Continued Covid-19 isolation period concerns business owners
Tuesday, 11 April 2023
Businesses already suffering from staff shortages are disappointed by the Government’s decision to extend Covid-19 seven-day isolation for another two months.
Owner of Canterbury-based The Oxford Group, Max Bremner said the decision was “ridiculous” as hospitality businesses were already hurting from lack of staff and the isolation period exacerbated the situation.
The group had 191 employees and the seven-day isolation period could compound as the virus rolled through groups within the business.
“It costs us so much and it keeps compounding. One person tests positive in a flat, then three or four of them are gone, then you lose 21 days,” Bremner said.
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He believed the country had adjusted to Covid-19 and this should be reflected in the Government’s settings.
“It’s here to stay. I thought it has become endemic, not pandemic any more.”
Prime Minister Chris Hipkins said at a post-Cabinet briefing on Tuesday the settings would be reviewed in June.
Anyone with Covid now needed to isolate for seven days, with day zero being the day their symptoms started or when they tested positive for Covid-19.
Hipkins said the isolation period was good for labour supply.
“At the moment the isolation period serves not just to relieve pressure on the health system and result in fewer people being infected, but actually there is a labour market incentive for this as well.
“People with Covid-19 going into work potentially infects more people and more people end up being off sick,” Hipkins said.
Business leaders nationally were keen for the Government to relax the isolation period citing international trends.
Business New Zealand chief executive Kirk Hope said he understood the Government’s cautious approach going into winter, but they were disappointed there were no clear criteria laid out from decision-makers for when settings would be changed.
He said many other countries had dropped restrictions but wondered how New Zealand was different.
”What consideration have they given to those examples and what modelling has come out of those countries, would be useful for the Government to be considering?”
Businesses which were not so susceptible to labour shortages were more circumspect about the Government’s decision to extend the restrictions.
Retail NZ public affairs and policy advice manager Aimie Hines said many retailers were keen to see New Zealand’s restrictions align with the rest of the world, and the two-month extension was quite long.
“A lot of employees and retailers have great health and safety requirements in place,” she said. “We’re coming out of what is the peak summer season and retailers need all the capacity they can possibly get to ensure that they’re open.”
Relaxing the self-isolation period would mean fewer pressures on retailers to close stores early, Hines also said.
Richard Hamilton of Paper Plus in Masterton said the decision would not affect them financially and it was good for the health of their 21 staff.
“The problem is that if you didn’t have that restriction then some employers would expect them to come back to work and potentially start spreading it around to everyone else.”
Immunisation expert Peter McIntyre said sticking with the seven-day isolation timeframe was a cautionary approach, especially with winter set to bring more illnesses with it, but the more important message was having people get their boosters and flu vaccinations.
Many Covid-19 restrictions were dropped in September last year, but seven-day isolation period has remained for workers.
The wage subsidy was still available from the Government if a staff member contracted Covid.