Clarity sought on ‘essential’ businesses

Some companies asking for more time before shutdown, others want exemptions

Business organizations were calling on the Ontario government Tuesday to allow some non-essential businesses a bit more time before they’re forced to shut down. The government announced Monday that all non-essential businesses in Ontario would be required to close by 11:59 p.m. Tuesday in a bid to slow the spread of COVID-19.

Organizations were also hoping to get clarity from the government as quickly as possible about what exactly qualifies as an essential business. The government released a lengthy list Monday evening of businesses permitted to stay open during the shutdown, which would include grocery stores, pharmacies and the LCBO.

However, there’s a grey area around some of the examples on the list, said

Julie Kwiecinski, director of provincial affairs (Ontario) for the Canadian Federation of Independent Business. As just one example, she pointed out that businesses that provide watercraft repairs are on the essential business list, but not watercraft dealers.

“What if you sell boats? That’s not on the list. But repairing boats is on the list.

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What do you do?” she said, noting it’s common for one dealership to do both kinds of business. “If you have one essential component, are you allowed to stay open?”

In addition to the need for more clarity, the Ontario Chamber of Commerce was also urging the government to give some non-essential businesses a bit more time to fully cease operations. Without specifically identifying companies, the chamber’s president and CEO spoke of plants with machinery that needs to be properly emptied and cleaned before a full shutdown. Some businesses also need more time to deal with issues like payroll, Rocco Rossi said.

“There are a number of practical issues. It’s not foot-dragging, everyone understands the message,” said Rossi.

“We’re talking days, not weeks,” he added.

Some businesses were quick to reassure customers Tuesday that they have essential status, to avoid any confusion with the list put out by the government. Major chain Dollarama released a statement Tuesday maintaining that it is an essential service and its stores will continue to remain open.

The government has also said that the LCBO will remain open, though on reduced hours. That decision has faced questions from members of the public, but politicians and publichealth experts have pointed out that it’s essential that the LCBO remain open for those with a dependence on alcohol.

Construction work can also continue as an essential service, though the Ontario Construction Consortium urged the government to put a halt to construction work across the province for 14 days.

“It makes no senses that you can’t have your neighbour over for a cup of coffee yet construction sites are expected to continue operations and they can have hundreds of employees working in close proximity to each other,” said the consortium’s executive director Phil Gillies in a statement Tuesday.

Business organizations also continued to call Tuesday for a substantial wage subsidy from governments, similar to what is being done in some European countries, where governments are covering up to 80 per cent of a person’s wage if they’ve been laid off due to COVID-19. (So far the Canadian government has proposed a 10 per cent wage subsidy for small businesses.)

“I’m reiterating the call that what what’s out there at the federal level is not enough,” Kwiecinski said, adding that she’s hoping to see a made-in-Ontario relief plan for businesses in provincial Finance Minister Rod Phillips’ economic update being released Wednesday.

A better wage subsidy must come now, Rossi said. The longer there isn’t one, “the less effective it will be. What you want to avoid is what is already happening: hundreds of thousands of Canadians being laid off and applying for EI.”

He said a wage subsidy is the quickest, most effective way to get money in people’s pockets, and lets a business to quickly ramp up operations once it is safe to do so again.

“It’s not foot-dragging, everyone understands the message.”

ROCCO ROSSI CHAMBER OF COMMERCE