Murray Wood: The day Canada Became a nation
April 9, 1917 was Easter Monday. On that date, 109 years ago, Canadian soldiers made history at Vimy Ridge. Murray Wood ...
The federal government announced Friday significant funding to help the oil and gas sector in Canada.
Speaking outside his Ottawa residence, Prime Minister Justin Trudeau said the government will provide $1.7 billion to help clean up “orphaned wells” in oil-producing provinces, and a $750-million fund to cut methane emissions by providing loans to companies.
Trudeau said the government expects all the spending to maintain 10,000 jobs across the country in the oil sector as it faces plummeting prices from decreased demand and a glut of global supply.
Saskatchewan Premier Scott Moe welcomed the news.
“Since 2016, the Government of Saskatchewan has been calling for federal funding to clean up inactive oil and gas wells in our province, and today’s announcement from the federal government is a positive step that will put workers back on the job in our oil and gas industry,” Moe said in a prepared statement.
“Paired with an additional investment in methane reduction technologies, the federal government has taken a positive first step in providing much-needed supports to a vital industry that has been heavily impacted by the COVID-19 pandemic and global pricing pressures.
“However, details shared with our government to this point have been limited, and we have not been made aware of whether this is an initial step of supporting our energy industry, or the only step. With liquidity being a daily risk to energy companies, federal funding must start flowing immediately.”
Moe said the province would continue to press the federal government for more details and for more help for the industry.
Meanwhile, Trudeau also announced financial help targeting hard-hit sectors of the economy, acknowledging that some companies need more help while others are slipping through the safety net of emergency aid.
In addition to the oil and gas sector, the combined package of spending and loans will target small companies that haven’t been able to access existing loan programs, and help for start-ups that had just got off the ground before the pandemic struck last month.
Since then, the economy has gone into a tailspin.
The latest figures the federal government has provided about the Canada Emergency Response Benefit, which will now be updated and published, show the program has paid out $17.35 billion to date.
The Liberals budgeted $24 billion for the program, which provides $2,000 a month to eligible workers to a maximum of 16 weeks. So far, there have been almost 6.4 million unique applicants for the program, which is to expand to capture seasonal workers and those who have seen a steep drop in their earnings.
Trudeau added the government is going to provide $962 million to regional development agencies to help more businesses, particularly those that don’t have relationships with traditional financial institutions.
And he promised hundreds of millions of dollars in support for the arts and culture industries.
— With files from The Canadian Press
