Quake businesses and workers given longer lifeline

Destruction in Manchester Street in Christchurch's CBD. Photo / Brett Phibbs

Prime Minister John Key yesterday announced extended assistance for Christchurch businesses and workers affected by last month's earthquake.

Both the Earthquake Support Subsidy for employers and the Job Loss Cover for workers will be extended until April 18, followed by a second round of assistance with tighter application criteria.

Key said Cabinet decided to extend support by two weeks to give "employers and employees more time to consider their options".

Businesses seeking further support under the Earthquake Support Subsidy can apply for the extension from March 30.

Only those already receiving assistance are eligible to apply for the second round from April 7.

Employers would have to demonstrate their business was unable to operate because of physical barriers caused by the earthquake, and demonstrate ongoing viability.

Key said businesses that did not meet the new criteria but had a strong case for additional support could be considered on a case-by-case basis.

Businesses that qualified for the second round would receive payments at gradually reducing rates each fortnight over a six-week period.

For the first fortnight, the subsidy would stand at the current rate of $500 gross per week for full-time employees, and $300 for part-time employees.

It would then reduce to $375 and $225 respectively for the second fortnight, and $250 and $150 for the third fortnight.

A total of $153 million has been spent on the Earthquake Support
Package, and the extension announced yesterday was expected to add another $90.6 million.

"I think everyone acknowledges we can't go on forever with the packages we've got," Key said.

"But we also didn't want to leave people high and dry and I think we got the balance right here."

The Job Loss Cover scheme would continue, with full-time employees receiving $400 per week and part-time workers $250 per week until April 18.

They would then need to apply for an Individual Support Payment, which would be a top-up in addition to the unemployment benefit.

A single person would receive $50, a couple without children $80, plus $10 for each child up to a maximum of $110 per week.

Currently 6700 people were receiving Job Loss Cover support.

Key said the Government was not ruling out having other initiatives.

Council of Trade Unions secretary Peter Conway said there were huge risks in the reduced support, including having employers lay off workers.

"We understand that the Government has already spent a lot of money on this support but that is because the need is so great," Conway said.


Conway asked the Government to extend the existing package for another six weeks, and only then consider other options.

- NZPA

This story has been corrected from an earlier version that said those
businesses seeking further support under the Earthquake Support Subsidy needed to apply for the extension by March 30. This should have said they could apply for the extension from March 30.