Government continues to support auto sector with expanded Canada Emergency Wage Subsidy program
TORONTO, ON / ACCESSWIRE / April 2, 2020 The Canadian Automobile Dealers Association (CADA) welcome the details on the new Canada Emergency Wage Subsidy (CEWS) program announced yesterday by Finance Minister Bill Morneau, Minister of Small Business and International Trade Mary Ng, and Minister of Innovation, Science and Industry Navdeep Bains. These details confirmed that dealers will be eligible for the CEWS after CADA and dealers across the country undertook a concerted push to reach out to MPs to change the original criteria that excluded these important job-creating small businesses.
"Canada's retail auto sector employs over 160,000 Canadians across the country, so we're very pleased that the federal government has listened to our concerns and released updated criteria for the CEWS today," said CADA President and CEO Tim Reuss. "We now know that dealerships, no matter if they employ 5 people or 50 people, will be able to apply for this important benefit and keep their employees on the payroll for as long as possible."
CADA called on the government to remove the debt associated with floor plan financing arrangements for vehicle inventory from the definition of taxable capital and to ensure that dealers with multiple locations would be able to access the benefit and support all their employees.
"Dealers are substantial contributors to their local economies, and it is important that they're able to keep as many of their employees on the payroll as possible," explained Reuss. "The government has done a substantial job in rolling out a number of initiatives that CADA directly called for, including GST/HST deferral, increased access to liquidity so businesses can stay afloat, and now the 75% wage subsidy program. We have worked around the clock with the Prime Minister's Office, the Minister of Finance's senior staff, and with the Minister of Small Business to ensure dealers are included in these critical business supports, and we applaud the government's swift response and receptiveness to the needs of small businesses."
The retail automotive sector contributes over $120 billion to the Canadian economy each year, and has experienced significant slowdown as dealers have had to shut the doors to sales centers.
"Dealers are doing their part and keeping their service and maintenance operations open to help Canada's essential transportation infrastructure and emergency response capabilities operating without interruption," added Reuss. "Automotive Dealers will continue to be there for Canadians as we all face the ongoing impacts of this growing health crisis."
The Canadian Automobile Dealers Association (CADA) is the national association representing new car and truck dealers. Our 3,200 members are represented in nearly every community and collectively employ 160,000 people across the country.
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SOURCE: Canadian Automobile Dealers Association