Close X
Saturday, November 16, 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

Vancouver Police Did Not Contribute To Crash That Killed Yellow Cab Driver Sanehpal Randhawa: IIO

The Independent Investigations Office says police reported that just before 3:30 a.m. on Dec. 29, a Car2Go smart car made off from a road check on the city's east side.

Vancouver Police Did Not Contribute To Crash That Killed Yellow Cab Driver Sanehpal Randhawa: IIO

Surrey Adopting Smart Development Principles

It also prioritizes the conservation of sensitive ecosystems, while ensuring that Surrey continues to advance as one of Canada’s most livable cities, with safe routes for walking, cycling and recreation.

Surrey Adopting Smart Development Principles

Major Step Forward For Surrey Langley SkyTrain

The Surrey Langley SkyTrain project has taken a significant step forward today with the endorsement of the new rapid transit’s line business case by the Mayors’ Council. 

Major Step Forward For Surrey Langley SkyTrain

Don’t Miss: New Westminster Museum & Archives And The Gurdwara Sahib Sukh Sagar Host A 100-year History Of The Sikh Community

The exhibition is displayed in a small blue room at the end of Gallery 7 of the New Westminster Museum & Archives. Devotional singing plays on the speakers in the room, and on the right there is a timeline with pictures and documents starting from the early 1900s and ending with 2019. 

Don’t Miss: New Westminster Museum & Archives And The Gurdwara Sahib Sukh Sagar Host A 100-year History Of The Sikh Community

Pune Shop Owner Calls Cops As 500 Queue Up For Rs 10 Shiv Bhojan Thali

At least three police personnel were seen at the centre on Wednesday noon disciplining people waiting in the queue.  

Pune Shop Owner Calls Cops As 500 Queue Up For Rs 10 Shiv Bhojan Thali

Badminton Star Saina Nehwal Joins Bjp, Says 'PM Modi Inspires Me'

Badminton star Saina Nehwal took the political plunge on Wednesday by joining the ruling BJP.    

Badminton Star Saina Nehwal Joins Bjp, Says 'PM Modi Inspires Me'