Frustration over wage subsidy as businesses try to survive

Photo: Getty Images
Photo: Getty Images
The Government may be working overtime to get wage subsidies to people during lockdown but many, including a Christchurch suit tailor, are still in the dark over what they are entitled to and when they will get it.

Mark Van Roosmalen, who owns The Suit Doctor in Ilam, applied for a wage subsidy on March 19 and is yet to hear back.

"If they can prop up Fonterra and Spark and Air New Zealand to boot … that's great, they're losing their jobs but I'm trying not to lose my business," he said.

He said he was extremely financially precarious and getting some money was urgent.

There is also a lot of confusion over who is entitled to what.

Mark van Roosmalen. Photo: mvrtailoring.com
Mark van Roosmalen. Photo: mvrtailoring.com
One healthcare worker, who wishes to go by Mary, said her medical practice was closed and her employer was making her use annual leave.

When she asked her employer if the practice was eligible for the wage subsidy, her employer said no, because they were essential workers.

She told her employer she did not want to use her annual leave for the lockdown because she did not think it was fair or right.

Mary struggled to get further information.

"Where do I go for my question? Am I supposed to just believe my employer?"

The Ministry of Business Innovation and Employment has clarified to RNZ that essential services are able to apply for the wage subsidy as long as they meet all the criteria.

MSD said the majority of payments had been delivered within five days, and some in much shorter periods.

It said phone lines were inundated with people applying for the wage subsidy and benefits - with 75,000 calls between Tuesday and Friday last week.

The government has spent $3.7 billion on wage subsidies for 580,000 employees.

A film production worker, Te Takuta, was one of those.

His work requires travel throughout the country and has of course dried up, but within a few days of applying he was given $4200.

"To receive some funds out of the government at a time like this and to have it delivered in such a straightforward, uncomplicated manner, was unbelievable and incredibly humbling. So, thanks government," he said.

Te Takuta said he had heard of businesses feeling shy about applying for the wage subsidy, but added that it was a simple exercise and people should go for it.