Warning on cash splash by experts

the DHB having to go against ministry advice in allowing the procedures.

New Zealand Aged Care Association chief executive Simon Wallace struggled to make sense of the ministry’s position when fronting Parliament’s Epidemic Response Committee on Wednesday.

Representing about 650 rest homes, he said the refusal to test asymptomatic elderly was in contrast with Prime Minister Jacinda Ardern’s ‘‘test, test, test’’ mantra.

‘‘If the likelihood is low, but the severity is high – and it is with Covid19 – why would you not test?’’

Wallace insisted all DHBs should be allowed to test returning aged care residents.

Finance Minister Grant Robertson isn’t ruling out giving money to New Zealanders to help boost the economy.

He told Newstalk ZB there would be more money coming as the Government worked to help the country deal with the impact of Covid-19.

The responses seen so far were just the first steps, he said. ‘‘We’re prepared to be pragmatic and will shift and change and continue to do that right through from now until the Budget.’’

He said that while there would be no tax cuts this Budget, the Government was still open to the idea of giving cash to New Zealanders.

‘‘Helicopter money, as it’s sometimes called, is part of a potential package but . . . it’s not particularly targeted. I think we’ve got to look at all the options for stimulating the economy.’’

Kiwibank chief economist Jarrod Kerr has called for payments of $1500 per New Zealand adult.

Economist Shamubeel Eaqub said he would rather see the Government guarantee a minimum level of income.

‘‘Universal payments are easy, but too broad to be effective. Better it goes to people in large amounts, where it will do the most good.’’

Another economist, Tony Alexander, agreed. ‘‘Most people will not need the money because they will still have jobs or never needed one or were on a benefit . . . Second, a lot of it would not be of much benefit because the spending would go on imported goods.

‘‘Third, times are very uncertain and in this climate it is natural to think that people will want to build their precautionary savings. A lot of it would simply be saved until things look better.’’