Another pay out promised should Alert Levels change

While community transmission of Covid-19 seems to under control in New Zealand, the government is prepared to manage should there be a resurgence of the Virus.

Covid-19 Response Minister Chris Hipkins has announced an extensive plan for management of the pandemic should it recur in this country and Deputy Prime Minister and Finance Minister Grant Robertson has assured businesses of certainty and another pay out.

Resurgence Support Payment

He said that a new Resurgence Support Payment will be in place if the country is compelled to move to Alert Level 2 or higher for a week or more.

The payment will help specially the hospitality and events sectors if there are disruptions.

“This recognises that some businesses face one-off costs or impacts to cashflow when we step up an Alert Level to follow public health advice. The payment is structured to provide most support to smaller firms who are most likely to face cashflow issues but will be available to all businesses and sole traders,” Mr Robertson said.

He said that the payment will include a core per business rate of $1500 plus $400 per employee up to a total of 50 Full Time Employees ($21,500). Firms that experience a 30% drop in revenue over a 14-day period will be eligible.

Wage Subsidy again

“We have also committed to the Wage Subsidy Scheme whether there is a regional or national move to Alert Levels Three and Four. This Scheme has been very effective in keeping people in work so far with more than $14 billion paid out to protect 1.8 million jobs,” he said.

Mr Robertson said that the State Cabinet has asked the Justice Minister to reassess options on future commercial tenancy negotiation support.

Leave Support Scheme

The government is retaining the Leave Support Scheme, enhancing it with a new Short-Term Advance Payment to cover eligible workers wanting to stay at home while awaiting a Covid-19 Test Result. This will be a one-off payment of $350 to employers to pay such workers but eligibility will depend on the advice of public health officials.

“Other supports retained include the loan products Business Finance Guarantee Scheme, which is being extended to June 2021 with additional availability and flexibility, and Small Business Cashflow Scheme, which has also recently been extended,” Mr Robertson said.

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