The Government's key economic Ministers, including the Ministers of Finance, Revenue and Small Business, appeared before the Epidemic Committee today to talk about how businesses will fare under Alert Level 3.
It comes a day after Prime Minister Jacinda Ardern announced that the Government was extending the level 4 lockdown until next week.
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At 11.59pm on Monday, April 27 New Zealand will go into alert level 3 for at least two weeks.
Finance Minister Grant Robertson told the committee today that "many, many firms" have contacted the Government to say the wage subsidy scheme is "giving them hope".
Although staying in level 4 longer will hurt businesses, it's better than the alternative, which is having to go back into level 4 after being in level 3.
"Doing it once, and doing it right is best for the economy."
Robertson said it was "absolutely our hope" that New Zealand will only be in level 3 for two weeks.
"The data is all heading in the right direction," he said.
Minister of Employment Willie Jackson told the committee that when the Government inherited the economy, it was "sound".
However, there were some areas of the economy which were suffering.
When it comes to Maori unemployment, he said that number could double as a result of Covid-19. But the Government was working hard to make sure that does not happen - for example, it has allocated more than $100 million towards redeployment.
He said Maori need as much support as possible right now – "we need a total resourcing of them".
Asked how much unemployment will rise as a result of the extended lockdown and the two weeks in level 3, Jackson was not able to say.
But he did admit that for each day New Zealand is in level 4, and subsequently level 3, unemployment will rise.
However, in the "overall scheme of things" the right decision has been made.
"It [the overall unemployment level] just depends on how much support the Government is going to bring to the table, which is going to be a lot," Jackson said.
"Another week is not trying to hurt or destroy anyone," Jackson said, in regards to spending another week in level 4.
However, he immediately withdrew these comments when challenged by National MP Todd McClay.
"There is obviously going to be pain for small businesses out there."
On the Government's wage subsidy scheme, which has paid out more than $10 billion so far, Jackson said there "hasn't been a huge abuse of the wage subsidy scheme".
MBIE officials said that so far more than 500 employers who have paid back the Government, after they wrongly received money from the Government.
Minister of Small Business Stuart Nash said the Government had "certainly turned the corner" when it comes to responding to Covid-19 and it was now was the time for businesses to get ready for level 3.
"We will never know what would happened if we did not act early," he said.
However, the predictions were then would be thousands of deaths and a sizeable economic impact.
"The current lockdown is an incredibly hard for small businesses."
But he said the wage subsidy scheme has been a "lifeline" to small businesses.
The decision to extend the level 4 lockdown was one that National leader Simon Bridges, the committee's chairman, was critical of.
He believed the Government should have done more while in lockdown to prevent the country from having to be in level 4 longer.
