The Finance Minister says "a recession in New Zealand is now almost certain" as Covid-19 coronavirus causes havoc on businesses across the country.
Today, the Government announced a massive business package , with an $8.7 billion injection into business and jobs including wage subsidies and tax changes, $2.8 billion for a permanent boost to benefits and doubling the Winter Energy Payment, and $500 million into health.
"The advice that we are receiving is that the shock will be larger than that seen during the global financial crisis," Grant Robertson said.
"We are going to see many New Zealanders lose their jobs, and some businesses fail. We will have an extended period of deficits and our debt as a country will have to substantially increase.
"We are taking decisive action to avoid what we have seen overseas and implement measures that give ourselves a fighting chance of mitigating the worst here, and I make no apologies for that."
He said the economic cost pales "in comparison to the loss of life and devastation that would come with inaction".
"There are tough times ahead."
Mr Robertson said the first response by the Government was a public health one.
"It is our fundamental duty," he said. "It is also the first and best economic response."
There will be two phases over the next 30 days.
The first phase include "a public information campaign - upscaling testing, boosting Healthline, surging containment and isolation procedures, establishing community-based assessment clinics, and a whole-of-system focus on meeting workforce demand".
The medium-term phase sees support for hospitals and community providers to be ready for a surge of patients.
"We are in for a fight," Mr Robertson said.
"A fight against a virus, an outside force beyond our control that is wreaking havoc around the globe. We are up for the fight. There is no better defensive line than the All Blacks, just is it as with our people facing this virus."
SHARE ME