Ottawa sending $19B to provinces for COVID-19 aid

Thestar.com
July 17, 2020
Alex Boutilier and Robert Benzie

Prime Minister Justin Trudeau is earmarking $19 billion to help the provinces and territories with economic reopening and prepare for a second wave of COVID-19.

With Ontario receiving about $7 billion of the federal money, which will also aid struggling municipalities, Premier Doug Ford hailed the rescue package as “a great deal.”

“This funding will support us as we get the economy going over the next six to eight months,” Ford told reporters at a Chatham farm he was touring.

“During this hour of the greatest need, Canada’s premiers stood shoulder-to-shoulder,” he said, praising Trudeau and his “great friends” Deputy Prime Minister Chrystia Freeland and Saskatchewan Premier Scott Moe for the efforts in negotiating the accord.

“This historic agreement proves what we can do as a nation when we stand united. This deal will see billions of dollars flow to the provinces to support municipalities, transit systems, health care systems at a time when it is needed most.”

While Ford had previously maintained Ontario alone needed $23 billion from Ottawa to recover from the pandemic, he thanked Trudeau for enriching his initial offer of $14 billion.

“The prime minister had the final say in this and ... he stepped up. True leadership,” the premier said.

Trudeau said the money should help “safely restart our economy” in the months ahead.

“COVID-19 isn’t just a health crisis, it’s an economic crisis, too. So when we talk about the recovery phase it’s not just about making sure we can detect, control and prevent future outbreaks,” he said.

“It’s also about helping people, businesses and entire communities adjust to our new normal because until we find a vaccine the daily threat of COVID-19 will not disappear.”

Acknowledging the hardships faced by Canada’s cities, Trudeau said the accord “provides municipalities with funding to cover operational costs.”

“We’re also going to give more support to transit specifically,” he said.

“Cities must remain up and running if our economy is to eventually get back up and running. If cities aren’t equipped for a safe restart, people will not be safe.”

Toronto Mayor John Tory -- who Ford said was helpful in bolstering the premiers’ pitch to Ottawa -- said the money is urgently needed.

“It will help us with quite a wide range of our problems,” said Tory.

But there are strings attached.

Trudeau said the money will be available for provincial programs that fit within seven priorities from the federal government.

Of the $19 billion, $4.5 billion is for national purchasing of personal protective equipment by Ottawa plus $3 billion to support provincial purchasing efforts; $4.28 billion is for COVID-19 testing and contact tracing; $2 billion for municipalities; $1.8 billion for transit that the provinces must match; $1.1 billion for temporary income support for sick leave; $740 million to support vulnerable populations and long-term care; $700 million for health-care capacity plus $500 million for mental health; and $625 million for child care.

“We have to make sure that there are enough child-care spaces for (parents) who don’t have paid sick leave,” said Trudeau.

Under the agreement, the government said Thursday night that “provinces and territories will establish job-protected sick leave, through regulation or legislation, that allows workers to take up to 10 days leave related to COVID-19.”

The prime minister said Ottawa was providing money for transit to ensure people can safely make the trip to work as provincial economies reopen.

As part of the deal, operating funding for transit agencies will be split evenly between Ottawa and the provinces.

“If we want people to participate in the economy they need to be able to get to work safely. No one should have to turn down a job because they don’t want to risk their health during a crowded commute,” said Trudeau.

The Canadian Urban Transportation Association has said the country’s transit operators need $400 million a month to keep running.

In Toronto, the city estimates the TTC, which at the height of the pandemic was down to just 15 per cent of its usual ridership, will be facing $700 million in pressure by the end of this year as a result of plunging fare revenue and increased costs.

That makes up the lion’s share of the $1.35-billion operating shortfall the city of Toronto is projecting this year due to the crisis.

Bill Karsten, president of the Federation of Canadian Municipalities, said cities are “obviously eager to learn the details” of the funding plan, which will be made public in the days ahead.

“We’re optimistic this agreement will recognize the financial crisis municipalities face in this pandemic,” said Karsten.