Tough times ahead, Chamber warns

As more businesses open under alert level two, the South Canterbury Chamber of Commerce is warning it will not mean a return to business as usual as there will be ongoing cashflow issues and businesses will continue to struggle.

Chief executive Wendy Smith said the economy is in crisis following a Covid-19 induced recession and while level two would bring relief the new rule would ‘‘simply not be enough’’ to save some.

Hundreds of businesses, which support thousands of employees, are negotiating their way through turbulent waters during the crisis, Smith said.

‘‘There are millions of dollars at stake, hundreds of businesses and literally thousands of jobs.

‘‘Our businesses also need to have clearer timeframes and clearer guidelines to enable businesses to understand what is required of them and to adapt and reopen their businesses in a timely and managed manner. ‘‘

‘‘It is the first real step in opening up the economy. Unfortunately for other businesses operating at level two with current restrictions/guidelines it is simply not enough.

‘‘Restaurants, bars and many hospitality and retail customerfacing operations will struggle to maintain what is required of them re: social distancing and still remain viable.’’

The new gathering sizes appear restrictive and the limit of 100 will prevent some businesses from operating, she said.

Smith said that although many South Canterbury businesses have worked through the lockdown period, and many more have commenced under level 3, it has not been business as usual.

‘‘There has never been a tougher time for our business community and there are further challenges to be faced as the economy rides out this recession.

‘‘Many businesses are seeking to reposition their offerings and survive this crisis,’’ Smith said.

Smith said the Chamber has worked with more than 520 businesses on a one-on-one basis since the start of lockdown while hundreds of resource packs had been distributed to guide businesses.

The Chamber would like to see targeted support packages including an extension of the wage subsidy and an expanded loan scheme, she said

‘‘Businesses are still hurting. We continue to lobby for an extension to the wage subsidy scheme, further small to medium business support and greater clarity around the level guidelines and timeframes.’’

Smith advised business owners to set up a to-do list to check on their business’ health.

‘‘You need to know where you are at and who can help you,’’ Smith said.