Announcing the COVID-19 Economic Response Plan
Good morning, everyone.
Thank you for being here.
Before we get into things, I have some news to share regarding the Canada-US border.
Over the past few days, I have spoken to President Trump about what we can do to slow the spread of COVID-19. Deputy Prime Minister Freeland has been in touch with Vice President Pence and Secretary Pompeo.
I just spoke to President Trump again this morning and we have agreed that both Canada and the United States will temporarily restrict all non-essential travel across the Canada-U.S. border.
I just spoke with President Trump and we agreed that Canada and the United States will temporarily ban all non-essential border crossings.
Travelers will no longer be permitted to cross the border for recreation and tourism.
In both our countries, we’re encouraging people to stay home. We’re telling our citizens not to visit their neighbours if they don’t absolutely have to.
This collaborative and reciprocal measure is an extension of that prudent approach.
I want to be clear though that essential travel will continue.
Our governments recognize that it is critical that we preserve supply chains between both countries. These supply chains ensure that food, fuel, and life-saving medicines reach people on both sides of the border.
Supply chains, including trucking, will not be affected by this new measure. Canadians and Americans cross the border every day to do essential work or for other urgent reasons; that will not be impacted.
Right now, all Canadians are feeling the consequences of COVID-19.
For your safety, we are recommending that everyone work from home.
That you avoid public places. That you buy only what you need at the grocery store. And, above all, that you show kindness, empathy, and compassion to those around you.
We must all do our part to protect our health and the health of those we love.
The spread of COVID-19 is forcing us all to change our ways and for many people, that’s a huge adjustment.
If you work in a restaurant, drive a cab, organize events, or freelance to pay your bills, working from home is not so simple.
Just like if you work in the oil and gas sector or the tourism and seafood industries, you’re looking at the uncertainty in the global economy and probably wondering not only how long this is going to last, but how long your savings are going to last.
No matter who you are or what you do, this is a time when you should be focused on your health and that of your neighbours.
Not whether you’re going to lose your job. Not whether you’re going to run out of money for things like groceries and medication.
Last week, we announced a whole range of measures to protect jobs, small businesses, and the economy—from waiving the waiting period for Employment Insurance Sickness Benefits to kick in, to increasing support for employers and businesses.
We introduced special measures under the Work Sharing program to help employers who fall on hard times during COVID-19.
And if your business faces a cash crunch, we will help you bridge to better times. We’re working with our financial Crown corporations through the Business Credit Availability Program to protect jobs and businesses with $10 billion in credit.
But, as we said last week, this is only the first step.
When we announced these measures, we said that we would do more. And that’s what brings me here today.
In these extraordinary times, our government is taking extraordinary measures.
The measures we’re announcing today will provide up to $27 billion in direct support to Canadian workers and businesses, plus $55 billion to meet liquidity needs of Canadian businesses and households through tax deferrals to help stabilize the economy.
Combined, this $82 billion in support represents more than 3 per cent of Canada’s GDP.
Let’s start with people who don’t qualify for Employment Insurance and don’t have access to paid sick leave.
Our government will introduce the Emergency Care Benefit, which will provide money every two weeks to workers who have to stay home.
People will receive this benefit for 14 weeks, for an amount comparable to what would be paid through EI.
This applies to people who fall ill. People who have been placed in quarantine or have to self-isolate.
It also applies to those who have to take care of a family member with COVID-19, but as I said, fail to qualify for EI.
If you lose your job and you do not qualify for EI, we will be introducing a COVID-19 Emergency Support Benefit to help you.
This will apply also to people who are self-employed and have to close shop because of the virus.
I’ll start with what we’ll be doing for people who are ineligible to receive employment insurance.
Our government will introduce the Emergency Care Benefit, which will provide money every two weeks to workers who have to stay home because of COVID-19.
People will receive this benefit for 14 weeks and the amount will be comparable to Employment Insurance.
This measure is aimed at those who become ill, those who have been placed in quarantine, and those who have to self-isolate.
It will also apply to people who have to take care of a family member who has COVID-19, but who, as I said, are ineligible for Employment Insurance.
If you lose your job and aren’t eligible for Employment Insurance, we will be creating the Emergency Support Benefit to help you.
This measure will also apply to the self-employed who have to stop working because of the virus.
As part of this economic plan, our government will take additional steps to protect jobs.
We will provide employers of small businesses with a temporary wage subsidy equal to 10% of salary paid to employees, for a period of three months.
This will encourage employers to keep staff on the payroll during these uncertain times.
To protect jobs, our government will provide small business employers with a temporary wage subsidy equal to 10% of what they pay their employees, for a period of three months.
This measure will encourage employers to keep their employees during these uncertain times.
We’re in the middle of tax season and I know a lot of people are wondering what COVID-19 means for their personal finances.
For those who have filed their taxes and find out that they owe money, they will have until August 2020 to pay.
If you file your taxes and find out you owe money, you will have until August 2020 to pay.
We are also planning more targeted assistance over the coming months for different groups of people who are especially affected by the virus, or are in a vulnerable situation.
That brings me to the next measure we are announcing today, which is aimed at parents.
Families with young kids are going to find the coming months especially difficult, with school closures and additional childcare responsibilities.
Parents already know how much the Canada Child Benefit helps with the costs of raising kids.
To take some of that pressure off, our government will temporarily boost the CCB in the coming months.
To help parents through this difficult time, our government will temporarily boost the Canada Child Benefit over the coming months.
With this plan, we’re also going to do more for lower income people.
In May, our government will supplement the GST Credit, a tax-free payment sent to low-income Canadians every few months to offset the consumer tax that they pay.
Every adult who qualifies will receive up to $300 with $150 for every child.
To help those with a low or modest income, our government will increase the Goods and Services Tax Credit.
In May, eligible adults will receive up to $300 and up to $150 per child.
While all Canadians are feeling the impacts of COVID-19, some groups are particularly vulnerable.
For people who are still paying off their student loans, including young people and those who are starting a family, our government will put in place a six-month, interest-free moratorium on their Canada Student Loans.
For people experiencing homelessness, we are doubling the Reaching Home program, which provides funding to communities to help them address their local needs.
For anyone fleeing domestic or gender-based violence, we will boost funding for shelters that provide sanctuary when self-isolating at home is simply not an option.
And to support immediate needs in First Nations, Inuit, and Métis Nation communities, we are setting up a distinctions-based Indigenous Community Support Fund.
This list is by no means exhaustive, but these are some of the things our government is doing to make sure that no matter where you live, what you do, or who you are — you will get the support you need during this time.
In Canada, public health should never hinge on financial considerations.
Today, we are announcing a plan to help people.
We are focusing on the most pressing needs, but—as I have said from the beginning—our response will evolve as the situation evolves.
No matter what the future holds, Canadians can count on us.
Our job is to support you. To lend a helping hand when you need it most. That is what we are doing with the measures we have announced to date, and that is what we will continue to do.
Now, I want to turn to additional measures for businesses as part of this economic plan.
To help businesses navigate these uncertain economic times, Export Development Canada will provide support to Canadian companies affected by the global situation.
For farmers and our primary food producers, we will boost Farm Credit Canada.
And we know some sectors of our economy are more vulnerable to COVID-19 than others.
That’s why in the coming days, we’ll be looking at ways in which we can support them all, including through instruments like the Canada Account.
Today’s announcement builds on the steps we have already taken to protect Canadians, their health, and our economy.
Minister Morneau also received a commitment from Canadian banks to support businesses and people affected by COVID-19.
I know that he is in regular contact with them on this issue, as he is with business leaders, union representatives, and his international counterparts.
Our team is paying close attention to the economic impacts of decisions we make across the board to slow the spread of this virus.
On Monday, I announced that Canada was closing its air borders to people who are not Canadian citizens or permanent residents, with some exceptions. We also announced a range of other measures on travel.
But travel restrictions will not apply to commerce or trade. We are working continuously to ensure the supply of important goods to Canada.
Today, we’ve announced $27 billion in direct support to Canadian workers and businesses, plus $55 billion to meet liquidity needs of Canadian businesses and households to help stabilize the economy through tax deferrals.
Economic measures will ensure that our economy rebounds after this.
And while we are taking a significant step today to help families get through these challenging times, our government is prepared to do more.
But whether we’re talking about economic, travel or health measures, collaboration and coordination remains essential.
Our team is in constant communication with our colleagues in the provinces and territories, as well as Indigenous leaders and communities, to ensure that we have a coordinated, Canada-wide approach so we face this, and recover from this, together.
We are also working with our international counterparts. Over the last number of days, I’ve spoken with leaders from around the world, including with fellow G7 leaders.
Working together is how we’ll get through this.
As families, as a community, as a country.
Like many of you, over the past few days, I’ve seen stories of people doing just that.
Of people donating money to food banks to help those in need.
Of friends setting up online groups to chat. Of retired nurses and doctors stepping up to help. Of young people giving a hand to elderly neighbours by dropping off some extra groceries at their door.
I have to tell you, it gives me a lot of hope.
I want to close by recognizing everyone on the front lines who is doing an incredible job of keeping Canadians safe and healthy.
Grocers keeping their shelves full and our families fed. Postal workers helping us stay home. Pharmacists filling our prescriptions.
Healthcare professionals caring for our most vulnerable.
Public Health officials and first responders looking out for our safety.
I know it’s a hard time. But that’s exactly why we need to keep supporting each other.
Our government is here for you. And your fellow Canadians are here for you, too.
Thank you, everyone.