B.C government announces $5 billion COVID action plan

The B.C. government has announced a $5 billion economic action plan focussing on people, services and business during the Covid-19 pandemic.

Premier John Horgan calls it an action plan for the economy.

“There has to be hope as we get through these difficult, challenging times,” Horgan told a news conference.

He said $2.8 billion focus on people and services and $2.2 billion will focus on business and recovery.

He said this includes critical funding for health services, direct financial support for people in need, delayed tax payments for businesses, delayed loan payments for students, targeted tax relief and support for renters who face eviction due to Covid-19 circumstances.

While the government has already banned evictions from provincially-run facilities, there was no such eviction ban issued Monday on private rentals.

However, Horgan insisted no one will lose their apartment because of Covid-19 although evictions can proceed for tenants in trouble with their landlords for other reasons.

While the premier did not explain further, more details are expected Wednesday from Housing Minister Selina Robinson.

An extraordinary session of the B.C. Legislature, with just 12 MLAs, will today pass key legislation.

Horgan said this includes employment standards legislation to ensure workers don’t lose their jobs because they have to self-isolate.

Finance Minister Carole James said B.C. is attempting to coordinate its financial efforts with those of the federal government.

She said the province’s action plan fills in very specific gaps for British Columbia.

“I want to emphasize that this plan is a starting point. It’s going to have to evolve as the situation evolves.”

Key elements include:

• A new B.C. Emergency Benefit for Workers will provide a tax-free $1,000 payment to British Columbians whose ability to work has been affected by the outbreak. The benefit will be a one-time payment for British Columbians who receive federal Employment Insurance (EI), or the new federal Emergency Care Benefit or Emergency Support Benefit as a result of COVID-19 impacts. This includes workers who have been laid-off, who are sick or quarantined, parents with sick children, parents who stay at home from work while child care centres and schools are closed, and those caring for sick family members, such as an elderly parent. The workers can be EI-eligible and non-EI eligible, such as the self-employed. The benefit will be paid to B.C. residents, in addition to their federal income supports.
• An increase and expansion of the B.C. Climate Action Tax Credit in July 2020. As many as 86 per cent of British Columbians will see some extra money from this enhancement. Eligible families of four will receive up to $564 and eligible individuals will receive up to $218 in an enhanced payment. This boosts the regular climate action tax credit payment of up to $112.50 per family of four and up to $43.50 per adult.

James said the action plan provides $1.7 billion for the critical services such as investments in housing and shelter supports, income and disability assistance programs and crucial health services.

These include funding for the BC Centre for Disease Control hotline, quarantine costs, lab tests and work underway at the First Nations Health Authority and the United Way’s Better at Home program for seniors.

She said the province will continue to support non-profits, service delivery agencies and child care providers even if these agencies are closed or their regular operations have been disrupted.

Licensed child care providers staying open will receive enhanced funding to keep operations going.

To help people with B.C. student loans, the province is freezing B.C. student loan payments for six months, starting March 30, 2020. Federal student loan payments are being frozen as well.

British Columbians needing more time to pay their bills can also apply to existing payment deferral programs at ICBC and BC Hydro.

ICBC is extending deferrals to up to 90 days.

People dealing with job loss, illness or loss of wages due to COVID-19 may also qualify for BC Hydro’s Customer Crisis Fund grant program for up to $600.

James said the COVID-19 action plan will help businesses get through the immediate crisis and lay the groundwork needed to get businesses back on their feet once the crisis is over.

Effective immediately, businesses with a payroll over $500,000 can defer their employer health tax payments until Sept. 30, 2020.

The province is extending tax filing and payment deadlines for the provincial sales tax (PST), municipal and regional district tax, tobacco tax, motor fuel tax and carbon tax until Sept. 30, 2020.

The scheduled Apr. 1 increase to the provincial carbon tax, as well as the new PST registration requirements on e-commerce and the implementation of PST on sweetened carbonated drinks, will be delayed and the timing will be reviewed by Sept. 30, 2020.

Business and light- and major-industry property classes will see their school tax cut in half.

This will provide $500 million in immediate relief for business that own their property and allow commercial landlords to immediately pass savings on to their tenants in triple-net leases.

James said the recovery plan will dedicate funding to hard-hit areas of the economy, such as tourism, in the longer term.

The premier said a ‘recovery task force’ was being set up to look at plans for the province following the crisis.

The province has allocated $1.5 billion for economic recovery.