‘I don’t think it goes far enough’
Kaikoura businesses have welcomed the extension of an earthquake support package, but they are concerned it will not be enough to get them through the winter.
The Government announced on Monday it would extend its wage subsidy programme for a further eight weeks, albeit at a lower rate than the previous two instalments.
For the first four weeks of the extension, eligible businesses in Kaikoura and Hurunui would be able to get $375 per week for each fulltime worker, and $225 for parttimers.
In the last four weeks of the final subsidy extension, this would drop to $250 per week for fulltime employees and $150 per week for part-time workers.
Kaikoura Mayor Winston Gray said the announcement was welcome news, as there had been rumours around town that businesses would not be eligible for any extension.
However, he said going into winter he would like to see more flexibility from the Government, including reviewing whether further assistance would be necessary.
‘‘I hope they’ll have some flexibility going forward, because we need to be able to open the doors come spring,’’ he said.
Kaikoura Kayaks owner Matt Foy accessed the first two allotments of the subsidy, describing the assistance as crucial for helping keep his business afloat.
‘‘I think without it, we’d still have a business but we would have had to find another way to get through, like carrying it on the mortgage,’’ he said.
‘‘We probably would have lost about half our staff.’’
Foy said while he was appreciative of the subsidy extension, he doubted it would be enough for businesses going into the winter on the back of a slow summer season.
‘‘I think a lot of them will struggle - we’re not asking for handouts, we’re just being realistic about the situation and the winter season we’re going into,’’ he said.
The business owner said he was expecting a similar amount as the previous allotments, so he would have to monitor his staffing situation carefully going into winter.
Kaikoura Encounter co-owner Lynette Buurman said Kaikoura was still facing a shortfall in visitor numbers.
‘‘What’s going to fix the business downturn here is customers, and the highway to the north is a big part of that as well as the harbour being restored,’’ she said.
Buurman said not extending the subsidy package over winter would make it difficult for businesses in the town to stay open.
‘‘I think it will be really hard for businesses to survive the winter months - they’re going to be faced with really hard decisions. How long can you trade at a loss?’’ she said.
Any business closures would have a negative impact on the wider tourism experience in Kaikoura, as it would give the town a sad and forlorn look, Buurman said.
Kaikoura District recovery manager Danny Smith welcomed the support, but said he was worried it would not be sufficient as tourism businesses in the town head into winter without their usual buffer of summer income.
‘‘I don’t think it goes far enough,’’ he said.
‘‘Where most businesses are at is that they are holding onto their key staff. If they lose them it becomes very difficult to stay trading.’’
The Government has paid out a total of 946 subsidy lump payments in Kaikoura since the policy was first announced, totalling about $9.1 million.