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
Robert Pickton to remain in medically induced coma until later this week: police
Serial killer Robert Pickton will remain in a medically induced coma for at least the next few days following an attack in a Quebec prison Sunday, according to police spokesperson Hugues Beaulieu.
Charlie Colin, founding member of the pop-rock band Train, dies at 58
Charlie Colin, bassist and founding member of the American pop-rock band Train, best known for their early-aughts hits like 'Drops of Jupiter' and 'Meet Virginia,' has died. He was 58.
'Five feet nothing': Pickton's safety likely behind Quebec transfer, says ex-prison judge
When serial killer Robert Pickton was transferred from British Columbia's Kent Institution to a maximum security prison in Quebec about six years ago, correctional authorities gave no public explanation or confirmation at the time, citing privacy.
'I feel betrayed': Ottawa-area customers out thousands of dollars warn of bad faith contractor
A group of people from eastern Ontario and western Quebec is issuing a warning about Dennis Walker and his company Vue Windows.
Fancy pigeon outfitted in custom diaper has free rein in B.C. family home
When Chrissy Chin volunteered to take in a fancy pigeon abandoned on a park bench, she never imagined she would one day be ordering custom-made diapers for the bird – who lives in her house and has become a member of the family.
'We'll need all hands on deck': Details emerge after deadly boat crash near Kingston
Police say they have wrapped up their on-scene investigation into a deadly boat crash in eastern Ontario as details of the incident begin to emerge.
WestJet planning new fare category for travellers willing to forgo carry-on bag
WestJet Airlines plans to launch a new cheaper fare category that would be available to travellers willing to fly without a carry-on bag.
5 dead and at least 35 hurt in Iowa tornado: officials
Five people died and at least 35 were hurt as powerful tornadoes ripped through Iowa Tuesday, with one carving a path of destruction through the town of Greenfield, officials said.
Woman found dead in Lake Ontario in 2017 matches identity of missing person in Switzerland
Genetic genealogy has helped Toronto police identify a woman who was found dead in Lake Ontario in 2017.