December 1, 2020 For Immediate Release
Mississauga Board of Trade Welcomes Federal Fall Economic Statement with Concern
Mississauga, Ontario — Yesterday, Deputy Prime Minister and Minister of Finance the Hon. Chrystia Freeland tabled the long awaited Fall Economic Statement in the House of Commons. The Mississauga Board of Trade (MBOT) welcomes this Statement and looks forward to the implementation of a number of the measures announced.
During this very difficult time of COVID19 with many businesses in the City of Mississauga in “Grey-Lockdown” phase, a number of measures announced yesterday are helpful and a result of the direct advocacy of the Canadian Chamber of Commerce network.
The Minister announced that the Government is proposing to increase the maximum wage subsidy rate to 75 per cent for the period beginning December 20, 2020 and to extend this rate until March 13, 2021. To provide greater certainty to businesses and other organizations, the government is proposing to extend the current subsidy rates of the Canada Emergency Rent Subsidy (CERS) for an additional three periods. This means a base subsidy rate of up to 65 per cent will be available on eligible expenses until March 13, 2021. With the 25 per cent Lockdown Support also being extended, businesses may be eligible for a subsidy of up to 90 per cent of their eligible expenses.
And the Canada Emergency Business Account (CEBA) program will soon be expanded, allowing qualifying businesses to access an additional interest-free $20,000 loan, in situations where there is need. Half of this additional amount, up to $10,000, would be forgivable if the loan is repaid by December 31, 2022. The deadline to apply for a CEBA loan has been extended to March 31, 2021.
“These are all very welcomed measures and a direct result of the advocacy work done by the Mississauga Board of Trade and others,” said David Wojcik, President & CEO, MBOT. “The affects of COVID are still very much with us and businesses need this support more than ever.”
The Economic Statement also promises to support Canada’s hardest-hit industries, like tourism, hotels, arts and culture, and the air sector with new support including the new Highly Affected Sectors Credit Availability Program. It further commits to laying the groundwork for a Canada- wide Early Learning and Child Care System.
However, the Statement also says that Canada’s budget deficit for the fiscal year ending March 31, 2021 could be as high as $380 billion. In the spring budget, the Government will need to lay the ground for deficit reduction and responsible public expenditures.
Perrin Beatty, President & CEO of the Canadian Chamber of Commerce stated, “The Fall Economic Statement was an opportunity to provide a detailed plan to get us from today’s hardship to economic recovery and growth. The statement provided needed supports for businesses and Canadians to build a foundation for growth, though many questions remain about the government’s economic recovery plan.”
He concluded, “With the right policies today, we can hasten the day when Canadians will be able to reclaim their normal lives and enjoy an economy that is growing once again.”
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President & CEO