However, there are many imponderables and uncertainties
Venkat Raman
Auckland, June 9, 2020
Almost all businesses are now open in New Zealand as the government pushed down its Alert Level to One at midnight but the country’s borders are still closed to prevent any import of Covid-19.
New Zealand became free of Coronavirus with no new cases for almost three weeks and with the recovery of a lone person who was affected.
There is no one in any hospital in New Zealand affected by the Virus.
A short time ago, Director General Dr Ashely Bloomfield said that there were no new cases to report after New Zealand moved to Alert Level 1.
Prime Minister Jacinda Ardern said that she performed a ‘little dance to herself’ in solitude (watched only by her two-year-daughter Neve Te Aroha Ardern Gayford) after being assured by the health officials that New Zealand was free from Covid-19.
Her Cabinet later decided unanimously to lower the Alert Level from 2 to 1, remove all restrictions on all gatherings, which would mean return of business, social, cultural and sports meetings filled to capacity. This weekend would see almost all sports grounds filled with players and watchers.
Economic hardships
The world has moved into recession and New Zealand is not immune to this hard fact.
Thousands of jobs have been lost and even the country’s large employers are laying off workers and according to National Party, the country’s main opposition Party, about 1000 persons are losing jobs every day. This may be an exaggeration, but is indicative of the gravity of the problem.
The government’s Wage Subsidy Extension- essentially the second tranche- of payment of eight weeks of pay will open tomorrow (June 10, 2020) to help employers to retain jobs.
In addition, several other cash and tax incentive schemes are in place thus far, costing the exchequer more than $40 billion.
Job losses are inevitable and as Immigration Minister Iain Lees-Galloway told Radio New Zealand this morning, temporary visa holders (essentially migrant workers and those on student visas eligible to work up to 20 hours a week) would be hit, perhaps more, as New Zealand citizens and permanent residents rendered jobless are also in the market.
“Some immigrants will have to think seriously about the long-term viability of their work situation as they were filling gaps in the labour market that may no longer exist,” he said.
The challenge of offshore workers
There are thousands of people holding work visas stranded in many countries because of the lockdown. Many of them have spent a decade or more in New Zealand, have permanent jobs, pay their taxes, rent and other hire purchase agreements and yet are not allowed to return.
Mr Lees-Galloway said that he understands their plight but the way out of this issue is tricky.
“All those returning home have to undergo mandatory quarantine in government-assisted facilities for 14 days and there are limitations. We can take only 200 persons per day as per the current capacity. There are at least 10,000 people waiting to return to New Zealand and we are working through a process to allow their return,” he said.
The figures vary; according to some sources, there are more than 62,000 people stranded overseas. This may include New Zealand citizens and permanent residents, students who had gone on holiday or new students waiting to commence their scholastic education in New Zealand.
‘Ordinarily Resident’ may come earlier
“We would consider the 10,000 people as ‘Ordinarily Resident in New Zealand.’ We are now planning to find ways of bringing them back to New Zealand. However, they should consider their job situation; whether their employers would continue to employ them and how they will continue if they lose their jobs,” Mr Lees-Galloway said.
Contrary to what has been reported in some sections of the media, migrant workers, who are legally here, have received wage subsidies (given to their employers against their IRD Numbers), accommodation and food during Alert Levels 4 and 3 lockdown- according to Mr Lees-Galloway.
Immigration changes
Immigration New Zealand has already announced extension of visas that have expired or due to expire until October this year and a number of other changes are also in place.
Citizens and residents will no longer need to travel with their overseas partners and children in order for them to return to New Zealand.
Mr Lees-Galloway said that in terms of a Cabinet decision, the restriction would be lifted, although family members must still apply to Immigration New Zealand to enter the country.
