WAGE SUBSIDY BOOST WELCOME

The Government has expanded its wage subsidy scheme to encourage employers to keep workers on in the pandemic.

There is also a promise of ‘‘urgent help’’ for people who do lose their jobs, though the specifics have yet to be announced.

Yesterday, the Government lifted the Covid-19 alert to level 3 and said that would shift to level 4 within 48 hours, meaning the country will be in lockdown. Schools and non-essential businesses will close for four weeks before the situation is assessed, although that could change.

A wage subsidy cap of $150,000 for businesses affected by the coronavirus has been removed, increasing the expected cost of from $5.1 billion to $9.3b.

Steve Logan, co-founder of Wellington restaurant Logan Brown, said the wage subsidy would save businesses.

‘‘It makes sense for our company to pass on the wage subsidy to our precious team rather than them going on to the benefit system,’’ Brown said. It would keep staff together for when the restaurant reopened.

Council of Trade Unions president Richard Wagstaff said additional income support needed to guarantee a level of pay for each individual, rather than just for each household.

‘‘We look forward to seeing all the details of the income support package. The steps the Government is taking to ensure it is easy for businesses to get the support they need are necessary.

‘‘We would like it to be as equally easy for everyone to access support – those who need access to state support through benefits should be able to do so easily online,’’ Wagstaff said.

Business NZ chief executive Kirk Hope said the new Covid-19 alert levels were the best chance of keeping people alive and getting back to normal as soon as possible. ‘‘Although businesses are required to close, it is reassuring that wage subsidies have been extended and that further work is under way on employee and business support.’’

The Employers and Manufacturers Association (EMA) called the Government’s financial assistance a ‘‘massive boost to business support’’. EMA chief executive Brett O’Riley said other measures such as a business finance guarantee scheme and mortgage support were also critical for struggling businesses.

‘‘Many small businesses are financially backed by mortgages on the family home while it appears the guarantee scheme will be similar to the package announced in Australia last week. We were pleased to see support extended to all businesses including charities, NGOs and the self-employed and recognition of the issues facing new businesses and those that have had significant revenue boosts compared with last year.

‘‘Another important initiative for business is the Epidemic Notice as that gives Government powers to cut through regulatory and red tape,’’ O’Riley said.

Finance Minister Grant Robertson said: ‘‘Now that many New Zealanders may not be able to go in to work for the next few weeks, our priority is ensuring they continue to receive some form of income through this period.’’

All payments will be subject to audits and reviews.

A big focus of other government assistance announced yesterday appeared to be to keep people in their homes.

Rents have been frozen, and the Reserve Bank and retail banks have agreed in principle to ‘‘significant temporary support’’ for mortgage holders, as well as a business loan guarantee scheme, for those impacted by the coronavirus.

‘‘It is reassuring that wage subsidies have been extended.’’ Kirk Hope Business NZ chief executive