Feds aim pandemic support at tourism and other 'highly affected sectors' in fall economic statement

Help is on its way for the arts and live events industry, with $181.5 million for the Canadian Heritage department and the Canada Council for the Arts

Nationalpost.com
Dec. 1, 2020
Brian Platt

The federal government has announced new support in its fall economic statement to help the tourism industry and other sectors that have been devastated by the COVID-19 pandemic, including through arranging low-interest loans of up to $1 million for heavily impacted businesses.

“We know that businesses in tourism, hospitality, travel, arts and culture have been particularly hard-hit,” Finance Minister Chrystia Freeland said in her speech to the House of Commons.

Feds aim pandemic support at tourism and other 'highly affected sectors' in fall economic statement
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“So we’re creating a new stream of support for those businesses that need it most -- a credit availability program with 100-per-cent government-backed loan support and favourable terms for businesses that have lost revenue as people stay home to fight the spread of the virus.”

The document also includes new money to help the arts and live events industry, with $181.5 million for the Canadian Heritage department and the Canada Council for the Arts to expand their funding programs.

While there is new funding to assist airports and regional airlines, the fall economic statement does not set out new money for major commercial airlines such as Air Canada and Westjet. The federal government has been in talks with airlines for a financial assistance package, but the document does not have mention of it.

The fall economic statement notes that workers in the hardest-hit industries are disproportionately women, young people, Indigenous people, and Black and racialized Canadians. “Our growth plan will be designed with this particular damage in mind and will seek to heal it,” Freeland said in her speech, making particular mention of the $221-million Black Entrepreneurship Program announced earlier this fall.

The government says it will “ensure a feminist, intersectional response to this pandemic and recovery” by introducing an action plan for women in the economy, and the fall economic statement promises to create “a task force of diverse experts to help the government develop this plan.”

It also promises to “lay the foundation” of a Canada-wide early learning and child care system. “Canada cannot be competitive until all Canadian women have access to the affordable child care we need to support our participation in the workforce,” it says.

The highlight of the new support for hard-hit industries is the creation of the Highly Affected Sectors Credit Availability Program, or HASCAP, which is aimed at sectors such as tourism and hospitality, hotels, arts and entertainment.

The government says it will work with financial institutions to offer “100 percent government-guaranteed financing for heavily impacted businesses, and provide low-interest loans of up to $1 million over extended terms, up to ten years.”

The document promises more details on HASCAP soon, although a government official told reporters it’s not yet clear how expensive the overall program will be. “We just don’t have a sense, given uncertainties in the market and pace of recovery, what demand will be for this product,” the official said.

The Canadian Chamber of Commerce welcomed the program, saying the business community had called for resources to be directed at sectors most at risk of seeing permanent closures.

“While further measures will be required to assist the travel, tourism, food services, hotel, cultural, and energy sectors, today’s focused support for the hardest hit industries will help many of businesses survive the second wave and be there to propel our economic recovery,” said Perrin Beatty, CEO of the Canadian Chamber of Commerce.

The tourism industry, which accounts for 750,000 workers and 2 per cent of Canada’s GDP, will also get more than $500 million in support for local businesses through the government’s Regional Relief and Recovery Fund.

Along with the extra arts funding, the fall economic statement also says the government “understands that certain major live events and festivals will require unique support.”

“The government will work with industry to prevent the closure of unique and irreplaceable flagship events and festivals across Canada, and to ensure the survival of key, globally-recognized assets in this sector,” the document says, but does not provide further detail.

There is also $50 million in relief promised to local television and radio stations by having the CRTC waive broadcasting Part II licence fees in 2020-21. In September, the government announced a separate $50-million Short-Term Compensation Fund for film and television productions.

There are numerous funding promises in the fall economic statement for the air sector, which directly employs more than 100,000 Canadians. It notes that air sector workers have now received more than $1.4 billion in support through the Canada Emergency Wage Subsidy, but it otherwise does not promise money for large commercial airlines.

The document sets out $186 million over two years to help small airports invest in health and safety infrastructure; $500 million over six years to help large airports invest in safety, security and transit infrastructure; $229 million in additional rent relief for airports that pay rent to the federal government; and an extra $65 million for airport authorities to “further assist airports to manage the financial implications of reduced air travel.”

Finally, the government says it will support regional air carriers by committing $206 million over two years to regional development agencies for a new Regional Air Transportation Initiative. However, the document does not flesh out details about what this entails.