Businesses ‘Just About Ready To Collapse’ Demand Better Government Support
HALIFAX–The Nova Scotia business community is openly expressing its frustration with the “endless cycle” it’s been caught in over the past two years.
In an open letter to premier Tim Houston, 12 associations from across the province urgently asked the government to do more to help small businesses.
“These businesses have existed in a seemingly endless cycle for two years now: rising cases lead to new restrictions, which leads to lost revenues, and then a need to advocate for renewed government support,” reads the letter, dated February 7.
Among the groups’ key demands is for the government to extend the Sector Impact Support Program and expand its eligibility to include more businesses.
The authors of the letter represent more than 4,000 businesses.
One of the biggest groups is the Downtown Halifax Business Commission. Its CEO, Paul MacKinnon, says many businesses are running out of time, and finances, to get through this pandemic.
“A lot of businesses say they’re not going to survive,” MacKinnon tells Huddle. “We’re at the end of the marathon and we’re just about ready to collapse.”
When the provincial government announced its $7,500 grant program for businesses affected by health mandates, it got a lot of criticism.
That’s because a lot of businesses that saw dramatic revenue decreases during the Omicron wave weren’t directly targeted by the new support.
Nonetheless, retail outlets and people in the cosmetology industry have argued that the rules have hit their bank accounts, whether the government acknowledges the impact or not.
Cosmetologists point out that they can not offer a lot of services, like spray tanning, because of the mask mandate. Even though they are still “open” they are getting fewer customers.
MacKinnon says representatives from the business community met with Minister of Economic Development, Susan Corkum-Greek, on February 2. They expressed their frustration with the eligibility requirements for the grant program but didn’t receive any guarantee that it would be expanded.
The business groups also want to end the cycle of fighting for supports every time there are new restrictions. They feel government should have a program ready to go whenever there is a new wave.
“It’s like pulling teeth,” said MacKinnon.
“This should be automatic. Any time you do a new level of restrictions there should automatically be a support program. They promise they’re going to have our back but every time there’s a new wave the business community has to go and fight for those support programs.”
MacKinnon argues that the government may not be aware of how its messaging affects business. Nova Scotians have, largely, been compliant with the recommendations given by the province. And when consumers are told to stay home they don’t tend to go out shopping.
The Downtown Halifax CEO says he is fine with people being told to stay home if it’s for the good of public health.
“But there’s a cost for that, and right now that cost is being borne by those businesses,” he says.
“Nova Scotians have been very compliant with public health rules and that’s one of the things that have led to great success. But every time that happens, it hurts retail.”
If there is one bright spot to all this, it’s that mass business closures haven’t happened yet. But MacKinnon argues that’s because the expensive federal programs have buoyed small businesses in Atlantic Canada. But those buoys merely keep people afloat, rather than swimming.
“They’re not doing very well; they’re surviving, in large part, due to the federal programs-but those are scaling back too, which is part of the concern.”
Another major request in the letter is for Nova Scotia to come up with a plan on lifting restrictions. MacKinnon argues businesses, and people, should know what the threshold is for going back to new normal.
Yesterday, all three Maritime provinces announced plans to start easing most Covid-19 restrictions.
Derek Montague is a Huddle reporter in Halifax. Send him your feedback and story ideas: [email protected].