While provincial re-openings have dominated recent headlines, we wanted to keep you on top of this week’s federal developments as we head into the long weekend. In summary:
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The Prime Minister confirmed this morning that the Canada Emergency Wage Subsidy (CEWS) will be extended three months to the end of August. The eligibility criteria for the program has also been broadened to include new support for businesses owned by Indigenous governments, amateur sport associations, private colleges and non-profit journalism organizations. The government is asking for feedback from business and stakeholders on ways to improve the program. They are also re-examining the criteria for a 30% decline in revenue as businesses begin to re-open, not wanting to inadvertently prevent growth.
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This announcement follows a report suggesting that the uptake on the Canada Emergency Wage Subsidy has been significantly lower than expected, while the number of people using the Canada Emergency Response Benefit has been extremely high. The government is now shifting from using the wage subsidy to keep workers on the payroll, to using the wage subsidy as an incentive for companies to rehire.
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$450 million in funding will go towards supporting Canada’s academic research community during the COVID-19 pandemic. This funding will provide universities and health research institutes with wage subsidies of up to 75% per individual, to a maximum of $847 per week. It will also provide funding to maintain essential research-related activities and ramp back up to full research operations once physical distancing measures are lifted. This will cover up to 75 per cent of total eligible costs, and will support activities such as the safe storage of dangerous substances, and restarting data sets that were interrupted during the pandemic.
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While the extended deadline for 2019 tax filings is June 1, the Prime Minister confirmed this morning that credits like the Canada Child Benefit and GST/HST credits will not be cut off if this deadline is missed, and will continue through September.
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On Tuesday, the government announced a one time top up to CPP and OAS of up to $500. This announcement also included new funding for organizations that provide social support to senior citizens.
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On Wednesday, the Prime Minister announced that enrolment in the Canadian Emergency Student Benefit will be open starting today (Friday May 15). Students are encouraged to set up an online account with CRA. Canada Summer Jobs opportunities have been posted to www.jobbank.gc.ca, where students can now apply.
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The PM also announced the Regional Relief and Recovery Fund (RRRF), providing details on the $1 billion in new funding previously announced for the six regional development agencies. This funding will flow this summer based on regional needs, and will be targeted at companies that have been unable to access other federal relief benefits, like the Canada Emergency Wage Subsidy and Canada Emergency Business Account.
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Health Canada approved the first serology test, which will look for antibodies and help public health officials to predict how many Canadians have developed immunity to COVID-19. British Columbia has already launched a survey to screen possible candidates for future testing.
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The Canada-US border closure is expected to be extended until June 21. While no formal announcement has been made, there is no indication that the border is opening up anytime soon for non-essential travel.
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The PM said that there is no date set for a budget at the moment, but a fiscal update may be coming soon. There is general agreement that the government needs to assess the economic damage before developing a full spending plan for the coming year.
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The government announced changes to expedite the process of allowing temporary foreign workers already in Canada to qualify for other jobs. This move follows concerns by farmers that food production could be disrupted as a result of labour movement restrictions.
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News reports suggest that the government would consider taking equity in companies unable to take on more debt as part of the Large Employer Economic Financing Facility (LEEFF) that was announced on Monday.
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The federal government is looking to massively increase domestic vaccine production capacity so that it doesn’t have to disrupt existing vaccine production to produce a future COVID-19 inoculation.
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MPs passed an emergency bill to assist the Dairy sector, hit hard from COVID disruptions. The bill will allow the sector to borrow more money in order to store excess product.
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Parks Canada is beginning the process of reopening federal parks and historic sites starting on June 1.
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As always, our federal team is standing by to answer your questions:
Sheamus Murphy
613 323 7607
Bridget Howe
613 797 8058
Ben Parsons
613 323 5226