MNI INTERVIEW:Canada Chair: Relief Checks Must Boost Workforce

By Greg Quinn

     OTTAWA (MNI) - Canada must narrow Covid-19 relief checks to "only those

that absolutely need to use it" and return more people to work with wage

subsidies, House of Commons Finance Committee Chair Wayne Easter told MNI

Tuesday. 

     "It's not there for what has been termed as a CERB vacation," Easter, said,

referring to the acronym for the relief program. CERB should be extended because

workers like those in his home region of Prince Edward Island who rely on

farming and fishing "didn't have a job to go to this summer, we need to give

them some financial stability."

     "We also need to ensure that those that can be working safely should be

working," he said. 

     Prime Minister Justin Trudeau on Tuesday announced a two-month extension of

the CAD2,000-a-week checks that were running out for millions of people laid off

due to Covid-19. His Liberals need opposition support to stay in power and face

competing demands to expand relief and reduce fraud, and without giving many

details Trudeau said the program will be refined in coming weeks to encourage

people to seek work. 

     --RESTART PRIORITY

     Changes should "encourage companies to use the wage subsidies, and put the

measures in place so that the CERB system is not abused, but utilized by only

those that absolutely need to use it."

     The CERB has been a chief driver of a budget deficit projected by

Parliament's independent budget officer at a record CAD260 billion, heading to

15% of GDP. Easter, a Liberal, said the main priority is restarting the economy

over rising debts faced by governments, business and consumers. 

     The restart includes the wage subsidy and measures the BOC has taken to

inject liquidity into the banking system. They will allow Canada "to assist

those companies that probably aren't going to be back to full productivity, and

to assure that the ability of companies is there to invest in human resources."

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

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