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Canada coronavirus stimulus package promises cash, student loan delays

Kitco News

OTTAWA (Reuters) - Canada’s C$27 billion ($18.8 billion) aid package will give people affected by the coronavirus outbreak C$2,000 a month and delay student loan repayments, among other measures to boost the economy, Prime Minister Justin Trudeau said on Wednesday.

After almost a day of wrangling, the House of Commons agreed early on Wednesday to approve the stimulus. The Canada Emergency Response Benefit bill passed the Senate, and is expected to get royal assent, a formality, later on Wednesday.

A new portal will be set up by April 6 for people who have lost jobs or are unable to work, to apply for the monthly payments which will run for four months. More than half a million applied for unemployment insurance last week alone.

“We are hopeful that the system will be up and running by April 6 and the checks and direct deposits will be flowing days after that,” Trudeau told reporters outside his house.

The plan also delays student loan payments for three months.

A total of 2,792 Canadians have been diagnosed with the coronavirus and 27 have died, while more than a million people have applied for unemployment benefits in less than two weeks.

Trudeau said Canada was testing 10,000 people a day for COVID-19, a respiratory illness caused by the new coronavirus, and Canada was ramping up production of emergency medical equipment and medication.

A few dozen legislators - maintaining social distancing in the face of the highly contagious disease - backed the measures after the Liberal government agreed to remove proposals that would have given Ottawa emergency spending powers without Parliamentary approval until the end of 2021.

The bill includes C$55 billion in the form of tax deferrals.

Trudeau, who unveiled the stimulus package last week, said on Tuesday the crisis meant the government needed flexibility to react quickly.

But, faced with opposition threats to drag out approval of the aid, Trudeau officials agreed to dilute some of their demands.

“Because we fought back, the Trudeau government has backed down from its power grab,” said Pierre Poilievre, finance spokesman for the official opposition Conservatives.

The modified bill caps Ottawa’s emergency spending power at six months. It also says the House of Commons finance committee - which is controlled by opposition legislators - can probe government spending and force Parliament back in 48 hours if it thinks abuses are occurring.

Trudeau’s Liberals only have a minority in the House of Commons and rely on other parties to govern.

Additional reporting by Amran Abocar; Editing by Bernadette Baum

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