THE CANADIAN PRESS/Fred Chartrand

By Canadian Press

Commons likely to sit again to pass economic response to COVID-19, Trudeau says

Mar 17, 2020 | 3:48 PM

OTTAWA — A sweeping federal economic stimulus package to combat the shock of COVID-19 is now to be unveiled Wednesday, Prime Minister Justin Trudeau says, and could soon be before an emergency sitting of Parliament to help get money to those who need it.

Speaking outside his Ottawa residence, Trudeau said MPs and senators would likely be called back to quickly approve the emergency spending.

He cited potential changes to the employment insurance program — the eligibility for which is set by Parliament — and other methods to get money into the pockets of Canadians.

Trudeau said the government is also planning changes to upcoming tax deadlines to provide more flexibility for businesses and taxpayers. Those details are expected later this week.

The government spending is likely to be significant — approximately $20 billion by the estimates of many economists, or one per cent of the value of the national economy.

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Deputy Prime Minister Chrystia Freeland hinted the dollar figure could be around that much when the final details are unveiled. She also said the government planned to model the bailout on what other countries have already done, singling out Singapore as an example.

Singapore unveiled a spending package in February of roughly one per cent of its GDP, with a focus on helping businesses retain local workers through wage supplements, aid to companies in the form of business tax credits and cash to innovate once consumer spending rebounded. It also targeted help to particularly hard-hit sectors like tourism and air travel.

“Let me assure everyone that we understand the seriousness of this situation and the federal government absolutely understands that we need to, and we will do, whatever it takes to ensure our economy can weather the storm,” Freeland told a news conference Wednesday.

“This is economically a unique situation because on one hand, the very important measures we are taking to (protect) the health and safety of Canadians simultaneously are leading to a reduction in economic activity.”

The reduction in economic activity has been sharp and fast. On Tuesday, TD Economics projected growth at 0.2 per cent in Canada this year, and the Bank of Canada said the economic shocks would be doubly problematic for the country with oil prices sliding lower.

North American markets have been on their own slide, despite moves by the Bank of Canada and the U.S. Federal Reserve to ease access to credit and slash interest rates.

Globally, there are more than 180,000 confirmed cases of COVID-19, including more than 440 cases in Canada. Five deaths have also been reported, including one in Ontario.

Many of the cases are connected to travel. The country’s chief public health officer, Dr. Theresa Tam, says she is concerned about cases not linked to travel, including three in Ontario.

The Public Health Agency of Canada says the risk to the general population is low and most people who test positive for COVID-19 experience manageable symptoms like a fever or cough. For some, such as seniors and those with compromised immune systems or pre-existing conditions, the illness can be more severe.

A cabinet committee overseeing Canada’s response to the virus met Wednesday morning, where ministers discussed asking provinces and Parliament to provide the government with broad powers.

The Emergencies Act has never been used since it came into effect in 1988. It gives the government, subject to parliamentary oversight, power to act in exceptional situations where it feels any existing legislation is inadequate to deal with a scenario that endangers the lives and safety of the public. Those measures could include regulating the movement of people and goods.

Trudeau downplayed the need to invoke a national state of emergency, saying the government is looking at other ways to provide needed help for Canadians.

But he warned the situation in the country around COVID-19 — and the emotional stress it has caused — could last weeks or months.

Speaking at a White House briefing, U.S. President Donald Trump said his administration is working closely with the Liberal government to keep the border open a day after Trudeau announced limits on who could enter Canada by air. Trump wouldn’t say if the U.S. would close its northern border.

“I don’t want to say that, but we are discussing things with Canada, and we are discussing things with Mexico, quite honestly,” he said. “The relationship is outstanding with both, outstanding.”

Trudeau also said that as of Wednesday, Parks Canada will suspend visitor services at all national parks and historic sites.

— With files from Stephanie Levitz in Ottawa, and James McCarten in Washington, D.C.

Jordan Press, The Canadian Press