Manawatu Standard

Business owners welcome news of shift in alert levels

- Rob Stock

Shopkeeper­s are breathing a collective sigh of relief as Prime Minister Jacinda Ardern signalled a move to alert level 2 in Auckland tomorrow morning.

That would allow shops to open, with social distancing, and was welcome after the shift to alert level 3 had a ‘‘chilling effect’’ on retail throughout the country, said Greg Harford, chief executive of Retail New Zealand.

‘‘Retailer confidence has slumped since mid-february, and although the sector has proven to be very resilient over the past year, each lockdown gets harder for businesses to manage,’’ he said.

Kirk Hope, chief executive of Business NZ, said given there had been no new cases, the decision to move Auckland to alert level 2 tomorrow, and the rest of the country to alert level 1, was the right call.

Harford said retailers were keen to see Auckland move back down to alert level 1.

Cabinet will take a decision late next week as to whether to move Auckland to alert level 1 during the weekend beginning Saturday, March 13.

‘‘Retailers throughout the country have been impacted by the Auckland lockdown, partly because Aucklander­s are unable to travel at level 3, and particular­ly because the elevated alert levels have led to customers being more cautious in getting out and about,’’ Harford said.

‘‘Although online shopping is growing in significan­ce, and was permitted at level 3, the physical and social experience of shopping in person is still a key driver of retail spending, and the Auckland lockdown has had a chilling effect on retail right through the country.’’

Restaurant, takeaway and cafe owners were also pleased to see the return to lower alert levels, said Restaurant Associatio­n chief executive Marisa Bidois.

‘‘This is the news that we needed after the alert level yo-yos we’ve experience­d over the last month,’’ she said.

‘‘What is now imperative is that the Government looks to offer fair and quick financial support to those industries most hard-hit by the pandemic.

‘‘The constant last-minute closures and restrictio­ns on trading put untenable financial and emotional strain on owners. We must remember that any increase in alert levels generally means weeks of cancellati­ons and subdued trading for our sector.’’

Michael Barnett, chief executive of the Auckland Chamber of Commerce, said the move to level 2 was tolerable for businesses, but was laced with the ‘‘abundance of caution’’ approach being taken by the Government.

Remaining at alert level 2 would come at a cost to many businesses because of the social distancing and the limitation of 100 people at gatherings, he said.

Harford called on the Government to take a fresh look at the financial support available to businesses.

‘‘Retail NZ is asking the Government to step up support for retailers on a store-by-store basis, to help those who operate across multiple regions,’’ Harford said.

‘‘While it’s great that the wage subsidy is available, the criteria are too tight to support everyone who needs help.

‘‘Some businesses will be significan­tly impacted in Auckland, but might not hit the 40 per cent threshold across all their stores nationally, which means they miss out on support. At the same time, a competing business that only operates stores in Auckland is advantaged by being able to access the wage subsidy.’’

‘‘Retail NZ is asking the Government to step up support for retailers on a store-by-store basis, to help those who operate across multiple regions.’’

Greg Harford chief executive of Retail New Zealand.

 ?? LAWRENCE SMITH/STUFF ?? Auckland’s Queen Street, where businesses will be operating under alert level 2 from tomorrow.
LAWRENCE SMITH/STUFF Auckland’s Queen Street, where businesses will be operating under alert level 2 from tomorrow.

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