UCP to apply for federal wage subsidy; NDP will not

EDMON TON Alberta’s United Conservative Party says it is applying for the federal wage subsidy program during the COVID-19 pandemic while the Opposition NDP says it is holding off.

Under the $73-billion program, Ottawa will cover 75 per cent of wages — up to $847 per week, per employee — for companies and organizations that have seen revenues from January and February decline by 15 per cent in March, or 30 per cent in April and May. Political parties as non-profit entities are eligible to apply.

UCP spokesman Evan Menzies said Monday it is the best option for its workers with the lockeddown economy leading to a reduction in fundraising opportunities.

“We have lost fundraising events in our 2020 calendar due to the restrictions on gatherings,” Menzies said in a statement. “Rather than fire staff, we plan to apply for the temporary federal program, like thousands of other business and non-profits have across the country, to help maintain our eight staff and the families that rely on them.

“The alternative was laying off staff and putting those individuals on the Canada Emergency Response Benefit (Cerb)/employment Insurance.”

NDP provincial secretary Brandon Stevens said the NDP has eight staffers.

“Our team has worked hard since mid-march to make sure that our fundraising respects the very real health and economic anxieties of Albertans,” Stevens said in a statement Monday. “To date, we have met our fundraising goals and have not had to apply for the federal wage subsidy or the federal rental assistance program. We continue to closely monitor our fundraising so that, if needed, we can make adjustments to keep staff employed and maintain our operations.”

The UCP, led by Jason Kenney, won the provincial election in the spring of 2019, but finished the year with a $2.3-million deficit and net liabilities of $1.1 million.

The NDP, the only other party with members in the legislature, recorded a surplus of almost $750,000 in 2019 with net liabilities of close to $377,000.

Franco Terrazzano, Alberta director for the Canadian Taxpayers Federation, said Monday political parties that have applied for the wage subsidy should pay back the money. The federation has started a petition calling on parties to do that.

“Political parties already receive special taxpayer treatment and in particular for the Alberta (government), this is just extremely hypocritical and a bad look for the UCP,” Terrazzano said. “Because the UCP ran on being the party that would look out for taxpayers but the party is now taking tax dollars from struggling taxpayers.”

Federally, the Liberals, Conservatives, the NDP and the Green party have all applied for the subsidy, which has now been extended to the end of August.

Terrazzano said political parties already offer up to a 75-percent tax credit for donations.

“Taxpayers have already contributed to political parties and tax credits for political parties are already more generous than for charities,” he said.

Prime Minister Justin Trudeau didn’t answer repeated questions Monday about why his party needed to access that support. With files from Ashley Joannou