Finance Committee on May 13th, 2021

Evidence of meeting #42 for Finance in the 43rd Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was measure.

A video is available from Parliament.

On the agenda

Subject Matter of Bill C-30, An Act to implement certain provisions of the budget tabled in Parliament on April 19, 2021 and other measures

Committee Business

MPs speaking

Also speaking

Clerk of the Committee Mr. Alexandre Roger

Trevor McGowan Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance

Pierre Leblanc Director General, Personal Income Tax Division, Tax Policy Branch, Department of Finance

Maude Lavoie Director General, Business Income Tax Division, Tax Policy Branch, Department of Finance

Dave Beaulne Senior Director, Legislation, Tax Legislation Division, Tax Policy Branch, Department of Finance

5:15 p.m.

Conservative

Ed Fast Conservative Abbotsford, BC

It is a matter for the minister—you are right, Mr. Chair—but we're asking questions about the specifics of the program design. Does the program design incorporate the flexibility that will help these companies within the tourism industry? My guess is that they won't be helped by this program, like so many other programs where they have fallen through the cracks, and they're likely going to come to committee and tell you that.

5:15 p.m.

Liberal

The Chair Liberal Wayne Easter

I'll go to Ms. Jansen. I don't think Ms. Lavoie can answer that one.

Next is Ms. Jansen and then Mr. Fragiskatos.

Go ahead, Ms. Jansen.

5:15 p.m.

Conservative

Tamara Jansen Conservative Cloverdale—Langley City, BC

I know in my discussion with them, they were pretty sure that it wouldn't work for them because of the fact that they will not be opening, because a one-vaccination summer will not open their industry.

What they said was that the winding down of the wage subsidy is also disturbing to them because of the fact that they have kept a few people on, but they need to be able to keep those people on for a longer time than what the program is now looking like it's going to be going for.

Have you had any discussion of how you can help those industries that will not be able to open because we're not getting vaccinated fully fast enough? Have you looked at all at how you can help them with a wage subsidy that would continue for them?

5:15 p.m.

Director General, Business Income Tax Division, Tax Policy Branch, Department of Finance

Maude Lavoie

It's hard for me to discuss all the conversations that have happened between the government and an industry in particular. What I could say is that the wage subsidy.... Yes, it's true. There is a decline in the rate that's being contemplated until September when the subsidy would end.

I think one thing to note is that, if the situation doesn't unfold as is currently expected, and if the pandemic situation is still at play, the government has kept the flexibility to add periods to the wage subsidy program until the end of November. Adding two additional periods is a possibility, and that could be done by regulation as per the bill that we're looking at. They also have the flexibility to play with the the top rate if the situation warrants it.

5:15 p.m.

Liberal

The Chair Liberal Wayne Easter

Thank you.

Peter Fragiskatos.

5:15 p.m.

Liberal

Peter Fragiskatos Liberal London North Centre, ON

Thank you, Chair.

It's interesting to hear this feedback on the budget and this specific provision of it. I was also quite intrigued to hear in the previous meeting that our Conservative colleagues would have been very anxious to pull away emergency COVID-19 supports. I thought that was a stunning moment in the previous meeting, but I won't dwell on that, Mr. Chair.

Just to put my Conservative colleagues at ease, the information is available online. Media has covered extensively the number of businesses, the number of individuals, the number of families that have received and benefited from COVID-19 support. If they want further support, the government will be there.

Members and people can ask questions, but I just raise that last point to assure my colleagues.

5:15 p.m.

Liberal

The Chair Liberal Wayne Easter

Okay. I don't think there's a question there.

Julie Dzerowicz.

5:15 p.m.

Liberal

Julie Dzerowicz Liberal Davenport, ON

Thank you so much, Mr. Chair.

I think Ms. Lavoie actually answered my question. I was going to ask whether it could be extended past November, but if I heard you correctly, Ms. Lavoie, it can be by regulation.... Oh, it cannot.