The road of life is paved with flat squirrels that couldn’t make a decision.
Ottawa’s initial response to COVID-19 was tentative and irresolute. The World Health Organization declared a pandemic and called for “urgent and aggressive” action. The Trudeau government’s reaction was neither, with the result that Canada’s health system and economy risked being squashed.
But credit where it’s due, those gloomy prospects are greatly reduced after the decisive measures that were announced on Friday.
Justin Trudeau captured the anxiety of these turbulent days in his address to the nation when he spoke from his state of semi-detachment, after his wife Sophie’s coronavirus diagnosis.
“I know you are worried. You are worried about your health, about your families’ health, about your job,” he said.
The government was taking steps to make sure people didn’t have to worry about paying their rent, buying groceries, caring for kids or elderly family members, he said.
In recent days, the pledge has sounded hollow.
But on Friday, there were signs that the government really will do whatever it takes to underwrite the economy.
Bill Morneau, the finance minister, Stephen Poloz, the governor of the Bank of Canada, and Jeremy Rudin, superintendent of the banking regulator OSFI, announced a package of measures aimed at ensuring liquidity throughout the financial system, which should go a long way to ensuring businesses stay solvent and people remain employed. The Bank cut interest rates a further 0.75 per cent, the federal government launched a credit program through the Business Development Bank of Canada and Export Development Canada, while the banking regulator lowered the amount of capital that banks need to hold to protect against risk. Along with the promise of a further stimulus package next week, we are in similar territory to the $18 billion in measures the Harper government announced in 2008/09.
Not only was the $1 billion Trudeau announced on Wednesday not sufficient, it suggested the government was not serious about combating coronavirus.
Decisive action was overdue. The government, the Bank and the regulator have responded with a co-ordination that is unprecedented in my experience.
The economic fight-back will be aided greatly by the experience of the key players, all of whom were blooded in the financial crisis – finance deputy minister Paul Rochon (at finance), Poloz (at EDC) and Rudin (at finance). They have all seen this movie before. Their experience in getting capital into the economy through EDC and BDC is particularly valuable.
The Liberal government’s new-found resolve extended beyond stimulus spending.
Theresa Tam, the chief medical officer, said that Canadians should postpone or cancel all non-essential travel outside the country. She also urged the cancellation of conferences, concerts and religious gatherings.
Those people heading abroad for spring break on Saturday might have wished the advisory had been issued earlier. But, since 90 per cent of confirmed cases are travellers, or people who have had close contact them, it makes sense.
In a similar fashion, Marc Garneau, the transport minister, said international arrivals will be restricted to a limited number of (unspecified) airports.
Bill Blair, the public safety minister, responded to criticisms about the lack of screening for new arrivals by saying the government will implement “enhanced” measures at all points of entry, focused on people travelling from high risk areas.
The focus on fighting the coronavirus at the expense of all else comes none too soon. The number of confirmed cases rose 47 per cent to 152 in the past 24 hours. That’s the curve that has to be flattened.
The public seems to have been alive to the threat before the government, judging by the empty shelves in supermarkets.
But the politicians have caught up. The opposition parties deserve credit too for having passed the new NAFTA legislation and granting the government spending authority before parliament adjourned for five weeks.
We are fortunate to be blessed with conscientious lawmakers and competent public servants. They are not perfect but who among us would want to face this terrible pathogen in a country other than Canada?
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