Covid-19 NZ: Alert level 2 extension in Wellington triggers support for businesses

Sunday, 27 June 2021

Wellington will remain at level 2 for another two days as Covid-19 Response Minister Chris Hipkins reveals the partner of the Sydney visitor has tested positive for Covid-19.

Financial support will be available for businesses affected by the Government’s extension of the alert level 2 restrictions in Wellington.

Covid-19 Response Minister Chris Hipkins announced on Sunday that alert level 2 measures would remain in place for Wellington, Wairarapa and the Kāpiti Coast to the north of Ōtaki for another two days.

The Government was following health advice that two more days’ worth of Covid-19 testing results would provide a clearer picture to base a decision on.

In alert level 2 most businesses were able to operate, but large events involving more than 100 people had been cancelled, and social distancing measures meant some businesses had to operate at a lower capacity.

Businesses hit by the Covid-19 restrictions in Wellington can now access financial support (file photo).

* Wellington on alert after Sydney Covid-sufferer's tour of capital

* Covid-19 NZ: All close contacts negative but Wellington moving to alert level 2

Lachie McGrail signs a Covid-19 register at Cuba Barbers, where all staff are wearing masks as Wellington continues in level 2.

While economists expect the economic impact of Wellington being at alert level 2 to be minimal, the uncertainty it created could dent business and customer confidence, which could cause problems for some businesses.

But Hipkins said the extension of level 2 triggered the Government’s Covid resurgence support payment.

This was a payment to help support businesses, or organisations, that faced a reduction in revenue due to an alert level increase, he said.

“In order to qualify for it, a business or organisation had to have experienced at least a 30 per cent drop in revenue, or a 30 per cent decline in capital-raising ability, over a seven-day period, due to the increased Covid alert level.”

Eligible businesses could apply to receive the lesser of $1500 plus $400 per full-time equivalent employees, for a maximum of 50 full-time employees, or four times the actual revenue decline experienced by the applicant.

The maximum payment was $21,500 and sole traders could receive a payment of up to $1,900.

Applications for the payment opened for eligible businesses seven days after the alert level increase and remained open for one month after the return to alert level 1, the Inland Revenue information said.

But Hipkins said the Government would finalise the date that applications for the payment could open on Monday.

David Pearce, owner of restaurant One Red Dog, which was a location of interest, said the restaurant would open on Wednesday.

Pearce would also have a look into the financial support being offered to businesses by the Government, he said.