REGION HURTING

Unemployment in the NelsonTasman region could top 15 per cent in the wake of the Covid-19 pandemic, business and political leaders fear.

‘‘Fair to say that many people in this region are definitely hurting,’’ said Nelson Tasman Chamber of Commerce chief executive Ali Boswijk.

‘‘If we look at what is being forecast nationally and the makeup of our business sector, then I would say we may see up to 15 per cent in terms of unemployment.

‘‘ It is actually very hard to say at this moment ... this will really depend on the timing of when we are able to move into level 2 and more businesses can open again.’’

Nelson mayor Rachel Reese also tipped the possibility of 15 per cent unemployment along with at least 10 per cent fewer businesses in the city centre.

‘‘How long unemployment continues will depend significantly on the pace of moving through the alert levels and the Government stimulus response especially in relation to the wage subsidies,’’ Reese said. ‘‘The Nelson Regional Development Agency is currently commissioning an independent piece of work, which will assist us to better understand that.’’

Tasman District mayor Tim King said tourism and hospitality businesses were going to take longer to recover and a lot would depend on the ability of the domestic market to ‘‘fill in the large hole’’ left by the drop in international tourism.

King predicted the true unemployment picture would not be clear until ‘‘the Government starts winding back the current salary subsidy’’.

However, as a major foodproducing region, the top of the south was ‘‘somewhat advantaged’’ because its primary sector had continued to operate as an essential service throughout the level 4 lockdown.

‘‘Overseas markets still require food,’’ King said. ‘‘NZ products are trusted with clear provenance, which people will demand as they focus on health and wellbeing.’’

Federated Farmers Nelson provincial president Martin O’Connor highlighted the diversity of the Nelson-Tasman region’s primary industries as its strength, including fishing, forestry, horticulture and pastoral farming.

‘‘Time will tell, but I am positive that the diversity of the district will see us come out the other side,’’ O’Connor said.

A key factor for the local economy would be whether its main export crops such as apples, kiwifruit and hops along with meat and milk continued to be exported and could be sold at reasonable prices.

‘‘A large number of support businesses will probably survive as long as they have the money to get running again,’’ O’Connor said.

Boswijk said along with the strong primary sector including a growing oceans economy, the region had a range of ‘‘smaller, quite nimble’’ businesses that would help insulate it.

‘‘Many businesses we work with are already well down the track in terms of re-aligning what they do, and how they do it,’’ she said. ‘‘While there are undoubtedly significant challenges, bigger than many of us have had to face before, I do believe that here in Nelson-Tasman we will come out of this in a positive way.’’

King said the region’s councils would have a large role to play ‘‘in ensuring the region keeps moving by investing in capital projects’’.

Reese said the Nelson council was looking at multiple ways to support the economy and the community.

‘‘We are realistic and know we need to consider at least a two-year recovery phase, probably longer. Both councils in the region are committed to being both compassionate and financially prudent in the coming months, working closely with the Government to help our region recover.’’