CERB

Wednesday February 10, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday February 10, 2021

Rogers, Bell and Telus collected more than $240 million from Canada’s wage-subsidy program — and Bell and Telus raised shareholder payouts

June 18, 2020

Canada’s big three telecom companies have collectively received more than $240 million from the federal government’s wage subsidy program while continuing to pay out billions of dollars in dividends to shareholders.

According to the most recent filings in provincial lobbyist registries, Bell has received $122.9 million, Rogers $82.3 million and Telus $38.6 million in support payments as part of the Canada Emergency Wage Subsidy (CEWS).

Since the beginning of the pandemic, the three companies have continued to pay out regular dividends to shareholders; Bell and Telus have announced increases to their annual payouts. Both Bell and Rogers have also laid off workers at their hard-hit media divisions. 

Other large businesses have also paid out dividends while receiving CEWS support, including numerous companies in the oilpatch, auto-parts maker Linamar and furniture retailer Leon’s. (Torstar, the parent company of the Toronto Star, is among the recipients of the federal wage subsidy.)

April 2, 2020

Economists say the relief payments to large, profitable companies with ample access to credit illustrate problems in the way CEWS is designed, in these cases leading to benefits for shareholders but not necessarily targeted support for workers whose jobs are at risk. One Liberal MP is calling on the government to claw back payments from companies that have paid dividends.

“CEWS is sold as a wage subsidy, but it’s really a business expense subsidy,” said Amin Mawani, associate professor of taxation at the Schulich School of Business at York University.

Mawani has argued that Canada should consider a model where the government pays subsidies only in respect of employees who miss hours of work because of the pandemic. Under the current rules of the Canadian program, businesses with any level of revenue decline are eligible for at least some level of subsidy with respect to all their Canadian employees. 

He said it is understandable that businesses would continue to pay dividends, which he described as a “cost of doing business” akin to paying interest to the bank on loans, but he questioned the need to hike payouts this year. “I don’t think shareholders were necessarily expecting an increase during the pandemic.” (Niagara Falls Review) 

 

Thursday May 7, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday May 7, 2020

Farmers expected a miracle. No wonder they’re disappointed by Ottawa’s aid package

July 29, 2014

When the Canadian Federation of Agriculture laid out a $2.6-billion ask last week to help farmers endure the COVID-19 pandemic, they were setting the bar very high. And so it is little wonder that Prime Minister Justin Trudeau’s Tuesday announcement of a program worth barely $252-million sent the farming community reeling.

Fair enough. The funding announcement was indeed underwhelming, and it will not be enough to get some of those on the precipice to stick around. Many will exit the industry, regrettably. Our preannouncement estimates were that as many as 15 per cent of our farms could be lost by year’s end due to COVID-19; Ottawa’s plans will not change that.

August 10, 2019

The $125-million program to support livestock raises a variety of questions. Executing the program will take time, something producers do not have. Few details were given about the role of provinces or how much farmers will receive. The measures presented will likely not prevent more animals from being euthanized in the days to come. Along with milk dumping, COVID-19 is serving up case studies on a silver platter for animal-rights activists. It’s a shame that our farmers have been put in this position.

May 22, 2019

Losing farms will not compromise our nation’s food security, however. Farmland doesn’t just disappear, as it can always be exploited by someone else. But the most significant concern is how we can create jobs and wealth in rural economies located far from urban centres. This should be a priority; occupying our vast nation’s topography should be top of mind, from coast to coast to coast. Ottawa doesn’t show that it cares for rural communities enough – or for agriculture, for that matter – but it should, before it’s too late.

Coronavirus cartoons

Its response to farmers pleading for help was unsurprisingly slow as well. In the United States and Europe, most governments have provided pandemic-related financial aid directly to farmers weeks ago. In the United States, every American is providing $86 in support for agriculture by way of government-sanctioned programs; in Europe, it is over $90 per capita. Here in Canada, each of us giving six measly dollars to support agriculture. Farmers have every right to be disappointed. (Globe & Mail)