COVID-19 PUBLIC AFFAIRS ADVOCACY TEMPLE SCOTT ASSOCIATES INC. - PowerPoint PPT Presentation

COVID-19 PUBLIC AFFAIRS ADVOCACY TEMPLE SCOTT ASSOCIATES INC. THURSDAY, APRIL 9, 2020

Moderator and Presenters Cait itlin Drouillard Bria ian Klu lunder Don Moors Scott t Munnoch Senio ior Consu sultant Senio ior Counsel Prin incipal Senio ior Counsel TEMPLE SCOTT ASSOCIATES INC.

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Agenda I. I. Context xt II. II. Federal Measu sures and Parli liamentary ry Update III. III. Provincial Measu sures IV IV. Mediu ium-Term Poli licy Outlo tlook V. V. Long-Term Poli licy Im Implicati tions VI. Public Affair irs Outlo tlook and Str trategy VII. Questi tions s and Answers TEMPLE SCOTT ASSOCIATES INC.

Context – COVID-19 (Global) ▪ Unprecedented economic and so soci ciocultural disr isrupti tion ▪ As s of f April il 9: ➢ More th than 1.5 .5 mill illion cases s in in more th than 200 countr tries and territ itories. ➢ More th than 90,0 ,057 death ths s and more th than 340,6 ,630 fu full ll recoveries. TEMPLE SCOTT ASSOCIATES INC.

Context – COVID-19 (Domestic) ▪ As s of f April il 9: o 19,7 ,791 cases and 462 death ths. ▪ Provincial states of f emergency: Non-esse sential workplaces, sc schools clo close sed. ▪ Borders s clo closed, exce cept t for cr criti itical tr trade. In Inter- provi vincial tr travel disc iscouraged. ▪ Self lf-isolati tion ordered by public health auth thoriti ties. TEMPLE SCOTT ASSOCIATES INC.

Context – Government Responses ▪ ‘Whole -of of- government’ resp sponses focu cusse sed on: ➢ Lim imiti ting sp spread of f th the vir virus ➢ Scaling up healthcare se sect ctor capacity ty; and ➢ Managing economic fall llout. ▪ Governments s are committed to ‘whatever is necessary’. TEMPLE SCOTT ASSOCIATES INC.

Federal Financial Assistance On March ch 25, , Parli liament t enacted $82 bill illion worth th of f COVID ID-19 19-related fin financial ass ssistance. Progr grams in include: : Loans and Tax Deferrals Canada Emergency 10% Wage Subsidy for Businesses Response Benefit Progr gram Pending Legi gislation: : Canada Emergency Wage Subsidy TEMPLE SCOTT ASSOCIATES INC.

Federal Liquidity Measures Bank of f Canada ▪ Key in interest rate cu cut t to 0.2 .25%. ▪ Quantitative easing until til economic recovery ry “well underway”. ▪ Bankers’ Acceptance Purchase Facility and Standing Term Liq iquidity ty Faci cility ty enacted. Offi fice of f th the Superintendent t of f Fin inancial In Insti titu tuti tions ▪ Lowered mandatory capital “buffer” for banks, to in increase le lending capacity by over $300 bill illion (temporary (t ry). ). ▪ Th The Bank of f Canada to re-assess economic outlo tlook in in th the upcoming weeks s TEMPLE SCOTT ASSOCIATES INC.

Federal – Private Sector Collaboration Pla lan to Mobili ilize In Industry try to fig fight t COVID ID-19 19 offers fu funding to combat COVID ID-19, th through a call to act ction for manufactu turers and all ll su suppliers. In Industry try-support t and R&D progr grams s re re-focussed: ▪ Str trategic In Innovation Fund: Will ill fast-tr track fu funding for proje jects aim imed at t tr treating or cu curin ing COVID ID- 19. 19. ▪ Th The Natio tional Research Council of f Canada: : Will ill partn tner with ith post- se secondary ry educati tion in insti titu tuti tions and SMEs s on R&D. TEMPLE SCOTT ASSOCIATES INC.

Federal Parliament Update ▪ Parli liament t is is rece cessed unti til April il 20, , but t wil ill be recalled so soon to pass ss le legislation for th the Canada Emergency Wage Subsi sidy. ▪ House se of f Commons Fin inance and Health th Committees s are meeti ting to monitor th the Government’s pandemic resp sponse. ▪ Federal Budget t date is is unknown. Th The Government t is is re re-draft fting Budget t 2020 for th the COVID ID-19 context xt. TEMPLE SCOTT ASSOCIATES INC.

Ontario Measures Sprin ing Economic and Fis iscal Update focu cusse sed on COVID ID-19: 19: ▪ Most t tax fili filing deadlines ext xtended until til Augu gust t 31. ▪ Employer Health th Tax exempti tion increased fr in from $490,0 ,000 to $1 mill illion for 2020. ▪ Workplace Safety ty and In Insu surance Board payments s deferred up to six month six ths. ▪ Creation of f a new Regional Opportu tunities s In Investm tment t Tax Credit. t. TEMPLE SCOTT ASSOCIATES INC.

Ontario Measures The ‘ Ontario Together ’ fu funds publi lic-private collaborati tion on COVID ID- 19. 19. ▪ $50 mill illion to help lp busi sinesses provi vide so solu luti tions s or manufactu ture medical su supplies. ▪ Creation of f Ontario Jo Jobs and Recovery ry Committee TEMPLE SCOTT ASSOCIATES INC.

Alberta Measures ▪ Coll llection of f corporate in income tax deferred until til Augu gust 31. ▪ Workers’ Compensation Board premiums deferred until til 2021. . Government to pay 50% of f 2020 premiums for SMEs. s. ▪ ‘ Bits its and Pie ieces ’ program invites companies and non-profits ts to provi vide su supplies to combat t COVID ID- 19. 19. ▪ Economic Recovery ry Panel to generate poli licy pla lan. TEMPLE SCOTT ASSOCIATES INC.

Quebec Measures ▪ PACT CTE: Acc ccess ss to $50,0 ,000 to $500,0 ,000 for busin siness. ▪ Emergency aid id for SMEs: s: Acc ccess s to a maxim imum of f $50,0 ,000 per busi siness. ▪ PACME: Up to $100,0 ,000 for emplo loyers to admin inister sk skil ills tr train ining onli line. ▪ Panier ble leu: : Buy lo local pla latf tform. ▪ Cabinet economic recovery ry sq squad created. cr TEMPLE SCOTT ASSOCIATES INC.

British Columbia Measures $5 bill illion COVID ID-19 Act ction Pla lan: ▪ Employer health th tax payments ts deferred until til September 30 for organizations with ith a payroll over $500,0 ,000/y /year. ▪ Most t tax payment t deadlines ext xtended until til September 30. ▪ In Incr crease se of f provi vincial carbon tax and PST T regi gistr trati tions on e- commerce dela layed. ▪ $1.5 .5 bill illion allo llocated for lo long-term economic recovery ry – in informed by Economic Recovery ry Task Force. TEMPLE SCOTT ASSOCIATES INC.

Medium-Term Outlook: Sector-Specific Aid ▪ Th The Federal Government t has s sig signaled in intention to provi vide sect se ctor-specific aid id to se sele lect t se sect ctors: ➢ Air irli lines ➢ Tourism and hosp spitality ➢ Chariti ties ➢ Natu tural reso source extr xtraction ▪ Th The Government t has s waiv ived lease payments for Canada’s air irports s fr from March ch 2020 – December 2020. TEMPLE SCOTT ASSOCIATES INC.

Medium-Term Policy Outlook Can anadia ian Governments ar are vi viewing th the cris risis on on a a 3 3 - 6 6 month ti timelin ine, dependin ing on on th the extent of of the glo th global l an and domestic ic sp spread of of COVID-19: 19: ▪ Federal l Government Op Operatio ions Centre modelli ling su suggested th that at t lea least so some of of th the measures to o figh fight COVID-19 wil ill l remain in in in pla lace until il Ju July ly. Lo Lookin ing ah ahead, stakehold lders must con onsid ider: ➢ Current Federal programs ar are desig igned for or a a fou our-month ti timeli line. ➢ The fisc fiscal fir firepower of of th the Provinces is is lim limit ited – can an th they su sustain cr cris isis is le levels ls of of healt lthcare an and economic su support sp spendin ing? ➢ Lon Long-term for ormat of of Par arli liaments: : The Federal l Go Government is is exp xplo lorin ing vi virtual l Parli liamentary ry sittings. The Unit sit ited Kin ingdom an and ot other ju juri risdictio ions alr already develo loping vi virtual l sit sittin ings. ➢ Im Impact of of th the U.S .S. Presidentia ial Ele lection: o Postponed pri rimarie ies an and loo loomin ing battle le over mail il-in voting; ; an and o Dif idencies . Differing glob global l role ole pla layed by U.S .S. in in pot otential l Tru rump an and Bid iden Presid TEMPLE SCOTT ASSOCIATES INC.

Potential Long-Term Policy Implications of COVID-19 19 Soci cio-economic poli licies im implemented durin ing cr cris ises are hard to roll ll back: ▪ Employment t In Insu surance: Im Implemented in in resp sponse to th the Great Depression. Became permanent t and progr gressively generous s over tim time. ▪ Income taxes: Introduced to fund Canada’s WWI effort, became a permanent source of Federal revenue . TEMPLE SCOTT ASSOCIATES INC.