Package welcome, more to help

Sheree Carey
Sheree Carey
The Government’s Covid-19 financial help package was welcomed across the district yesterday.

In Southland, Chamber of Commerce chief executive Sheree Carey said it would help co-ordinate a collaborative regional approach.

It was encouraged to see the Government being pro-active but noted payments for wage subsidies were capped at $150,000 per business, which could leave larger businesses significantly out of pocket.

However, she questioned whether the wage subsidies would be enough to save jobs and was disappointed the planned minimum wage increase was not postponed.

‘‘As about 80% of the Chamber’s membership was comprised of small and medium enterprises, it was good to see the package would provide some assistance to employers, self-employed people and sole traders affected by the outbreak.’’

The tax changes for business were welcomed and included interest being waived for some late tax payments, more deductions for low value assets, depreciation deductions for commercial and industrial buildings, and a higher provisional tax threshold.

‘‘A business and response team would likely be put together to ensure the Southland region worked collaboratively and used every lever available to it to cushion the impact of the slowdown.’’

In Waitaki, Otago Chamber of Commerce North Otago advisory board chairman Stephen Halliwell said the country found itself in an ‘‘ever-changing’’ environment and was pleased with the Government’s Covid-19 package.

‘‘It is a very positive response.

‘‘The key is, it’s important for our economy, while we can, to go as hard as we can because we all need each other. We need staff to be working, we need stuff moving off shelves. The tourism industry needs our support as well.’’

Waitaki district was also looking at options which would be considered by council today.

A late item was added to the council’s additional meeting agenda, in the form of a proposal from Waitaki Mayor Gary Kircher that money from the council’s disaster fund, which at present was sitting at about $3.5million, be freed up to support people affected by the Covid-19 pandemic.

However, the scope of that support would not extend to all.

He said, if approved, the package would not cover businesses owners, but rather support those who might potentially lose their jobs if the outbreak continued to threaten the district’s economy.

‘‘Given the current climate, we will end up with people out of work and there is some opportunities to assist, so there is a bit in addition to what central government announced. At the moment we are not seeing widespread layoffs, but I think there will be some happening soon so we want to be prepared for that.

‘‘What I will be hoping for is the possibility of ultimately using the council’s disaster fund ... to be used for projects that are planned for the future, but could be brought forward which will allow us to employ people, perhaps without specific skills and allow them to work, basically.

‘‘The idea is it is a support and stimulus package, which will help support people that are the most vulnerable in this situation with a funding package,’’ Mr Kircher said.

daniel.birchfield@odt.co.nz

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