The government today unveiled a $12.1 billion support package for the economy, with almost half of the cash to be spent on a wage subsidy package for all coronavirus-impacted businesses.
In a statement this afternoon Mayor Boult said he welcomed the response from from Finance Minister Grant Robertson.
“Minister Robertson and his government colleagues are to be congratulated for recognising the pain that Covid-19 has brought to industry in New Zealand generally, but in particular to our district," he said.
"We applaud this and thank Government for their swift intervention.
“Following the Reserve Bank’s recent announcement to cut interest rates, this government package offers a level of reassurance, particularly to small businesses and to workers in our district,” Mayor Boult said.
Boult said the outbreak had the potential "to have a significant impact on our local economy" given the slowdown in visitor numbers, and the high reliance on the visitor sector for so many in the district.
"I am personally very concerned about the long-term effect that this will have for local businesses and for our residents’ financial and mental wellbeing.”
Tourism directly employs 63.5% (19,084) of the district’s workforce, with accommodation and food services employing a further 21.7% (6,502). Both services contribute approximately 73% of the district’s GDP.
A wage subsidy scheme will pay employers up to $150,000 per business over the next 12 weeks to keep employees on, if they can demonstrate a 30% decline in revenue for any month between January and June when compared to 2019.
“I am confident that many of our employers will be eligible with the stark slowdown in visitor numbers. And with winter around the corner, additional benefits and winter energy payments for beneficiaries will be very welcome,” Mayor Boult said.
“Given our district’s almost total reliance on the tourism industry in the Queenstown Lakes District, I am advocating for additional support from Central Government for local business. I am meeting with ministers and representatives from the visitor and accommodation sectors on Thursday, and I want to see more being done for our district which is at a significantly higher risk than any other in the country.”
