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Home / Business

Government's RAT policy will punish small businesses - Auckland Business Chamber chief Michael Barnett

Damien Venuto
By Damien Venuto
NZ Herald·
15 Feb, 2022 04:00 PM4 mins to read

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Rapid antigen tests are already used widely abroad. Photo / Getty Images

Rapid antigen tests are already used widely abroad. Photo / Getty Images

The Government's current strategy with Rapid Antigen Tests (RATs) could lead to "defacto lockdowns" for some businesses.

This according to Auckland Business Chamber chief executive Michael Barnett, who says that the lack of access to rapid test will give smaller businesses little choice but to close down temporarily if they have a positive case.

He says that smaller businesses, particularly those in the hospitality sector, that can't split their workforces will be hit particularly hard by the Government's current RAT policy.

Last week, the Government unveiled a "close contact exemption scheme" that would allow workers at critical businesses to keep working even if they are close contacts.

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The Ministry of Health website provides that as part of this scheme critical workers in essential businesses will be able to order RATs to clear close contacts to return to work.

This will allow vaccinated asymptomatic critical workers who are close contacts to be able to perform their job under a set of conditions and allow businesses to maintain minimum capacity levels in the event of high numbers of absenteeism.

Barnett says that smaller businesses that do not fall within this critical category will be hit particularly hard by Omicron.

He uses the example of a restaurant to make the point that there will be few options available to overcome the inevitable spread of omicron.

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"The teams are often small and they mix all the time," Barnett says.

"Unlike big firms that can split staff, smaller businesses just don't have the capacity to do that.

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"And with the unemployment level at a record low, they can't hire staff to cover those who are isolating at home on account of being close contacts."

"In cities like Queenstown, you could end up with a de facto lockdown as many restaurants end up closing down."

The threat of de facto lockdowns was previously also alluded to by economist Infometrics principal Brad Olsen in a paper released in March warning that high worker absenteeism will present a limit to economic activity.

Under phase 2 of the Government red light setting, the isolation period for positive Covid-19 cases drops from 14 to 10 days, while the isolation period for close contacts goes from 10 days to 7 days.

Barnett says that RATs should become available to all businesses so that workers who test negative can be allowed to return to work.

Rapid antigen tests are readily available to the public in many other countries. Photo / Getty Images
Rapid antigen tests are readily available to the public in many other countries. Photo / Getty Images

"Every business is essential, and every worker is critical to their family and their place of work," Barnett says.

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"Every employee and employer should have access to Rapid Antigen Testing.

"Without this, businesses will face closure due to staff shortages and others will face failure due to loss of revenue."

Barnett isn't alone in calling for a broader application of RATs across the workforce.

Businessman Sir Ian Taylor has been vocal in his support of the use of RATs in navigating through this stage of the pandemic.

And last week, National MP Stuart Smith also called for more businesses to have access to RATs.

"Government policy has made it incredibly difficult for firms to get their hands on these tests," Smith said.

"This issue continues at a time when RATs are widely available around the world to extent that they can even be bought in vending machines. Meanwhile, New Zealand businesses continue fighting for access to a sufficient number to keep their workforce safe."

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