National Post (National Edition)
‘It’s devastating news to us’: No aid for National Ballet
OTTAWA • The National Ballet School, Canada’s most prestigious dance school, is facing mass layoffs and salary reductions since being excluded from the federal government’s wage subsidy because it offers academics to 170 of its students.
“It’s devastating news to us. This is money that would have allowed us to get through this, especially knowing there are many more challenges to come in our sector,” said John Dalrymple, executive director at Canada’s National Ballet School.
The last few weeks have been an emotional roller-coaster for Dalrymple and the school’s 300 staff. The executive director said the school has already lost $2.5 million in revenue because social distancing measures forced it to cancel its spring and summer programs.
To ensure the school’s financial survival, one month ago he told his staff that roughly 100 of them would be temporarily laid off, while the rest would have to take a 25 per cent pay cut.
The next day, the Trudeau government announced the Canada Emergency Wage Subsidy. The benefit promises to cover 75 per cent of eligible employers’ payrolls — up to a weekly maximum of $847 per employee — for up to 12 weeks (March 15 to June 6).
“We didn’t know if we’d qualify, but we suspended the layoffs for one month. And as more information came through about the program, we were more and more optimistic we would qualify. But when came the day to apply, we were told there was this wrinkle and we couldn’t apply,” Dalrymple explained.
That “wrinkle” is that, as the National Post revealed last week, private schools are excluded from the 75 per cent emergency federal wage subsidy because they are considered a “public” institution.
It doesn’t matter that in many provinces, private schools — including performing arts schools that offer an academic component such as the National Ballet School — are considered to be businesses or non-profit organizations.
NBS’s programs reach thousands of recreational dancers every year, but the school also offers a full academic program to about 155 high schools students every year. Because of that, the prestigious institution is excluded from the wage subsidy program.
“That was head-spinning news. Now we may have to go back to staff who still believed and tell them we may have to lay you off after all,” Dalrymple said. He is waiting until May 9 before cutting any employees.
“If we didn’t have that academic program, we would be eligible. Those of us who have enhanced arts training with an academic program are being penalized,” he added.
Dalrymple said that NBS isn’t facing financial ruin — yet. “Depending on how the upcoming year goes, we may be having a very different conversation this time next year,” he warned.
The National Ballet School is far from the only performing arts institution that is being excluded from the federal government’s wage subsidy.
Éric Langlois, director general for Montreal-based National Circus School, has the same problem.
He said many performance art institutions that offer academic programs are suffering from the sudden shutdown of classes, but they have few places to turn for help.
Since the beginning of the COVID-19 pandemic, the National Circus School has had to cancel more than $400,000-worth of activities and performances, as well as crucial fundraising efforts.
“The law makes no distinction whatsoever when it comes to a school’s private or public status and where it gets its funding. Current (CEWS) legislation is not at all adapted to the situation and excludes a large group of schools that need help,” Langlois said.
“It could mean that some schools are going to disappear,” Langlois said. “Even if some schools are allowed to reopen their recreational programs, as long as there isn’t a vaccine for COVID-19, they’ll probably only be able to host half as many students in a class. So their revenues are suddenly cut in half,” he added.
“For some schools, it’s going to be catastrophic,” Langlois said.
Once again, Finance Minister Bill Morneau’s office did not answer questions as to why arts and performance schools were excluded from CEWS.
But spokesperson Maéva Proteau said in a statement that the Liberal government is open to making changes to the program.
“We have made changes to make CEWS more flexible for startups, high-growth businesses, charities, and not-for-profits. As we have said from the beginning, we are willing to make adjustments, and we will continue to take action as necessary to ensure Canadians have the help they need during this challenging time,” Proteau wrote in an email.
THOSE OF US WHO HAVE ENHANCED ARTS TRAINING WITH AN ACADEMIC PROGRAM ARE BEING PENALIZED.