandemic the recovery programs were absolutely needed. We were continually supporting those, and also giving recommendations on ways to amend them to support people and small businesses. Early on, there were many ways that small business owners were not eligible for programs. For example, those who dealt with a credit union were not eligible to apply for a loan. Those who did not have the right bank account were also not eligible.

We have continually made recommendations during the course of the pandemic and have been there alongside businesses. At this point, 20 months in, we are in a situation where we have, as I mentioned, a labour crisis, an inflation crisis and many other issues, and we need to focus on those as well.

[Larry Brock, Conservative, Brantford—Brant, ON]

Madam Speaker, given what we heard last week regarding the virtual sittings and the necessity of wearing masks and everything of that nature, I find it rather odd that there are members of the governing party who choose, for whatever reason, not to wear their masks.

[The Assistant Deputy Speaker, NDP, Carol Hughes]

I appreciate the hon. member's point of order. I do want to remind members that they are to wear their mask unless they are rising to speak. It is not just members of the governing party who have forgotten to put their mask on at times, so I want to remind all members of the House to ensure they have their mask on when they are not speaking.

The hon. member for Beauport—Limoilou.

[Julie Vignola, Bloc, Beauport—Limoilou, QC]

Madam Speaker, my colleague is talking about SMEs and the difficulties that they have had throughout the pandemic and they might continue having, particularly with regard to the labour shortage.

I am going to talk about something even more specific, and that is the cultural industry. Self-employed workers were completely overlooked this time around. These include boom microphone operators, for example. Boom microphone operators are needed to do recordings and to make movies as well as reality and other television shows.

Sooner or later, these people are going to move to other sectors, which means we will lose this incredible expertise, and yet they were completely overlooked in this bill.

When she talks about SMEs, is my colleague also thinking about these essential culture workers?

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Madam Speaker, of course, there are many types of businesses and not-for-profits. Looking back at a former debate I had over budget 2021, I spoke quite a bit about arts, culture and recreation. There are a number of arts and culture organizations that are businesses as well. I heard recently from one in my riding. They let me know how their situation was going.

It is all-inclusive, with different types of industries, whether that means arts and culture, farming or hospitality. It is the whole gamut, and everyone has been affected in different ways.