Government of Canada to Help Provinces Respond to Coronavirus Outbreak: Source

OTTAWA (Reuters) – The Canadian government will announce a series of measures to help the country's provinces cope with the worsening coronavirus epidemic on Wednesday, a government source said on Tuesday.

Canada reported its first death from the virus this week. The number of cases now exceeds 80.

Prime Minister Justin Trudeau is scheduled to speak to reporters Wednesday at 9 a.m. EST (1 p.m. GMT), said the source, who requested anonymity given the sensitivity of the situation.

Health care and social assistance programs in Canada are administered by the 10 provinces, some of which have already requested assistance in Ottawa.

"We make sure that all provinces have the help they need. It is about the resilience of the economy and our health system, "said the source, who did not give details.

The Liberal government has already stated that it plans to increase employment insurance for workers who need to stay at home and help vulnerable sectors like the energy and tourism industries.

"We recognize that there will be significant economic impacts for Canadians, for workers, for businesses," Trudeau told reporters earlier today.

Tourism Minister Melanie Joly said Ottawa is looking into how this could mitigate the impact on airlines.

Carriers around the world have cut flights or changed services. Air Canada (AC.TO) suspended flights to Beijing, Shanghai and Hong Kong and announced Tuesday that it will temporarily suspend service to Italy.

Joly said she spoke to the CEOs of Air Canada and WestJet – Canada's second largest carrier – to get a better idea of ​​the challenges they face.

Growing concern is that falling oil prices this week will further jeopardize growth. Canada is one of the third largest proven oil reserves in the world, and the crude oil price crash has severely affected Alberta, an energy-rich region in the West. Prime Minister Jason Kenney said Monday he is looking for help from Trudeau.

Deputy Prime Minister Chrystia Freeland said she spoke to US Secretary of State Mike Pompeo on Monday "about how the North American oil and gas sector should be supported by our countries, what which is the case ".

Goldy Hyder, chairman of the Business Council of Canada lobby group, urged Ottawa not to spend too much, given the uncertainty surrounding the economy.

"To come out today with a massive spending program, what if it doesn't work? What if things get worse? I think the approach should be cautious, "said Hyder in an interview." I don't think it's "just money from the carpet bomb out of the moment from the helicopter."

David Ljunggren and Kelsey Johnson report; Additional reports by Steve Scherer in Ottawa; Editing by Philippa Fletcher and Leslie Adler

Our standards:Principles of the Thomson Reuters Trust.

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