Liberals cancel $250 cheques to people with incomes up to $150,000

Despite the NDP’s refusal to support the Trudeau government’s $250 cheque program, three of the Laval region’s Liberal MPs didn’t disagree last week with a Trudeau cabinet minister’s assertion that it was right for the government not to include senior citizens already benefiting from federal subsidy programs.

Vimy MP Annie Koutrakis, Laval-Les Îles MP Fayçal El-Khoury and Alfred-Pellan MP Angelo Iacono held a press conference at Supermarché PA in Chomedey with Hochelaga Liberal MP Soraya Martinez Ferrada, who is Canada Economic Development Quebec minister in the Trudeau cabinet.

NDP support lost

At that time, before the government was forced to postpone the $250 one-time payments because of the NDP’s refusal to back it up, the Laval MPs expressed support for the $250 cheques, as well as for the GST exemption.

(Marc-Aurèle-Fortin Liberal MP Yves Robillard, who has maintained a low profile since first being elected in 2015, was notably absent.)

Prime Minister Justin Trudeau had announced the $6.28-billion plan that included $4.68-billion to send most working Canadians $250 cheques by spring.

$1.6 billion GST cut

At the same time, Trudeau announced a $1.6-billion proposal to drop the GST over the Christmas season on a wide range of products, including children’s toys and restaurant meals, over a period of two months.

NDP Leader Jagmeet Singh, who initially supported the cheques and the sales tax cut, later took a more critical view, saying that while he supported the GST measure, the plan for the cheques left out retirees, students and people with disabilities.

But up until last week, Laval’s MPs seemed unanimous in their support for both.

“As I knock on doors in my riding, my constituents tell me they are worried about the cost of food, gifts and clothes this holiday season,” said Koutrakis, maintaining this was the main reason the Trudeau government decided to provide financial assistance at this time.

“And though inflation is coming down, they need more help,” she added.

Already helped seniors, says Minister

Responding to questions that arose about the Liberal government’s failure to include seniors and others in the cheque program, Martinez Ferrada said last week, “We have in the past helped a lot of seniors … We put in place a dental care program directly at the beginning for seniors.”

As well, she added, the government helped a lot of seniors during the pandemic, noting that the Trudeau government increased the pension supplement for retirees more than 75 years old. “So, we have done an admirable job and will continue to do so,” the Minister said.

She said that during the upcoming Christmas season, seniors will be among the millions of Canadians who will have access to the GST tax exemption – “and I think it’s a measure that touches everybody.”

Not buying votes, says Ferrada

Another criticism which was lobbed at the Liberal government – especially by the official opposition Conservatives – was that the $250 cheque program was an example of the Trudeau government’s “buying votes” through subsidies paid out, especially during the Covid pandemic.

“We’re not in an election right now,” argued Ferrada, maintaining that the next federal election is only officially scheduled to take place in October 2025. “But we will continue with this work,” she continued.

“During the pandemic the government was there to support Canadians. And now even though the economy is in a good place, people don’t feel it in their pockets. So, we have to make sure we give them that support now during Christmas which is the highest and most costly time of year.”

PA says it’s ready for GST cut

At Supermarché PA on Samson Blvd. in Chomedey last week, the food store chain’s general manager of operations said they were confident they could implement changes to their GST tax calculation system in a timely and efficient manner.

“We have everything in place and we are coordinating everything to have everything ready for December 14,” said Patricia Chouinard. The chain currently has five stores in the greater Montreal region, including the one on Samson Blvd. in Laval.

Last week, the Bloc Québécois raised the issues to another level of debate by inviting representatives from organizations representing seniors and pensioners to speak out.

Exclusion angers seniors

“Two hundred and fifty dollars for someone making a net $150,000 is a drop in the ocean, but two hundred and fifty dollars for someone making $22,000 a year is a lot,” said Pierre Lynch of the Quebec Association for the Defense of Pensioners’ Rights. “It is not normal that the elderly were not taken into account from the beginning, for a measure aimed at giving air to those who need it,” he added.

The 5% exemption from Goods and Services Tax (GST) will come into effect on December 15 and will affect a range of consumer products, from food at restaurants to Christmas gifts, books and alcohol.

Restaurant lobby group Restaurants Canada said it was pleased with the federal government’s announcement of a two-month GST holiday for restaurant meals. The restaurant industry is doing worse today than at any time in recent history, including the pandemic.

More than half (53%) of restaurant companies operate at a loss or simply make a loss. Canadians are cutting back on discretionary spending due to the economic crisis. At the same time, restaurants have large debt loads and their operating expenses have increased by at least 20%.

Impact on restaurants

When the GST was introduced in 1991, it led to an immediate reduction in meals eaten in restaurants. The food services sector suffered an 11% decline in actual sales, 7% of which was attributed to GST. The GST tax holiday could lead to a 5% increase in sales for the average restaurant. For a restaurant with $1.5 million in sales, that would result in an additional $5,700 in sales per month.