Debate grows over whether business subsidies should be extended
As the Oct. 23 expiry date for federal emergency wage and rent subsidy programs for businesses draws near, some are calling for another extension. The programs had previously been set to end at the end of July.
“There’s a lot of my customers that would come back here every two weeks, now I haven’t seen them since the COVID,” said Danny Vuong, who with his wife owns and operates Lucky’s Nails & Spa in London’s Byron neighbourhood.
Vuong says with some regular customers still nervous about coming back to the salon, business is down more than 50 per cent from pre-COVID levels. He said the shop has stayed alive because they’ve been able to access federal government subsidies to help with wages and rent.
Lockdowns have been especially tough, he said.
“I might be in business for a while, but not for long. Because you know, all of our savings, we have to take it out to put it toward the business. Even though we’re not running the business, we still have to pay for rent, hydro, phone bills.”
The Canadian Federation of Independent Business (CFIB) says with the majority of Canadian businesses are still not back to normal levels, and it’s hoping the federal government will extend the wage and rent subsidy programs once again.
“Almost every province now has put in place a passport system -- that’s led to a further drop in sales for many, many small businesses, who are now seeing 20 per cent of their customers unable to visit them,” said CFIB President Dan Kelly.
“These measures, while intended to try to reduce COVID spread, they are having an economic impact, and Ottawa can’t phase out the wage and the rent subsidies, the key supports, at the very same time.”
But if it doesn’t come to an end this month, then when should it? There are those who believe it’s time to turn the federal subsidy taps off sooner rather than later.
Spyro Giannakopoulos, who owns Hillside Restaurant in Kilworth, just west of London, said he believes the subsidies should only continue if there’s another lockdown.
“Businesses have had ample time to prepare and change their model somewhat,” said the restaurateur. “And you have too many businesses just surviving off the subsidies. And you’ve created an unnatural business enironment where you have zombie businesses who aren’t going to be able to make it once the subsidies end. So you’re using taxpayer money to subsidize, in truth, landlords who are getting the rent.”
According to federal government statistics the rent subsidy program has paid out $6.6 billion to date, while the wage subsidy program has shelled out $94 billion.
CTVNews.ca Top Stories
Air traveller complaints to Canadian Transportation Agency hit new high
The Canadian Transportation Agency has hit a record high of more than 71,000 complaints in a backlog. The quasi-judicial regulator and tribunal tasked with settling disputes between customers and the airlines says the backlog is growing because the number of incoming complaints keeps increasing.
LIVE @ 1:15 PT B.C. premier to give announcement related to public drug use
B.C.'s premier is scheduled to give an update Friday about public drug use in the province.
Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
AFN chief says Air Canada offered a 15% discount after her headdress was mishandled
After the Assembly of First Nations' national chief complained to Air Canada about how staffers treated her and her ceremonial headdress on a flight this week, she says the airline responded by offering a 15 per cent discount on her next flight.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Flight attendant indicted in attempt to record teen girl in airplane bathroom
An American Airlines flight attendant was indicted Thursday after authorities said he tried to secretly record video of a 14-year-old girl using an airplane bathroom last September.
76ers All-Star centre Joel Embiid says he has Bell's palsy
Philadelphia 76ers All-Star centre Joel Embiid has been diagnosed with Bell’s palsy, a form of facial paralysis he says has affected him since before the play-in tournament.
DEVELOPING Bird flu outbreaks: WHO weighs in on public health risk
The current overall public health risk posed by the H5N1 bird flu virus is low, the World Health Organization said on Friday, but urged countries to stay alert for cases of animal-to-human transmission.
Island near Mull of Kintyre for sale for US$3.1 million
An idyllic 453-acre private island is up for sale off the west coast of Scotland and it comes with sandy beaches, puffins galore, seven houses, a pub, a helipad and a flock of black-faced sheep.