Auckland businesses are calling out for more financial support from the government as they face an extended stint in lockdown.
"These are really tough times for businesses," the Auckland Chamber of Commerce says. Photo: RNZ / John Edens
The government has provided a one-off resurgence subsidy to help with fixed overheads such as rent.
But lockdown-weary businesses in the big smoke who are facing at least another two weeks at alert level 4 say this was not enough, with more than 20,000 owners signing the Auckland Chamber of Commerce's petition calling on the government to extend the resurgence subsidy.
Among these business owners is Meltrons managing director Mathew Koshy. His Auckland-based business has a team of five employees, selling industrial scales and other engineering equipment.
The alert level 4 lockdown chilled the business's bounce back from previous restrictions. Koshy was not taking a wage for himself and he was dipping into reserves to pay the bills.
"We have seen our revenue drop by about 80 percent due to not being able to operate, except from essential services. A strong July and strong start of August has been decimated by two weeks in lockdown," he said.
Koshy supported the government's call to put the country into lockdown and he believed businesses could suck up a week or two under alert level 4.
But he said businesses would need a helping hand through the financial fallout that came under a longer stint under trading restrictions.
"This is where it's going to be hitting us hard now it's been extended for two weeks," he said.
"The issue for business owners is that the wage subsidy barely covers our staff wages, let alone any wage for ourselves. Then you've got all the costs that we are facing, including our rent, utilities, insurance payments and hire purchases, and plant and equipment costs. These continue to run and we can't put these costs off."
Koshy wants to see the resurgence subsidy extended and dished out on a weekly basis, with the amount paid depending on the businesses individual circumstances and income.
Auckland Chamber of Commerce chief executive Michael Barnett said Mathew Koshy's company is not the only business struggling out there.
"Many of them came out of 2020 with a depleted balance sheet. They've been in recovery mode, just getting going again and now they're back under pressure.
"These are really tough times for businesses."
He praised the wage subsidy as a way of helping employees - but he thought those doing the employing also need help.
"We're not asking the government to pay all of [business's costs], we're asking it to meet a share.
"The government is asking businesses to shut down, but businesses are expected to be there to employ and be there to get the economy started again in a few weeks."
New Zealand Institute of Economic Research principal economist Christina Leuong said the lockdown had abruptly halted Auckland's robust economic recovery from previous restrictions.
But she said the economy has proven to bounce back when fed by government support.
"As long as there are these support measures in place and that cash flow keeps flowing through the economy, then businesses can keep workers employed and with the strong labour market, we will have that household confidence flowing through to spending."
Certainty was the best medicine for struggling businesses in times like these, Leuong said.
In a statement, Finance Minister Grant Robertson said the government was continuing to look at whether additional support through the Resurgence Subsidy is needed, particularly as higher alert levels are in place.
Robertson said the Wage Subsidy, Leave Support Scheme and Short Term Absence Payment were available to businesses as appropriate.
