Businesses welcome alert changes

The business community has welcomed a relaxation in Covid-19 alert levels but also warns it may take time for economic activity to bounce back.

Prime Minister Jacinda Ardern announced that from midnight last night Auckland would move down to alert level 2, while the rest of the country went to alert level 1.

Business NZ chief executive Kirk Hope said it was good news because tighter restrictions on Auckland inevitably affected the whole of New Zealand and the focus now needed to be on avoiding a repeat of the level 3 lockdown. ‘‘That three to four days would be [worth] a couple of million dollars. It is good we are back to level 2 [in Auckland] but we need to have all the things in place to ensure we don’t have to keep shifting alert levels.’’

The hospitality industry was particularly hard hit and was keen to avoid a repeat.

NZ Restaurant Association chief executive Marisa Bidois said it was pleasing the Government was looking at ways to combine stopping the spread of the virus with the safe opening of businesses but financial support needed to start sooner.

Under Covid resurgence business support announced by the Government earlier this week, firms that experience a 30 per cent drop in revenue over a seven-day period will be eligible for a payment of $1500, plus $400 per employee up to a total of 50 fulltime staff ($21,500).

‘‘What is now imperative is that the Government looks to start financial support of affected businesses from the first day of any level change,’’ Bidois said.

‘‘The constant last-minute closures and restrictions on trading are no longer workable for our industry, placing an untenable financial and emotional strain on owners. Three days of restrictions generally means weeks of cancellations and subdued trading for our sector.’’

Tourism Industry Aotearoa chief executive Chris Roberts agreed the resurgence support needed some tweaks.

‘‘The criteria are quite rightly aimed at businesses that have taken a significant financial hit, and that should be the criteria, not how many days the alert level was in place for.’’

Christchurch Central City Business Association manager Paul Lonsdale is also relieved at the return to alert level 1.

He said that during alert level 2 there had been a noticeable drop in foot traffic because many office workers switched to working from home. ‘‘That is ... a loss of people eating and drinking in the city centre.’’