Hard-hit industries worry federal COVID-19 subsidy extensions aren't enough - Action News
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Ottawa

Hard-hit industries worry federal COVID-19 subsidy extensions aren't enough

The federal government announced Friday it is extending the Canada Emergency Wage Subsidy (CEWS)and the Canada Recovery Benefit (CRB) until Oct. 23 because different regions are reopening at different paces.

Travel, entertainment sectors still bogged down by COVID restrictions

People sit on picnic tables in summer on a street that's been closed to vehicles.
The federal government announced Friday that financial supports for businesses will be extended from Sept. 25 until Oct. 23. Yet, business owners in the hospitality and travel sectors say the extension isn't enough to help them before the economy fully recovers. (Trevor Pritchard/CBC)

Business owners in the tourism and hospitality industriesare breathing a sigh of relief after the federal government extended several pandemic support programs into the fall,but some worrythe financial aid won't go far enough to help them before the economy reopens.

The federal government announced Friday it is extending the Canada Emergency Wage Subsidy (CEWS)and the Canada Recovery Benefit (CRB) until Oct. 23 because different regions are reopening at different rates.

John McKay owns and operates Orleans Travel & Cruise Centrein Ottawa. Although he's grateful for the extension, he saidfinancial support is only part of the solution.

"All my employees are still temporarily laid off, even with the wage subsidy," he said."I can't afford it."

With non-essential travel on hold for nearly 18 months, McKay saidhis company is "hanging on by a thread."

"We could be selling a million dollars worth of sales in September, October, November. But if [people are]not traveling till March break, we're waiting until April or May of the following year to be paid."

McKay saidthe stress of surviving after the subsidy expiresis difficult to ignore. In order to stay afloat, he said he's had to take a side job at a courier companyand push back his retirement plans by at least a decade.

"We don't get paid until bums are in seats," he said."So I have to survive between October 23rd and April 2022."

'We have nothing'

Much like the travel and tourism sector, the entertainment industry has been especially hard hit by the pandemic, with manyweddings, corporate events and parties postponed or cancelled.Under Step 3 of Ontario's reopening plan, a maximum of25 people are allowed atindoor gatherings and public events.

That's been difficult for Brian Henry's event business in Ottawa, Quality Entertainment.

The company has been in operation for more than 25 years, but has never experienced anything like the past year-and-a-half, and is currentlyrelying on both the government subsidies and a rollover of last year's clients to keep going.

"It'sreally difficult to go forward," he said. "We have nothing."

He feels any financial aid should be targeted to businesses that have a much tougher road to recovery ahead.

Small businesses still struggling

Jasmin Guenette, vice-president of national affairs with the Canadian Federation of Independent Business, saidit's importantfinancial programs like the CEWS and CRB remain available for small businesses until the economy has fully re-opened.

"A lot of businesses are struggling and it's not through any fault of their own. It's because there are these restrictions. We will continue to ask the government to make sure that those programs are available."

Guenette said only 35 per cent of small businesses across the country are back to their normal sales levels.

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