Covid-19: Level 4 extension 'may be fatal blow' for Auckland businesses
Monday, 13 September 2021
The latest extension to level 4 lockdown in Auckland could be a “fatal blow” for some businesses, hospitality and retail leaders say.
On Monday, Prime Minister Jacinda Ardern announced the city would remain at alert level 4 for another week, with an in-principle decision to move to alert level 3 at 11.59pm next Tuesday, September 21.
Retail NZ chief executive Greg Harford said the extension to level 4 would be devastating news for Auckland businesses trying to survive the Delta outbreak and could be a “fatal blow” for some.
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“While the Government has provided some support via the wage subsidy and the resurgence support payment, the reality is that this support is limited and will not be enough to stop businesses going to the wall.”
Harford said it was now more important than ever for the Government to offer additional support to help cover the fixed costs of running a business, including rents and utilities, as well as wages.
“It’s also important that the Government enables businesses to trade, where they can do so safely. This includes retailers and manufacturers producing goods that are critical for businesses and consumers in the level 2 parts of the country,” he said.
“There are significant issues in the supply chain and some stores are running short of goods that are unable to be produced under level 4 restrictions.”
Hospitality New Zealand chief executive Julie White said Monday’s announcement made it “even more imperative” the sector was offered a targeted payment.
“We know lockdown needed to be extended as long as there are mystery cases in the community – we get that and we support it.
“But every single day hospitality and accommodation businesses are unable to trade brings more pain and more likelihood of liquidations.”
Even if Auckland moved to level 3 next week, the change would have little impact as the difference between level 3 and 4 was “miniscule”, White said.
“Cafes, bars, restaurants and other venues will remain off limits, with food outlets allowed just contactless pickup or delivery, and for many it’s not worth opening.
“Accommodation businesses will be able to open but no-one will be allowed to travel, so that’s not going to make much difference.”
While the extension of the resurgence payment was welcome, it was nowhere near enough as most hospitality and accommodation businesses saw losses of 30 to 100 per cent at alert levels 2 to 4, she said.
There had been little bounce-back under the current “level 2.5” restrictions, with cancellations coming in for events as far ahead as Christmas.
“Most of our members will trade at a loss even with the extension of the wage subsidy and resurgence payment last week.
“This will get a lot worse for our businesses before it gets better, unless we get targeted support.”