Evidence of meeting #23 for Finance in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was may.
A recording is available from Parliament.
3:20 p.m.
Liberal
The Chair Liberal Wayne Easter
Thank you, all.
Before I go to Mr. Julian, the speaking order for the next round will be Mr. Cumming, Mr. Sorbara, Mr. Cooper and Ms. O'Connell.
Peter, you're on.
3:20 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you very much, Mr. Chair.
Thank you to the officials who are being here.
Today my next questions come from Mumilaaq Qaqqaq, who is the Member of Parliament for Nunavut.
As you're aware, tragically there is now an outbreak in Nunavut, in Pond Inlet. There are grave concerns about the impacts of that outbreak because of the housing shortages in Nunavut and the fact that many families are often packed together in a small family home.
The territorial government made a request for $43 million. The federal government had approved and committed $30.8 million going to Nunavut. At the same time, a commitment was made to provide supports for the airlines in the northern territory in Nunavut. As you all are aware, I'm sure, airlines are absolutely essential for supplies getting into communities throughout Nunavut.
The question is very simple. When are those funds, the $30.8 million and the $5 million, going to be made available to the Government of Nunavut, particularly in light of this tragic outbreak?
3:20 p.m.
Liberal
The Chair Liberal Wayne Easter
Can anyone answer that question?
Do you want to direct it some place, Peter?
3:20 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
It's for the Department of Finance. The commitment was made by the Government of Canada. It is very simple. When is that money going to be made available to the territory of Nunavut?
3:20 p.m.
Liberal
The Chair Liberal Wayne Easter
Just so I'm clear, you are talking about the money that was already announced. You're not saying to officials that they should announce more money.
3:20 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
No, this is money that has been committed to but has not yet.... I should mention the territory of Nunavut has already incurred costs of $24 million in preventive preparation for this pandemic, so there are big concerns in Nunavut.
3:20 p.m.
Liberal
The Chair Liberal Wayne Easter
Can anybody from finance take that? I think what Peter is saying is that this is an urgent matter and the money should be going out. If nobody is available to answer, the point has been clear.
Ms. McDonald, go ahead.
3:25 p.m.
Associate Assistant Deputy Minister, Federal-Provincial Relations and Social Policy Branch, Department of Finance
I can't speak to the dollars for airlines, but I can commit to getting back to the member about when the dollars will flow to Nunavut. Know that we're working very closely with them. I can double-check on that and respond in writing, or whatever is appropriate, Mr. Chair.
3:25 p.m.
Liberal
The Chair Liberal Wayne Easter
That would be great. If you could, send that information through to the clerk as well, so that we have that.
Peter, I won't take that time from you. Go ahead.
3:25 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you very much, and I thank the finance ministry officials for getting back both to me and to Mumilaaq Qaqqaq, the member of Parliament for Nunavut. As I'm sure everybody can understand, there are grave concerns about that outbreak and what it could mean, so the quicker the response the better.
There are also concerns about broadband support, because there is an application to provide better broadband access in all the communities in Nunavut. If government officials could come back on that as well.... I don't expect that anyone would be able to answer that immediately, but if they could come back today or tomorrow with a response on that as well, it would be very important.
Of course we're very concerned. It was an outbreak that had been stopped for over a month and a half, and now unfortunately, it has touched Pond Inlet and we're certainly thinking of the residents of Nunavut now.
3:25 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
I'll go on to another subject, if you'll allow me to do so. Thank you very much, Mr. Chair.
My question is around the Canada summer jobs program. There were announcements about changes to Canada summer jobs, but the actual number of positions in my riding and across the country has gone down. The 100% funding ability is of course welcome, but because there has been no additional funding put into the program, the number of positions has been reduced.
Is the government prepared now to increase funding for the many organizations, due to the pandemic, that are interested in applying and being part of the Canada summer jobs program? Could the government put additional funding into that program?
3:25 p.m.
Liberal
The Chair Liberal Wayne Easter
I don't think it's up to the officials to answer if the government is going to spend more money, but do you want to take a stab at that, Mr. Conrad or Mr. Groen?
You're asking tough questions here today, Peter.
Does anybody want to take a stab at that?
I think the point has been made. We will move on to Mr. Cumming and then Mr. Sorbara.
Mr. Cumming, you're on.
3:25 p.m.
Conservative
James Cumming Conservative Edmonton Centre, AB
Thank you, Mr. Chair.
My first question is related to CEBA. We just heard from the parliamentary secretary that it's a very successful program. Can one of the officials tell me what outcomes are being measured to determine the success of that program?
3:25 p.m.
Associate Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
When the program was set up, the intent was to be able to provide support broadly and very rapidly. Within two weeks of establishing the program, 500,000 loans have been extended to small businesses across the country. That's equivalent to just a little more than $20 billion. It really is in the rapidity of its deployment and the broad scale and scope of its deployment.
3:25 p.m.
Conservative
James Cumming Conservative Edmonton Centre, AB
Thank you.
I would argue that without knowing what the capital was used for, you don't really know if you're going to get the outcomes you want. I'm not sure that's the best measurement, but if that is the measurement—that it has been highly successful and there are lots of people applying—what's the view of the department on when the funds that have been allotted are fully depleted? Is it just a hard stop? How are you going to manage that?
3:25 p.m.
Associate Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
I think your question has probably multiple levels in the answer, so a policy decision is embedded somewhere in the answer there. At present, there are funds allocated to the program. I speculate, on the part of the government, that as we were to approach that limit, then people would be looking at and taking decisions around the availability of funds, if that's the situation we were in. However, it's a bit of a hypothetical moment.
3:30 p.m.
Conservative
3:30 p.m.
Associate Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
We have considerable headroom, at the moment.
3:30 p.m.
Conservative
James Cumming Conservative Edmonton Centre, AB
Okay.
I want to move on to the rent subsidy. I'm hearing a lot from constituents, from tenants who are quite concerned about the methodology behind the rent subsidy. Here's what I'm hearing. For someone who has virtually no revenue, to suggest that they are going to come up with 25% of the rent to be eligible for the program sounds to me like it is going to be very difficult in applying this program. To ask the landlords, which are a business in themselves, to come up with 25% of the rent also could be fraught with problems.
Is there any discussion on this in the department? I know that others have advocated and have been talking to the government about applying that, the way this has been laid out, and about making some adjustments to that program.
3:30 p.m.
Associate Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
What I can say is that the rent program is part of a suite of programs. It's worth taking into consideration the availability of the CEBA, the availability of CERB payments, and the availability of funds through the RDAs and community futures. In the totality of those programs, which are accessible by both small businesses that may be tenants as well as landlords, depending on their circumstances, there are avenues for funding, whether that's in the form of grant-type funding or credit that is supplementing what you're seeing on the rent subsidy side.
3:30 p.m.
Conservative
James Cumming Conservative Edmonton Centre, AB
You also suggested that there will be an alternative mechanism available as it relates to those properties that may not necessarily have a mortgage on them. Can you tell me when that alternative mechanism will be put out? Rents are due tomorrow.
3:30 p.m.
Associate Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
I don't have guidance on that beyond what's already been made public. There's an intent to provide further information on that shortly. I can't give you more specificity than that.
3:30 p.m.
Conservative
James Cumming Conservative Edmonton Centre, AB
Why was there not more emphasis put on the banking community to be a partner in this? Currently, what we're hearing is that they're doing deferrals where they fully expect to be paid for whatever the deferral might be, with full interest. That's what they're expecting. The central bank has been quite active with the banks, supporting them. What is the department doing to make sure that banks are showing some latitude with these landlords and with these tenants?
3:30 p.m.
Associate Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
As you mentioned, we've seen deferrals on the part of the banks. We're working closely with them when it comes to other measures. For example, on the CEBA, we're working in close partnership there. We do see them as part of the solution in keeping the financial system working. I don't know what else to say beyond that.