The Honourable Travis Toews, MLA, Q.C.  

President of Treasury Board and Minister of Finance 

Delivered via Government of Alberta submission system 

RE: Budget 2022 consultation 

Minister Toews: 

Thank you for the opportunity to provide a written submission to the Ministry of Finance regarding Budget 2022. 

Almost two years into the COVID-19 pandemic, and now with the more transmissible omicron variant threatening our community’s economic and physical health, the Calgary business community – no stranger to hardship – continues to face unprecedented ongoing challenges. 

Despite this challenge, 0ur province continues to demonstrate grit, resiliency, and determination, coupled with an entrepreneurial spirit and deep-seated commitment to innovation.  

Nonetheless, in times of sustained hardship, we need government support to ensure businesses and their employees emerge stronger. With crisis comes opportunity, and the actions taken now will be critical to building a more resilient, competitive, and inclusive future. 

To that end, attached are immediate and long-term recommendations that will enable businesses to survive this latest wave of the pandemic and recover as we position Alberta for tomorrow. 

Thank you in advance for your consideration and we look forward to working with you to realize a sustainable and prosperous future for all Albertans.  

Immediate priorities

Keep Alberta businesses open and Albertans healthy. 

Today, especially in light of the challenging Omicron variant – and particularly for those in hard-hit sectors such as restaurants, hospitality and tourism – businesses continue to grapple with lost revenue, travel restrictions and difficulties attracting talent and ensuring proper staffing.  

However, our economy and public health landscape are in a very different position today than in March 2020, at the onset of the pandemic. With credit to all levels of government, we have access to vaccines, new medications, testing, and personal protective equipment. If we equip businesses and citizens with the tools they need to stay safe, additional restrictions and lockdown measures can be mitigated.  

As the context under which we are operating changes, so too must our public policy decisions. 

1. ADD TO FEDERAL SUPPORTS FOR BUSINESSES WITH ADDITIONAL PROVINCIAL PAYMENTS 

• Introduce a Temporary Alberta Rent Payment (TARP) and Temporary Alberta Wage Payment (TAWS) by March 2022. Over the last few weeks, we have heard businesses continue to struggle with lost revenue and the ability to pay fixed overhead costs like commercial rent and wages as they struggle to retain adequate staffing. Over 70 per cent of businesses have utilized federal support, but many continue to need additional support. Between 12 and 26 per cent of businesses in Canada are at the risk of permanently closing due to the pandemic including those who were inactive in 2020.  To ensure businesses survive, introduce two temporary additional programs that provide top-ups to those already receiving payments through any of the following federal programs: Tourism and Hospitality Recovery Program, Hardest-Hit Businesses Recovery Program, Canada Recovery Hiring Program, or the Canada Emergency Wage Subsidy. 

2. CONTINUE OR RE-START MEASURES THAT PROVIDE RELIEF TO BUSINESSES  

• Start the next intake of the Small and Medium Enterprise Relaunch Grant.  
  The initial phases of the Small and Medium Enterprise Relaunch Grant have been instrumental for businesses and helped many stay afloat. With quick access to funds and limited restrictions on the use of funds, businesses have been able to access funding to bridge their operations through waves of the pandemic. While many businesses are no longer closed due to government restrictions, we hear often – and loudly – from businesses that they are facing more uncertainty than ever. Relaunching the SMERG also provides support for businesses ineligible for the aforementioned temporary top-ups.  
• Continue the abatement of the Alberta Tourism Levy until August 31, 2022.
  After seeing declines in everything from hotel occupancy rates to food and beverage purchases over the past two years, Calgary’s hospitality and tourism sector has a unique opportunity to reimagine its future, leveraging our strong history as a destination while rethinking the possibilities that lie ahead for the sector. Reimaging that future will only be possible if businesses can survive this wave of the pandemic and reducing costs given declining revenues can make that a reality. One in three businesses in the hospitality sector is actively considering closing down while tourism spending dropped by 43 per cent. Airline cancellations and ongoing testing requirements due to Omicron variant are now causing further setbacks to an expedient recovery. The Alberta Tourism Levy will be critical in helping businesses sustain operations until they can recover their losses.  

3. USE ALL THE TOOLS WE HAVE TO KEEP OUR COMMUNITY SAFE AND THE ECONOMY OPEN 

• Increase the availability of rapid tests. In the last month, we at the Calgary Chamber have experienced a 250 per cent increase in the number of businesses requesting rapid test kits through our program partnering with the Government of Alberta – many citing the need for testing to avoid labour shortages and resulting business closures. To ensure adequate supply, we urge the province to continue to procure additional rapid test kits from the federal government and other vendors, and ensure reporting requirements for businesses align with the general public, reducing barriers for businesses in testing employees.
• Use pandemic management tools to mitigate the need for restrictions. Over the past two years, we have all worked tirelessly to identify and implement alternatives to shutting down our economy. Pandemic restrictions have pushed businesses to the brink, with only