CAB helps with financial woes
At the Napier Citizens Advice Bureau we've had a number of inquiries over recent weeks from people experiencing financial hardship, often due to the current Covid pandemic.
The following are examples of questions we might get asked and our responses.
■ I’m really desperate about my money situation. Unpaid bills are banking up and I’m getting letters from debt collectors. Can you people help?
We can put you in touch with one of the local government funded, not-forprofit agencies. They have trained financial mentors/ budget advisers who will help you sort out your current financial situation and then work with you to get you “back in the black”. Their services are free!
■ I’ve got money tied up in KiwiSaver. Can I access that to help with my present difficulties?
If you're suffering considerable financial hardship, you may be able to withdraw some of your KiwiSaver funds early. But this should be an absolute last resort action, as the prime purpose of KiwiSaver is to assist you in retirement. For this reason, KiwiSaver funds managers are always most reluctant to release your money early and will need to be convinced by you that you are experiencing significant financial hardship. Having the support of a budget adviser should assist your application. You can only access yours and your employer's contributions, not the Government's tax credits.
■ I believe my problems arose because of Covid-19.
If you lose your job (including self-employment) between March 1 and October 30, 2020, due to Covid-19, you may be eligible for the Covid19 Income Relief Payment from Work and Income. The payment is for up to 12 weeks to help with living costs after sudden job loss, and to give time to find other work.
■ It’s getting on top of my mortgage and hire purchase repayments that’s the main problem.
It is very important to contact the lender as soon as you realise you're having problems. The sooner you take action, the more likely the issue can be resolved. Many lenders are willing to negotiate a payment plan to tide you through a difficult time. Most mortgage and hire purchase agreements include hardship clauses whereby the lender should give relief, such as a repayment holiday, or extension of the term, etc. Was mortgage repayment insurance included in the original loan?
■ I’m now getting letters from debt collectors talking about my credit rating.
We cannot over-emphasise the importance of avoiding getting a bad credit rating, because it is almost certain to make life difficult for you in the future. Having a budget adviser/financial mentor working with you is likely to give confidence to lenders, etc, that your problems are under control.
Hastings District Council has decided it will take the plunge and open the renowned Splash Planet this summer in anticipation of the region being in level 1.
But if alert levels were to remain at level 2 this week as indicated by Prime Minister Jacinda Ardern last week, further talks about its operation could take place.
The decision means Splash Planet could open in just over two months, on November 16.
The Strategy and Policy Commitee voted that council chief executive Nigel Bickle plan to open for the season and manage operations for maximum opening times and patronage. The vote followed a suggestion last week that the park close over summer for renovation.
Last week's vote also means council officers can begin recruiting staff. Ardern indicated that the rest of New Zealand - aside from Auckland - would move to level 1 this week, but the council believed there was still uncertainty about levels changing.
If the country or moves to other Covid-19 restrictions, Bickle will return to the council for more guidance about Splash Planet.
"If the world turns upside down the chief [executive] can come back and give a new lie of the land. In the meantime we are powering [him] to make plans to get on with opening," deputy mayor Tania Kerr said.
Planning will allow for level 2 level 1 followed by a change to level 2. Project manager Dean Ferguson said options include separate morning and afternoon sessions, having three or four sessions of 100 people a day and splitting the park in two with people rotating in the areas but not intermingling.
At least five level 2 scenarios are still being worked out.
Councillor Alwyn Corban agreed there needed to be a "Plan B running at the same time to minimise loss if the risk changes".
Cr Simon Nixon said if there was a move to level 2 or 3 after opening at level 1, Splash Planet should be closed for the remainder of the season.
Cr Ann Redstone asked if an online-booking system was an option and councillor Kevin Watkins felt that contact tracing was "critical" if something went wrong.
Each option has cost risks. Four sessions a day at level 2 would bring in about $9600 but cost $12,600. In the offseason the park costs $150,000-$170,000 a month in maintenance, ongoing compliance costs and staff salary. If it were kept closed it would cost roughly $750,000 over the season.
If it is planned to open but cannot, $1 million could be lost.
"Ultimately the community needs a place to go and have some fun," Bickle said.
Mayor Sandra Hazlehurst: "We need to be able to mitigate and manage risks and costs but need to find ways to get the place open." Cr Damon Harvey: "It is a risk, we don't know what will unfold, but it is very much my view that it opens." Councillor Wendy Schollum initially did not support opening, saying she would not feel safe sending her children to Splash Planet at level 2.
With the added recommendation that Bickle return for more guidance if restrictions changed and planning under way for level 2 scenarios she then supported it.