Finance Committee on April 2nd, 2020

[The Chair, Liberal, Wayne Easter]

Okay. We'll have to leave it as information noted, Mr. Julian. Thank you muchly.

Did I hear somebody come on?

Cliff Groen, ADM for ESDC, go ahead.

[Cliff C. Groen, Assistant Deputy Minister, Benefits Delivery Services, Service Canada - Benefit Delivery Services Branch, Department of Employment and Social Development]

Regarding the previous question, there are technology issues on this line. My Department of Finance colleagues, both Michelle Kovacevic and Andrew Marsland, have been trying to get in to respond, but they are having difficulties. It's not that they're not trying to reply. It's actually that they're unable to get in, from a technology perspective.

I had also tried to get in previously on a previous question, which I'll quickly address. Further to the answer provided by Frank Vermaeten from the Canada Revenue Agency related to the processing of EI applications and the stability of the system, we have received over two million EI applications over just the last two and a half weeks. We continue to be able to accept and receive those applications. We are processing them on a very expedited basis.

As indicated yesterday, going forward, as we have now implemented the flat-rate benefit on a go-forward basis for all EI applicants, we expect to be processing 400,000 applications a day. That would be also addressing the big onslaught of applications that we will be receiving.

Unfortunately, if my Finance colleagues aren't able to answer, I am not in a position to answer that most recent question.

[The Chair, Liberal, Wayne Easter]

All right. Thank you very much.

Thank you, Mr. Julian.

We'll go to five-minute rounds. We'll go first to Mr. Cooper and then to Mr. Sorbara.

Go ahead, Mr. Cooper.

[Michael Cooper, Conservative, St. Albert—Edmonton, AB]

Thanks, Mr. Chair.

I want to start by following up on a question that was asked by Mr. Poilievre to Minister Morneau with respect to the Canadian emergency business account program.

Mr. Poilievre correctly noted that of the 239 credit unions across Canada, only a handful are listed as approved creditors by EDC. The minister, whom I recognize has a lot on his plate, said he would look into it. With respect, that answer just doesn't cut it, especially in light of the fact that not a single Alberta credit union is on the EDC list of approved creditors. The consequence is that literally tens of thousands of Alberta's small businesses won't be able to access the program.

To whoever among the officials is in the best position to answer, what is being done to get credit unions onto the approved list with EDC, particularly in the province of Alberta, where literally, again, tens of thousands of small businesses that desperately need that support won't be able to access it?

[The Chair, Liberal, Wayne Easter]

Is the Department of Finance able to come on the line yet?

I believe, Michael, we're still having problems with Finance being able to come on the line. Your point has been noted. I know from being out there in the farm movement, that credit unions are the norm in Alberta. Your point is noted.

Go ahead again, Michael. Hopefully, we'll get them on to answer that question before we close today. Go ahead with your second question.

[Michael Cooper, Conservative, St. Albert—Edmonton, AB]

Maybe just to add to that, could the officials provide a date when they expect businesses will be able to access the program? Could they provide a timeline on that? Is there anybody who is now in a position to answer both of those questions?

[The Chair, Liberal, Wayne Easter]

All right. The operator has informed me that all lines are now open. We'll hold them open. Just give us your name when you go to answer the question.

The Department of Finance can go to Mr. Cooper's question, if they heard it, on credit unions.

[Soren Halverson]

This is Soren Halverson from Finance Canada. Thanks for the question.

Let me start by saying we've worked closely with credit unions over the past couple of weeks as we've been shaping up the business credit availability programs. We also are working with other financial institutions located in Alberta. That includes Alberta Treasury Branch. It includes CWB, which has a major presence there. We are working on putting this program in place as quickly as we can, at the biggest scale we can make it, reaching the greatest number of businesses we can.

We anticipate being able to start to flow funds to businesses through this program within the next couple of weeks. We're doing everything we can to make it work. We're involving many parties, including credit unions, in that process.

[The Chair, Liberal, Wayne Easter]

Thank you.

Michael, could I get you to hold for minute.

I expect the second question will be for the Department of Finance, so I wonder if the officials from the other two agencies could mute their lines for a moment. There are too many microphones open. That's why we're having so much difficulty hearing. Could the Department of Finance officials leave theirs open and the others close theirs for the moment?

Go ahead, Michael.

[Michael Cooper, Conservative, St. Albert—Edmonton, AB]

I would like to move on to some timelines on a few other programs.

We heard from the minister, who said that in a best-case scenario the portal for the Canada emergency wage subsidy would be open in three weeks. Again, assuming that it is a best-case scenario, that it is up and running in three weeks, how quickly would the dollars be out the door to the businesses that desperately need it? Would it be four weeks? Would it be five weeks? Would it be three and a half weeks? We need some certainty and some clarity, which we haven't had.

[The Chair, Liberal, Wayne Easter]

That is for the Department of Finance folks. State your name and go ahead.

[Andrew Marsland]

My understanding is that once the portal is up and running and applications are made, the payments will follow quite quickly.

Perhaps Mr. Vermaeten would like to comment on that.

[Frank Vermaeten]

Yes.

To follow up on Andrew's comments, we're expecting that once the system is built, the payments, in most cases, will be instantaneous: We get the application. It's fully automated. It checks the systems. It goes through various steps that are all automated. We then send the payment file over to Public Works—or what was called Public Works—and the payments are issued immediately. With direct deposit, companies are going to have that within three business days, probably sooner. If they're not on direct deposit, it would take up to about 10 days.

[The Chair, Liberal, Wayne Easter]

Thank you very much for that information.

We'll go to Mr. Sorbara, and then to Mr. Morantz after Mr. Sorbara.

Go ahead, Francesco.

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

Thank you, sir.

First, I'll give a quick thanks to CRA, Finance Canada, ESDC and all the officials working literally day and night to put in place all these programs at this extraordinary period of time.

I have a number of questions. I'd like to get some data, if I can call it that, with regard to the enhanced Canada child benefit, which we've announced, and the enhanced GST credit. This is probably a question more for CRA and Finance.

How many individuals will benefit from the enhanced GST credit in Canada? How are we doing in terms of implementing that measure for these individuals to receive it?

[Andrew Marsland]

The number of beneficiaries of the GST credit, we estimate to be about 15.5 million adults. That would include both single individuals and couples.

The payments with respect to that would be going out, I believe, on April 9.

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

April 9 is ahead of the May expectation.

[Andrew Marsland]

It is, thanks to CRA, yes.

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

Thank you, in terms of that.

Regarding the enhanced child benefit, obviously this is again an automatic benefit that will flow to families across Canada, including the ones in my riding.

[Andrew Marsland]

Yes. That will represent a top-up to the scheduled May payment of $300 per child.

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

Okay.

Again, confirming the numbers, on average, a family in Canada would receive, I think, $550 tax free.

[Andrew Marsland]

The average additional benefit of the GST credit will be $396 for single individuals, $594 for couples and up to $300 per child for the child benefit.

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

Thank you.

I'll move on to the assistance we've provided to seniors as a result of the correction in the equity market, which is taking place for obvious reasons. The estimated number is that this is a $495-million commitment, as stated on the finance department's website. How many seniors do we estimate will benefit from the lower RRIF minimum withdrawal requirements?

[Andrew Marsland]

About 2.6 million Canadians withdrew about $30 billion from their registered retirement investment funds in 2017. That's the last year for which we have data. Of those, about 1.3 million, or about 48%, withdrew the minimum amount, so one would expect that the number of beneficiaries will be around that number.

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

Thank you very much.

I want to confirm something to make sure we put it on the record for those folks living in rural Canada, where the Internet speed may not be as robust as in the urban core centres.

With regard to the Canada emergency response benefit for the very many Canadians—5.7 million Canadians or thereabouts—who are not eligible for employment insurance, folks living in rural Canada will be able to access it easily over the phone using IVR. Can we again just state that process very quickly for our constituents and make sure everyone knows about it?