Ottawa doubles relief fund to $52 billion
Travellers returning to Canada must self-isolate or face $1M fine, jail time
OTTAWA—
More money. More power. And the government is already using both.
On the day Parliament granted the Liberal minority the power to spend “any amount” it deems necessary to confront the COVID-19 pandemic, the federal government said it would almost double the direct aid in its rescue package to a whopping $52 billion.
At the same time, Ottawa made good on its warning to force Canadians to obey appeals to self-isolate. All travellers returning from abroad now face a “mandatory” order to stay at home for two weeks. Those caught risking others lives by going out could be fined up to $1 million and face up to three years in jail, Health Minister Patty Hajdu’s office said.
“You should be doing it already,” Deputy Prime Minister Chrysti a Freelan d said Wednesday during the government’s daily pandemic briefing on Parliament Hill.
“This is a step we can all take to protect the health and safety of Canadians and ultimately to ensure that our economic rebound comes quickly.”
With Parliament suspended until at least April 20, Prime Minister Justin Trudeau and his minority government now have the extraordinary power to unilaterally borrow “any amount” and spend “all money” needed during the COVID-19 crisis without the approval of the House of Commons or the Senate.
The new powers will remain in place until Sept. 30 under a new law — Bill C-13 — that was rushed through the Senate to receive royal assent on Wednesday, after a marathon session in the House of Commons that lasted through the previous night.
All parties in the House had agreed to recall Parliament to pass the legislation on Tuesday, after the government promised billions of dollars in aid for workers and businesses hit by the economic downturn that is accompanying the deadly coronavirus pandemic. But progress faltered after the Opposition
Conservatives objected to provisions in a draft version of the bill that proposed giving the government the power to tax and spend without parliamentary oversight until the end of 2021.
Instead, after hours of closeddoor negotiations with Conservative, Bloc Québécois and New Democrat MPs, the government agreed to more limited new powers to unilaterally borrow and spend, but not to raise taxes.
It also agreed to a sunset clause that will see these new powers expire on Sept. 30.
Speaking to senators before they debated the law Wednesday morning, Finance Minister Bill Morneau justified the exceptional measures by claiming the government needs the ability to enact policies quickly in the face of the pandemic, which continues to infect and kill more Canadians every day.
“We’re seeking powers that are more extensive than we ever would have thought,” Morneau said.
The new legislation also sets up an array of support programs designed to get cash to Canadians who have lost incomes and businesses that have seen revenues plummet, Morneau said.
These include the new “Canada Emergency Response Benefit” that will provide $2,000 per month — over four months — to workers who have stopped getting paid because of COVID-19. The government is also increasing monthly payouts to parents and tax credits for low-income earners, pausing collection of student loans and temporarily deferring $55 billion in taxes for individuals and businesses.
Combined with the $52 billion now being budgeted for direct aid, Morneau said the rescue fund is now worth a staggering $107 billion — with more money to help struggling industries like airlines, hospitality and oil and gas in the works “in the very near term.” Morneau warned many Canadians won’t have money for groceries, medicine and other essentials in a matter of weeks, and that small- and mediumsized businesses will need help covering rent in April.
Almost one million people filed claims for employment insurance between March 16 and 22, the government has confirmed, a huge surge that is almost 20 times higher than claims received in a typical week. Outside Ridea u Cottage, where he has worked under quarantine since March 12, Trudeau told reporters hundreds of civil servants are being shifted from regular tasks to respond to the flood of claims.
The government aims to open applications for the new emergency support benefits by April 6, and people will receive money within 10 days of applying, Trudeau said.
“Public servants are working around the clock while dealing with unprecedented demand, and all of the same personal stress that everyone else is facing,” Trudeau said.
“They will get to your application,” he vowed. “Help is on the way.”
Alongside that promise to help, the government is also cracking down. Last weekend, the federal health minister bluntly warned that if Canadians didn’t follow the weeks-old appeals to stay home and avoid others, the government would force them to.
On Wednesday, Ottawa took a step in that direction with a new mandatory order for returning travellers to quarantine at home for two weeks. Thierry Belai r, a spokesperson for Health Minister Patty Hajdu, told the Star that border agents are now randomly collecting contact information from returning travellers. He said officials will then randomly contact people to confirm they are staying home. Those who fail to do so could be fined up to $1 million or even jailed for up to three years under the federal Quarantine Act, Belair said. With files from Alex Boutilier