Finance Minister Carole James provides update on worker’s benefit

B.C. worker’s benefit opens

UPDATE: 10:20 a.m.

Applications for the B.C. Emergency Benefit for Workers opened Friday morning, and 16,389 applications were filed in the first 45 minutes.

The one-time payment of $1,000 for those who have lost income due to COVID-19 can be applied for here. British Columbians who are eligible for the Canada Emergency Response Benefit and have not been receiving provincial income assistance or disability assistance will be eligible for the new provincial benefit. 

The Emergency Benefit for Workers program is part of the $5 billion in COVID-19 supports and tax cuts announced by the province in March. 

Those unable to apply online will be able to apply by phone on Monday. More details about the Workers’ Benefit and the other federal and provincial supports can be found here. 

ORIGINAL: 9:25 a.m.

Minister of Finance Carole James will be speaking about the B.C. Emergency Benefit for Workers, as applications for the subsidy become available.

VICTORIA (NEWS 1130) — The national job loss numbers released Thursday are just the beginning, as B.C. Finance Minister Carole James expects unemployment to rise further in the province due to COVID-19.

Statistics Canada reported unemployment across the country rose to 7.8 per cent in March from 5.6 per cent in February — the greatest change in national jobless figures in more than 40 years.

In B.C., the unemployment rate rose to 7.2 per cent from five per cent.

James said job losses in B.C. mirror those reported across Canada, with economists suggesting about 132,000 workers were affected in the province.

“The numbers across the country are very similar to what we are seeing in British Columbia. We’re seeing a real drop in accommodation of food services — that’s hotels, restaurants,” James said.

B.C. is also seeing jobs drop in wholesale and retail trades, as well as tourism, culture, and recreation, specifically movie theatres and sporting events.

The job-loss numbers covered the period of March 15-21, she said.

Finance Minister Carole James commenting on these new employment numbers — says these numbers not “the entire picture,” points out they are from early in pandemic, jobs lost since. Also points out 7.2% unemployment doesn’t include those who were looking for work but now can’t. https://t.co/xBGZS38qYr

— Martin MacMahon (@martinmacmahon) April 9, 2020

B.C. declared a state of emergency just after March 15, and James is impressed and appreciative of the work businesses and employees are putting in to keep the economy going and to be ready for when it recovers.

Regarding programs in the new B.C. COVID-19 action plan, James said many employers are busy, even busier than before.

“I think the measures that we put in place to look at how we fill the gaps from the federal programs, whether it’s looking at reducing down the school tax portion of property tax, whether it’s providing deferrals on payments for businesses, those are going to make a difference to be able to hang on to some of the businesses for the recovery.”

That said, she expects the job loss numbers in April will be higher than in March.

“I certainly think this is going to become more challenging,” she added.

“This is very early in the pandemic and I do believe that we are going to see tougher numbers coming in the next round of statistics that come out.”

She doesn’t know how many more jobs will be lost or when the economy will recover.

“As I said, I don’t have a crystal ball, and no one can really predict when we are going to see that kind of turnaround.”

James said the best economic strategy moving forward is to follow public health advice and help flatten the pandemic curve.

James also said the provincial government is not considering layoffs or pay cuts in the public sector, as a number of employees are now working from home.

“These are difficult times and it is important that we recognize that and we provide the supports as we are doing through our programs for people and businesses who are doing everything they can to hang on through this crisis,” she said.

Earlier this year, Saskatchewan was anticipating a balanced budget. With the coronavirus pandemic having an effect on the world’s economy, however, the province is now bracing for a deficit.

Finance Minister Donna Harpauer says the government is expecting a decline in corporate taxes, personal income tax, PST and oil.

“We’re also concerned about any of our trade dependent industries,” Harpauer said.

“Not that they won’t have products, but with the global marketplace being shut down, we’re a trade-dependent province, and we’re not sure how successful trade will be in this province until boarders are lifted.”

The province isn’t ready to release their projections on how much the deficit will be, but Harpauer promised the number will come in a day or two along with the 2020-21 revenue estimates.

On Tuesday, Moody’s Investors Service projected the province will record moderate deficits of three to 10 per cent of revenues in 2020-21 and 2021-22.

1:19
3 new coronavirus cases reported in Saskatchewan, total rises to 304

More specifically, Moody’s estimates an 8.1 per cent deficit of revenue for 2021. However, without the 2020-21 revenue estimates, it’s unclear how much of an impact 8.1 per cent will be.

The deficit is being attributed to the decline in oil prices, and the coronavirus pandemic which has resulted in higher spending in both health care and social transfer. For example, additional support for small businesses has cost the province $50 million.

Harpauer says it could take years to recover from this year’s deficit, as the province will have to come up with a plan to go back to a balanced budget.

This could mean no new funding in health care, education and social transfers.

“I think that we’re not going to review slashing and burning of programs, we just have to be very mindful and diligent on our spending,” Harpauer said.

“But we’ll be able to get our way out of the deficit position as we move forward.”

Earlier this week, Moody’s maintained Saskatchewan’s Aaa credit rating, citing the province’s $1.3 billion cash surplus and its fiscal position following several years of economic growth.

“That credit rating is very important. It also builds investor confidence in the province.”

Despite a loss in revenue, the province does not expect to cut any money from its $14-billion spending plan for 2020-21 that was submitted to the legislature on March 18.

“We are well-positioned to manage through this challenging time as we provide the additional resources and supports that are needed to address the health and economic challenges of the current pandemic,” Harpauer said.

“Moving forward, our government’s priorities will continue to be the safety, health, and economic well-being of Saskatchewan people.”

Questions about COVID-19? Here are some things you need to know:

Health officials caution against all international travel. All international travellers returning to Saskatchewan are required to self-isolate for 14 days in case they develop symptoms and to prevent spreading the virus to others.

Symptoms can include fever, cough and difficulty breathing — very similar to a cold or flu. Some people can develop a more severe illness. People most at risk of this include older adults and people with severe chronic medical conditions like heart, lung or kidney disease. If you develop symptoms, contact public health authorities.

To prevent the virus from spreading, experts recommend frequent handwashing and coughing into your sleeve. They also recommend minimizing contact with others, staying home as much as possible and maintaining a distance of two metres from other people if you go out.

For full COVID-19 coverage from Global News, click here.