By Chris Brown

Update from the PM

Trudeau: Wage subsidy extension gives employers ‘runway’ during relaunch

May 15, 2020 | 9:31 AM

As Canada takes its first steps toward reopening its economy, the emergency wage subsidy has been extended by the federal government.

“As our economy gradually reopens wherever we can do so safely we need you back, we need you in your job, on your team, bringing life into our communities,” said Prime Minister Justin Trudeau.

The Canada Emergency Wage Subsidy program was to end on June 6. It will now run until the end of August.

“Business owners, please take confidence from this announcement. You now have some runway to catch your breath as you get restarted. So please, bring back your employees,” the prime minister said.

Trudeau said the government will make sure the program continues to work for people so that employers can rehire staff or expand where possible. Over the next month the government will work with business and labour stakeholders on any necessary adjustments.

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He said the 30 per cent revenue threshold is one aspect they’ll be looking at. Eligibility will be expanded as well, and Trudeau said details will come out later in the day.

The program sees the federal government pay 75 per cent of an eligible company’s payroll up to $847 per week per employee.

So far about $3.4 billion has been paid out of the expected total program cost of $73 billion.

The government is hopeful more businesses will take advantage of the subsidy to maintain what Trudeau calls “connections” between employer and employee as the economy restarts.

Speaking from outside Rideau Cottage at his daily address, Trudeau reminded students the Canada Emergency Student Benefit is now open for applications and encouraged people to look at the Canada Summer Jobs board.

He also said Canada Childcare Benefits and HST Benefits will continue to be paid until September even if people don’t get their taxes filed by the extended deadline.

Trudeau also announced a $450 million investment researchers and research institutions.

“Science and research is our door to a brighter future and that has never been clearer,” he said.

In the face of stories of fraudulent CERB claims, the prime minister defended the government’s decision to get money to Canadians quickly.

He said it was a straightforward choice and that it would have been months before Canadians received needed money had there been strict vetting of applications.

“We will ensure that fraudsters or people who got the benefits unfairly or inappropriately will have to pay them back,” he said.

As of Friday morning, Canada had 73,818 confirmed cases, 11 probable cases and 5,499 deaths. There have been 1,225,049 Canadians tested.

In Alberta, there are 6,457 cases and 121 deaths. A total of 185,545 Albertans have been tested.