Business: 'Relief cannot be overstated'

Monday, 20 September 2021

Auckland businesses say their relief at the end of level 4 “cannot be overstated”.

Prime Minister Jacinda Ardern announced on Monday the city would move down to alert level 3 at 11:59pm on Tuesday.

The Prime Minister said Auckland would remain in alert level 3 for at least two weeks.

While a lower alert level comes with a few more freedoms, a number of restrictions are still in place.

The rest of the country will remain in alert level 2 for the time being.

* Covid-19: Business breathes sigh of relief at alert level change but Auckland waits

* Covid-19: 'Highest possible price' paid again by hospitality sector

Michael Barnett, CEO, Auckland Business Chamber, is set to step down after a 31-year run of the top job.

* Business community welcomes relaxation in alert levels

Business NZ chief executive Kirk Hope is pleased that businesses are able to see a way out of constant lockdowns.

Michael Barnett, chief executive of the Auckland Business Chamber said the relief for businesses could not be overstated.

“Patience of the business community was at an all-time low, so moving into level 3 was an absolute must and the government has delivered on that,” Barnett said.

E tu union organiser Joe Gallagher says many workers are nervous because of the heightened risk presented by the Delta variant.

But he said many businesses would now use the opportunity to get on top of the debt accrued during alert level 4.

“Some businesses will be drowning in debt, and they will be looking for any opportunity to do business,” Barnett said.

“But the constraints of level 3 are high, which means that you do not have a very productive economy. Only when we get back to having a productive economy will we see people begin to make money and get rid of some of the debt that has built up,” Barnett said.

Kirk Hope, chief executive of Business New Zealand said the job was not over yet.

“There are a lot of businesses who still can’t fully operate at level 3. The quicker we can get to level 2 the faster we can help those businesses,” Hope said.

Restaurant Association chief executive Marisa Bidois said it was only a matter of time before it became cheaper to grab a takeaway than to make the same meal at home.

Hope encouraged those in the business community to continue to promote vaccination as the main way to move down alert levels quickly.

Until all businesses are able to operate fully, Hope believes there is a strong case to provide specific assistance to those businesses who are still not able to operate under alert level 3.

Joe Gallagher, negotiation specialist at E Tu union, said the announcement would be a relief to workers in Auckland who were one step closer to getting back to work.

But Gallagher said many workers were still nervous about the potential for Delta to spread in the workplace.

“This time around people are still really nervous. This variant is very different and can be transferred so easily, which makes people more fearful. Which is why we are actively pushing vaccination in our members,” Gallagher said.

Gallagher said as workers were able to head back into the workplace it should be the role of the business owner to make sure they were safe, through correct PPE equipment and providing support for workers to get vaccinated.

Marisa Bidois chief executive of the Restaurant Association, said while a move down to alert level 3 offered a glimmer of hope for the hospitality industry, targetted financial relief was long overdue.

“While some businesses can start trading again, takeaway is not viable for all businesses, and for those that are able to adapt to takeaway, their takings are typically 40 per cent to 60 per cent down on normal revenue,” Bidois said.

“What we’d now like to see is our businesses being able to get back to work as we move down the alert levels but also the right financial support offered to those that most need it,” Bidois said.

Craig Pomare, chief executive of the Motor Trade Association, also called on the government to provide targetted support for their sector.

“While the move to level 3 is welcome, we need legal mechanisms to negotiate reductions to rent and other fixed costs, and new ways for businesses to operate at alert level 4,” Pomare said.

Pomare said an internal MTA survey had found that 66 per cent of businesses had reduced staff wages to survive.

Auckland's members of MTA said the government support payments covered less than half of total operating costs.

“While businesses are expected to use government support to maintain 80 percent of staff wages, the businesses themselves are emptying the tank with expenses,” Pomare said.