Coronavirus: Cafés struggling following level 2 extension, call for targeted government help
Wednesday, 26 August 2020
A Wellington cafe owner is calling for a more nuanced exit from Auckland’s lockdown, saying the current extension to level 2 for the rest of the country penalises the hospitality sector.
Co-owner of Machete Coffee Paul Day said his business was down about 50 per cent from last month and more than 50 per cent from the same time last year.
“We are in central Wellington, we are not in the impacted part of the country, but we have seen a dramatic shift in the public staying out of the central business district.”
When the country moved to level 2 the first time, he said people were just excited to get out of their houses after weeks of lockdown.
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But this time there had been much more reluctance, with more people working from home and staying away from cafés and restaurants.
Currently, Auckland is set to leave level 3 restrictions on Sunday at midnight, joining the rest of the country at level 2 until September 6.
At the time the extension was announced, Prime Minister Jacinda Ardern said the country needed to remain at level 2 when inter-regional travel with Auckland resumed.
But Day said there needed to be a more nuanced approach to Auckland leaving level 3, one which did not impact on businesses in the rest of the country.
“Whether it is certain restrictions on the freedom of travel to other regions, for a period of time, at least their economy could open up, at level 2.5, whatever you want to call that; Auckland businesses could re-open and they could get their livelihoods on track.
“And then when the time is right they could open the regional borders back up.”
His comments came the same day the Restaurant Association presented a petition with 3500 signatures at Parliament, calling for the Government to adopt a scheme similar to the “Eat Out to Help Out Scheme” in Britain.
The programme means the British Government foots the bill for up to £10 of a person's meal when they eat out.
National president of New Zealand’s Restaurant Association Mike Egan said the British model had been “hugely successful”.
”Cafés and restaurants are an integral part of the community and we need to use them, otherwise we are going to lose them.”
Targeted support from the Government could have a positive effect along the entire supply chain.
He said the industry was feeling “fragile” as a result of the level 2 extension.
“Everyone is thinking day to day, week to week, maybe month to month. We are not even thinking about Christmas, because we just don’t know.”
The petition was presented to Commerce and Consumer Affairs Minister Kris Faafoi, who said it would be presented to Parliament but his current focus was on the wage subsidy scheme.
“The main crux of what the Government has been trying to do is support all businesses, as well as hospitality, through the likes of the wage subsidy.”
It became more difficult when the Government did bespoke packages for different sectors.
The National Party’s economic development spokesperson, Todd McClay, said he could understand why hospitality business were worried.
“The British model creates a very important discussion here in New Zealand; what it really says is this is a sector which needs government help now.”
Without specific support, businesses would be lost, he said.