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News before the Speech

To COVID-19, set to start as usual at 11:15 eastern, about 15 minutes’ time. We are expecting the Prime Minister today to give us more details about the extension of ottawa’s emergency wage subsidy, that is the programme where the government commits to help with the payroll to rehire workers they may have laid off because of the COVID-19 shutdowns. It’s a $73 billion programme. It pays $847 per week per employee and I was schmoes ed to run until the beginning of June. But there had been an announcement it will be extended and we’re going to hear more about the details of that coming up. I’ll bring in My colleagues, the host of “power & politics”, Vassy kapelos and the cbc’s Catherine Cullen from our parliamentary bureau. So, more details about this extension, which has had some uptake, but not a huge amount given it has been open for three weeks, Vassy. What can you tell us?

Vassy:

Yeah. My understanding is that the programme will be extended until the end of August and might be modifications as well to some of the criteria for qualifying. Right now, in essence, there is some sort of nuances to it. But basically you have to show that your revenues have dropped 30% compared to the same time last year or at least the first two months of this year. and as businesses re-open in this country – we’re seeing it in various provinces at various speeds – of course that revenue calculation may differ. You might have not lost 30%, but 27%. and does that mean at 25 fact that you shouldn’t qualify to help you as you make it through this difficult time on to the other side maybe, or at least some part of the other side of the pandemic. So, My understanding is that there will be some acknowledgment of that. and that the subsidy itself will be extended until the end of August. and your point on the uptake, or the take up of it, of the programme so far, I think it is a really significant one. and obviously has informed the government’s decision to extend the programme. Initially, the thought was that this programme would be a whole lot more expensive than the CERB, right? that is the programme that you get $2, 000 a month up to four months if you have to stay home or can’t work or you’ve been laid off because of COVID-19. This was designed to get people off that programme and move them over to the cews or wage subsidy programme. I have interesting numbers. For example, the cost of programme was supposed to be about $70 billion, somewhere in the neighbourhood of that. Only about $3.4 billion has been doled out so far. They were also expecting about one million applicants. They had about .10 of that, about 130, 000. Most applications, shy of 9, 000, have not yet been approved and money doled out. But that is a very small number compared to the CERB, for example, where there were expected to be four million recipients and nearly double that. I think it tells always story about the speed at which the economy is re-opening. The anticipation probably a few months ago was that we might be further ahead than we are now. There might be more people at work and not staying home because of COVID-19. But the reality is that just isn’t the case at this point. Provinces just started opening up this week and so many of them are not veng at that point. Ontario, for example, doesn’t even open retail stores until next Tuesday and there is that constant fear, of course, that if things re-open too quickly, that we might have a setback and things might have to close again. I think people are trepidatious about going back to work in general and about re-opening their businesses and we see that reflected in the data for these two programmes and it seems to make sense that the government would then have to extend this programme as the economic re opening takes longer than anticipate aed.

Rosemary:

and the CERB programme is $30 billion so you’re quite right to highlight that it is probably more than they anticipated and they are actively – it is the government’s hope for people to move from the CERB, as you say, to the wage subsidy, if you can. a couple of things that I hope the Prime Minister will be asked about. I wonder too,, though, if it doesn’t speak to – or maybe if we’ve been overly optimistic in thinking how many businesses will be able to come back after what the governor of the bank of Canada said yesterday, that there were defaults and they were going to happen. and maybe that wage subsidy programme will not be as big because there will be more bankruptcies than anticipated. and I also wonder if the CERB has, you know – well, I’m get Catherine to talk about this in a moment, but this is what the conservatives are talking about, too, right? that the CERB is there and at this point it could be getting in the way of the wage subsidy. I don’t mean it to sound like – I don’t feel people should get the benefit. But they have to find a way to shift from one to the other. and I think that’s the difficult space that we’re in right now. Ok. Catherine, I’ll get you to pick up on that point and go back to Vassy, too.

Reporter:

We did just hear from Andrew Scheer earlier this morning and he has a laundry list of concerns about various government programmes. You’re right to note the wage subsidy. He finds it completely outrageous that the Prime Minister doesn’t think that sending hundreds of millions of dollars each month to fraudsters a problem. That is probably not how Justin Trudeau would characterize his stance on this. The Prime Minister has said – and he got quite fiery about it yesterday – that when it comes to this programme, the emergency response programme, the priority has been to get money into the hands of Canadians so they can pay their bills. The Prime Minister acknowledged there is going to be fraud, perhaps 1%, 2% of the programme. That, he says, is going to be dealt with later and we have from reporting of our colleagues at the national post, things that have been confirmed by federal officials that there is some sort of list of problematic files that is emerging in all of this. Karla qualtrough, the Minister of employment, one of people in charge of this file told Vassy the other day that it is not the 200, 000 number that was put out there. But I know from My own conversations with C.R.A. Officials there is a list of problematic files but they’re putting the emphasis on getting money out to Canadians. Andrew Scheer, in fact, accused the Prime Minister of using this health crisis to remain unaccountable. He is once again calling for a parliament. He says as Canada re-opens, the house of commons should be back, they should be having more in-person meetings, no not with the entire 338M.P.s, but still with a fuller complement in order to hold the government to account. One more interesting note, something we’ve been asking the government about, which is how are we going to pay for all of this, the government has said, listen, we’re trying to feel out the size of this emergency. We’re still dealing with I. The questions of how we’ll deal with it will come later. That is sort of what Andrew Scheer had to say later when he asked would you tax, would you cut? he said that is a question for the next leader because he is outgoing and he will be replaced in August.

Rosemary:

Probably not a good idea to box the new leader into a commitment on that front. [laughter]it’s interesting, though, Vassy, just around the CERB. If the government had put the wage subsidy in place before the CERB, I don’t know if that would have been possible, given it is a much bigger programme. But I wonder if that wouldn’t have – I don’t know – maybe that would have been more effective. Of course, hindsight is 2020. These are huge programmes they’re coming up with. But obviously they had to get some cash out the door quickly and I guess the wage subsidy programme is far more complex.

Vassy:

Yeah from. a few different perspectives. First of all f you lost your job or immediately, you know, that week of March 13 after that Friday when all of a sudden travel was shut down. a lot of people ended up losing their job at that point or being laid off. So t need was acute at that point to pay your rent two weeks in there. I understand why the CERB programme was rolled out when it was. At the same time, the issue if you talk to business owners, for example, is probablistomy what government is grappling with in that timelines are very unclear. If I own a store and I, you know, I don’t know when I’m going to open. If it is going to be two months or four months or six months or a hair salon. It’s very difficult to assess whether or not I should be paying wages, will I be re-opened in three months? every business owner I hear from is clouded, is covered in a myriad of questions about their own business’s future. So, it is not easy to be able to figure out, Ok. I’m going to need the wage subsidy at this point and, of course, it ends. It’s supposed to end at the end of June and we’re already a month and a half – a month and a half, yeah – I lost complete track of time now. [laughter]away from that. So I don’t know what the perfect mix is. But I do know that business owners are certainly – and I’m speaking more of the small and medium-sized ones. Obviously there’s been uptick with bigger companies as well. The majority of them are accessing less than $100, 000 in these wage subsidies. I think the difficulty is in planning and figuring out the rest of your business alongside how many employees you keep on and for how long and that’s why I think to a certain extent the uptick is where it is.

Rosemary:

and that is the case the Prime Minister will probably make around the extension for all of those reasons. That is why the extension needs to go until August. Ok. I’m going to just leave you two for a moments as we wait for the Prime Minister and talk about if you are not following a calendar like Vassy and myself and surely Catherine as well, I’ll remind you that this weekend is the Victoria day weekend and normally, under normal circumstances, we’re all planning all sorts of interesting things to do outside, including going to cottages and recreational properties, out of town and trying to get them ready for the summer. But throngs of seasonal residents rolling into small cottage communities have triggered real concerns, obviously, about the pandemic and areas that probably don’t have the facilities to handle that. So I’m joined now by Phil Harding t mayor of muskoka lakes, a very popular cottage area north of Toronto. Good to see you, mayor.

Thank you. and good morning.

Rosemary:

How are you feeling about the weekend ahead? obviously it is going to be very unusual. What are you anticipating?

I’m anticipating that a number of people will be coming up. We know that the chief medical officer of health has suggested that we don’t travel. But many people haven’t been at their seasonal properties for six months and feel the need to check on them. So, they will be making their way northbound. But I do believe that generally speaking they will be isolating at their properties.

Rosemary:

What about the rest of it? even if they come up and check on their cottages and stay for the weekend. What about the influx of people in terms of community spread? those people may need to get groceries or pick up things and may need to go – may want to go and get an ice cream if your ice cream places are open. What about that part of it?

So for the most part, our retail is still not open. It’s not allowed to open until after the weekend. We do have our grocery stores open. But they’re following a number of protocols and COVID-19 protocols, same with our hardware stores. We’re encouraging those people coming north to make sure you bring supplies. Really for this weekend or next weekend if you come up because of the time delay to manage people under COVID-19 protocols. You don’t want to spend your weekend standing in line to buy a loaf of bread. If you can bring it, please bring it.

Rosemary:

What are your concerns for the summer? I know we were talking there about how unknown everything is. I would imagine much of the revenue for your town is from people that are not there, seasonal dwellers, if you will. Are you anticipating taking a financial hit because things just might be more complicated this summer?

The tourism sector to muskoka, in particular, is massive. and all of our hotels right now are closed. I do believe that if they are able to open in the next couple of weeks, that we will be under a reduced capacity so there is no question that summer 2020 is going to be vastly different. Revenues from a tourism sector, from an attraction perspective will be down. Perspective will be down. Concert venues will not be happening necessarily because we still won’t be allowing large social gatherings. So, it is going to be very different. But I do hope that it becomes more community-minded where people can spend time at their own property.

Marcy:

What are you telling people, then, about coming up? I know a lot of provinces are saying, enjoy your weekend in your backyard. If you don’t need to go somewhere, don’t go somewhere. What is your best advice for people that are – that want to come up there and see their beautiful homes in a beautiful region?

Certainly. So people have some significant investments in their properties and summer cottages. Many people have been up here isolating for the last six, eight weeks since March break, for that matter. So, we respect that. The one message I really want to deliver to people is that we are one community. The bhaoem are here year round, the seasonal people need the people who are here year round. Everyone is afraid of this virus. When you are out in public, everyone – local or seasonal – please wear a mask. Protect yourself. Protect everyone around you so as not to spread this virus. That is number one.

Rosemary:

Are you concerned about the going back and forth? it’s when they start to open their cottages but move back and forth between the city and your region and I wonder if that’s a big concern, given that we know the situation is obviously worse in the g. T.a.

Certainly it’s a problem. Again, our chief medical officer of health has said please, unnecessary travel is not encouraged at this time. So I’m saying the same thing. a lot of close friends who will not e here, enjoying cottage country this weekend, to help stop the spread. But as the economy re-opens, and as the government tries to get things back, people are going to have to travel. We know that. But let’s make sure that we sanitize the gas pumps. Let’s make sure that we use, again, protective equipment when we do have to go in stores, when we walk by someone on the street. Take a step back. Take a step aside so as not to interfere with anyone. and that’s the new socially acceptable thing to do, to step away from someone.

Rosemary:

Yeah. It’s weird, but you’re right. It’s what you expect now from people. Thank you for making the time for us today. Hope the weekend goes Ok. Nice to see you.

Thank you. and be safe.

Rosemary:

Thank you. You as well. That is Phil Harding t mayor of muskoka lakes, Ontario. As we wait for the Prime Minister to emerge from his home there and talk to us today about the extended wage subsidy, I’ll remind you that today is the opening day for students who have been affected by the pandemic to file for the student benefit which has also been announced by the government. That was a $9 billion package. and I’ll bring in My colleagues Vassy kapelos and Catherine Cullen to talk about that. This opens up today and should help students in some way for the next four months or so, Vassy.

Vassy:

Yeah. The idea is that if you’re a student and you apply for this emergency benefit, which works, I should say, from a technical point of view, exactly like the c. R.b. So you should have it in your account some time next week. You’ll get $1250 for may, June, July and August, provided that you qualify, provided that you can’t find a job, that you’re look for work and you do have to attest to that. and so that application opens today. There were, as part of that $9 billion package – and please cut me off if the Prime Minister comes on, My screen is a bit delayed – there was a host of others, like if you volunteer you can access a grant. The information I’ve been trying to get My hands on information about that and when the application process for that opens because I’ve had a number of students reach out who do want to volunteer and get some credits for I. But they’re unable to find any information about it. and I haven’t gotten a response yet from the government. So we will put that out as soon as we get it.

Rosemary:

All right. Thank you. and here’s the Prime Minister of Canada.