Q & A

Operator:

Thank you. Merci. For questions, star 1. First question, Theresa wright, the Canadian press. Line open.

Reporter:

Good morning, Prime Minister. Over the last several weeks you have made comments suggesting how far the airline industry wascoming. Now air Canada is laying off more than half its workforce. Will specific help will coming for air Canada and the airline industry as a whole and how will it help the workers affected by these layoffs?

Prime Minister Trudeau:

We moved forward quickly on support for people who got laid off and then moved forward on a wage subsidy that have been drawn on by air Canada and other airlines in order to support people across this country who, because as you say the airline industry is extremely affected by COVID-19, there hasn’t been the work for them. We’re going to continue to work with airlines across this country, make sure that they are drawing on the benefit packages that we put forward for workers through the wage subsidy. But we’ve also moved forward on a lee ff program for large employers, as well as looking atsectoral supports. We will continue to work directly with big employers across this country and various sectors and make sure that they have the support so we can all come roaring back once this pandemic is through.

and a follow-up, theresa?

Reporter:

Thank you. You mentioned that air Canada was using the wage subsidy, but this clearly hasn’t been enough to keep employees on the payroll. Uptake on the wage subsidy program has been low overall. What is this telling you about the help that will be needed for businesses over the longer term?

Prime Minister Trudeau:

I think one of the things that businesses need is confidence to know that we are going to be there, and just about every day I come out and reassure people that the government will be there to support businesses, to support workers, to support families through this difficult situation. We just announced on Friday that we will be extending the Canada emergency wage subsidy until the end of the summer in order to make sure that companies can rehire people, keep them on their payroll, because we know that the best way to bring the economy back quickly and efficiently is if people continue to have that link with their employer, even as we go through the containment measures we have to. [voice of interpreter]we know that it’s a major challenge now for large companies, including the airlinesector, when it comes to supporting their employees. and that’s why we introduced thewage subsidy, and that’s why we have been working with various companies across the country to support them. We know there’s more that needs to be done, and we had the certainty behind that, and it was the reason why we extended the wage study, and we will continue to ensure that people can keep their attachment to their employer so that we can return quickly once this pandemic is over. [ end of interpretation ]

Next question, operator.

Operator:

Thank you. Merci. [no interpretation]. [voice of interpreter]

Reporter:

Good morning, Mr. Trudeau. The fact that 20, 000 people are being laid off at air Canada, what does that say to you about the wage subsidy? do you think more needs to be done? and could the government again nationalize air Canada as has been done in the aerospace sector?

Prime Minister Trudeau:

Well, we know that this is an extremely challenging situation now for airline companies, and that’s why we introduced measures across the economy to support workers, including in the airline industry. We will be working closely with companies like air Canada to see what more we can do to support them.

Prime Minister Trudeau:

I think we all know that this pandemic has hit extremely hard on the travel industries and on the airlines particularly. That’s why we’re going to keep working with airlines, including air Canada to see how we can help even more than we have with the wage subsidy. [voice of interpreter]

Follow-up?

Reporter:

Yes. Just coming back to the idea of nationalization, have you ruled out the possibility of nationalizing air Canada? and could there be a bailout for this company?

Prime Minister Trudeau:

Well, we will be working with lots of different sectors and lots of companies to ensure that they can come through this pandemic, and we’ll be talking to air Canada and other airlines as well to see what the options are to support the tens of thousands of workers who are part of theirworkforce. [ end of interpretation ]

Reporter:

Ashley Burke, CBC news. Good morning. The wage subsidy and the bridge loans, they were not enough to prevent air Canada from planning these major cuts. What does that tell you about the future of this industry in particular, and the effectiveness of these programs, and is it possible that some might not survive, regardless of government support?

Prime Minister Trudeau:

This is a pandemic that has hit extremely hard in all sectors of the economy, and it is something that we are all trying to figure out how to get through the best possible way. But certain sectors have been hit even harder. Obviously tourism, airlines are the kinds of things that people simply are not drawing on right now. That’s why we’re going to keep working with various sectors, keep working with specific companies to try and see what the best way through of supporting workers who depend on those industries for their livelihoods, but also look at how we can make sure that canadacomes through this in tact and even in a good position for the future. [voice of interpreter]we will continue to work with the sectors and industries that have been very hard hit by this pandemic. We will do everything we can to ensure that Canada can come out of this situation in good shape, and we will always be seeking tosupport workers and families across the country. [ end of interpretation ]

Reporter:

One of your MPs has said in writing to the member of the public that there will not be a bailout coming for the airline industry. is he right?

Prime Minister Trudeau:

We’regoing to continue to work with sectors and industries as they try to get through this pandemic. We put in place the large enterprise emergency finance facility, leeff, to be able to support companies with liquidity over this time of the pandemic. It is not a bailout. It is a loan that is going to help them get through, but we are still working with companies to see who’s taking that up and how those – the format of it will be worked out. [voice of interpreter]we provided additional credit and made that available to employers, and we will be working with different companies, perhaps airlines as well, to offer more liquidity tothem in theme difficult times.

Reporter:

Christian noel, radio-Canada. Cities, cities are pretty much in a difficult position because they are being asked to help with the health care community, but things are not doing well. They have less revenues coming in. Now are you aware of this? have you discussed this with theprovinces? what can you do?

Prime Minister Trudeau:

Well, I had My ninth discussion with the premiers on Thursday evening, and we talked about the circumstances which are particularly difficult for our cities and municipalities as a result of this crisis. They provide a lot of services to citizens. But they are seeing their revenues decline drastically. So obviously we respect the fact that Canadian cities are a provincial responsibility. We have no intention of interfering in that responsibility, but we have said to the provinces that we want to be there to support them so that we can help the provinces to ensure that the cities remain healthy. [ end of interpretation ]we talked directly about this onthursday evening in My first ministers evening, the ninth of this pandemic, with the premierswhere I highlighted My concerns that Canada’s big cities, and indeed municipalities of all sizes across the country, are facing significant challenges asthey continue to deliver services in difficult situationsfor their citizens while at the same time sing massive drops in revenue. We respect, of course, and we know that cities are the responsibility of the provinces, but I highlighted that the federal government is eager to hear from the provinces how we can support cities. It has been very important for me as Prime Minister over these past five years to be supportiveof our cities, and we’re continuing to look to do so, butrecognize the provincial jurisdiction in this. [voice of interpreter]

Reporter:

First of all, are you saying that the help that could be given to the cities is slower now because you can’t agree on that with them? and also, they need support now. There are cities that have already had to layoff municipal employees, and cities like Edmonton that are thinking of reducing their public transit services as a result of this. So, one, will you talk to the cities so that they can get that help quickly. and will they be able to get it as early as this summer?

Prime Minister Trudeau:

Well, as I said, we have discussed this already, and all of us, the premiers and myself all agree that we have to support the cities. The federal government will be there as a partner to support the provinces in the work that they have to now carry out to support their cities. [ end of interpretation ]we all agree across first ministers that we need to do more to support cities, and I have assured them that the federal government will be thereto support the cities in what they choose to do, what they need to do – sorry, to support the provinces in what they need to do to support cities.

Reporter:

Hi, Prime Minister, global news. Beyond the wage subsidy and already announced programs, will there be any industry-specific supports for smaller airlines incanada that don’t meet thresholds for supports?

Prime Minister Trudeau:

We’veput in place support for sector sand large employers, and that is something that we are moving forward on. Industry Canada is engaged closely with various sectors. We recognize that certain areas are harder hit than others. Airlines is a great example of something that was going well before the pandemic, where we are going to need airlines afterwards. We need to make sure we can support them through in the right way that makes sense for Canadians, and that’s what we’lldo.

Reporter:

But will there be any specific supports for this industry?

Prime Minister Trudeau:

As I said, we’re working with the industry. We’re working with sectors to see what kind of supports would be right, both for Canada and for them.

Reporter:

Good morning, Prime Minister. Air Canada right now is losing about a million dollars an hour. They lost a billion dollars lastquarter. They are only flying about 5% of their flights, and now that they are laying off about half of their staff and choosing not to use the wage subsidy. You said before that Canada needs to have a strong airline sector after this. So if that’s the case, is the federal government willing to take an equity stake in air Canada to make sure that they stay alive?

Prime Minister Trudeau:

We will have conversations with aircanada, as we will with airlines across the sector, to try and see how best – the best way to get through this particular pandemic is. We know that airlines are incredibly hard hit by this pandemic, and we will be there to work with them to see how best we can help.

Reporter:

One of the things that air Canada mentioned is that, yes, we can get the wage subsidy from the federal government, but the major issue for them financially was the fact that they had to still pay their pension and health benefits out. is the federal government considering any additional changes to the wage subsidy that would include these programs to allow larger businesses to still keep people employed?

Prime Minister Trudeau:

We’regoing to work with large businesses, like air Canada, to ensure that workers, employees, pensioners are protected during this situation. Our focus will always be on supporting Canadians and their families. That’s what we’re going to talk with industry and companies about. [voice of interpreter]we will always ensure that we are supporting workers, retireesand companies in Canada. That’s our priority. and that’s what we will be discussing with the various companies out there who need help. [ end of interpretation ][indiscernible]. [voice of interpreter]what can you say to families about how quickly they will be receiving that?

Prime Minister Trudeau:

We will be increasing the Canada child benefit. We know that families are facing additional hardships, and starting next Wednesday you will be receiving $300 more per child through the Canada child benefit. Furthermore, in July, as we have done every year in the last three years, we will be again increasing the child benefit to ensure it keeps pace with the cost of living so that you can pay for whatever your family needs. We have always supported families and will continue to doso.

Thank you all very much. [ end of interpretation ]