The Government announced last Thursday it would force landlords and businesses that could not agree on a Covid-19 rent relief plan into a compulsory arbitration.
The plan will only apply to businesses which can demonstrate a "material" drop in revenue, are New Zealand-based, have not reached a deal over rent relief already and which have 20 or fewer full-time equivalent staff per lease site.
Otago Southland Employers’ Association chief executive Virginia Nicholls said she had been advocating for commercial rent support for a while.
"Unfortunately, this will be too late for some businesses who felt that the Government was too slow announcing their support for this approach," she said.
She was supportive of the Government doing something for businesses facing full rents and much reduced income.
Her preference would have been that the assistance was given to all businesses, not just those with 20 or fewer full-time staff at a site.
"Our preference would have been for this to have been made available for all businesses, but we are grateful for this support, which is a step in the right direction.
"It is great to see that the package also provides a subsidy up to $6000 for arbitration if the business and landlord are not able to amicably resolve this."
Justice Minister Andrew Little has accused Winston Peters of mischaracterising his position on rent relief for businesses hit by Covid-19 and mocked NZ First’s own proposals for the area as "laughable".
While the former Labour leader said the coalition was in good shape, he blamed NZ First for a delay in reaching an agreement which he said was close to the one he originally proposed in April.
When the deal was announced, NZ First leader Winston Peters said his party was responsible for ensuring the new rent relief was "fairly applied".
NZ First’s statement said some businesses were struggling due to fixed costs such as rent as a result of the Covid-19 lockdown.
"However the solution to this problem is not to alter Contract Law for all existing lease arrangements, which is what our coalition partner wanted," a statement from Mr Peters said.
"This would’ve been poorly targeted policy and affected many landlords who’ve sensibly adapted to the changed circumstances brought by Covid-19."
Mr Little said this was not an accurate characterisation of Labour’s position. The proposal which was circulated in April — which NZ First refused to back — always included exclusions.
— Additional reporting The New Zealand Herald
