Emergency Program Extensions A Mixed Bag For Halifax Businesses

HALIFAX — The president of the Halifax Chamber of Commerce is pleased to see that the major federal support programs for business have been extended until October. However, he also feels the measures fall short of providing full support for the severely impacted business sectors.
 
Recently the federal government decided to extend the wage subsidy, rent subsidy, and a host of other programs until October 23. Before, it was due to expire after September 25.
 
Most significantly, the maximum rate for the rent and wage subsidies, between August 29 and September 25, will be 40 percent, rather than the 20 percent initially planned. Between September 26 to October 23, however, the maximum rate drops again to just 20 percent.
 
For many weeks, Atlantic Canadian business leaders were lobbying government to return the programs to its 2020 form. Back then, at its most generous, eligible employers received a wage subsidy of 75 per cent.
 
The Canadian Emergency Rent Subsidy, when it was first formed, offered a maximum subsidy of 65 percent to eligible businesses who rented their commercial space or needed help with mortgage payments.
 
For Halifax Chamber president Patrick Sullivan, the extension of the programs is a mixed bag. He was hoping the hard-hit hospitality sector (including restaurants, hotels, and tourism businesses) would be specifically targeted with stronger supports.
 
“Clearly, it’s less than it was in the past, but it’s a little higher [now] than they expected,” said Sullivan.
 
“I think people are pleased that it has been extended…but it’s not really what people were hoping for. I think people in, primarily hospitality, were hoping to see (an extension) until the end of the year… I don’t know if it truly meets the needs of highly impacted sectors.”
 
The federal government may have been wary of making the programs as generous as it was last year, due to the amount of money already spent on emergency programs.
 
According to the government’s own statistics, $87 billion has already been spent on the wage subsidy and $5.2 billion has been spent on the rent subsidy. This is on top of $23 billion spent on the Canada Recovery Benefit since September 2020.
 
In July, nearly 40 Nova Scotia businesses and business associations penned a letter to Finance Minister Chrystia Freeland, asking for her to consider Atlantic Canada’s unique economic situation before phasing out the programs.
 
“We are asking the federal government to review the continuing impact of Covid-19 on these sectors in Atlantic Canada and refocus supports to levels that ensure highly affected sectors, including tourism and hospitality, can weather the remainder of the storm,” states the letter.
 
Sullivan believes there is still much more support needed for the hospitality sector heading into the year 2022. With a federal election anticipated this fall, he is asking Nova Scotians to keep the business community in mind.
 
“I would encourage readers and businesses to ask candidates from all parties what their plans are for the exceptionally hard-hit sectors in the fall and as we head into 2022,” says Sullivan.

Derek Montague
https://huddle.today/emergency-program-extensions-a-mixed-bag-for-halifax-businesses/