New World backs down on subsidy

Foodstuffs says New World stores that have applied for the Government’s wage subsidy will withdraw their applications.

The Government database of employers who have applied for the wage subsidy – which has now topped $6.6 billion in payouts for more than a million workers – shows a New World Metro with 71 employees was paid $482,124 and Waikanae New World was paid $140,592 for 20 employees.

Hanmer Four Square, Twizel Four Square, Four Square Taihape and Te Anau Four Square also received payouts.

Supermarkets are classed as essential services and allowed to continue operating during the level four lockdown period. There was a surge in grocery purchases pre-lockdown.

Food and liquor spending on Monday, March 23, was two-anda-half times the normal amount, at $111 million.

‘‘Our owners also feel strongly that they need to act in the best interest of the wider New Zealand community and they understand the unique position and responsibility they find themselves in, one which allows them to continue to operate when others cannot,’’ Foodstuffs spokeswoman Antoinette Laird said.

She said that meant New World stores that had applied for the subsidy would remove their applications. Those who had already received a payment would pay the money back.

‘‘The situation is quite different for some of our Four Square stores, however. A small number of stores’ revenue is driven primarily by tourism and as such they are experiencing as much as a 70 per cent decline in revenue – something which is likely to continue for some time.

‘‘It is our position that these stores may qualify for the Government subsidy and that they should apply so they can continue to support their teams financially.’’