The Honourable Andrew
Scheer, Leader of Canada’s Conservatives and of the Official Opposition, today
issued the following statement calling on the federal government to increase
support for small businesses and workers affected by COVID-19:
“Conservatives will always support measures to put more money in Canadians’
pockets during this unprecedented time and we are ready to return to Ottawa
next week to pass the government’s emergency legislation.
“Small businesses across the country are being particularly hard hit by this
crisis and need urgent support. Employers are being forced to lay off workers
and have no idea how or if they will survive. Unfortunately, the federal
government’s response to date has fallen far short of meeting their needs.
“Conservatives are calling on the federal government to increase support for
small businesses and workers, by:
- Significantly increasing the wage subsidy to protect workers;
- Refunding all GST remittances to the small businesses that collected them in at least the last six months; and
- Backstopping banks that extend low interest loans to small businesses.
“To be clear, Conservatives will support the government’s emergency legislation
next week. We will also continue to put forward constructive solutions to keep
Canadians healthy and safe and to support them during this difficult time. Now
more than ever, the government must provide answers and clear timelines so that
Canadians know when they can expect to start receiving support.”
Backgrounder:
Significantly
increasing the wage subsidy to protect workers: Many small
businesses have already seen catastrophic drops in revenue and are being forced
to lay off staff. The 10% wage subsidy the federal government has announced is
not adequate to keep workers employed and falls far short of what other
countries like the UK are offering.
Refunding all GST
remittances to the small businesses that collected them in at least the last
six months: Half a million Canadians, or about 2.5% of the
labour force, applied for Employment Insurance this week, smashing previous
records. By returning GST to the small businesses that have collected it,
employers will have the necessary cash flow to cover immediate expenses,
including wages, and stay afloat.
Backstopping banks
that extend low interest loans to small businesses: The $10
billion offered by EDC and BDC is wholly inadequate, given that Canada’s
banking system has $380 billion in outstanding business loans. Hundreds of
thousands of small businesses are potentially facing financial distress and
require support. The UK has already announced a ‘Coronavirus Business
Interruption Loan Scheme,’ that offers attractive terms for both businesses and
lenders, by providing a government-backed guarantee for 80% of the facility
value.
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