Robertson itching for NZ to go to whole new level
Finance Minister Grant Robertson says he is “as keen as anyone else” to move to level 1 next week.
Robertson said the economy would be opened up even more within the next seven days if New Zealand made the move.
His comments came as he announced changes to the wage-subsidy scheme which means more firms will be eligible to apply.
Businesses with a 40 per cent reduction in revenue because of Covid-19 are now eligible for the wage-subsidy extension.
This drops the bar from 50 per cent and means 40,000 more businesses could apply.
It is estimated up to 230,000 businesses, employing up to 910,000 workers, are now eligible for the eight-week scheme, which starts on June 10 when the previous wage scheme runs out.
That scheme has so far paid out more than $10.9 billion, covering 1.66 million jobs. The Government is forecast to spend up to $3.9b on the extended scheme, up from $3.2b under the old threshold.
Small businesses will also be given more time to apply for the Small Business Cashflow Loan Scheme, with the application date being extended from June 12 to July 24.
Robertson said the changes followed feedback from businesses.
“While many New Zealanders are now back at work and our economy is one of the most open in the world, there are businesses that will feel the impact of this global pandemic for longer.
“The tourism, retail and hospitality sectors will, in particular, be supported by the extended wage subsidy and cashflow support.”
Robertson conceded many people were “doing it tough”, but noted economists’ comments in recent days that the financial damage was not as bad as expected.
Benefit applications had flattened, he said, with 702 applications this week.
On May 29, the number of Jobseeker Support recipients reached 189,500 — about 6.3 per cent of the estimated working-age population.
Robertson said more than $1b had been lent to small businesses through its business loan scheme.
He said he was not considering making the loan scheme permanent “at this stage”.
Extending the wage subsidy again would be looked at closely, he said.
“We don’t have a specific plan to carry it on, but we want to remain responsive to need.
“Let’s see how level 1 goes. Let’s see what the impact is.”
Retail sales had picked up better than expected, he said, and New Zealanders could be confident that we were on top of the virus.
But there was still a global pandemic, and Robertson said that would affect the New Zealand economy.
Asked about National’s proposal for a $100m tourism fund, he said the Government was more focused at protecting tourism operators at the moment.
The Government had announced $400m to support tourism in the Budget this year, but it was criticised as having little detail.
Robertson said protecting tourism assets was front of the Government’s mind in helping the sector.