Whakaari/White Island: Govt details business support package
Monday, 23 December 2019
Grants will be available to Whakatāne businesses significantly affected by the eruption of Whakaari/White Island.
The Ministry of Business, Innovation and Employment (MBIE) released details of a grants programme and expanded business recovery co-ordination services on Monday.
The ministry and Tourism New Zealand would also conduct an analysis to understand the impact of the eruption on the wider tourism industry.
MBIE general manager of economic development and transitions, Dean Ford, said it was important affected businesses had certainty as they headed into the Christmas break.
**READ MORE:
* Eruption rāhui takes a toll on Whakatāne businesses
* Prime Minister Jacinda Ardern announces $5m package for Whakatāne and Westland
* Whakaari/White Island boat tours generate $4.5m a year for iwi**
'This was a devastating tragedy and our thoughts are with the Whakatāne community and the whanau and friends of the people who were lost.
'We know the community is still grieving and people are also worried about how this is impacting businesses and jobs.'
Last Monday, the Prime Minister announced a $5 million contingency fund for Whakatāne, and the Westland community affected by recent flooding.
On Friday, $280,000 of this was committed to help fund a tourism marketing campaign for the West Coast.
The initial package for Whakatāne would provide a short-term response to immediate community needs over summer.
More decisions would be needed to respond to the long term implications for the local economy, Ford said.
The programme would support viable businesses in Whakatāne significantly affected as a direct result of the eruption on December 9.
The Eastern Bay of Plenty Chamber of Commerce would be the first contact point for affected businesses, while the Whakatāne District Council would administer the programme.
Support would be available through a streamlined approval process to meet specific business needs – such as funding of professional services or for employment of staff.
A three-member panel with representatives appointed by the Whakatāne District Council, Ministry of Social Development, and Te Rūnanga o Ngāti Awa will approve grants for the programme.
Te Rūnanga o Ngāti Awa chief executive Leonie Simpson welcomed the programme as a way to support families affected by the tragedy and said it would offer some relief at a very challenging time.
'There was a lot of work carried out in a short space of time to put this case forward to the Government, and we acknowledge that their quick action will support our communities in the immediate term,' she said.
Eastern Bay of Plenty Chamber of Commerce vice-president Warren Short said the assistance had been welcomed by the business community.
'This support programme is very much needed and we are pleased to be working with MBIE and others to facilitate this support for our affected businesses,' he said.
Eligibility criteria for the grants include that the business:
was viable and suffered a substantiated, significant income drop caused by the Whakaari/White Island eruption
is primarily based in the Whakatāne district
paid employees at least the minimum wage
provided a significant source of income to the business owner
had no other efficient options available, including insurance
Businesses would need to show how much they needed and what they would spend it on and provide accounts from the last full financial year, year-to-date financials and details of any tax issues.
Figures from Infometrics show tourism contributed $129 million to the Whakatāne district economy last year, nearly 5 per cent of its economy.
Tourism generates 265,000 guest nights and provides about 900 jobs for the town.