A meeting of the federal cabinet, held in Toronto as a show of support for the city, has ended with no announcement of new funding to help the city deal with the economic fallout of SARS.

CTV.ca News Staff

A meeting of the federal cabinet, held in Toronto as a show of support for the city, has ended with no announcement of new funding to help the city deal with the economic fallout from SARS.

"There is no clear proposition on that at this moment," Prime Minister Jean Chretien told a news conference at a downtown hotel following Tuesday's meeting.

Chretien said Ontario doesn't qualify for emergency relief over SARS because "it has to be a material or physical disaster. It does not apply when you have health problems."

But the prime minister repeated that people who have missed work because of infection or quarantine would not have to wait two weeks to collect EI benefits and said there would be some assistance for people affected by the outbreak in meeting mortgage payments. He also hinted that further relief could be forthcoming.

NDP House leader Bill Blaikie pressed the issue with the prime minister during question period in the House of Commons later in the day.

"He (Chretien) announced he was willing to change EI rules to make life easier for those affected by the SARS crisis," Blaikie said.

"Yet he won't announce an aid package for Toronto -- he says the law prevents him from doing it. If he can change EI regulations, why can't he change the law with respect to aid packages?" Blaikie asked.

Chretien said that all three levels of government were working together to decide how best to soften the economic impact of SARS on the Toronto economy. During the Toronto meeting, Chretien pointed out that the rest of Canada is also feeling the economic sting of the outbreak.

"Everybody, the entire Canadian economy is affected," said Chretien. "If you go to Europe, you will see that people think Vancouver is a suburb of Toronto."

Eves, Lastman request extra funding

After meeting with Chretien and Toronto Mayor Mel Lastman, Ontario Premier Ernie Eves said he was "hopeful that (Chretien) will respond favourably" to his request for extra funding.

"We're all on the same page and wavelengths in terms of advertising and helping out to restore Toronto's economic activity," Eves said.

Chretien and the cabinet ministers' trip to Toronto for the rare session away from Ottawa was a gesture of support for the SARS-stricken city. CTV's Mike Duffy called it a "giant hug" for the city.

"That's really what it is -- a photo op," said Duffy. "It's a kind of reaching out."

"What we're trying to do is deliver a forceful message that it's time for people to get back to normal," Deputy Prime Minister John Manley told Canada AM.

"Many Canadians are comfortable to come here and don't feel any particular risk and that's what we're trying to communicate today," he said.

But criticism is mounting that the outbreak requires more than just gestures. On Tuesday, an open letter on the front page of the Toronto Star slammed Ottawa for not doing enough.

"Do you seriously think $10 million is enough to help revive Toronto's troubled economy and restore its battered image around the world?" the editorial said, referring to the funds Ottawa has pledged towards a marketing campaign promoting Toronto.

"What we need is a major campaign, with Ottawa playing a leading role, to help overcome the economic ruin now being suffered by our hotels, our restaurants, our health-care institutions and other businesses in the city," says the Star.

"Frankly a measly $10 million for an ad campaign on why Toronto is safe just won't do it. In fact, it's an insult to the people of this city."

The editorial goes on to say that while the city is "grateful" for the gesture of bringing the cabinet to Toronto, it's time for Chretien to assume "true leadership" on the SARS issue.