Mr. Chair, Canada is one of two G7 countries with a AAA credit rating. We borrow—
House of Commons Hansard #27 of the 43rd Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was ndp.
House of Commons Hansard #27 of the 43rd Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was ndp.
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, Canada is one of two G7 countries with a AAA credit rating. We borrow—
Pierre Poilievre Conservative Carleton, ON
Mr. Chair, how much would it cost the government if interest rates rose by 1% across our national debt? How much?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, the member opposite is building an assumption into his questions that I strongly disagree with.
Pierre Poilievre Conservative Carleton, ON
Mr. Chair, the minister cannot disagree with numbers. I am asking how much a 1% interest-rate increase would cost the government.
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, actually one can absolutely disagree with implicit assertions.
Gabriel Ste-Marie Bloc Joliette, QC
Mr. Chair, the Minister of Finance just announced that she intends to present an economic update this fall. Can she give us an approximate date or at least tell us whether she plans to present it in November or December?
Chrystia Freeland LiberalDeputy Prime Minister and Minister of Finance
Mr. Chair, I apologize to the House, but all I can say is that it will be this fall.
Gabriel Ste-Marie Bloc Joliette, QC
At least I tried, Mr. Chair.
Bill C-9 extends the wage subsidy until next summer and puts in place real support for commercial rent. These are two measures we have been asking for for a long time and that we welcome. We are very happy about that, which is why we support the bill and hope it will pass quickly.
The parameters of the subsidies discussed here are announced until December 19. After that, the government will decide by regulation. I would like to know the criteria that the government will use to decide whether or not to change the subsidies: the economic situation, the evolution of the pandemic or the government's ability to pay? I would like to have a clear idea of what criteria the government will use as a basis.
Chrystia Freeland Liberal University—Rosedale, ON
That is an excellent question, Mr. Chair.
The date was chosen so that the Canada emergency wage subsidy would coincide with the Canada emergency rent subsidy.
The three criteria that the hon. member listed are all important. I think the most important thing for us will be our country's economic situation, which is obviously very closely tied to the health situation.
For this reason, we have announced parameters until December 19. It is a matter of giving companies some certainty because it is important, but also to give us the necessary flexibility, because it is very difficult to know in advance what the economic and health situation will be at the end of the year.
Gabriel Ste-Marie Bloc Joliette, QC
Mr. Chair, I thank the minister for her answer.
Under the bill, if a business changes locations and the new lease for a smaller space is signed after October 9, will that business still be eligible for the Canada emergency rent subsidy or would it have to stay in its more expensive space to continue to receive the subsidy?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, that is a very important question about the details of the Canada emergency rent subsidy. I can assure the member that we intend to help businesses and find a solution for each of them. We are not looking for reasons not to pay the subsidy. Obviously, Canada is a big country with a big economy—
Gabriel Ste-Marie Bloc Joliette, QC
Mr. Chair, I thank the minister for sharing her intention. That is reassuring.
I will give her time to finish her answer.
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, I simply want to add that this is a big program. This is the first time that Canada is going to pay a rent subsidy directly to businesses. We added an element that, in my opinion, is very important and that is targeted assistance for businesses that are subject to a public health lockdown order. We need to work on that and see if there are any gaps. However, the intention is to help our businesses.
Gabriel Ste-Marie Bloc Joliette, QC
Mr. Chair, I thank the minister.
Why did the government decide not to make the rent subsidy retroactive to last summer and spring?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, I thank the member for his question.
We did discuss this issue. The reason is that we always have to ask ourselves the following: What is the purpose of our measures? In my view, the purpose is to create a bridge for the businesses that are viable today and encourage them to continue working. Through our programs, we must think about the future, not the past. Through the new programs, we need to try to help the businesses that will be working in the future. That is the reason.
Peter Julian NDP New Westminster—Burnaby, BC
Mr. Chair, with the emergency rent subsidy program, the original contract this summer was given to a company whose leadership has links to the chief of staff of the Prime Minister. Landlords could only apply if they had a commercial mortgage at the beginning, and this was a non-tendered contract given to a commercial mortgage company. Therefore, it failed most of the businesses that should have been able to access the commercial rent subsidy.
We support the legislation moving forward, but the minister does have to recognize that there were many businesses that did not have access to the program, and their survival is dependent on having retroactive access to the rent subsidy. The NDP is offering an amendment to Bill C-9 that would achieve that, back to April 1, and allow those companies to access the rent subsidy.
Will the government accept the NDP amendment and provide the necessary support for it?
Chrystia Freeland LiberalDeputy Prime Minister and Minister of Finance
Mr. Chair, I think that is an entirely reasonable question, and one that I have wrestled with. At the end of the day, my answer is the one I offered to my colleague from the Bloc. I think that our programs need to be focused on the future. We need to focus on supporting businesses in their activities going forward. What we want to do is to create a bridge from today to tomorrow and not focus on the past, but I do thank the member for the question and for his obvious concern for the businesses in his riding and across the country.
Peter Julian NDP New Westminster—Burnaby, BC
Mr. Chair, that means we will see businesses going under that would not have if they had support from the government in this regard.
The Parliamentary Budget Officer has been very critical about the lack of transparency, which basically was ended in August. Will the minister endeavour to start providing supports to the finance committee so that we can be kept current of government expenditures?
On the question of regulations through Bill C-9, coming through after December 19, what is the current scenario that the government sees for the regulations that would take us from December to June? Is it having maintenance of the same level of supports for businesses and for the wage subsidy?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, let me start with the second half of that question, which is a really important one.
In choosing December 19 as the date to which we are setting the levels for the wage and rent subsidies, we have tried to strike a balance. We are striking a balance with, on the one hand, the fact that business owners are telling us, as I am sure they are telling everyone in the House, that they want certainty and stability and they want to be able to plan. However, on the other side of the balance is the reality that the situation with coronavirus, the situation with the global economy and, frankly, the situation with the North American economy is very unpredictable and very volatile. Therefore, we are trying to offer certainty while at the same time having flexibility for the future.
I would point out, as the member is very well aware, we have assured business owners that these two programs will be in place until June—
Peter Julian NDP New Westminster—Burnaby, BC
Mr. Chair, in regard to wage subsidy relief or any other government supports, how many company applications have been refused because the company is involved with international tax evasion or the company is named in tax-evasion papers like the Bahamas papers, the Panama papers or the paradise papers, or the company uses or has used international tax havens?
Chrystia Freeland Liberal University—Rosedale, ON
Mr. Chair, I am sorry. It is because of the sound. What was the first part of the question? I know it was how many companies in tax havens and stuff, but companies doing what?
Peter Julian NDP New Westminster—Burnaby, BC
Mr. Chair, how many companies have had their applications refused because of that involvement?
