Province failing businesses in Omicron surge

Opinion

Hey there, time traveller!
This article was published 17/01/2022 (1110 days ago), so information in it may no longer be current.

It’s the question on every business owner’s mind: what is the Progressive Conservative government of Manitoba waiting for?

It was nearly a month ago that Finance Minister Scott Fielding unveiled his government’s mid-year fiscal update, which showed a smaller than expected deficit ($1.12 billion) and prospects for even better results at year-end, March 31, 2022. He also proudly announced Manitoba has $381 million in unspent pandemic response funds to be used should conditions worsen.

Well, conditions are worsening — particularly for business owners — and expectations are growing that the PC government will do something dramatic to help businesses through this latest assault on their viability.

How bad are things? A local restaurant owner recently described the situation he was facing as “purgatory.” Many businesses feel the same way: damned if they do open and spend money readying themselves for customers who likely won’t come; and damned if they don’t at least try.

The posture Premier Heather Stefanson and her government have adopted strongly suggests they haven’t noticed this latest wave of COVID-19 has convinced many people to voluntarily shelter at home.

Traffic is noticeably lighter. Mall parking lots decidedly less full. All retail businesses — from big-box stores to smaller shops — are seeing fewer customers. Restaurants and coffee shops are shutting down sporadically and unexpectedly, owing to a combination of fewer customers and less staff, many of whom have become infected or are a close contact to someone who has COVID-19 and cannot come to work.

In response to current conditions, the Stefanson government’s response has been — once again — underwhelming.

It did unveil a $22-million program in late December that provides non-repayable operating grants to business owners, depending on the number of employees they have. However, as more businesses get caught in the Omicron squeeze — unable to open because of staff shortages, or unwilling to open because fewer people are out spending money — it’s unclear whether that program will meet their needs.

In response, Ms. Stefanson and Mr. Fielding claim they are consulting with businesses, and listening to Manitobans, about what kinds of government supports are needed. Many business owners will tell you it’s a hollow claim, also made frequently by Ms. Stefanson’s predecessor, Brian Pallister. In most instances, the consultation never took place, or was so perfunctory it never seemed to influence government policy.

There is no doubt that some of that $381 million in unspent pandemic funds is being spent on a front-line health care response. Hospital and ICU capacities are growing steadily, overtime costs to keep nursing rotations fully staffed are rising, and the need for more and better protective equipment has never been greater.

But there is surely more that government can do. To borrow a phrase the premier seems inclined to repeat, this government needs to learn how to live with economic disruptions triggered by COVID-19. That means putting in place several tiers of economic supports and clear benchmarks on how and when they are activated. Businesses should know before a wave of COVID-19 crashes upon them what lifelines are in place.

The Stefanson government is facing a pandemic fiscal crisis — of that, there is no doubt. But it does have the resources to do more. And with every day it waits, more structural damage is done to the Manitoba economy.

The actual time to act was weeks ago. But acting now would still be an acceptable response. Further delay in supporting Manitoba businesses as they buckle under the weight of the latest wave is unacceptable.