An extension of the PCU would cost $ 64 billion more

The offices of the Canada revenue Agency in Ottawa

Share

10 June 2020 8h31

Updated at 20h11

Share

An extension of the PCU would cost $ 64 billion more

Jordan Press

The Canadian Press

OTTAWA — The parliamentary budget officer believes that an extension of the Delivery canadian emergency (PCU), to add weeks and allow people to touch another extra income, would cost $ 64 billion more to the public Treasury.

In one of the two scenarios submitted to the office of Yves Giroux by a conservative mp, the government would recapture 50 cents of every dollar earned above the threshold of $ 1000 per month fixed by the government to reach the PCU. Recipients may also receive an additional 12 weeks of benefits, until January 2021.

This scenario would cost $ 64 billion more to the government. By contrast, it would cost approximately 57.9 billion $ if the government would just extend the 12 weeks of the program, until January 2021 – without the possibility of off-farm income beyond $1000.

The most recent statistics from Ottawa show that as of the date of June 4, 8,41 million Canadians have asked for the PCU and that 43,51 billion $ had been paid.

The program’s budget was increased from $ 35 billion to more than $ 60 billion, as more people had called for delivery – and longer than expected. However, liberals argue that the 1.2 million beneficiaries were removed from the ECP in may.

Yves Giroux recalls that over the program of the PCU is extended, the more the pressure increases for it to become permanent – or at least some of its elements. The same dilemma arises as with other programs of federal assistance related to the pandemic COVID-19 – as the wage subsidy, as Ottawa tries to make it more popular so that Canadians leave precisely the PCU.

“Can we afford, as a country, 58 billion more dollars? Probably,” said on Wednesday Mr. Giroux in an interview. “But when you take into account also all other programs that may be subjected to pressure for an extension, it becomes very expensive and it is a matter of compromise,” he said, referring to a reduction in program spending, or increase taxes.

Spread of beneficiaries able-bodied

The government had proposed to extend in time the benefits, but eliminating the beneficiaries who decide not to return to their positions so that they are capable of, or who refuse a reasonable job offer. The opposition parties have refused to give their unanimous consent to the bill, on Wednesday after-noon, in the Commons.

Many owners of small businesses support the measures to abolish the payment of the PCU to workers who are offer to resume their work, according to the canadian Federation of independent business, which represents tens of thousands of SMES across the country. A survey of its members suggested, however, that more than two-thirds support the ability of workers to earn revenues of more than $ 1000 while receiving the PCU.

“It is too early for a move of the PCU, but a change of course is needed to encourage workers to reintegrate into the labour market”, stressed Jasmin Guénette, vice-president of national affairs for the CFIB.

The DPB is estimated that $ 3.2 billion in benefits would likely be paid to people who do not want to work and enjoy a extension of the programme to the PCU. This cost would amount to $ 3.7 billion if people could earn more than the threshold of $ 1000. The DPB emits also a warning: “any estimate of the behavioral response to the ECP is very uncertain and is based on assumptions of hardy”.

“There is still a significant deterrent for people not to work, but less so when the penalty is large, as is the case for the PCU current,” said Mr. Giroux.

The child care issue

The need for child care services for children further complicates the return to work, a concern shared by the members of the CFIB and the defenders of child-care facilities.

Although the may report from Statistics Canada, labour force shows an increase in the number of jobs, the results disproportionately favour men. In women, the mothers of children of six years and more have found new employment more quickly than those who have younger children.

However, a survey of more than 8,000 child care centres, early childhood centres and childcare services in a family environment in Canada suggested Wednesday that more than a third were not confident of being able to reopen with a relaxation of sanitary measures. Some 70 % also reported to have dismissed staff, and nearly 90 % of the employees of PBS have asked the PCU.

“To deliver care services on track, governments need to find ways to reduce the employees in the sector, has sustained Don Giesbrecht, ceo of the canadian Federation of services for child care, which commissioned the survey. “This means tackling the problem of low wages and provide a financial envelope for special to ensure that care services are safe for children and staff.”

Ottawa has offered $ 14 billion to the provinces to assist them in their operation déconfinement, part of which is intended for guard services but are unaware of the amount.

+

THE CHANGES TO THE PCU WORRIED ABOUT THE UNEMPLOYED

The tightening of eligibility criteria for the Provision of canadian emergency (PCU) and the presence of sanctions for those who have defrauded the program in a bill that will be discussed Wednesday by the federal members of parliament are of great concern to a grouping of organizations of defence of the rights of the unemployed.

The autonomous Movement and in solidarity with the unemployed (MASSE) estimates that the Trudeau government had “caved in” to a “campaign of fear” that combines the providers of the PCU to fraudsters and lazy.

The bill, which will be considered Wednesday at a meeting of the “normal” of Commons, imposes heavy fines and prison sentences to those who would have received this emergency assistance “illegally”.

The organization which gathers 14-rights groups argued that the criminal Code already includes means to punish identity theft.

He also fears for the fate of the unemployed who have made mistakes in good faith, in particular because of ambiguities about the eligibility of the PCU and of the confusion caused by surplus income payments.

On Tuesday, the prime minister, Justin Trudeau has assured that those who have harvested the PCU by mistake, without having the right, will only have to repay the amounts received. He added that it was necessary, however, “go out and get this small minority of criminals” who used the pandemic in order to defraud the system.

“Our past experience invites us to question ourselves seriously about the way in which the administrative staff will be required to disentangle the good from the bad faith of the service providers”, notes, however, the coordinator of the MASS, Sylvain Lafrenière, in a press release.

Eligibility criteria

The provisions of the piece of legislation that aimed to cut off the PCU to a person who refuses to return to work following an offer of employment is “reasonable” or a request of his employer trouble also the body.

“It is clear that there are still important legal clarity surrounding the determination of “reasonable conditions” of the return-to-work; through the establishment of exclusion if draconian, the government puts the worker-its at the mercy of some employers eager to “start the machine” without regard to conditions of work,” says MASS.

The grouping believes that it would be minimally “essential” that the bill includes provisions similar to those found in the Law on employment insurance to provide that in certain cases the benefits are paid in cases of voluntary departure. The canadian Press

Le Soleil