A man watches the sun rise over Niagara Falls in Niagara Falls, Ont. on Wednesday Nov. 4, 2020. Ottawa is rolling out a wave of new funding for pandemic-battered industries including tourism, the arts and regional aviation, with smaller companies top of mind — and large airlines notably absent. THE CANADIAN PRESS/Frank Gunn

A man watches the sun rise over Niagara Falls in Niagara Falls, Ont. on Wednesday Nov. 4, 2020. Ottawa is rolling out a wave of new funding for pandemic-battered industries including tourism, the arts and regional aviation, with smaller companies top of mind — and large airlines notably absent. THE CANADIAN PRESS/Frank Gunn

Ottawa beefs up loans for hard-hit sectors — but big airlines not included for now

The move aims to bolster an industry made up largely of small and medium-sized businesses

Ottawa is rolling out a wave of new funding for pandemic-battered industries including tourism, the arts and regional aviation, with smaller companies top of mind — and large airlines notably absent.

The Liberal government’s fiscal update sketches out a program that will provide low-interest loans of up to $1 million for badly hurt entrepreneurs.

The aid, dubbed the Highly Affected Sectors Credit Availability Program (HASCAP), comes on top of a newly expanded emergency loan program already in place for small businesses, and technically is not limited to certain industries.

Meanwhile the devastated tourism sector will have access to one-quarter of the more than $2 billion that Ottawa is doling out to regional development agencies through June 2021, including a $500-million top-up announced Monday.

The move aims to bolster an industry made up largely of small and medium-sized businesses and that accounts for roughly 750,000 jobs and two per cent of GDP, according to the government.

Another $181.5 million will flow to show business and performers via the Department of Canadian Heritage and the Canada Council for the Arts, the fall economic statement says.

Rent relief and nearly $700 million in capital investments are en route to airports over six years. About $206 million in further support is bound for regional aviation, including smaller airlines, via a new “regional air transportation initiative” overseen by development agencies.

But an aid package targeting big players such as Air Canada and WestJet Airlines remains in the works as talks with Ottawa drag on, with the lack of specifics in the fiscal update frustrating industry leaders.

“We had hoped to get a better sense of where the government was going. Instead they repeated the line that they’ve repeated several times over the past several months — that they’re ‘establishing a process with major airlines regarding financial assistance,’ ” said Mike McNaney, head of the National Airlines Council of Canada.

Countries around the world have given carriers US$173 billion in support, he said. Many have also required airlines to offer refunds for cancelled flights, something Ottawa says will be a condition of any bailout.

“We are very much a global outlier and are ostensibly stuck at Stage Zero on the government planning process,” McNaney — whose industry group represents Air Canada, WestJet, Transat and Jazz Aviation — said in a phone interview.

The regional aviation support comes with question marks, as well.

“A regional initiative, what’s that?” asked John McKenna, CEO of the Air Transport Association of Canada, which represents some 30 regional airlines.

“We have no idea. We have not been consulted,” he said in a phone interview. “Never mind new initiatives, try to support the existing services so they survive.”

READ MORE: Statistics Canada says economy grew at a record pace in third quarter of 2020

In a speech to the House of Commons, Finance Minister Chrystia Freeland stressed the benefits of the broader government-backed loan program for smaller companies.

“We know that businesses in tourism, hospitality, travel, arts and culture have been particularly hard-hit,” Freeland said.

“So we’re creating a new stream of support for those businesses that need it most — a credit availability program with 100 per cent government-backed loan support and favourable terms for businesses that have lost revenue as people stay home to fight the spread of the virus.”

The HASCAP credit program will offer interest rates below the market average, according to the fiscal update, with more details coming “soon.”

It also said the government is “exploring options to enhance” a federal loan program for big companies, little-loved by industry since its inception in the spring.

The Large Employer Emergency Financing Facility (LEEFF) offers loans of $60 million or more to large businesses facing cash problems, but comes with an interest rate that jumps to eight per cent from five per cent after the first year — far above typical private-sector lending rates.

Only two firms have been approved for LEEFF loans since the Liberals announced the program on May 11, according to the Canada Enterprise Emergency Funding Corporation: a casino company and a producer of metallurgical coal.

NDP Leader Jagmeet Singh criticized the government for failing to offer industry aid that includes explicit job protections.

“They have not rolled out any sector-specific supports, meaningfully, that are tied to jobs,” he said.

Bloc Québécois Yves-François Blanchet slammed the lack of “precision” in the fiscal snapshot.

“They basically say that there is no limit to what they will spend, without saying or without admitting how badly you spend it,” he said.

The $686 million in airport aid includes $500 million over six years, starting this year, to back infrastructure spending at large airports that would include massive transit projects, such as the new light-rail station at the Montreal airport.

The government is also proposing to extend $229 million in additional rent relief to the 21 airport authorities that pay rent to Ottawa, with “comparable treatment” for Ports Toronto, which operates Billy Bishop airport in downtown Toronto.

The supports unveiled Monday come on top of Ottawa’s pan-sectoral announcement to raise the wage subsidy to 75 per cent of company payroll costs — it was reduced to a maximum of 65 per cent in October — as well as an extension of the rent subsidy to mid-March from the end of 2020.

David Chartrand, Quebec coordinator for the International Association of Machinists and Aerospace Workers, applauded the wage subsidy, but lamented the radio silence on large airlines.

“After almost 10 months of crisis, still nothing,” he said in a release in French.

Christopher Reynolds, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

economyLiberals

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Logging Camp Nine on Great Central Lake overlooks a large forest fire across the lake in this historical photo from May 1943. Camp Nine was bustling, with residences for logging camp staff, a rail line and rail cars visible. This is one of 24,000 photos contained in the Alberni Valley Museum’s digital archives, available for public viewing at https://portalberni.pastperfectonline.com. (PHOTO PN12220 COURTESY ALBERNI VALLEY MUSEUM)
LOOK BACK: Great Central Lake’s sawmill

Take a peek at Alberni Valley history with the Alberni Vally Museum

Alberni Valley Bulldogs’ goalie Luke Pearson stopped all 22 shots the Cowichan Capitals sent his way to collect a 5–0 shutout in B.C. Hockey League action, Saturday, April 10, 2021. (SUSAN QUINN/ Alberni Valley News)
BCHL: Pearson earns shutout in Bulldogs’ win over Cowichan Capitals

Alberni Valley will face Victoria Grizzlies Sunday, April 11 at 3 p.m.

A 3.0-magnitude earthquake occurred off Ucluelet just after 12:30 a.m. on April 10 and was reportedly felt as far south as Oregon. (Map via United States Geological Survey)
Quake off Ucluelet reportedly felt as far south as Oregon

Magnitude 1.5 earthquake also reported off Vancouver Island’s west coast hours earlier

Princess Elizabeth and her new husband, Prince Philip—behind the wheel—visited the Alberni Valley on the princess's inaugural visit to Canada. A photographer with Charnell Studios in Port Alberni captured the young newlyweds along the parade route on Oct. 25, 1951, months before Princess Elizabeth became Queen. Prince Philip died April 9, 2021, just shy of his 100th birthday. This photo is one of 24,000 in the Alberni Valley Museum's online archives, available for public viewing at https://portalberni.pastperfectonline.com. (PHOTO PN 13605 COURTESY OF ALBERNI VALLEY MUSEUM)
LOOK BACK: Prince Philip and his new bride visit Port Alberni

A special look back with the Alberni Valley Museum to honour the life of Prince Philip

John Ambrose Seward, 33, is described as Indigenous and five-foot-eight with short black hair and brown eyes. (Police handout)
John Ambrose Seward, 33, is described as Indigenous and five-foot-eight with short black hair and brown eyes. (Police handout)
High-risk sex offender banned from central Island, living in Vancouver: police

John Ambrose Seward, 33, has been released from prison under a number of conditions

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
1,262 more COVID-19 infections in B.C. Friday, 9,574 active cases

Province’s mass vaccination reaches one million people

People walk past the Olympic rings in Whistler, B.C., Friday, May 15, 2020. Whistler which is a travel destination for tourists around the world is seeing the effects of travel bans due to COVID-19. THE CANADIAN PRESS/Jonathan Hayward
Adults living, working in Whistler, B.C., eligible for COVID-19 vaccine on Monday

The move comes as the province deals with a rush of COVID-19 and variant cases in the community

RCMP crest. (Black Press Media files)
UPDATE: RCMP investigating after child, 6, dies at motel in Duncan, B.C.

The BC Coroners Service is conducting its own investigation into the circumstances around the child’s death

RCMP display some of the fish seized from three suspects who pleaded guilty to violating the Fisheries Act in 2019, in this undated handout photo. THE CANADIAN PRESS/HO - RCMP
3 banned from fishing, holding licences after overfishing violations near Vancouver Island

Mounties seized the group’s 30-foot fishing vessel and all equipment on board at the time

B.C. Premier John Horgan responds to questions during a postelection news conference in Vancouver, on Sunday, October 25, 2020. British Columbia’s opposition Liberals and Greens acknowledge the COVID-19 pandemic has presented huge challenges for Horgan’s government, but they say Monday’s throne speech must outline a coherent plan for the province’s economic, health, social and environmental future. THE CANADIAN PRESS/Darryl Dyck
Horgan’s NDP to bring in throne speech in B.C., Opposition wants coherent plan

Farnworth said the budget will include details of government investment in communities and infrastructure

FILE - An arena worker removes the net from the ice after the Vancouver Canucks and Calgary Flames NHL hockey game was postponed due to a positive COVID-19 test result, in Vancouver, British Columbia, in this Wednesday, March 31, 2021, file photo. As vaccinations ramp up past a pace of 3 million a day in the U.S, the NHL is in a tougher spot than the other three major North American professional sports leagues because seven of 31 teams are based on Canada. (Darryl Dyck/The Canadian Press via AP, File)
Vancouver Canucks scheduled to practice Sunday, resume games April 16 after COVID outbreak

Canucks outbreak delayed the team’s season by eight games

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Most Read