The Coalition of Hardest Hit Businesses (CHHB) is lobbying the federal government to extend the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) past their current June 5 expiration date.
CHHB, which represents companies in the hotel, tourism, arts and hospitality industries and groups like the Tourism Industry Association of BC and the BC Hotel Association, claims that without the extension many of its member businesses will not survive.
But businesses have to weigh financial assistance with their desire for low corporate taxes and balanced government budgets, said Ken Peacock, chief economist and vice-president of the Business Council of British Columbia.
How and when to roll back the programs is a challenge, because businesses and individuals continue to struggle with the pandemic’s economic fallout. But Peacock said the programs should be wound down as COVID-19’s threat to public health is reduced.
He said more general supports like CEWS and CERS could be replaced with sectoral-specific programs.
While some industries have thrived during the pandemic and others have survived with government support, some, such as tourism and hospitality, have been irreparably damaged.
According to the BC Restaurant & Foodservices Association (BCRFA), a new three-week closure rule will result in $500 million in losses for its members.
For those industries, sector-specific support will be needed, regardless of whether it is in the form of direct payments, tax relief or increased forgiveness on Canada Emergency Business Account loans.
Ian Tostenson, BCRFA’s president and CEO, said the provincial and federal governments need to fill the gap until the economy and society return to normal.
Tostenson and Peacock agreed that continued support for employees is also essential, particularly for those laid off because of the pandemic.
– Albert Van Santvoort
