As anticipated, the government unveiled their reforms to the wage subsidy programme yesterday, which included more of a sliding scale for revenue drops and how much support businesses could get before the subsidy phases out, which helps ensure that businesses don’t reach a “cliff” in terms of restart growth only to have that support ripped away at an arbitrary level. This has the business community both applauding the government for responding to concerns, while also moaning that it’s so complicated now, which has some economists rolling their eyes. It also looks like the government that insisted they don’t like abusive omnibus bills is rolling the legislation for these changes in with the new-and-improved disability payments, as well as the justice timelines legislation, so that’s something to look forward to when the House comes back next week for a single day.
A short thread on the modifications CEWS reforms.
Yes, it's more complicated than, and that's a good thing. The 30% cliff was simple, so any replacement is going to be more complicated.
The people who run small business are smart enough to figure it out. 1/
— Stephen Gordon (@stephenfgordon) July 17, 2020
Similarly, if things go pear-shaped, then more firms will automatically qualify and the subsidies will increase automatically, without having to recall Parliament and pass yet another set of changes. 3/3
— Stephen Gordon (@stephenfgordon) July 17, 2020
Meanwhile, the Ethics committee met yesterday to start their own look into the WE Imbroglio (conveniently with many of the same faces who subbed in at the Finance Committee during its hearing), to which the Liberals on the committee, knowing that they don’t have sufficient votes, decided instead to filibuster things, which is not a good look. Their arguments that this undermines the work of the Ethics Commissioner ignores that his role is supposed to support them, not the other way around; the fact that they were blocking a motion to demand the receipts from Margaret and Alexandre Trudeau’s public speaking events from their Speaker’s Bureau going back to 2008 is a little more suspect, and I haven’t heard a reasonable rationale for it or how it relates to the proposed study on how well the conflict-of-interest regime is working. Suffice to say, this isn’t a good look for the Liberals, and there are better ways of beating the Conservatives at their own game than playing into their hands. It’s too bad that they can’t seem to grasp that.