Businesses will die soon, government committee not enough, advocate says
First wave of businesses can likely open on May 11
As details of Newfoundland and Labrador's COVID-19 reopening plan are circulated, a prominent business leader says the provincial government has been too slow to act on warnings that the pandemic will prove fatal to businesses that had to close their doors in March.
"Make no mistake, there are many businesses in Newfoundland and Labrador that will not survive this," said Richard Alexander, executive director of the Newfoundland and Labrador Employers' Council.
Alexander said the council and eight other business associations sent a letter to government weeks ago outlining what he described as low-to-no-cost options to help businesses survive the pandemic.
The provincial government's response was a subsequent meeting and not the immediate action they sought.
"This is a crisis," he said.
"We can't have a committee debating what type of hose to use to put out the fire. We need government to act and recognize that there's two crises right now."
On Thursday, the government unveiled a phased approach to restarting the economy in Newfoundland and Labrador. The restrictions will gradually be lifted, with some lower-risk businesses — garden centres, law firms, accountants — allowed to reopen on May 11, unless there is a spike in COVID-19 cases.
Assuming rates stay low, government will in subsequent weeks — no target dates have yet been given — give the green light to other businesses, including clothing stores, hair salons, and physiotherapy and other private health clinics, to reopen.
Alexander said he supports the government's motives for promoting public health and for phasing in a five-level plan over a period of time. He just wants more action on requests from businesses.
Among other things, the business groups are seeking:
- An extension of deferrals for provincial tax, as well as extensions to business licences, fees and permits.
- Rent relief, through provincial participation in the federal Canada Emergency Commercial Rent Assistance program.
- Relief and/or deferral on utility fees and workers' compensation premiums.
- Start working immediately on a provincial economic recovery plan.
Alexander noted the Newfoundland and Labrador government is taking a conservative approach, whereas other provinces are allowing more retail businesses to get out of the gate first.
"That doesn't mean that what the province is doing is wrong," he said, "but we want to have a conversation with government as to why they're choosing certain avenues in this province as opposed to what other provinces are doing."
Cautious approach needed, Shortall says
Vaughn Hammond, the director of provincial affairs for the Canadian Federation of Independent Business in Newfoundland and Labrador, said the provincial government's announcement was good, in that it provides a timeline to businesses that will have to wait before reopening.
"They can look at what they can do to change their business. They can look at what kind of sanitary equipment they require, whether their employees need personal protective equipment," Hammond said.
"So from that perspective they can look at what's available to them and plan and hopefully open so that they're able to meet the public health requirements that are in place now."
Mary Shortall, president of the Newfoundland and Labrador Federation of Labour, said she was pleased with the cautious approach to reopening.
Shortall said her biggest concern as businesses begin to come back to life is the protection of employees and customers alike.
"We don't really want to think about what would happen if we went in too fast and there was a spike or a resurgence, especially around the whole issue of keeping the public safe," she said.
However, Shortall said there are gaps in legislation on the protection of workers during a crisis she wants to see alleviated before another wave of COVID-19 washes through Newfoundland and Labrador.
She said the gaps make it difficult to plan next steps.
"We need to have a discussion about that, moving forward, so that we can create a different normal for when things happen like this," she said.
With files from On The Go and Here & Now
