Govt doubles resurgence support, subsidy continues

More money is coming for businesses affected by Covid-19 lockdowns.

Finance Minister Grant Robertson said the resurgence support payment (RSP) would be doubled, and paid fortnightly instead of the current three-weekly, until Auckland moved from the alert level system to the new traffic light framework.

Until now, the resurgence support payment has been available at a rate of $1500 plus $400 per fulltime employee, up to a maximum of 50 employees.

That will now be $3000 plus $800. The change takes effect from November 12. Robertson said the decision was made to use the payment to provide more support because it was an existing mechanism and offered flexibility for businesses to choose how they used the money.

Robertson said most of the resurgence support payments were going to Auckland businesses. ‘‘The RSP is now targeting Auckland businesses, with 70 per cent of payments going to Auckland having grown from 40 per cent in the first payment. The next highest area is Waikato with close to 10 per cent of the claims.’’ The wage subsidy would also continue to be available as Auckland went through the transition period to the traffic light system, he said. The cost of these two measures would be up to $940 million a fortnight.

‘‘In effect this means the RSP will be a weekly rather than threeweekly payment as it is now, but for ease of application and administration it will be available in fortnightly instalments. We are not changing any settings at this time so payments can be made without disruption. The enhanced RSP will be available until Auckland moves into the new framework. The wage subsidy will continue to be available on the current criteria while areas of the country are still in alert level 3.

‘‘Final details of the support to be provided under the new framework will be agreed in November.

‘‘My expectation is that because businesses will be able to operate at all levels of the framework, the wage subsidy and the RSP will be reworked to a new targeted payment at the red level of the new framework,’’ Robertson said.

‘‘One of the issues that we are working through is what to do in terms of businesses which decide not to be part of the vaccine certificate regime. If we use the current settings based on revenue drops, we may well end up supporting them but not those who are using certificates. It is my personal preference that any payment will not be made available to those businesses that should be operating a vaccine certificate regime but choose not to, however this requires further work to be operational.

‘‘Across the board support will not be provided for areas designated as orange or green, because at these levels businesses will be able to operate as normal, with some requiring vaccine certificates to do so. We are also seeking further advice on what support could be made available in the event of local lockdowns.’’

Retail NZ chief executive Greg Harford said the resurgence support payment increases were welcome news but a number of businesses would continue to struggle even with the added support.

The Government is also setting up a $60m fund for business advice and mental health support for Auckland businesses, delivered through the Regional Business Partner Network.

Businesses could apply for up to $3000 worth of advice and planning support, and then receive up to $4000 to implement that advice. They would no longer need to offer a matching contribution.

‘‘The enhanced RSP will be available until Auckland moves into the new framework.’’ Grant Robertson Finance Minister