Ottawa promises support for those quarantined with COVID-19
Finance Minister Bill Morneau says that the federal government will announce “support” for Canadians who have to be quarantined from COVID-19 as early as next week as part of a broader response plan to the virus, which has so far infected 46 Canadians and caused major disruptions to the markets, commodity prices and travel and tourism sectors.
“It is clear that COVID-19 is going to have an impact on the Canadian economy … but the impact will depend on the depth and length of the virus,” Morneau told the audience at a Canadian Club event in Toronto.
“We are continuing to monitor the impact on businesses and workers. We have the tools to respond really quickly,” he added.
He provided little detail on what the “support” to Canadians who have to be quarantined might look like, but promised specifics next week.
Morneau said the government also plans to increase the risk adjustment provision in the upcoming federal budget to ensure it has a sufficient contingency fund that can be deployed if necessary.
The risk adjustment provision in last year’s budget was about $3 billion.
Morneau said that the i mpact of COVID- 19 is materializing through four main channels — commodity prices, travel and tourism, global supply chains and business and consumer sentiment.
The government’s response to the virus will look specifically at the impact on these four channels, he said.
“We are seeing lower prices of oil impacting oil companies. We know the tourism and travel sector is being impacted because people are changing their travel plans. But until we see the depth and duration of this virus, we don’t know yet what other sectors will be impacted,” Morneau said.
North American markets have lost roughly 10 per cent of their value over the last two weeks, placing them firmly in correction territory.
In response to a question on whether the government would consider measures taken by other countries like Italy and Japan in closing schools and limiting public gatherings, Morneau said the government would only take measures “as appropriate.”