Debates of April 20th, 2020

COVID-19 Pandemic

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Madam Chair, as I am sure the minister knows, a lot of those commercial arrangements that the banks have with medium to large producers have lending covenants on them. In certain situations, these companies will become insolvent, because the product they are selling is selling at a negative price. In fact, right now, if grocery stores were open, I could purchase a pallet of bottled water, and a barrel of oil would be cheaper. A barrel of oil is free right now, essentially, and refineries all over North America do not want it.

I am concerned about those lending covenants, because BDC and EDC are taking too much time to get out what the minister called a large volume of cash, billions of dollars, because of these criteria and eligibility rules. By the time they get around to obtaining the loan, many of these companies will have banks move in on them, claim that lending covenant against them and start making business decisions for those companies in western Canada.

Will the minister commit to ensuring that this does not happen and that those chartered banks are kept aside so that the people who own the businesses and have been running them can continue to do so until they can get more liquidity?

[Mary Ng, Liberal, Markham—Thornhill, ON]

Madam Chair, the issue raised by the hon. member is exactly what we are trying to do here during the COVID-19 period, which is to help save our businesses and provide them with the liquidity support that is needed during this difficult time. It is why the Government of Canada has provided the guarantees to the financial institutions. In fact, the decision-maker on the loan will be that financial institution, the bank or the credit union, to the customers. I would encourage businesses to go to their financial institution to see if they are able to get that support.

[Tom Kmiec, Conservative, Calgary Shepard, AB]

Madam Chair, on top of the viral pandemic, of course, we see this precipitous drop in oil prices. Is the government planning an extra series of programs of support for energy workers to get through this time, which is unprecedented in the history of oil pricing since at least the 1940s and since WTI was established? Is the government planning a second round of support programs for businesses?

[Chrystia Freeland, Liberal, University—Rosedale, ON]

Madam Chair, the orphan wells cleanup was specifically focused on workers, because we are so aware of the concerns of energy workers. However, I absolutely share the concern of the member opposite on the particular challenges the energy sector is facing, and that is something the government is focused on.

[Joël Godin, Conservative, Portneuf—Jacques-Cartier, QC]

Madam Chair, we managed to improve various programs. I want to acknowledge that the government's ministers were listening. I want to thank them for listening to us and for helping to improve the programs in the interests of Canadians and businesses.

My question is about tourism. Canadian hotel chains are now worried about the future, since the economy in their sector is collapsing. This sector has to plan years in advance, and it faces international competition.

How does the government plan to protect the tourism industry, which will be swallowed up by foreign multinationals if it is not protected?

[Steven Guilbeault, Liberal, Minister of Canadian Heritage]

Madam Chair, my colleague, the minister responsible for tourism, is working hard with the industry and various partners to find the right way to get this industry back on track.

The COVID-19 crisis has obviously had a very big impact on the tourism industry, as well as on the arts, culture and sports industries, which I represent. We are working with all our partners to find the right solutions that will get the various industries back on track once this crisis is over.

[Joël Godin, Conservative, Portneuf—Jacques-Cartier, QC]

Madam Chair, I thank my colleague, and I want to tell him to talk to us if he needs ideas.

With regard to SMEs, the Conservative Party suggested a possible tool, and that is the GST rebate for SMEs. This economic sector is very important, and some experts predict that one-third to one-half of small businesses will not survive the crisis. Everyone is listening, and so I want to know when the government will implement the GST rebate for SMEs.

[Mona Fortier, Liberal, Minister of Middle Class Prosperity and Associate Minister of Finance]

Madam Chair, I thank my colleague for his question.

We know that many small businesses are worried about being able to pay their rent, pay their suppliers and keep their employees working. As my colleague mentioned, our government is working around the clock to give affected businesses the support they need.

That is why we created the Canadian emergency wage subsidy and introduced the Canada emergency business account. What is more, we are working with the provinces and territories to implement the Canada emergency commercial rent assistance program.

We recognize that there is still a lot of work to be done, and we will continue to work with all parliamentarians to ensure that we are helping Canadians the right way.

[Joël Godin, Conservative, Portneuf—Jacques-Cartier, QC]

Madam Chair, if the government needs ideas, we can help with that.

As far as the Internet is concerned, there are areas in Canada—a large country, as we know—where Internet coverage is inadequate, which we will soon realize when Parliament starts having virtual sittings. In the interest of democracy, I hope this will work, even though our party would have preferred physical sittings here in the House. We will, however, respect the democratic decision that was made earlier today.

Is the government aware of this problem? Internet is currently an essential product for our young people, but especially for our seniors. Back home in Quebec, the long-term care facilities received iPads to make our seniors feel less isolated and allow them to stay in touch with their families. What does the government plan to do to improve Internet access?

[Chrystia Freeland, Liberal, Deputy Prime Minister and Minister of Intergovernmental Affairs]

Mr. Chair, I want to thank my colleague for the question.

I completely agree. I think that the coronavirus crisis has highlighted the importance of having high speed Internet across the country and especially in the regions where this service is still not available.

I agree with my colleague that the Internet is important, not just for young people and workers who use it, but also for our seniors. I believe that families celebrated Easter over the Internet with their seniors, and we must improve access to that service. Even before the crisis, this was a priority for our government and we had announced a $500-million investment. However, I now think that we must do more.

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

Mr. Chair, I would like to continue with my questions around the critical shortage of medical supplies. The government consistently says that we do not have a problem and are meeting all the needs, yet the emails and phone calls I receive in my office from around the country are saying that we still have a shortage.

We have asked the government for a list of all the critical medical supplies that we need to fight this COVID-19 pandemic. Will the government provide us with a comprehensive list of all the medical supplies needed?

[Patty Hajdu, Liberal, Minister of Health]

Mr. Chair, we have been working incredibly well with provinces and territories on the need for personal protective equipment and also on the medical supplies needed to respond to the COVID-19 crisis. We have supported provinces and territories to procure equipment they have struggled to procure on their own, amplifying their own work to make sure they can distribute it to the various networks in their provinces and territories that require the personal protective equipment. We have also worked with the provinces and territories on guidance to make sure that we are using the right equipment for the right level of protection.

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

Mr. Chair, my question was not about the working relationship, which I am sure is very good. The question is about what are the actual tactics? What are the quantitative results? What is the list and where are the shortfalls?

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

Mr. Chair, I am sure the member opposite knows that the provinces and territories have a network of distribution they control as the deliverers of health care. Our job at the federal level is not to usurp their role of distributing personal protective equipment and medical devices in a way that is appropriate to their own particular needs and their own surge, but rather to respond to their requests for additional support for either equipment or for personal protective devices that protect their front-line staff. That is exactly what we have been doing: taking our lead from provinces and territories, making sure that we can support them in their work to distribute this equipment where it is needed most.

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

Mr. Chair, we now understand that there is a looming critical shortage of drugs and active pharmaceutical ingredients, as well as the supplies and components that go into testing equipment. Other countries are taking active measures to ensure that they have those ingredients. What is the government doing to ensure that we have those?

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

Mr. Chair, we have recently received shipment of one of the critical ingredients for testing that will support initiatives to ramp up testing across Canada. More shipments are on the way. We also have home-grown test solutions, like the Spartan kit that was just approved recently that will allow for point-of-care testing all across the country. There are about 13 test kits that have been approved in Canada to be used by provinces and territories for their specific needs.

I will conclude by saying that it is important that we understand that provincial and territorial governments deliver health care. The federal government is a trusted ally and supportive partner to make sure that happens.

[Leona Alleslev, Conservative, Aurora—Oak Ridges—Richmond Hill, ON]

Mr. Chair, I would like to understand if the seasonal workers who did not claim EI last year and who are not EI eligible are covered under CERB.

[Jean-Yves Duclos, Liberal, President of the Treasury Board]

Mr. Chair, of course I do not wish to take the place of my colleague, who is very familiar with this issue and works on it every day.

However, I would like to say that we quickly brought in the Canada emergency response benefit so it could help employees and workers across Canada immediately. Furthermore, last week we made it accessible to everyone who has lost their EI benefits since December 29 and can now apply for the CERB.

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Mr. Chair, the Tillicum Lelum Aboriginal Friendship Centre in my riding serves 12,000 urban indigenous people. The centre runs on a meagre $139,000 in core funding for the programs it runs. The centre is still running programs during this crisis, including a health centre, a youth safe house, youth and elder housing, a home for single moms, a food hamper for 150 families, and family violence counselling and addiction counselling. During normal times, they also run employment programs, adult basic education, day care, youth programs, family programs and meal programs, all with just $139,000 in core funding.

The centre is an integral part of our local indigenous community and is struggling seriously through this crisis. It is now one of the front-line organizations dealing with the COVID-19 crisis in my community.

The government has allocated to friendship centres $15 million of the $305 million in relief funding allocated to first nations, Métis, Inuit and indigenous organizations. This is out of a total $180 billion relief fund; that is, out of $180 billion dollars, $305 million is for indigenous organizations.

Will the government increase the relief funding and the core funding for the aboriginal friendship centres serving the urban indigenous populations across this country?

[Marc Miller, Liberal, Minister of Indigenous Services]

Mr. Chair, I do want to highlight the incredible work that the member opposite has highlighted with respect to the friendship centre in his riding. Indeed, the ones across Canada do amazing work with very, very limited funds. This is why in part in budget 2019, the government invested $60 million in infrastructure supports over five years for these friendship centres that again do critical work for the most vulnerable indigenous communities in urban settings. Given that urban settings are at the core and are the target of the COVID-19 pandemic, these supports are incredibly needed right now.

We have indeed received a submission from the national friendship centres network. This is something we are working on at this time and we will endeavour to get those funds out as quickly as possible because we know that the need is real. We know they do so much with so little and that that need needs to be supported on a constant basis.

[Paul Manly, Green, Nanaimo—Ladysmith, BC]

Mr. Chair, I am very appreciative of the members of Parliament who have brought forward issues from their constituents.

I am glad to hear that the rules for the loan program for small business have changed, but there are still some people who are missing this program. I have a family business with a father and son who have poured their life into setting up a micro brewery. They opened in November. They paid $13,000 in wages in December, $13,000 in January and $13,000 in February, but they are not eligible for the small loan.

I am hearing from other small businesses in the same vein, start-ups that need help now. Is there a way we can be more flexible in these programs and less rigid with their rules, because people need help and are going to lose their businesses?

[Mary Ng, Liberal, Minister of Small Business]

Mr. Chair, I thank the member for his advocacy and what he highlights to me directly about how our programs are helping businesses and where more needs to be done. I really thank the hon. member for his tireless work, just like the examples he has shared with us now.

I assure the member that we are listening and will continue to take his feedback and that of many businesses across the country so that we do not see businesses falling behind and that we, indeed, are supporting them through the many measures we have put in place. However, the work is not done yet and we will continue to work together to help our businesses across the country, particularly those very small businesses.

[Anthony Rota, Liberal, Speaker of the House of Commons]

Pursuant to an order made earlier today, the committee will rise.

[The Speaker, Liberal, Anthony Rota]

Pursuant to order made earlier today, the motion that the House take note of the current COVID-19 pandemic is deemed moved.

A member of each recognized party and a member of the Green Party may speak to the motion for not more than 10 minutes, followed by a period of five minutes for questions and comments. Members may split their time with another member.

[Mary Ng, Liberal, Minister of Small Business]

Mr. Speaker, I would like to begin by joining my colleagues in offering my condolences to all of those touched by the senseless act of violence in Nova Scotia yesterday. I thank Constable Heidi Stevenson for her bravery and dedication in serving her community and country so well, as well as all of the first responders who are on the front lines every day to keep us safe. We join the people of Nova Scotia in mourning this devastating loss, finding strength in each other and offering our support together as we all heal from this tragedy.

I also want to take an opportunity to pay tribute to a wonderful Canadian and a former member of Parliament who sadly passed away this weekend, the hon. Aileen Carroll. I had the pleasure of knowing Aileen and always greatly admired her dedication to public service. She represented the people of Barrie with tremendous energy and was deeply committed to contributing to the local community, having started her career as a small business owner and a city councillor.

Aileen went on to win three successive elections and served as MP for nine years, including as parliamentary secretary to the minister of foreign affairs and then as minister of international co-operation, representing Canada on the world stage. In 2011, Aileen resigned from public life and dedicated herself to focusing on her family, grandchildren and friends, but she remained committed to serving her community through charitable causes. We are grateful for her many years of public service. Her impact will extend right across the country and her legacy will live on. Our thoughts are with her family, her friends and all her colleagues through this difficult time while they mourn.

I would like to acknowledge the contributions made by all the businesses and community leaders who have helped us flatten the curve by staying home and, in many cases, temporarily closing their doors.

I know that Canadian business owners and entrepreneurs are worried. They have worked hard to develop their ideas into prosperous businesses that are the heart of communities across the country and the backbone of Canada's economy.

They have worked hard to turn their ideas into successful businesses at the heart of communities across the country and the backbone of our national economy. To all of them, let me be clear: We will do whatever it takes to support them through this. Our goal is to save jobs and to save businesses. We are taking immediate, significant and decisive action to help Canadians facing hardship as a result of COVID-19.

Through the Canada emergency wage subsidy, we will keep more Canadians employed in businesses of any sizes and in any sector, covering 75% of their wages. We are helping businesses keep their costs low by allowing businesses to defer GST, HST and customs duties payments while also extending the tax filing deadline to June 1 and allowing businesses to defer any payments owing until August 31. This measure will help over 3.2 million businesses and self-employed Canadians.

We are also helping businesses keep up with their operating costs and cash flow through the Canada emergency business account, an interest-free $40,000 loan guaranteed by the Government of Canada with up to $10,000 forgivable if it is paid back before the end of 2022. These loans are available through one's bank or credit union now.

When we heard that many small businesses were not able to access the emergency business account because of the requirement that they have a payroll of at least $50,000, we lowered that threshold to $20,000. Nearly a quarter of a million businesses have already had their loans approved, and our government's recent announcement to expand the eligibility criteria for this program means that even more businesses will qualify.

This means a small furniture store that usually relies on foot traffic to stay afloat can continue paying the costs of upkeeping its warehouse space. This means that a physiotherapist practice can access the funds to rehire its employees even while it has seen its revenue drop and everyone is working from home.

For businesses with larger operational needs, we have made loans of up to $12.5 million available. These are also available through one's local bank or credit union.

We have also heard from businesses that they need help paying their rent, and that is exactly what we intend to do. As the Prime Minister announced last week, we will introduce a Canada emergency rent assistance program for small businesses. This program will seek to provide loans and forgivable loans to commercial property owners who in turn will lower the rent for small businesses. Rent is an issue that falls under the jurisdiction of provinces and territories. We will continue to work closely with them on this important issue, and we will have more details to share soon.

Our government also recognizes that businesses in different parts of the country may face unique realities and challenges in the face of COVID-19. In order to give equivalent financial support to these small and medium-sized businesses, our government is investing $675 million in Canada's regional development agencies. At the same time, we will ensure that rural businesses and communities have access to much-needed capital by investing $287 million in the community futures network to support small businesses in rural communities. This new financing will help support businesses and their communities so that they can be strong through this crisis.

Together, these measure alleviate enormous expenses and pressures on businesses and on business owners, and will help prime them for recovery, when it is safe to do so, to ensure that they can regain ground much more quickly.

Everything we have done to date is to respond to what we have heard directly from businesses across the country, from helping them keep their employees on staff and supporting them with the funds and cash flow to operate and pay their bills, to keeping their costs low. Our government will remain unwavering in our support for Canadians, our health care system and our economy, and our work is not yet done. No measure is off the table.

Canadians are innovative, strong and resilient. In the face of COVID-19, our government recognizes the need to help innovative early-stage companies and young entrepreneurs. To better support these businesses and entrepreneurs, we are investing $250 million through the National Research Council of Canada's industrial research assistance program, also known as IRAP, and $20 million for Futurpreneur Canada to continue to support young entrepreneurs across Canada who are facing challenges due to COVID-19.

Through this crisis, it has been so inspiring to see Canadians come together in new and amazing ways. In fact, since the Prime Minister announced Canada's plan to mobilize industry to fight COVID-19 a couple of weeks ago, about 5,000 innovative Canadian businesses have answered our call, working to provide our front-line workers with the gear that they are going to need to fight this pandemic together.

These are unprecedented times and I know that Canadian business owners and entrepreneurs are worried. However, we are all in this together and we are all helping each other as team Canada. This is who we are as Canadians and we can all take pride in that.