Wage, rent subsidies to remain in place to June 5, feds announce

Prime Minister Justin Trudeau has presided over some of the developed world's largest deficits to help the economy during the pandemic.

Ottawa is extending federal wage and rent subsidies at their current levels until June. An additional top-up to the rent subsidy for businesses forced to close due to lockdowns will be maintained as well. Another $1.6 billion has been paid to 129,000 organizations through the rent subsidy and lockdown support.

Freeland said the Canada Emergency Wage Subsidy, the Canada Emergency Rent Subsidy and Lockdown Support for Businesses programs will be extended through to June 5.

Gross domestic product expanded at a 9.6 per cent annualized rate in the fourth quarter, according to a preliminary estimate released Tuesday by Statistics Canada. CERS funds up to 65 per cent of rent or mortgage interest payments for businesses that have seen revenue decline by at least 70 per cent. Companies that have had revenue fall by less than 70 per cent receive decreasing levels of support in line with revenue.

Finance Minister Chrystia Freeland stressed the government will do "whatever it takes" to support Canada's recovery and suggested it's too early to declare victory despite data that show surprising strength in the economy.

Prime Minister Justin Trudeau also announced today a $518-million investment in research through the Canada Foundation for Innovation.

"This is good news for small business owners", CFIB President and CEO Dan Kelly said on Twitter, adding this will help business owners plan.

The federation will also be keeping an eye on whether any of the federal government's programs have been opened up to new owners.

"If you are a worker or business owner, you can have the certainty and support you need until the spring".

Meanwhile, the federal Conservatives say they support Canadians getting help amid this hard time.

Freeland defended the spending, saying the measures kept Canadians from "falling off an economic cliff".