Business representatives plead for Government assistance amid level 2 extension
Friday, 4 September 2020
Business associations are asking for targeted financial help from the Government for retail and hospitality, as the current alert levels are extended.
On Friday, the Government announced it would keep New Zealand at alert level 2 and Auckland at alert level 2.5 until at least September 14.
Marisa Bidois of the Restaurant Association said an extension of level 2.5 was expected, but still disappointing because businesses were struggling financially as their bills piled up and wage subsidies ran out.
Bidois said trading under current alert levels around the country had been significantly lower for cafes and restaurants than during level 1.
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Bidois called on the Government to extend the wage subsidy, offer GST relief and support its version of the United Kingdom’s “Eat Out to Help Out” initiative.
Retail NZ chief executive Greg Harford said confidence among shoppers had dropped around the country after the resurgence of Covid-19 cases in the community in August.
Harford said trading for retailers had also slowed down in level 2, and shoppers were not spending as much online as during the first lockdown.
“People don’t spend as much online as much as when they’re out and about. While it is disappointing, I think it’s important to get the health situation under control so New Zealanders feel more confident about moving around,” Harford said.
He said businesses needed rent relief as many retailers were still in dispute over rent from the first lockdown in March.
“While retailers can open in level 2, many are unable to cover their fixed costs like rent and wages because of the drop in sales.”
Chris Monaghan, who operates Cali Press cafe in Auckland’s Commercial Bay mall, said the city centre had been “dead” in level 2.5.
“Level 2.5 feels like no-man’s land. No one knows whether to go forward or hold,” he said.
Newmarket business association chief executive Mark Knoff‑Thomas said trade in the Auckland shopping centre had not rebounded as it did after the first lockdown ended.
“Generally speaking we are not delighted by the extension, but it’s a certainly a better option than going back to alert level 3 – the thought of that is untenable,” Knoff‑Thomas said.
“Newmarket businesses that I have been speaking to just want to get on with trading – what they are looking for is confidence and certainty. Any additional government support will always be welcome.”