Government pushing through new Covid resurgence support scheme for businesses

The Beehive, New Zealand's Parliament.

The Government is pushing through new laws for special support payments for businesses in the event of a Covid-19 resurgence. 

Already signalled last December , it includes a new payment scheme at Alert Level 2 and above. However, the resurgence support payments scheme only kicks in after seven days of heightened alert levels. 

A change since December is that the Resurgence Support Payment would be eligible for businesses that have a 30 per cent reduction in revenue over one week, not two as previously announced.

Finance Minister Grant Robertson said they decided to make the change due to the concerns of the business community. 

"We want to get money out the door quickly to affected businesses," he said. 

It would give $1500 per business and $400 per employee, up to $21,500. 

"This payment recognises that some businesses face one-off costs or impacts to cash flow when we step up an alert level to follow public health advice," Robertson said. 

"The payment is structured to provide most support to smaller firms who are most likely to face cash flow issues but will be available to all businesses and sole traders."

Parliament is currently debating the proposed law change under  urgency

During the first reading, National's finance spokesperson Michael Woodhouse said he had concerns about the targeting of the proposed law, but commended the bill. 

"I want to make sure companies that legitimately entitled to claim the grant are then not criticised or penalised by IRD if indeed they rebound a bit stronger than they might have foreseen when they applied. 

It passed its first reading and as of 5.20pm Tuesday, still needs to complete its remaining readings, committee stage and Royal Assent before becoming law. 

Robertson said a decision on whether the support scheme would come into effect during the alert level increase would be dependent on if it was extended. The Prime Minister and Director-General of Health are set to make announcements around alert levels tomorrow at 4.30pm. 

"If it does come into effect it will cover the initial 72 hour alert level rise as well," Robertson said. 


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