Trudeau government seeks power to fine and imprison anyone making a fraudulent CERB claim

OTTAWA-The Trudeau government wants the power to fine and imprison people who fraudulently claim the Canada Emergency Response Benefit that was created to help people who lost work during the pandemic crisis, according to a draft bill obtained by the Star.

The draft legislation says people who knowingly" apply for and/or receive the $2,000-per-month benefit by withholding or using false information could be fined and imprisoned for up to six months. Fines would be set for no more than $5,000, plus an amount that is no more than double the payouts a person received, the draft bill says.

The draft bill would also create stricter conditions for the $2,000-per-month benefit by barring people who don't return to work when it is reasonable to do so or decline a reasonable job offer."

Prime Minister Justin Trudeau said Tuesday that the government needs to bring in measures that will punish a small number of fraudsters" that are trying to take advantage of the emergency benefit. And he said the government is not looking to punish people who made honest mistakes" by applying for the support when they didn't qualify.

We will make sure that we are punishing people who will try to take advantage of this situation," he said during his regular press conference outside Rideau Cottage.

As of June 4, the federal government had paid out more than $43.5 billion in emergency response benefits to more than 8.4 million people, according to statistics published online.

The draft bill also introduces the promised benefits for people with disabilities, and changes some eligibility criteria for the wage subsidy that Trudeau said Tuesday would ensure it is more widely available. The bill also lifts time limits for court hearings in areas like bankruptcy, which Trudeau said could help during the pandemic.

Speaking to reporters Wednesday morning, federal NDP Leader Jagmeet Singh charged the bill criminalizes" people who need help during the COVID-19 crisis. He also accused Trudeau of hypocrisy for attending an anti-racism march in Ottawa last week, and then drafting legislation that Singh argued will disproportionately penalize racialized Canadians.

The prime minister took a knee, did a symbolic gesture. At the same time, the same government...was drafting a bill to punish people who need help, who are desperate, who are struggling, and to threaten to put them in jail, and to give these people who need help massive penalties," Singh said.

This is wholly irresponsible, it's wrong-headed, it's the exact opposite of what needs to happen."

The House of Commons is slated to return for a special session on Wednesday, which is the earliest opportunity for the Liberal minority government to table this draft legislation. Singh said the NDP will not support the bill because of the penalties it introduces, and called instead on the government to extend the 16-week eligibility period for the emergency response benefit by at least another 16 weeks.

Asked about Singh's criticism, Trudeau said the bill is designed to help more people get through the crisis - including by creating payments of up to $600 for people with disabilities - and that the new penalties will be targeted at fraudsters, not those who mistakenly applied. He also said the government is open to working with other parties and potentially modifying to bill so they are comfortable with it.

On Monday, Bloc Quebecois Leader Yves-Francois Blanchet said he also wants to the see the benefit remain, pointing to seasonal industries like tourism that have been especially hard hit by the COVID-19 lockdown.

The Bloc leader said his party will push the government to issue a fiscal update by July 1 and hold a summit with premiers on health transfers before September. He also called on the government to change the emergency wage subsidy program - in which Ottawa pays up to 75 per cent of worker wages for eligible entities - so that political parties are not eligible.

The party organizations of the Liberals, Conservatives, NDP and Greens have all applied for the program.

Alex Ballingall is an Ottawa-based reporter covering national politics for the Star. Follow him on Twitter: @aballinga