Close X
Friday, November 1, 2024
ADVT 
National

Eight more weeks of CERB to cost $17.9 billion, budget officer says

Darpan News Desk The Canadian Press, 23 Jun, 2020 09:00 PM
  • Eight more weeks of CERB to cost $17.9 billion, budget officer says

The parliamentary budget officer estimates in a new report that it will cost the federal government $17.9 billion to provide eight extra weeks of payments through the Canada Emergency Response Benefit.

The report this morning from budget officer Yves Giroux says that would bring the total cost of the benefit program for people who've lost all or nearly all their work to the COVID-19 pandemic to $71.3 billion.

The CERB, now budgeted at $60 billion, has paid out $43.51 billion to 8.41 million people as of June 4 as demand surges past federal expectations.

With the first cohort of CERB applicants set to hit the 16-week limit on the payments early next month, the Liberals have promised to increase the limit to 24 weeks to provide help through the summer for those who need it.

Giroux's report says the additional cost to the program depends heavily on the outlook for the economy and jobs, as well as the course of the pandemic.

The report says further uncertainty over the final cost of the program rests on the actual takeup of the separate federal wage-subsidy program, which the Liberals plan to retool.

A report this morning from a group of experts convened by the C.D. Howe Institute is urging the Liberals to take the extra time bought by extending the CERB to retool the program itself and put in a program to help recipients retrain for other or better jobs.

Employment Minister Carla Qualtrough and Tiff Macklem, the governor of the Bank of Canada, separately on Monday warned that not everyone will have a job to go back to as restrictions ease and businesses reopen. Some companies may not survive the recession the pandemic has caused, Macklem said.

It's why the C.D. Howe paper also calls for an update to the employment insurance system to handle a possible surge in applicants come September, and for clearer language around a newly imposed requirement on CERB recipients to look or take work when it is "reasonable to do so."

When the Liberals unveiled the wage subsidy and CERB, it was the subsidy program that carried the heftier price tag of over $70 billion. The government styled it the largest social support program in the country's history.

But fewer companies than envisioned have used the subsidy, which now is budgeted to cost $45 billion. As of June 15, the government had approved $13.28 billion in payroll help to 223,918 companies.

Finance Minister Bill Morneau has been working on changes to the program's eligibility rules to improve takeup.

The Liberals' latest estimated cost of the total package of pandemic-related aid was about $153.7 billion, but Giroux's running tally now estimates the cost at $169.2 billion.

Fuelling demand for the CERB has been a steep drop in employment, with three million job losses in March and April as non-essential businesses were ordered closed to slow the spread of the novel coronavirus.

With the possibility of more temporary layoffs becoming permanent, the Liberals on Monday extended the recall period for furloughed workers. In a statement, Labour Minister Filomena Tassi said the decision was due to "a great deal of uncertainty" companies have about when they can bring back employees.

MORE National ARTICLES

Charges laid in fraud and mail theft investigation

Charges laid in fraud and mail theft investigation
Three individuals have been charged with fraud and mail theft related offences stemming from a lengthy investigation by the Surrey RCMP Property Crime Target Team (PCTT). On January 27, 2020, the Surrey RCMP PCTT began a pro-active investigation targeting mail theft.

Charges laid in fraud and mail theft investigation

Human rights museum criticized, employees say work environment racist

Human rights museum criticized, employees say work environment racist
The Canadian Museum for Human Rights will conduct an external review following social media posts alleging a racist and discriminatory work environment.

Human rights museum criticized, employees say work environment racist

Lululemon Q1 profit falls with many stores closed amid COVID-19 pandemic

Lululemon Q1 profit falls with many stores closed amid COVID-19 pandemic
Lululemon Athletica Inc. saw its profit fall in the most recent quarter as many of its stores were closed for a significant portion of the period. The Vancouver-based company, which keeps its books in U.S. dollars, says its net income for the first quarter totalled $28.6 million or 22 cents per diluted share.

Lululemon Q1 profit falls with many stores closed amid COVID-19 pandemic

A driver was arrested after fleeing from a stolen truck last week

A driver was arrested after fleeing from a stolen truck last week
Officers on patrol one afternoon last week noticed a truck ahead of them with licence plates for a car – not a truck. They believed it might be stolen, and tried to pull over the vehicle at W. 6th Avenue and Ash. The driver took off and they followed, but when he began driving dangerously, the officers backed off.

A driver was arrested after fleeing from a stolen truck last week

Surrey RCMP asking for the public's help in investigating a suspicious fire

Surrey RCMP asking for the public's help in investigating a suspicious fire
Surrey RCMP is asking for the public’s assistance with a suspicious fire investigation. The Surrey RCMP was called to a report of a suspicious vehicle fire in the 7500-block of 140 Street, during the night of June 7, 2020.

Surrey RCMP asking for the public's help in investigating a suspicious fire

Old photos surface on Instagram of a Fraser Valley school hosting 'SLAVE DAY'

Old photos surface on Instagram of a Fraser Valley school hosting 'SLAVE DAY'
Some controversial news out of Rosedale Middle School in the Fraser Valley that is being talked about on social media. The school hosted SLAVE DAY a decade ago and raised money.

Old photos surface on Instagram of a Fraser Valley school hosting 'SLAVE DAY'