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Results: 1 - 15 of 395
Éric Paquet
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Éric Paquet
2021-05-25 16:02
Thank you, Mr. Chair.
Good afternoon, honourable members of the Standing Committee on Finance.
Thank you for inviting me. With me today is Jean-Michel Ryan, chair of the board of directors of the Alliance de l'industrie touristique du Québec and owner of Ski Sutton.
We welcome the measures for the tourism sector in the 2021 federal budget, but with some reservations. I would be remiss if I did not mention the significant funding allocated to Destination Canada for tourism projects implemented via regional agencies, as well as the funding for festivals and events, which will continue to play a major economic role in urban centres and regions alike, all across Canada.
We believe, however, that the relief efforts aimed at supporting the industry since the early days of the pandemic will not help keep key businesses alive should the financial support decrease in July and later disappear before the borders are reopened. The Canada emergency wage subsidy, or CEWS, and the Canada emergency rent subsidy, or CERS, have literally been lifelines for Canada's tourism businesses. The third wave of the pandemic has had significant repercussions. What's more, a plan to reopen the border is lacking, and restrictions governing public gatherings and travel are ambiguous. Tourism businesses remain at risk of having to rely exclusively on local clientele during the upcoming summer months, which will reduce their revenues significantly for a second consecutive summer.
Already overburdened with debt in an effort to keep their heads above water and facing a sharp decrease in cash flow, or lack thereof, businesses will not be able to generate enough cash during the summer season—just a few short weeks—to make it through another winter. How will CEWS and CERS support seasonal tourism businesses if the subsidies are reduced in July and eliminated in the fall? Seasonal businesses will need the support more than ever in the fall. Would it not be more appropriate to extend the programs as needed, since they will no longer be available to businesses once revenues return to normal?
The federal government has been there from the early days of the crisis, offering relief to Canadian businesses. The relief was helpful but remains as essential as ever. We are asking the government to maintain the existing programs in response to the unique needs of hard-hit tourism businesses.
First, the government should extend CEWS and CERS for as long as they are needed by the tourism industry. It should keep the same program conditions in place and make lockdown support available to tourism businesses that are most affected. We believe that keeping the current terms and conditions of these programs in place exclusively for tourism businesses represents a low risk for the government. Over 95% of the economy has recovered, and only sectors that are the most hard hit—like tourism—would remain eligible for these programs. To further mitigate the risk for the government, we are also proposing that the eligibility threshold based on lost revenues be increased to 30%, as was the case when the programs were initially implemented.
Second, the government should adopt an exit strategy for these programs based on a border reopening plan. Tourism will gradually pick up as soon as an announcement is made regarding reopening the border. However, a period of preparation will be necessary to bridge the gap between the reopening of the border and the gradual return of tourists in the context of business meetings, cruises, international events and the like. These relief measures will remain indispensable and should be available to cover the transition period, providing the predictability required for a successful recovery.
Thank you.
Mr. Ryan and I would be happy to answer questions.
View Wayne Easter Profile
Lib. (PE)
That's time, Michael.
Before I go to Mr. Falk, just on that question on the wage subsidy, what percentage are you looking at in terms of subsidy? Is it comparable to what was in place? Second, how critical is the timing of that to do your planning?
That's for whoever wants to answer, Mr. Ryan or Mr. Paquet.
Éric Paquet
View Éric Paquet Profile
Éric Paquet
2021-05-25 17:44
Yes, we want the subsidy rates to stay the same as they are now. We are recommending that the current rates be maintained at 75% for as long as the programs are needed until the crisis is behind us. Regardless, businesses will not qualify for the supports unless they experienced a drop in revenue. Once revenues return to normal and the pandemic is behind us, the government can implement an exit strategy to wind down the programs.
Jean-Michel Ryan
View Jean-Michel Ryan Profile
Jean-Michel Ryan
2021-05-25 17:45
I'd like to add to what my colleague said, if I may.
We want the rates to be maintained at least for 2022. Even once the border reopens, it will take some time before international tourists return to Canada and Quebec.
Something else we are worried about is an outflow of Canadians going abroad. That would create a vacuum and make it hard for the industry to get back on an even keel. That is why, all along, we have been focused on 2022. We are recommending the programs be extended until at least 2022, to give us time to figure out how we are going to get through the crisis and come out the other side.
Michelle Travis
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Michelle Travis
2021-05-21 12:51
Hi. Thank you for the invitation to address you today. I'm with UNITE HERE Canada, the hospitality workers' union.
I'd like to address the new Canada recovery hiring program and the extended wage subsidy proposed in the budget.
When launched, the government said the wage subsidy would keep workers attached to their jobs with a furlough until working. The proposed hiring subsidy is also supposed to make it easier for businesses to rehire laid-off workers or bring on new ones. The problem is that these programs aren't designed to help workers. Without tighter conditions, the new hiring subsidy could reward bad corporate behaviour and bypass the very workers it's intended to help. We've seen too many hotel employers in our industry use the wage subsidy and then fire most of their staff anyway.
While government is proposing a clawback for public company executives under the wage subsidy program, there's no clawback for private employers. For example, three companies tied to the Hilton Vancouver Metrotown have used the wage subsidy program but have terminated the majority of their staff in recent weeks. Other hotels that used the wage subsidy—Sheraton Ottawa, Pan Pacific Vancouver—also terminated much of their workforce rather than agree or commit to bringing them back when the pandemic crisis is over.
Michelle Travis
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Michelle Travis
2021-05-21 12:52
Okay, thanks.
You're going to hear shortly from workers from the Pacific Gateway Hotel, a federal quarantine site, whose owners are named in the CEWS registry. They recently fired over 70% of their staff.
We want to know whether employers like these are going to be eligible for the federal hiring subsidy. Unless the government adds clawbacks or restrictions, we think the answer to that is yes.
We think laid-off workers need a pathway back to their jobs. The new hiring subsidy should prioritize rehiring laid-off staff before making outside hires, and the clawbacks for public subsidies should apply to private sector employers as well. The government should consider working with provinces on worker recall provisions, like those adopted by the State of California and other jurisdictions, to ensure workers who faced pandemic layoffs are first in line to get their jobs back.
We think that would go a long way to ensure a just and feminist recovery.
Thank you.
View Peter Julian Profile
NDP (BC)
Thank you very much.
Now I'll go to Ms. Travis.
We've seen this government intervene repeatedly. In fact, last June, they presented legislation that would have put people in jail if they made a mistake and wrongfully applied for the CERB. We saw CRA demanding repayment at Christmastime. We found out that CRA is now, again, for emergency benefits that go to regular families, trying to force the victims to pay in the case where somebody has fraudulently misused their SIN to apply for somebody else's CERB. However, we've seen big businesses act with impunity. We've seen them pay dividends. We've seen them with massive executive bonuses.
Your message today, Ms. Travis, from what I understand, is that what we actually need is to ensure that collective agreements are respected, that the wage subsidy actually goes to protect jobs and that it should be retroactive. Is that a fair summary of the powerful message you're bringing today?
Michelle Travis
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Michelle Travis
2021-05-21 13:25
Yes, that's right.
The Globe and Mail has done a series of stories about the problems with the wage subsidy program. I think the idea of the wage subsidy makes a whole lot of sense. We don't have a problem with employers getting access to that program. The problem is that it was described as a way to keep workers attached to their jobs. We don't see that happening. We've seen employers use it selectively. Maybe they use it to cover management or maybe they just cover a skeleton crew. In other countries, we've seen that they've used it to make sure the workers stay attached and that money is flowing through to workers who need that. It's really critical to keep that connection.
We understand it's going to be a while for business to come back in the hotel sector. Now another subsidy is coming and we are concerned that there are going to be no restrictions or controls on who is able to qualify for that. There are some limited restrictions, but in terms of whether they are going to be able to access that subsidy after they've eliminated their staff and replaced them with less, will they get a hiring subsidy for the replacements? That's a problem.
Regardless of whether they're in the union or not, we've seen this affect hospitality workers across the board. Non-union workers started losing their jobs last year. Elisa referred to this. In union contracts, you may have 12 months of recall in your contract, but we don't bargain contracts with a pandemic in mind. We've asked all of our employers to consider extending the amount of time workers can come back to their jobs to get through the pandemic.
We know the work is coming back. We want to make sure that those workers who've invested 10, 20, 30 or 40-plus years of their lives in these hotels will have the first shot at getting their jobs back. We think that's fair. It doesn't cost the government a dime. It's the decent thing for employers to do. Unfortunately, we're seeing a lot of employers use the pandemic as an opportunity to get rid of long-term staff and drastically roll back the economic gains they've made over years. That shouldn't be happening. We don't want to see government programs used to benefit them and not help workers.
View Gabriel Ste-Marie Profile
BQ (QC)
Thank you, Mr. Chair.
Mr. Côté, in your presentation, you mentioned that the government was extending support programs, such as the Canada emergency wage subsidy and the Canada emergency rent subsidy, but reducing the rates. The Canada emergency wage subsidy includes support to hire workers. However, the rates are decreasing.
Could you comment on the extension of these measures with reduced rates? Could you repeat your criticisms of the rent support and what should be changed?
Jean-Guy Côté
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Jean-Guy Côté
2021-05-21 13:40
Thank you very much for the question.
To a degree, the extension is still very well received, because the pandemic is not actually over. Restrictions are still in effect, especially for non-essential businesses. You have to understand that retail is not a uniform industry. The challenges facing some sectors are greater than for others.
Flexibility will always be a challenge. We are asking for flexibility in reducing the rates rather than a mathematical calculation, as it is in the budget. Certain retail sectors or other economic sectors are experiencing problems, so it is important to keep the programs going a little longer.
In addition, we must always keep in mind that support for hiring is an excellent initiative. Nevertheless, Quebec and certain regions of Canada will have to deal with a labour shortage. There may be a shortage of employees as, with the reopening of restaurants, some restaurant employees who came to work in the retail sector will return to their first loves. Retailers will be faced with a fairly dynamic challenge as they must fill their stores and keep their businesses going.
View Pat Kelly Profile
CPC (AB)
The stated purpose of the wage subsidy.... It's a purpose and a goal shared, I think, by all Canadians. Certainly, it's a purpose and a goal that I share. It is to keep employees engaged with their employer during a time of shutdown due to COVID.
Is it fair to say this program has not helped you?
View Wayne Easter Profile
Lib. (PE)
I'll just take your time for a minute, because I have a question for Ms. Travis. Then we'll go to one question from Mr. Fast and one from Mr. Fraser.
With regard to this problem at the Pacific Gateway Hotel, Ms. Travis, the wage subsidy can only be claimed if it has paid employees. The application has to be submitted to the CRA to get the wage subsidy. There would have to be a record. They do actually have to pay an employee in order to get the wage subsidy, and apply through the CRA.
What's your comment on that? Is that happening? Are they paying other employees and getting the wage subsidy? What's going on here? Do you know?
Michelle Travis
View Michelle Travis Profile
Michelle Travis
2021-05-21 13:56
We know that they didn't use it for the workers who were laid off before they were fired. We know that.
In terms of information about who they did use it for, I can make an assumption, but we don't know because they haven't told us. They could have used it for management or they could have used it for the skeleton crew that they have immediately on staff, but we just don't know.
We know that there are two owners, and both of them appear on the CEWS registry. We don't have any other details about when they used it, how long they used it or who they used it for. We've requested the information. We haven't gotten a response. We do know there are a lot of workers who didn't benefit from the program. They didn't put them on as furloughed workers.
AnaBela Taborda
View AnaBela Taborda Profile
AnaBela Taborda
2021-05-20 14:54
Thank you. That's quite okay.
Good afternoon. My name is AnaBela Taborda. I am branch manager of IC Savings Credit Union and chair of the Little Portugal on Dundas BIA, or business improvement area, in Toronto, in Davenport riding. Thank you for inviting me to take part in this call.
Little Portugal on Dundas BIA represents a collection of approximately 325 small and independent businesses along Dundas Street West in Davenport. We are one of over 80 such organizations in Toronto whose entire focus is on the success and growth of our local economies.
Toronto's BIAs represent a diverse range of organizations with priorities that are defined by local business stakeholders. All funds raised by BIAs are reinvested back into their local communities. Over $1.4 billion have been paid in taxes by BIA members, and together we employ over 551,000 individuals. That’s a massive contribution, and a huge responsibility for individual business owners.
In my role as branch manager of IC Savings, a financial institution in Little Portugal, I witnessed the struggle of many small businesses during this pandemic and how the COVID-19 economic response plan and the initiatives put in place by the federal government provided financial help, without which it would have been virtually impossible for our small and independent businesses to survive. We had very few closures in our BIA, thanks to these programs and the ongoing work of our local MP, Julie Dzerowicz, in tirelessly advocating on our behalf and connecting with our membership to help guide them through the available options. Thank you.
Further, I also want to thank the federal government for increasing Canada’s COVID-19 vaccine supply, which is vital to the recovery of our citizens and small businesses.
We are encouraged by a number of proposed items within budget 2021's support for small business and we look forward to their implementation. We do have some concerns, however, as to the timing, duration and design for some of these initiatives. We are keenly aware that although the future is looking brighter, small business continues to suffer. Indeed, full recovery is still a long way off.
An example would be CEBA. Although it is stated that if a business repays their loans by December 31, 2022, up to a third of the value of their loans—meaning up to $20,000—will be forgiven, we know that even a deadline of December 31, 2022, may still be too soon for our individual business owners to manage.
Another example is the budget 2021 extension of the Canada emergency wage subsidy and the Canada emergency rent subsidy and lockdown support beyond June 2021 to September 25, 2021. We believe this should be extended further, because we must first take our small businesses to a livable state before we even consider setting upon any road to recovery.
Helping small and medium-sized businesses move into the digital age we applaud. The Little Portugal on Dundas BIA has been at the forefront of adoption of Toronto’s Digital Main Street program. We have benefited from having a digital service squad member fluent in Portuguese, since in some cases language was a barrier.
Language challenges aside, however, we cannot force people to adopt a digital program. The design of the Canada digital adoption program must be carefully engineered, understanding that many main street independent businesses are slow and unable to adopt for many legitimate reasons and that some will need support in their native language. The program must be adept at uncovering the barriers up front and addressing them directly before the digital training can take hold and be effective in practice. We know this is the case because of the number of current businesses we have worked with that needed additional hands-on assistance with all government relief programs, subsidies and initiatives, since only online access was available, and for obvious reasons.
But again, we do applaud this initiative.
In regard to new businesses, part of the recovery will be welcoming new businesses into our BIA. We need these new businesses to create new jobs and replace any that may have been lost. We need all levels of government to create ways and means of helping us attract new businesses and helping sustain them in their first years as the country emerges from the pandemic. Proof of revenue loss criteria for government subsidies or relief program applications, for example, must be revisited to be more sensitive to a start-up’s reality.
With regard to accessibility, approximately one in five Canadians, or about 6.2 million people aged 15 and over, report having a disability that limits them in their daily activities. That would include the ability to visit main street businesses.
The Accessible Canada Act was developed following the most inclusive and accessible consultations with the disability community in our country's history. More than 100 accessibility organizations and 6,000 Canadians took part in the consultations. What can be done and how can we prepare, as our population continues to age, to improve the accessibility of Canada’s main street businesses?
In closing, I’d like to say that as the government continues to develop COVID-19 recovery programs, we ask that our local MP representatives continue to actively engage us in the development of those programs. Our BIA boards and staff are highly skilled and adept at identifying potential challenges among our memberships and are only too happy to assist in any way we can.
Thank you.
View Julie Dzerowicz Profile
Lib. (ON)
Thank you so much.
I want to turn now to Ms. Taborda.
Ms. Taborda, thanks for being here. You have a very unique role. You wear two hats. One is that not only are you a branch manager and you've been actually helping with emergency supports for businesses within the last year and a half, but you are also the chair of the local BIA, so you're actually trying to help support our local businesses. Thanks for your important testimony and contribution today.
You've talked about how the business supports, particularly the rent subsidy and the wage subsidy, have been lifelines, but you also talked about feeling that it needs to be extended beyond what we're proposing in budget 2021. How long do you think we need to extend it?
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