The Bank of Canada elected Jan. 20 to maintain its benchmark overnight lending rate at 0.25 per cent, determined to keep it there until an economic recovery” is well underway.” It has cut the rate several times since the COVID-19 pandemic was evolving early last year. The bank also forecast 2.5 per cent GDP shrinkage in the first quarter of 2021 but is looking to an overall rebound of four per cent this year. [node:read-more:link]
Parliamentary budget Officer Yves Gioux says that reforms to a federal support program for provinces will rise sharply in fiscal 2021-2022. He projects them at some $4.5 billion, up $2.9 billion as Ottawa transfers cash to provinces suffering steep declines in their own revenues. [node:read-more:link]
Within hours of being sworn in as the 46th U.S. President Jan. 20, Joe Biden signed a flurry of executive orders designed to undo many key policy decisions by his Republical predecessor, including some affecting Canada. Most notable was his reversal of Donald Trump’s renewal of a permit to build the Keystone XL pipeline. [node:read-more:link]
Draft federal back-to-work legislation against striking Port of Montreal workers faces opposition from the Canadian Union of Public Employees. “The union will contest the validity” of Bill C-19, a spokesman said, explaining that it had lodged a complaint with the International Labour Organization. The Official Opposition voted with the government today, setting up for Senate consideration April 30. [node:read-more:link]
Foreign Affairs Minister Marc Garneau is in London for a meeting with his counterparts from the other G-7 countries: Britain, France, Germany, Italy, Japan and the U.S. It is their first in-person meeting since the COVID-19 pandemic began. [node:read-more:link]
Prime Minister Justin Trudeau ended nearly a month of self-isolation by arriving on Parliament Hill 08 April for his first live cabinet meeting since his wife tested positive for COVID-19 after attending an event in Britain. He told reporters that the government is keeping current mitigation measures in place “for many more weeks” to give authorities time to consider how to reboot the economy without causing more problems. [node:read-more:link]
The ongoing and politically-contentious scramble to secure personal protective equipment is giving procurement gurus a chance to say “I told you so.” Successive federal governments have been pressed to develop a list of strategic sectors not dependent on foreign suppliers but, as pointed out recently by Health Minister Patty Hajdu, the call has been essentially ignored. Now Alan Williams, a former Assistant Deputy Minister (Materiel) at the Department of National Defence, is joining the debate, saying that “we've been totally negligent.” [node:read-more:link]
The ongoing and politically-contentious scramble to secure personal protective equipment is giving procurement gurus a chance to say “I told you so.” Successive federal governments have been pressed to develop a list of strategic sectors not dependent on foreign suppliers but, as pointed out recently by Health Minister Patty Hajdu, the call has been essentially ignored. Now Alan Williams, a former Assistant Deputy Minister (Materiel) at the Department of National Defence, is joining the debate, saying that “we've been totally negligent.” [node:read-more:link]
Prime Minister Justin Trudeau said 09 April that while his government hopes to begin economic recovery efforts once the first COVID-19 wave has passed, possibly by summer, it could be a year or more before all restrictions on public activities are removed. He said this essentially would reflect the time it takes for development of a vaccine. [node:read-more:link]
The federal government has opted against immediate use of the sweeping powers provided for in the Emergency Act to address the COVID-19 situation. Prime Minister Justin Trudeau has confirmed this after a teleconference with his provincial and territorial counterparts and says the 1988 replacement for the even more authoritarian War Measures Act remains a last resort for Ottawa. [node:read-more:link]
An early response to Canada's COVID-19 outbreak would have done more harm than good, says Ian Culbert, executive director of the Canadian Public Health Association. He told a virtual meeting of Members of Parliament that there would have been “very little” public support for lockdowns and social-distancing in January and that would have undermined health officials’ efforts when the situation became more dire. [node:read-more:link]
A $73-billion economic subsidy program designed to help businesses and employees to cope with the economic fallout of the COVID-19 pandemic was approved 11 April in an emergency sitting of Parliament. Finance Minister Bill Morneau said funds would be available within two to five weeks. [node:read-more:link]
Businesses affected by the COVID-19 outbreak and which qualify for support through the federal government’s $75-billion wage subsidy program can begin applying today, 27 April. If eligible, they will receive 75 per cent of each employee's wages up to $847 per week, retroactive to 15 March. Initial payments are expected to be delivered by 08 May. [node:read-more:link]
A Large Employer Emergency Financing Facility announced 11 May by Prime Minister Justin Trudeau is designed to give companies in all sectors access to additional liquidity to maintain operations and avoid having to considered bankruptcy due to the COVID-19 pandemic. “These are bridge loans, not bailouts,” the PM explained. [node:read-more:link]
The federal government is extending the Canada Emergency Wage Subsidy program for companies affected by COVID-19. Originally due to expire 06 June, the 12-week package gives eligible companies a subsidy equal to 75 per cent of employees’ wages up to $846 per week. [node:read-more:link]
