Federal economic measures introduced Wednesday were encouraging, but are only a start, says the chief executive of the Greater Victoria Chamber of Commerce, who says she’s waiting for the province to do its part.
Catherine Holt earlier penned a letter asking the federal and provincial governments for immediate relief from what could be crippling payments during the COVID-19 outbreak.
The Chamber, Destination Greater Victoria and the Downtown Victoria Business Association asked both levels of government to kill all late-filing penalties and instalment interest on balances owing to government to give businesses breathing room as they deal with the economic consequences of the virus.
Holt said they got some of that Wednesday in the federal government’s $82-billion pandemic package, which includes deferral of tax payments until August and is estimated to keep about $55 million circulating in Canada’s business community.
No interest or penalties will accumulate on the amounts, while post-assessment GST and income tax audits are on hold for the next few weeks.
Holt said the business community will also use the 10 per cent wage subsidy available for small businesses to help hold onto staff, and there is $10 billion available through credit facilities. “We are still concerned those are at an interest rate that will make it difficult, though,” she said.
Holt was pleased by the measures to help workers, noting that the better people function through this, the quicker they can come back to work and get the economy going again.
But perhaps the most important feature was that there was no cap put on the aid package, she said, calling the commitment to being flexible and open to further measures very encouraging.
She said Wednesday’s announcement set an example for the province, which the Chamber is hoping will address the remittance of the Employer Health Tax, PST and WCB premiums, as well as removing the requirement for municipalities to charge 10 per cent on the late payment of property taxes.
“The province has a big [employer health tax] bill due at the end of March, and we’d like to see relief on that — it’s an extra hit on cash flow,” she said. “Anything the province can do through their existing channels to get money to people and business is helpful.”
When businesses are not facing penalties and interest, it takes the pressure off, she said.
“And that is a really important psychological thing for business.”
Holt would also like to see the province focus some of its financial energy on the tourism industry, which was not addressed Wednesday by either Prime Minister Justin Trudeau or Finance Minister Bill Morneau.
“Absolutely tourism and hospitality have been hugely affected,” Holt said.
