‘Tough time’ for businesses

South Canterbury businesses are exploring all avenues as they come to grips with the impact of Covid-19 on their operations and staff.

More than 200 businesses have contacted the Chamber of Commerce in the past week as they attempt to navigate through the coronavirus pandemic, with only those deemed essential services operating through the lockdown.

Chamber chief executive Wendy Smith said it was too early to tell which businesses will have to cut staff, but she urged all small to medium businesses to take advantage of the Government’s

wage subsidy.

‘‘The health and welfare of your staff is the most important thing for your business at the moment.

‘‘The chamber has a number of business advisers who can help and counsel you through this time. No-one needs to be alone.’’

Business requests over the past week have ranged from how to access the Government subsidy, to advice on how to manage staff pressures.

‘‘The message I’ve been getting is that the business community has been very adaptable and had planned in advance (of the lockdown),’’ Smith said.

‘‘It’s a tough time for businesses, with the majority of them

operating on skeleton staff or not running at all.’’

Smith said she did not know of businesses trying to ‘‘game’’ the subsidy by not passing on wages to employees, but she urged businesses to follow the requirements.

‘‘You owe it to yourself and your employees to do the right thing,’’ she said.

‘‘You’re getting the funding to keep your staff.’’

South Canterbury business Tasman Tanning South Island’s chief executive David Cassidy said the onset of Covid-19 and a worldwide lockdown meant business survival was a priority.

‘‘This whole process is about ensuring we keep as many people here as possible. In terms of staff, we’re trying to maintain the pool of staff we’ve got.

‘‘When things come back to normal level . . . we’ve still got a function to fulfil and we will need those people.’’

Cassidy said the biggest impact on the leather company as an essential provider to the meat works has been the reduced number of animals that have to be killed for the meat companies to remain compliant.

‘‘At the moment they are still at numbers at which we’re trying to keep everyone probably employed.

‘‘For us as a business, we only process the hides and skins, probably the ramification that is going to come is if the world economy worldwide really shuts the doors. It will mean hides will have to be

‘‘It’s a tough time for businesses, with the majority of them operating on skeleton staff or not running at all.’’ Wendy Smith

Chamber of Commerce

processed and stocked here in New Zealand until things start flowing and freeing up again.’’

The company employs about 100 people and Cassidy said Italy was a key market for hides and leather, and they have shut down trade and their ports in the wake of Covid-19.

‘‘Everything is going to slow down. I think there will be a lag before we see anything happening,’’ Cassidy said.

Barney Cahill, of The Sail & Anchor Bar & Cafe, said he was paying his staff in full and had applied for the Government subsidy but had not been paid as yet.

‘‘At the moment we’re only just into it so who knows?’’

‘‘My permanent staff are being paid in full but that will probably have to change in time.’’

Cahill said he was hoping the lockdown would only last four weeks as a longer time would impact on his business.

Cahill said he was ready to open ‘‘today’’ if he was given the opportunity.

Hospitality Association South Canterbury accommodation sector chairman and Avenue Motor Lodge owner Mark Offen said it was difficult for anyone to change the reality of a lockdown and pandemic, but ‘‘the main thing is to do what we are requested to do and get through this as quickly as possible’’.

‘‘It’s not just hospitality and tourism, there are other businesses that have been affected as well such as our suppliers.’’

He said he was concerned for the future of his business if the lockdown lasted for longer than planned.

Offen said he was paying his staff at their full rate at the moment and had applied for the wage subsidy.

Barker’s of Geraldine chief executive Agnes Baekelandt said the business was fortunate enough to still be operating, but its eatery and food store were closed.

‘‘We are food producers, and are classified as an ‘essential business’ by Government.

‘‘We are nevertheless impacted by the situation, and our sales to hospitality services are dropping significantly, as most of the cafes and restaurant are closed.’’

Baekelandt said the ‘‘absolute priority’’ of Barkers during this period was to keep jobs intact.

‘‘Yes, our willingness is to preserve all local jobs. The most important for us is to make sure that the people still working on the manufacturing and logistics sites are safe. This is our absolute priority.’’