Finance Minister Chrystia Freeland has confirmed the Canadian government will allow its key COVID income and business support programs to expire this week, while introducing new targeted aid to help industries hardest hit by the pandemic.
At a press conference alongside Prime Minister Justin Trudeau in Ottawa, Freeland said the government will end the Canada Recovery Benefit, which offered up to $500 per week to workers who had lost more than 50% of their income due to the pandemic but were not eligible for employment insurance benefits.
The Canada Emergency Wage Subsidy and the Canada Emergency Rent Subsidy - which have helped many travel industry businesses weather the pandemic -- will expire on the same date.
The Canada Hiring Recovery Benefit, a subsidy supporting the hiring of new workers or giving existing workers more hours, will remain in place until May 7.
Freeland also announced a new support program for businesses and individuals impacted by future localized lockdowns. The Canada Worker Lockdown Benefit will go live on October 24 and provide $300 a week to workers who are subject to a lockdown.
"Temporary lockdowns are still a possibility in the months to come. We want Canadians to know that we intend now to put in place measures that would snap into action immediately," Freeland said Thursday.
Freeland said the new and extended funding through early May will cost $7.4 billion versus the $289 billion spent to date on all income support programs.
"Our support needs to be more narrow, more targeted, and less expensive," Freeland said.
Support for companies hardest hit by the pandemic - including travel agencies and other travel companies - will still be available. Companies that can document a loss of 75% of revenue will be eligible for a 50% subsidy. The subsidy rate will start at 10% for companies with a 50% revenue loss. That program will run through May 7, 2022, but after March 13, 2022, the amount paid will drop by half.
The Canadian Federation of Independent Business recently said that only 40% of businesses are back to normal sales as the deadline for financial aid programs approached. The CFIB warned that cutting off financial aid could trigger an economic crash.
This story will be updated as we gather more information on the impact these announcements will have on the travel industry.
Topics From This Article to Explore
