Manitoba still underspending on business aid programs while closed shops cry foul

The Manitoba governmentisn't offering any new financial programs so farto the businesses it's forcing to close as COVID-19 cases surge even as its existing support programs are underspent.

The provincedoled out $9.3 million through its various wage subsidy programs and a grant for charities and non-profit organization that hire students, out of apossible $120 million allocated for these.

Italso spent $56 million in the Manitoba Gap Protection Programthe loans for businesses who aren't eligible for federal aid.

The province budgeted$120 million for that program and another initiativewhich has spent$8.2million so farthat paid$2,000 to eachManitoban, during a set time period,who stopped collecting the Canadian Emergency Response Benefit andreturned to work.

Manitoba's Torygovernment has been criticized for not doing enough for businesses, especially as public health orderedthe closure, beginningMonday, of restaurant dining rooms, movie theatres, concert halls andsports facilitiesfollowing days of record-shattering COVID-19 case counts.

While criticism has mounted, Premier Brian Pallister has repeatedlyinsisted that Manitoba's support programs for businesses affected by the pandemic arethe "most generous" of any in the country.

'Most generous?' Businesses disagree

Jonathan Alward with the Canadian Federation of Independent Business doesn't see the programs in the same light.

"I've certainly talked to dozens, if not hundreds of business owners, that would disagree with that, many other business organizations here in the province that would disagree with that," he said.

Alward said the province's financial aid programs did a "relatively good job" early in the pandemic ofcoming to the aid ofbusinesses left behind by Ottawa's support.

But "these are programs that weren't designed with a second wave [of COVID-19] in mind," he said.

"And frankly, businesses are completely lefthanging because these supports just aren't adequate for what's going on right now across the province."

On Tuesday, finance minister Scott Fielding defended the province's response. He expects the various programs to spend theirallotted budgets before this fiscal year is through.

For example, applications for one of the wage subsidy programs closes next February.

"We truly think that because we're in a second wave and we know the supports are going to be needed, that we will use the existing dollars that are in place," he said.

The money is going out the door, Fielding said. In roughly the past week, $642,000 was distributed through the Manitoba Gap Protection Program, he said.

The province has also provided a number of supports to individuals.

The government paid out the entire $120 million in risk pay for front-line workers(three-quarters of that money came from the federal government), $44.5 million in individual $200 cheques for seniors and $4.5 million through a $200 benefit to lower-income Manitobanswith disabilities.

Fielding said Manitoba has devoted$2.3 billionto its pandemic responsewhich is the third highest,on a per capita basis, of the Canadian provinces.

"We do think that the programs that have been in place have been effective to keep people working here in Manitoba, while people are supported."

He wouldn't promise any additional programs, but saidbased on past precedents, the government will keep listening to the business community.

"We've tried to show some flexibility through the course of the eight months of the pandemic and mould some of those programs around what the business needs are."

Alwardrecommends that gapprogram's restrictions be eliminated.Businesses are only eligible if they do not receive any federal aid. As it stands, he said, some Manitoba businesses will have to return the provincial money.

"I think any businesses that have been impacted by the latest round of restrictions, especially,need that help."

'Has to be a grant'

Opposition parties have calledfor more aidfor months.

NDP Leader Wab Kinewis recommending grants of $20,000 to $30,000 for each business in need.

"The reason why it has to be a grant is because businesses have already taken out all the loans that they can, they're already at their borrowing capacity," he said.

Manitoba Liberal Leader Dougald Lamont said the province needs to pick up the businesses it forced to close.

"If the premier and the province want to talk about, 'Well, this [pandemic]is the biggest deal in 100 years,' thenhave the biggest response in 100 years."

Also on Tuesday, Fielding defended his boss, who has taken heat for his absence last Friday while health officials delivered the news of Winnipeg's near-shutdown.

"I can tell you that there's no one in this province that really has the work ethic that Premier Pallister does in terms of making sure people are supported."