OMCA

2021 Federal Budget Analysis

Below is an analysis of how the 2021 Budget will affect OMCA members

The much-anticipated Federal Budget was announced April 19th and while the full budget document is over 700 pages, we want to bring focus to the good-news items for our members. 

The items that will support most of our members are the supports for businesses, like CEWS, CERS, and Lockdown Support which are available to businesses that have suffered a loss of revenue due to the pandemic.  

Wage Subsidy Extension 

  • Set to expire in June of this year, the budget proposes that the CEWS program be further extended to September 25th, 2021.  
  • It also proposes to gradually decrease the subsidy rate, beginning July 4, 2021, in order to ensure an orderly phase-out of the program as vaccinations are completed and the economy reopens. 
  • The government will seek the legislative authority to have the ability to further extend the wage subsidy program through regulations until November 20, 2021, should the economic and public health situation require it beyond September 2021. 

Rent Subsidy and Lockdown Support Extension 

  • The CERS program, payable directly to tenants, and the Lockdown Support for businesses significantly affected by forced closures are both set to expire in June 2021. The Budget proposes to extend the rent subsidy and Lockdown Support until September 25, 2021.  
  • It also proposes to gradually decrease the rate of the rent subsidy, beginning July 4, 2021, in order to ensure an orderly phase-out of this program as vaccinations are completed and the economy reopens. 
  • The government will seek the legislative authority to have the ability to extend further the program through regulations until November 20, 2021, should the economic and public health situation require further support beyond September 2021. 

Introducing a new Canada Recovery Hiring Program 

  • The new $595 million Canada Recovery Hiring Program will make it easier for businesses to hire back laid-off workers or to bring on new ones by providing eligible employers with a subsidy of up to 50 percent on the incremental remuneration paid to eligible employees between June 6, 2021, and November 20, 2021.  
  • Employers eligible for the Canada Emergency Wage Subsidy would generally be eligible for the hiring subsidy, however, an eligible employer would be permitted to claim either the hiring subsidy or the Canada Emergency Wage Subsidy for a particular qualifying period, but not both. 
     

Although the budget did not specifically address the financial asks of the motor coach industry, it does lay the groundwork for supporting the tourism sector’s recovery. The recovery of festivals, attractions, sports, agriculture, and tourism as a whole will, of course, increase demand for motor coach tourism.  

The 2021 Budget proposes supports that total to $1 billion over three years, which includes: 

  • Major Festivals 
    • ​$200 million through the regional development agencies will support major festivals. This would ensure they can continue to celebrate our artistic excellence and unique character. 
       
  • Community Festivals and Events
    • ​$200 million through Canadian Heritage will support local festivals, community cultural events, outdoor theatre performances, heritage celebrations, local museums, amateur sports events, and more. 
       
  • Helping Visitors Discover Canada  
    • ​$100 million will go to Destination Canada for marketing campaigns to help Canadians and other visitors discover and explore the country. 
       
  • Tourism Relief Fund 
    • ​$500 million Tourism Relief Fund will be administered by the regional development agencies to support investments by local tourism businesses in adapting to the pandemic. 
       

 
Other tourism-related funding includes: 

  • Indigenous Tourism
    • ​$2.4 million will go to the Indigenous Tourism Association of Canada to help the Indigenous tourism industry rebuild and recover from the impacts of COVID-19.  
    • This will not only help our indigenous destination members but it will help keep travel close to home and on our local highways.  
       
  • Performing Arts and Community Events 
    • Budget 2021 proposes to provide $49.6 million over three years, starting in 2021-22, to Canadian Heritage for the Building Communities Through Arts and Heritage Program ($14 million over two years, starting in 2022-23), the Canada Arts Presentation Fund ($16 million over two years, starting in 2022-23), and the Celebration and Commemoration Program ($19.6 million over three years, starting in 2021-22). 
       
  • Agriculture 
    • $101 million over two years, starting in 2022-23, to Agriculture and Agri-Food Canada, to implement a program for the wine sector that will support wineries in adapting to ongoing and emerging challenges, in line with Canada’s trade obligations. The government will continue to be there for Canada’s domestic wine industry and the jobs it supports. 
    • This support will help local wineries prepare for the influx of winery tours when restrictions are eventually lifted.  
       
  • Arts, Culture, Heritage and Sport Sectors  
    • $300 million over two years, starting in 2021-22, to Canadian Heritage to establish a Recovery Fund for Heritage, Arts, Culture, Heritage, and Sport Sectors  
       
  • Supporting Safe Air Travel 
     
  • Continuing to Protect Air Travellers 
     

Other important budget areas that may affect our members, directly or indirectly, include: 

  • Motor Vehicle Safety Act 
    • ​The budget also commits funding for Transport Canada to continue core motor vehicle safety oversight activities in 2022 and beyond, which include monitoring and enforcing compliance with the Motor Vehicle Safety Act, enforcing its regulations, and developing new regulations to modernize safety oversight.  
    • OMCA will be investigating further into how that affects the motor coach industry.  
       
  • Recovery Support for Youth Sports  
    • Budget 2021 proposes to provide $80 million over two years, starting in 2021-22, to Canadian Heritage to remove barriers to participation in sports programming and to help community organizations kick-start local organized sports that are accessible to all. 
    • A boost for youth sports teams and tournaments will mean an increased demand for sports team transportation and travel.  
       
  • Supporting Jobs and Growth in All Communities
    • ​$700 million over three years for the regional development agencies to support business financing. This would position local economies for long-term growth by transitioning to a green economy, fostering an inclusive recovery, enhancing competitiveness, and creating jobs in every corner of the country.
    • The federal government will work to make FedNor a standalone regional development agency and strengthen the economic development of Northern Ontario.
       
  • Sectoral Workforce Solutions
    • ​Working primarily with sector associations and employers, the new $960 million Sectoral Workforce Solutions Program (budgeted over three years) is introduced to help design and deliver training that is relevant to the needs of businesses, especially small- and medium-sized businesses, and their employees. This funding would also help businesses recruit and retain a diverse and inclusive workforce.
    • OMCA will stay tuned to the developments of this program and hopes to use the Sectoral Workforce Solutions program to help support our members. 
       

OMCA will continue to monitor the unfolding of this budget and will continue to work diligently at helping our members access the support that they need. We will also be working with Provincial and Federal governments and our partners on a framework for opening borders.  

If you have any questions, concerns, or require clarification on anything included in the budget – please reach out to info@omca.com and we will gladly assist you.   See the full budget here.