P.E.I. tourism operators urge Ottawa to continue federal supports

Some Island businesses that rely on tourism say this summer could be worse than 2020, and they're pressuring Ottawa to continue the federal wage subsidy so they can survive.

The president of the Maritime Fun Group, which operates attractions around the Maritimes including Shining Waters Family Fun Park in Cavendish, recently appeared before the federal committee to speak about the impact of plans to reduce that wage subsidy over the summer.

"We're working as hard as we can to help people realize that, you know, the choices we've made for public health reasons have had a severe impact on businesses. And businesses need your support," said Matthew Jelley.

Jelley said the federal wage subsidy helped keep Shining Waters and Sandspit open last summer, with 200 people employed at the two parks.

Canadian businesses that see a drop in revenue due to the COVID-19 pandemic can receive a subsidy to cover up to 75 per cent of employees' wages.

In April's federal budget, however, the Liberals announced that percentage will drop over the summer, to a maximum of 60 per cent in July, 40 per cent in August, and 20 per cent in September.

Even if September comes out really great, there's not going to be any hay in the barn to make it through till next spring. Matthew Jelley

A new program, the Canada Recovery Hiring Program, was announced in the budget, which could provide wage subsidies up to 50 per cent.

"There's no way to make the 40 to 50 per cent on that program turn into the 75 per cent that was under the wage subsidy," said Jelley.

"There's a whole lot of uncertainty about the criteria and how the program will work."

He said between the two Island parks he owns, he lost about $300,000 in 2020. He expects it could be even higher this summer.

Wayne Easter, MP for Malpeque, is the chair of the finance committee that Jelley and others from the business community presented to.

He's also pushing his government to increase the wage subsidy, and said the rationale behind the gradual reduction in support was that it looked like the pandemic was improving.

"There was an expectation that business would pick up and therefore, with the additional business, you would be able to decline the subsidy amounts," said Easter.

"But the assumptions that were made early on are far different than the reality that is there now."

Government not saying if subsidy will be maintained

In an email statement, Katherine Cuplinskas, press secretary for finance minister Chrystia Freeland, did not say whether the wage subsidy would be maintained this summer.

She instead pointed to the new hiring program and a new Small Business Financing Program.

"We will continue to be there for Islanders and small businesses on P.E.I., as we have been since the start of the pandemic," wrote Cuplinskas.

Decision 'should be made immediately'

Easter said a decision about maintaining the subsidy should be made immediately, "So that an operator knows where they stand before they get into the summer and losing money."

"We need to do everything we can to keep these industries stable, as stable as they can be in this kind of environment and functioning so that they're there for the future."

Jelley is hoping to open his P.E.I. parks on June 25, but said it will be difficult.

"It's not just about getting through the summer, it's about getting through next winter as well," he said.

"Even if September comes out really great, there's not going to be any hay in the barn to make it through till next spring."

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