Community Blog

On the gaps that exist in economic supports available to individuals & businesses during the COVID-19 pandemic

Without a doubt, British Columbia has led the way in North America in terms of introducing measures to curb the spread of the COVID-19 virus in our province. We are very fortunate that so many people are following the advice of  Health Minister Adrian Dix and Provincial Health Officer Dr. Bonnie Henry. Thank you to all for staying the course during these difficult times.

Nevertheless, with Canada just over one month into a nationwide lock-down we are beginning to get a better idea of where the gaps are in the existing economic supports and where further relief is needed. Since many of the initial government interventions were broad in scope, needs specific to different industries have been left unaddressed by the existing programs. In BC, a BCC survey found that the current programs were of little use to one third of businesses, with nearly half of businesses with under five employees reporting that they do not find the existing programs to be helpful. Ongoing email exchanges and conversations with British Columbians have also revealed additional gaps in the existing programs. Some of these are highlighted below.

The Tourism Industry is Reeling

Unsurprisingly, sectors dependent on in-person interactions such as the hospitality and tourism industries have been among the hardest hit by the pandemic. For many businesses in the tourism industry, capital expenditures are typically made during the off-season and are offset by revenue generated throughout the summer months. However, the combination of social distancing measures, travel restrictions, and the closure of BC Parks and Natural Reserves has meant that tourism operators have been forced to grapple with hundreds of last-minute cancellations just as their busiest season was about to begin. With many businesses needing to service pre-existing debt loads, the loss of summer revenue has placed them in a precarious position. Exacerbating matters is the fact that many operators have had limited success in negotiations with travel insurance companies around the reimbursement of guests’ travel costs.

Currently, the economic supports introduced by the federal and provincial governments do not adequately address the scale and scope of the challenges that the industry faces, particularly given its seasonality. Assistance offered by the private sector such as deferring loan payments for three months are only stop-gap measures because payments will eventually come due. Additional solutions proposed to address the issues the tourism and hospitality industries are facing have included altering the terms of the existing loan programs to provide longer repayment periods, larger loan guarantees, and determining loan eligibility on a per property basis rather than a per owner basis.

Rent Assistance

One concern common to both individuals and businesses is the ability to pay rent. Even before the current economic crisis began, the high cost of living in urban areas was a pressing issue in federal and provincial politics. Rent prices have been increasing over the last decade and as of November 2019 the average rent in Vancouver was $2,507 per month. In Oak Bay, just under 20% of households fall below the affordability standard, defined as spending 30% or more of income on shelter costs.

Although Ottawa and Victoria have stepped in to provide the Canada Emergency Response Benefit (CERB) and the BC Temporary Rental Supplement Program (BC-TRS) respectively, many individuals have indicated that the existing supports will not be enough to get them through the crisis, particularly given the fact that relief from other recurring expenses such as mortgage payments, property taxes, utility bills, and debt payments are only temporary. If people are unable to make rent payments, hundreds of tenants could be facing eviction when the crisis is over. The impact of missed rental payments would also be acutely felt by landlords, many of whom are reliant upon rental income to make mortgage payments or to support their retirement.

On a commercial level, almost 60 percent of Canadian small businesses have said that they will be unable to pay rent come May 1st. The situation is particularly urgent in the food service industry where three quarters of respondents to a Restaurant Canada survey reported that that rent was a primary source of business debt.

Solutions floated to the issues facing renters and landlords have included increasing the provincial rent supplement, and federal government intervention to support renters by topping up the CERB payment. The recently announced Canada Emergency Rent Assistance program should provide much needed relief to small businesses but will need to be closely monitored to determine if it is ambitious enough. Many small business owners have expressed their reluctance to take on more debt and may require further support in the weeks ahead.

Ongoing Restrictions to the Canada Emergency Wage Subsidy

While making the criteria for the Canada Emergency Wage Subsidy more flexible has helped more businesses qualify for the program, many firms have indicated that they are still slipping through the cracks. Currently, only one third of businesses in BC are confident that they will qualify for wage subsidy, with 28% of businesses reporting that their revenue has not declined enough to meet the eligibility requirements. This issue is particularly pressing for businesses that have experienced revenue declines but are still trying to stay open to provide services to customers. Without additional support many of these businesses will be forced to close and layoff their employees, making an eventual economic recovery all the more difficult.

Unaffordable Childcare Costs

Both the province and the federal government have taken steps to ensure that essential service workers are able to access child-care throughout the pandemic. At the federal level, the CERB has been extended to those forced to care for their children at home and the Canada Child Care Benefit has been increased by $300 per child. In BC, the provincial government has prioritized spaces in child-care centres for essential service workers and has provided access to child-care services for school aged children through schools themselves. Yet despite these measures, essential service employees with children above the age of five are still struggling to find affordable child-care services. In some school districts, schools no longer have the capacity to offer child-care, forcing parents unable to work from home to resort to private options. For many households, the costs of private child-care are too high to remain a viable long-term solution to the lack of in-school supports.

Throughout the pandemic, essential service employees have been deservingly lauded as heroes for their selfless commitment to others. With some of these workers still struggling to find affordable child-care for their children, Ottawa and Victoria need to address the gaps in the existing support network so that workers in essential industries can continue to provide the services that British Columbians count on. If further support does not come soon, essential services workers may be forced to quit their jobs to care for their children at home.

Possible options here could include extending childcare services to out of district students if there are enough spaces available, distributing additional tax credits to families, or making the criteria for the CERB more flexible to cover a portion of the costs of childcare for essential service workers.

Supporting Individuals and Businesses

At the moment, there is a narrow window of opportunity for governments to act to aid struggling sectors and individuals. Many businesses are dangerously close to being forced to permanently close and cannot wait much longer for further assistance. Going forward, the government might focus on ensuring that as many individuals and businesses as possible can access their programs. Given the consequences of not doing enough, I am of the view that it is is better to do too much than to do too little.

 

Celebrating Earth Day during a global pandemic lock down

As we celebrate the 50th anniversary of Earth Day we recognize that we live in a world that is vastly different from what it was even just a few months ago. For the first time, Earth Day will be celebrated without large outdoor events where we come together and share our vision for a sustainable future. Instead, millions of people will come together via online platforms and global events featuring today’s scientific experts, thought leaders and our creative communities. Earth Day has been re-imagined by necessity due to the current crisis we all face.

The COVID-19 global pandemic has changed our lives profoundly and destabilized our economy in an unprecedented manner. Yet in every crisis, there is also opportunity and, in this crisis, we have an opportunity to rethink our way of life and how we live on this planet.

Although separate issues, there are parallels that can be drawn between the pandemic and the climate crisis. Both are global and require evidence-based solutions grounded in science. Both have laid bare the deficiencies and inequities in how we protect the most vulnerable in our society. Both require bold political leadership in a changing, threatened world.

Here in British Columbia, the response of our public health officials and the government to the COVID-19 crisis has shown our province to be a leader in acting quickly to avoid worst case scenarios. Strict measures like social distancing and non-essential business closures which were implemented early in BC appear to have ‘flattened the curve’. There has been a high degree of compliance to these measures and an outpouring of support in the community to assist those most vulnerable. While we are encouraged by the data we have seen, this is no time to let down our guard and relax the strict measures too quickly. Other jurisdictions in the world have shown that this has serious and life-threatening implications.

British Columbia has also proven to be a leader in response to climate change. We are well positioned to lead into the 21st century with CleanBC, the new economic vision for how BC will prosper in a changing and challenging world.

In the context of responding to the pandemic, we have an opportunity to embrace a new approach to transitioning the economy. While the pandemic has had a devastating effect on the economy due to radical business and industry shutdowns, there has been an unintended, but beneficial consequence of a sharp drop in global greenhouse gas emissions. As the economy revives, we have a chance to reset priorities and move more quickly to renewable resources as a cost-effective solution to fossil fuels. The major disruption caused by the pandemic is an opportunity to make transformational change for a cleaner, healthier future.

While the pandemic has appeared as a clear and present danger that will play out over weeks and months, the climate crisis is an existential threat that has been playing out over decades. The radical economic measures taken in response to the pandemic are not the way to combat climate change, however we have an opportunity to rethink our behaviour and approach to transitioning the economy for the long term. We have come together in new ways to fight the pandemic. Perhaps we can emerge with a deeper understanding of our interdependence as a global community. Something to ponder on Earth Day 2020.

A brief video message to the OBGH residents on the topic of COVID-19

Today I recorded a brief video message from home to the residents of Oak Bay Gordon Head on the topic of COVID-19. In the video I take the opportunity to thank all of those in our community who are helping others and keeping us safe. I also  reemphasize the importance of treating the COVID-19 pandemic, and the measures in place to slow its spread, very seriously

The video is reproduced below.


Video Message


Statement from political leaders on COVID-19 financial aid package for people, businesses

Today Premier John Horgan, Opposition Leader Andrew Wilkinson, interim third party Leader Adam Olsen and I issued a joint statement about the emergency House sitting to support people and businesses affected by COVID-19. Below I reproduce the contents of this statement:


Media Statement


“COVID-19 threatens our health, our economy and our way of life. We must act now, and quickly, to slow the spread of COVID-19 and protect people in our communities.

“We know that people all across B.C. are stressed and anxious about the future. Families are struggling and businesses are hurting.

“Today, Members of the Legislative Assembly joined together to pass legislation to help people and businesses affected by COVID-19.

“There’s a long road ahead of us. But we are united in ensuring the health and safety of British Columbians are protected as we respond to this unprecedented challenge.

“As party leaders, we want to take this opportunity to speak with one voice and challenge every British Columbian to do their part to stop the spread of COVID-19.

“We expect everyone to follow the advice of the provincial health officer, Dr. Bonnie Henry, and take the steps needed to slow the spread of COVID-19.

“By washing our hands, keeping a safe distance from others, staying home if we are sick, and buying only what we need, we can flatten the curve.

“The actions of each of us determine the future for all of us. No matter our politics, now is the time to come together and do our part to stop the spread of COVID-19.”

Serving our Community during COVID-19

In this difficult time, it is easy to be consumed and feel overwhelmed by the rapidly evolving situation with the COVID-19 pandemic. We are looking for ways to help ourselves, our family, our friends and our local community.

In addition to information we are receiving from trusted government sources, we are hearing of many instances where local actions are being taken to assist vulnerable people during this health crisis. My office is tracking these local efforts and we will communicate with you regularly in the coming weeks and months to keep you updated.

We need ways to take action, to support each other and stay connected. Personal connection and emotional support are important for everyone, especially those who may need extra help due to challenging personal circumstances.

Recent events have an impact on our mental health and it is critical to reach out if you need help. If you are concerned about your mental health or the mental health of others, use these resources to seek help:

310 Mental Health Support at 310-6789 (no area coded needed) for emotional support, information and resources specific to mental health.

Kid’s Help Phone Line at 1-800-668-6868 to speak to a professional counsellor, 24 hours a day.

1-800-SUICIDE (1-800-784-2433) if you are considering suicide or concerned about someone who may be.

A short video called “Taking Care of Your Mental Health During the COVID-19 Pandemic” created by Dr. Adriana Wilson, Department of Psychiatry at Dalhousie University gives some helpful suggestions:

It has been heartening to see the local resources appearing on social media, where people are finding ways to connect and support each other. Some of the local groups that have been created on Facebook are listed below, with descriptions.

1) Victoria COVID-19 Childcare for Health Care/Essential Services Workers
https://www.facebook.com/groups/583817188881220/?multi_permalinks=585144812081791&notif_id=1584568945671792&notif_t=group_activity&ref=notif

About:
Let’s bring our community together to help health care workers and other essential services stay at work. This site is to connect people who can help with childcare needs for physicians, nurses, pharmacists, and any other essential service worker during COVID-19. In this way we can continue social distancing to help flatten the curve, while keeping our essential workers at work to help the community. If you are able to offer childcare in an essential workers home, or in a way that is in line with social distancing principles, please let us all know by posting an #Offer or #ISO ask! Social distancing is an act of togetherness and solidarity. Thank you!

2) Vancouver Island – Pandemic Find Help/Offer Help:
https://www.facebook.com/groups/2274974392810494

About: This group is for the Greater Victoria communities including Sidney, Saanich Peninsula, Sooke, Saanich, Victoria, Westshore, etc.

The idea behind this group is to please post if you need help such as finding items, a service, perhaps asking someone to pick you up something if you’re unable to leave your home. It also allows those a place to post where they can offer something such an excess of something or perhaps could offer a service.

We do understand that some may want compensation for items, but we ask that you be reasonable in the amounts you’re asking for. This group is not intended for making profits or promoting your business. Anyone attempting to do such will be immediately removed from this group.

The intent is purely to ask for help and offer help within our community. We are all in this together and there’s a lovely thing called karma. Please only use this group for offering or seeking kindness.

3) COVID-19 Coming Together (VICTORIA/LEKWUNGEN AND W̱SÁNEĆ LANDS):

About: This is a centralized platform for localized connections for the following:

  1. To Provide or Access Direct Aid: You can offer or access direct assistance such as: picking up groceries or prescription medications, walking dogs, childcare, and more.
  2. To Provide or Access Social Support: This is a time of great uncertainty, anxiety, and heaviness for many folks, especially those among us who have chronic illnesses, are elderly, or are physically-isolating. Yo0u can post if you would like to offer to make or receive phone calls checking in on others.
  3. Create or Access a Neighbourhood Pod: As things get harder, we show up for our neighbors. As a neighbourhood point person, you take on the responsibility of reaching out to your neighbors, checking in on what needs are arising on your block, coordinating a neighborhood group chat or phone tree, and staying in touch with the point people from other neighborhoods for resource pooling. You can post to connect with people in your area.
  4. Advocate for Action from our Institutions: Resources are coming soon to connect you with groups pressuring different levels of government to implement better labour standards, implement paid sick leave, increase workplace flexibility, place a moratorium on evictions, compensate rent and mortgage payments, increase funding for public health, provide housing solutions for people who are housing insecure, offer support for migrant workers and care workers, and beyond!

4) Oak Bay Local:
https://www.facebook.com/groups/131024000626243/?post_id=947637718964863

About: Oak Bay Local started as a Facebook group with a goal of connecting locals and building community. Another original goal of the group was to ensure local businesses had the exposure and support they needed to thrive! The group continues to grow, and we have a local team of people working behind the scenes. We now have a weekly newsletter, opportunities for advertisement and partnership, and other exciting projects in the works.

Community Connect website:

Community Connect is a crowd-sourced list of help for people and businesses impacted by COVID-19. It is compiled by local people and organizations in the spirit of helping people connect with the resources and support they need to get through this challenging time. https://www.covid19communityconnect.ca/

Websites for local information and resources:

District of Oak Bay:
https://www.oakbay.ca/our-community/public-notice/news/novel-coronavirus-covid-19-information

District of Saanich:
https://www.saanich.ca/EN/main/news-events/news-archives/2020-news/saanich-covid-19-update-all-municipal-facilities-closed-to-the-public.html

Capital Regional District:
https://www.crd.bc.ca/about/news/covid-19-information

What else can we do to help others?

1. Donate blood:

Canadian Blood Services needs our help! COVID-19 has impacted donor attendance and they need people to donate. O- and platelets are in the most urgent need, but all blood groups are needed. Donating blood helps patients in need, so if you are wondering what you can do to help others, this is one thing you can do. The clinics practice social distancing, are limiting the number of people in the building, are sanitizing all surfaces and are practicing all necessary health protocols. Let’s not forget the clinics are a place of wellness, where people don’t visit if they are ill. The need for blood is real, especially now.

https://www.blood.ca/en?fbclid=IwAR3vOmxasUJefKtw4sAjqBJX4-aBynfnlbwvVJgQf2v4EV4ucv9qF-ZkEk4

2. Stay in touch (by phone or email) with elderly and vulnerable neighbours. See if they need help or just offer kind words of support.

Check-in by phone or email with the people in our community who are in isolation and who are unable to receive visitors.

Get outside in your neighbourhood and say hello to your neighbours (practising social distancing of at least 2 metres, of course!)

Please do not hesitate to reach out to my office for assistance regarding BC government programs and services. Although we are not open to the public until further notice, you can reach us by email at andrew.weaver.mla@leg.bc.ca or by phone at (250) 472-8528.

Now is the time for us to come together as a community, as a province and as part of our global community in response to this pandemic.