Minister Osborne Announces Measures to Ease Pressures on Local Businesses

  • Service NL

May 22, 2020

To assist the business community in Newfoundland and Labrador during the COVID-19 global pandemic, the Provincial Government today announced the deferral or waiver of a number of fees, as well as steps to reduce regulatory burden. The deferral of more than $6 million in fees will help ease some of the operational pressures facing businesses and free-up cash flow in these uncertain times.

These initiatives are in addition to a broad suite of initiatives previously actioned by the Provincial Government to assist the provincial business community. A complete list of initiatives can be found in the backgrounder below.

Effective immediately, the following measures are in place:

  • Collection of WorkplaceNL assessments from employers has been deferred to after August 31, 2020, with no interest or penalties;
  • Clearance letters will continue to be provided during the payment deferral period to allow contractors that meet certain reporting criteria to continue to bid on work and operate;
  • The interest-free payment plan for workplace injury insurance is extended beyond 2020 to March 31, 2021 to allow employers more flexibility to pay;
  • Safety training certificates are extended to August 31, 2020 for confined space entry, fall protection, mine rescue, power line hazards, traffic control person, first aid and Occupational Health and Safety Committee members;
  • Elimination or offer of rebates on aquaculture licence fees, and deferral of annual Crown Lands fees for aquaculture sites;
  • Full rebate of base fish processor and buyer licensing fees to assist fish processing plants and fish buyers;
  • Licences will not be cancelled for non-application for renewals until the public health restrictions have been lifted for real estate salespersons and agents; mortgage brokers; insurance companies; insurance adjusters, agents, representatives and brokers; and prepaid funeral services;
  • New licence applications will be processed for real estate salespersons and agents; mortgage brokers; insurance companies; and insurance adjusters, representatives, agents and brokers;
  • Businesses are eligible to have a portion of vehicle registration fees for vehicles registered to the business refunded, if they are not in use;
  • Commercial vehicles of 4,500 kilograms or greater are not required to have their safety inspection completed while they are not operational;
  • Deferral of the requirement for businesses to file yearly returns under Companies and Deeds Online (CADO) and remittance of the accompanying filing fee; and
  • Payment of water use charges for 2019 related to microbreweries and wineries and aquaculture due in the 2020-21 fiscal year have been waived. Payment of water use charges for all other industries will be deferred until March 31, 2021.

Additionally, the Provincial Government will launch a red tape reduction portal in June where businesses can suggest opportunities to ease regulatory pressures.

Quote
“COVID-19 has impacted our province and our people on many levels. As a government, it is important we ease some of the operational pressures on local businesses with minimal risk to the provincial treasury. Together, we can better position the business community to overcome the challenging situation we are facing. A healthy economy translates into healthy communities.”
Honourable Tom Osborne
Minister of Service NL

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Media contact
Krista Dalton
Service NL
709-729-4748, 685-6492
kristadalton@gov.nl.ca

BACKGROUNDER

 Supports for the local business community during COVID-19

Department Measures
Advanced Education, Skills and Labour Continuation of the Wage Subsidy Payments to Employers under existing agreements (outstanding claims).

Continuation of payments to support employer training under existing agreements.

Supporting employers and coordinating workforce adjustment for employees impacted by business downturn and closure through Canada-Newfoundland and Labrador Labour Market Development Agreement and Workforce Development Agreement.

Services on matters relating to labour standards can be accessed by telephone or email. Priority will be given to inquiries relating to the COVID-19 situation.

Education and Early Childhood Development Financial support for regulated child care centres and family child care homes at the child care subsidy program rates for all licensed spaces until May 30, and will be reassessed if closures are still in place at that time.

Regulated child care centres will also continue to receive operating grants and costs for essential workers will also be covered. 

Finance The expiry date for permit holders to purchase tax-exempt marked gasoline and light fuel oil is extended from March 31 to June 30.

International Fuel Tax Agreement returns for the first quarter of 2020 (January 1 to March 31) due on April 30, 2020 from inter-jurisdictional carriers are now due and payable on June 1, 2020.

All other tax returns under the Revenue Administration Act and Regulations due between March 20 to May 31, are now due June 23, 2020.

Temporary direct sale of alcohol to customers by restaurants and other licensed establishments that sell prepared meals for takeout/curbside pick-up and delivery.  Brewers, wineries and distilleries may offer home delivery.

Private sector employers, including those self-employed, will be reimbursed for continuation of employee pay associated with the time period their employees are required to self-isolate following their return from out-of-province travel due to COVID-19 travel restrictions. The maximum amount of provincial funding is $500 per week of a combined maximum of $1,000 per week for employees receiving both federal and provincial funding.

Fisheries and Land Resources $2.25 million in funding available through the Agrifoods Assistance Program for land development and agriculture infrastructure. Funding applications are also available for projects under Canadian Agricultural Partnership.

Extension of the annual validation expiry date for all current existing aquaculture licences in Newfoundland and Labrador from March 31, 2020 to May 31, 2020. 

$560,000 for FoodFirst NL to provide food to Newfoundlanders and Labradorians who are experiencing food insecurity.

The expiry date for all current valid fish processing and fish buyer licences in Newfoundland and Labrador is being extended from March 31, 2020 to August 31, 2020.

Addressing Newfoundland and Labrador’s food security needs during the COVID-19 pandemic by nearly doubling the volume of vegetable transplants available under the Vegetable Transplant Program – from 1.7 million transplants in 2019 to three million in 2020 – to assist eligible commercial vegetable producers in the upcoming growing season.   

Newfoundland Liquor Corporation (NLC) Waiving liquor licence fees for the 2020-21 fiscal year and work with the licencee community to return general list product in an effort to help with working capital.

Temporarily waiving warehousing service fees for microbrewers with annual production of 1,000 hectolitres or less for those who use the NLC’s distribution network.

A wholesale pricing discount for licencees, by providing a five per cent discount for wines and spirits, and ready to drink beverages.

An increase in product commission discounts for craft breweries, wineries, distilleries and cideries on their first 1,000 hectolitres or less to 55 per cent for non-NLC distributed products.

A temporary regulatory change to permit ferment-on premise operations (U-Brew) to bottle beverages for their customers that started batches of wine or beer prior to the COVID-19 health restrictions.

Listing products of local microbreweries not already supported in this way.

Upgrades to NLC’s manufacturing facility, Rock Spirits, to install a canning line. These upgrades will support the NLC’s ability to enter into commercial agreements with local craft producers to can product for those who otherwise would not have this opportunity.

Service NL Amendments to the Credit Union Regulations to allow credit unions to avail of the Canada Emergency Business Account program.
Tourism, Culture, Industry and Innovation Current deferral of loan payments, under the Innovation and Business Investment Corporation’s Business Investment Fund, has been increased to six months. This measure sees an additional three months added to the original three month deferral action announced on March 18, 2020, which started with April payments.

The hiring eligibility for commercial Research and Development (R&D) projects will be temporarily increased. Specifically, salary support for up to six positions may be considered for eligible commercial R&D projects.

Contribution levels have been temporarily increased for eligible project applications under R&D commercial and Business Development Support. Eligible costs will now be covered up to 75 per cent, up from 50 per cent, for applications approved between April 1 and September 30, 2020.

Costs for impacted events or travel will be reimbursed to departmental clients where it can be demonstrated refunds are unable to be obtained for previously approved projects. 

Transportation and Works Released the list of provincial road projects planned for 2020-21 to allow contractors to be prepared to start work when the road construction season begins. 
2020 05 22 11:16 am