Mayor Mike Hurley is calling on the federal government to extend its 75% employee wage subsidy to local governments, as they struggle to reconcile plummeting revenues with a continued need for their essential services.
Hurley made the call while speaking to Parliament’s finance committee Friday morning. Hurley was joined by several other mayors and local government representatives in speaking to the committee on the urgent need for assistance from the federal government.
Hurley noted that three programs the federal government has announced haven’t been made available to local governments – on top of the 75% wage subsidy, the federal government has a 10% wage subsidy for some businesses not eligible for the larger subsidy. The federal government also announced on Friday it would be providing rent assistance of up to 75% for small businesses.
“None of these are offered to the local government. We are on the ground every day, striving to meet the needs of the citizens and communities directly,” Hurley said in his prepared remarks to the committee.
“There continues to be an urgent need for federal government support to local governments to sustain our communities and ensure a successful recovery. … Local governments are the closest connection to the people, as we provide a central service in meeting the needs of residents.”
Hurley told the committee the city has laid off more than 1,500 staff as a result of losing between $5 million and $6 million per month, something Hurley said can’t easily be recouped.
“We are continuously looking at ways to reduce costs by adjusting operations and cancelling or deferring needed projects in the community. However, these acts are not, by any means, slowing the financial drain,” Hurley said.
Hurley specifically mentioned shelters – the city extended the use of its warming centres beyond their BC Housing-funded mandates to help keep people sheltered during the crisis. But to keep providing those services, Hurley said the federal government needs to step in and offer help.
“At the very least the federal government needs to provide local governments with funding similar to the financial aid programs offered to the business community. This would allow us to recall staff that have been laid off to provide much-needed services required in our community,” Hurley said.
“Seniors out there have not been able to get food, as they’re unable to leave their homes, for one issue. … Our vulnerable population is exploding – both those in homelessness and those in danger of becoming homeless. And we alone will not be able to carry the burden of looking after those people for a long period of time.”
Hurley said cities have contributed “hundreds of millions of dollars” to employment insurance, but generally haven’t needed to lay off staff.
“That could be harmonized, in my view, with the emergency wage subsidy, that could allow us to bring our staff back and put them to work doing the good work that needs to be done within the city,” he said.
