Debates of March 24th, 2020

COVID-19 Pandemic

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Madam Chair, this pandemic may push certain provinces into bankruptcy. What planning is the government undertaking in the event a province needs support?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, it is absolutely the case that a number of our provinces are facing significant challenges immediately. I would say that all provinces are facing challenges because of the reduction in income that they are going to see. We have done numerous things to help. We have been working together with the Bank of Canada to make sure there is access in the capital markets for provincial debts. That will help them to fund their finances during a difficult time.

Of course, we are working more directly with provinces. One of the advantages of the bill we have put forward is that it would enable us to continue to do so.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Madam Chair, food processors have been asked to maintain current staff levels to ensure Canada's food supply. Apparently, CFIA recently decided to reduce hours for inspectors in response to COVID-19. This is reducing food processing capacity. Will the government do something about this situation?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Madam Chair, I know that my colleague, the Minister of Agriculture and Agri-Food, is working on this problem as we speak. Canada's food supply is integral to the health of Canadians and we are doing everything we can to ensure that the food supply chain remains strong and viable.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Chair, Canada must look at international comparisons and copy strategies used by countries that have been successful in controlling COVID-19. South Korea provides one such example. Its approach emphasizes widely available testing and tracking of the spread of the virus, making people aware of specific places where they might have been exposed and providing them with the test results as quickly as possible. This targeted testing and tracking approach has helped South Korea turn the corner. Taiwan's approach has been similar and similarly effective.

Has the government studied, and is the government preparing to adopt, the very successful containment model used by Asian democracies which also have more experience at pandemic control?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Madam Chair, in fact, that is exactly what we are doing. We are studying a number of models that have been successful. Of course, their epidemiological curve is different from ours and their outbreak scenario is different from ours, but nonetheless, there are many ideas that are being shared across the globe.

Obviously, this is the first pandemic of this size in over 100 years, and with the lack of a vaccine or other treatments that reduce severity, social distancing and other kinds of methods around tracking the disease are all we have at this point.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Chair, to emulate these models we need to have widely available testing and that just is not the case right now. Compared to the South Korean model, we have had very restrictive testing protocols in Canada. One front-line physician told me that he has to tell patients that they probably have COVID and should self-isolate, but there is not the capacity to test them in certain situations.

What is the government's plan to massively ramp up our testing capacity?

[Patty Hajdu, Liberal, Thunder Bay—Superior North, ON]

Madam Chair, in fact, we have conducted well over 120,000 tests to date. I would note that it is more than the United States has done in total. In addition to that, we have fast-tracked approval for new testing kits in Canada that will make a variety of options in terms of testing more plentiful across the country. We are working with our provincial and territorial partners to make sure that we have a strategy that makes sense for our country.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Chair, those numbers are not enough and the U.S. comparisons are not enough.

I have a quick question for the finance minister.

We know that the charitable sector is going to be struggling. Groups have proposed matching programs as well as an increase to the charitable tax rate in order to stimulate the charitable tax sector. What measures are being contemplated to support the charitable sector?

[Ahmed Hussen, Liberal, York South—Weston, ON]

Madam Chair, that is a really important question.

We have been consulting with the non-profit and charitable sectors to hear their concerns around how they are able to remain resilient and bounce back from the challenge of COVID-19. As we look at assisting them, we have to make sure that we are guided by the expertise on the ground and also make sure that we increase the impact of every dollar that we invest.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Chair, I am happy that we are here in the House. It is late and it has been a long day, but I know that Canadians across this country are looking for action, so I am glad that we are here getting this important step done.

One of the concerns I want to bring to the House today is that there are people who are ineligible for the supports. They do not qualify for EI or the emergency support benefit. I am talking about folks like travel agents who earn commissions. They will continue working unpaid as people are cancelling all of their vacations right now, which means their commissions are being returned. Also, there are people who rely on tips for their income who will now barely see 30% of their income. There are people who are facing reduced work hours and income but are still working to support Canadians and do not have enough to pay their everyday living expenses.

I would like to hear from the government how those people are going to be supported through this crisis.

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, this is an important question.

We want to assure Canadians that we are creating this benefit with the goal of making sure that the people who are directly impacted by COVID-19 are supported. Again, whether someone is a travel agent, or whether someone is in a small business or in any form of the gig economy, if they have had $5,000 of income over the past 12 months and if they do not have any income as a result of COVID-19 and their income goes away, they will, in fact, be able to go forward and get that benefit to support themselves based on this new situation. We are ensuring that this is the case. We will continue to make sure that we consider other issues as we move forward to protect Canadians.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Chair, another group of people I am very concerned about during this process is Canadian seniors. The reality is that they are the most vulnerable of all of us. We want to protect them and see them safe through this trying time.

Many seniors across this country are doing their best to follow all public health guidelines. They are trying to stay safe and in their homes, but this means for many of them having things delivered, and paying extra costs for delivery, and looking at people to do tasks for them that they can no longer do for themselves. Many seniors are on a fixed income. They often are close to the poverty line. I am wondering if there is any way that we are going to see seniors supported in this time.

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, one of the measures that we put forward is an increase in the GST low-income credit.

This increase in the GST low-income credit helps a very large number of seniors who are challenged, some 80% to 85% of individual seniors and 40% to 45% of seniors who are in a couple. This will have a significant impact on helping them through this challenging time. Recognizing that their sources of income, such as the old age security and the guaranteed income supplement, stay along with their situations, they are not experiencing a decline in revenue, and the large majority will experience an advantage through the one-time GST low-income tax credit that we are doing in the month of May.

[Rachel Blaney, NDP, North Island—Powell River, BC]

Madam Chair, another serious concern that I have across this country is the issue of housing.

We know that many people are facing significant vulnerability in housing, and we are hearing that not everybody is being allowed by the banks to defer their mortgage for six months. Deferrals will still accrue interest, and some banks are actually saying that the amount due will have to be paid in a lump sum at the end of the deferral period, all while people are unable to work or sustain the income that they had before. Other jurisdictions have already said that there will be blanket freezes on all mortgages, with no accrued interest or lump sum payments. This is happening in other countries. I am really curious as well about what kinds of resources there will be for people who are renting.

These issues are continuing to grow. I would like to know if the minister will mandate a freeze on all mortgages and find supports for rental housing.

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, we need to look at both categories: the people who have mortgages and also the people who are renting.

For those people who have mortgages, the reason we worked together with the CMHC to create the appropriate capacity for the banking sector to defer mortgages was that we recognized this was exactly the challenge. I know that the banks are experiencing large volumes, and that is a challenge we are all facing, but I also know that they will be able to defer mortgages.

With respect to rents, we continue to work on this challenge. Of course, one of the main features of our emergency benefit is to get money into people's hands as rapidly as possible. Additionally, not having to pay taxes now means they can defer those if they have them so that they can have more access to funding.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Chair, Quebeckers are proud of our aerospace industry. The nearly total shutdown of the aviation industry, which is also struggling, will hit Quebec and Canadian companies and their tens of thousands of employees really hard.

Earlier today, Bombardier announced that it is suspending operations at its facilities for at least a month. The industry is struggling with health issues linked to COVID-19, supply chain issues related to delays and restrictions, contract issues because of the slowdown and delivery problems due to travel restrictions.

In Europe and the United States, the aerospace industry enjoys special status. Does this government recognize that the aerospace industry is a strategic industry and that it could therefore deploy the measures needed to support it?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, we know that COVID-19 is creating serious difficulties for some industries. Of course, the aerospace industry will bring in less revenue and face significant challenges.

We will work with the various sectors to ensure that they have access to the funds needed during this crisis. That will certainly be the case for the aerospace industry.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Chair, I want to thank the Minister of Finance for his response.

My next question relates to agriculture. Some measures have been implemented, but farmers want the agri-invest program to be enhanced by 5%, with no matching funds from businesses. That would help them with cash flow without making them go into debt. Will the government commit to that?

I am thinking of the announcement made by Farm Credit Canada on Monday. Only 30% of Quebec farms are registered with Farm Credit Canada. In addition, that agency does not have enough staff to respond to everyone on the ground.

What does the government plan to do in that regard?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, we know that the agricultural sector is very important and that it will face significant challenges as a result of COVID-19. That is why we have changed the eligibility criteria for mortgages and loans with Farm Credit Canada. We will continue to work with farmers. Of course, if there are things we need to do to make sure everyone is in good shape, we will consider every option.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Chair, I would first like to know how much time I have left.

[The Deputy Chair, NDP, Carol Hughes]

You have over a minute and a half.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you, Madam Chair. That is generous. I will speak very slowly. I had planned on sharing my time, but in the end I will be using it all.

I would like some clarification on the benefits for self-employed workers. If a worker does not have any income, he or she is entitled to the special benefits, but what if his or her income drops by, say, 80%? Would this self-employed worker be entitled to the tax benefits?

[Bill Morneau, Liberal, Toronto Centre, ON]

Madam Chair, that is an important question. We determined that it was crucial to have a simple application process so that people could get money as quickly as possible. That is why we chose two eligibility criteria for the benefits: having earned $5,000 in the previous 12 months and having zero income.

I know that there are other support measures for low-income people, including increasing the Canada child benefit and improving the GST/HST tax credit. We will also be allowing everyone, both businesses and individuals, to defer paying their taxes until August 31.

[Luc Berthold, Conservative, Mégantic—L'Érable, QC]

Madam Chair, people across the country are worried. They are losing their jobs and they need a clear message that they will have quick access to the promised assistance. We know that 80% of Canadians are $200 away from insolvency every month. The government needs to cut red tape and get these cheques to Canadians. We will go after fraudsters later, if necessary. There are other urgent issues right now.

When can Canadians expect to get the financial assistance they need?