New Ontario COVID Rules Favor Big-box Chains, Target Small Businesses: CFIB

January 13, 2021 10:59 PM AEDT | By Kunal Sawhney
 New Ontario COVID Rules Favor Big-box Chains, Target Small Businesses: CFIB

Summary

  • Starting January 14, Ontario residents will have to observe complete lockdown except for essential trips.
  • For businesses, non-essential stores have been asked to close down by 8 pm.
  • The Canadian Federation of Independent Business has slammed the Ontario government for imposing an 8 pm curfew for small businesses but exempting major store chains like Walmart

 

Businesses in Ontario don’t seem to be very pleased with the new COVID lockdown rules that were announced on Tuesday, January 12.

The Canadian Federation of Independent Business (CFIB), in an official release, accused the Ontario government of carrying out “deep unfairness” in the new restrictions which impose an 8 pm curfew for small businesses but exempt major store chains like Walmart.

 

What are the new COVID-19 rules in Ontario?


Starting January 14, Ontario residents will have to observe full lockdown except for essential trips such as grocery shopping. While social gatherings will be prohibited beyond five people, Remote working for employees and online classes for students will also be back in place.

For businesses, non-essential stores have been asked to close down by 8 pm.

 

Zombie Businesses in Ontario Due to Lockdowns


The CFIB report pointed that big box chains like Walmart, Costco, etc., which have been exempted primarily under the essential goods category, have been allowed to continue selling and delivering non-essential goods as well. Meanwhile, small local retailers in the province will not be permitted to conduct in-store business or deliver products after 8 pm.

The business federation claimed no other provinces in Canada have imposed lockdown rules on small-scale businesses while giving “huge competitive advantages” to major brand stores.

CFIB president and CEO Dan Kelly also spoke about “zombie businesses”, which are basically enterprises that are running while under piles of bad debts and require bailouts. He pointed, as per media reports, that by spring this year, the climbing burden of debt amid the lockdown may force such small businesses to shut shop.

He also expressed concern about the “ineffective lockdown rules” that would be imposed on other business sectors, such as construction, and stressed that authorities need to come up with a way to let small-scale businesses reopen safely.

The CFIB report noted that the federation has reached out to government officials to ensure that all businesses are accounted for Ontario’s upcoming grant program, which is expected to range between C$ 10,000 and C$ 20,000.

Recently, Quebec also implemented curfew hours in the province in an attempt to curb the rising numbers of COVID-19 infections.


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