$19B TO HELP FUEL COVID FIGHT

`SAFE RESTART' Fund aims to help provinces, cities cope

OTTAWA • Prime Minister Justin Trudeau provided details on Wednesday about the government's key recovery plan for provinces and cities, which involves $19 billion for a range of measures aimed at fighting COVID-19.

Trudeau laid out spending plans under the Safe Restart Program, which was first announced back in June as a way to funnel money to cash-strapped provinces and municipalities. The Ontario government will receive $4.8 billion under the plans, according to a list of spending measures released on Wednesday, followed by Quebec ($3 billion), British Columbia ($1.9 billion), and Alberta ($1.3 billion).

Expenditures under the program are aimed at a grab bag of different spending streams that, according to government documents, will “help provinces and territories safely restart their economies and make our country more resilient to possible future surges in cases of COVID-19.”

Spending will go toward public transit infrastructure, “immediate assistance” for seniors at risk of transmitting COVID-19, personal protective equipment for employees as they return to the workforce, and additional childcare services, among other things.

Ontario will receive $1.7 billion for public transit projects, and another $1.1 billion for funds aimed at contact tracing for COVID-19. British Columbia will receive $809 million for public and municipal infrastructure projects, while Alberta will receive $303 million.

The announcement on Wednesday came after the program had initially received some pushback from provincial and territorial leaders.

Ottawa had initially carved out $14 billion in spending for provinces and territories in June, which it expanded to $19 billion in July after provinces complained that the pool of funds was too small to fill their respective fiscal gaps.

“The reality is, we have a $23-billion problem in Ontario,” Premier Doug Ford said shortly after the program was announced in June. “And $14 billion for all of Canada won't solve the problem; $14 billion for all of Canada just won't cut it.”

Others said the proposed funding included too many conditions that unnecessarily tied the hands of provincial leaders. Still others had pushed back against provisions in the Safe Restart Agreement that provide 10 sick days for employees, which could hinder productivity as the COVID-19 pandemic drags on.

Ontario has since agreed to the new funding arrangement, and in August laid out its general spending plans under the SRA.

Provinces have warned for months that they would be unable to meet basic spending requirements amid the COVID-19 pandemic, and had called on Ottawa to help fill the gap, particularly for health care expenses.

Provincial budget shortfalls are partly responsible for the Bank of Canada's unprecedented decision earlier this year to introduce quantitative easing measures, under which the central bank has already bought up billions of dollars worth of private and public debts.

National Post