Supermarkets remind people to wear a mask, scan the Covid Tracer app, maintain physical distance from others and only buy what they need. Photo / Michael Cunningham
Supermarkets remind people to wear a mask, scan the Covid Tracer app, maintain physical distance from others and only buy what they need. Photo / Michael Cunningham
Northlanders are encouraged to think outside the box to support their local businesses while the country is in level 4 lockdown.
The SOS Business website, set up to help struggling businesses during last year's much lengthier lockdown, is again ready to support small businesses who will be suffering the latest move up the alert levels.
Businesses can join the website – which stands for Spend on Small Business - and sell gift vouchers or gift cards that customers can redeem when businesses reopen.
Spokesman David Downs said the not-for-profit scheme has continued to operate since March 2020 and has helped over 2500 businesses around New Zealand with more than $2.5 million in vouchers.
Forty-seven Northland businesses have registered on the site including cafés, bars and restaurants, hair and beauty salons, and florists.
Downs said it's a great way to support local enterprises.
"While we're all locked up you can jump online and buy a voucher. As soon as we get the money we pay out the business the next day. The purchaser gets a voucher you can cash in in a couple of weeks' time.
"Basically it's a way of speeding up the cashflow - the big problem they've got at the moment is cashflow."
David Downs, who set up SOS Business - a pay-it-forward voucher site to help struggling businesses - encouraged residents to make use of the site during lockdown. Photo / NZME
Downs said SOS would top up an extra $10 for every $50 spent, thanks to generous donors.
"This was a real lifeline for businesses last year.
"They really need help ... they're not like the big corporates with money in the bank."
Under level 4, all businesses must close apart from supermarkets, dairies, pharmacies and petrol stations, which are deemed essential services.
Finance Minister Grant Robertson estimated the cost of the national lockdown as currently planned - seven days for Auckland and Coromandel and three for the rest of New Zealand - would be around $1.5 billion.
Northland Chamber of Commerce chief executive Steve Smith said it was too early to know what sort of impact the lockdown would have on Northland businesses.
"If it ends by the weekend, which I have my doubts, people will breathe a sigh of relief and get on with it.
"People I've talked to are realistic, and politics aside, it's a question now of staying on top of things and seeing where the data leads us."
But Smith said some sectors, like hospitality, would struggle even with the wage subsidy.
"The majority of those businesses won't get that money back.
"The wage subsidy will help but it doesn't make good on lost income.
"Hospitality is dependent on repeat sales, they can't get it back."
Northland Chamber of Commerce chief executive Steve Smith said some sectors, like hospitality, would struggle even with the wage subsidy. Photo / Tania Whyte
Restaurant Association chief executive Marisa Bidois said the lockdown was "incredibly challenging" for the hospitality industry.
"While the wage subsidy is appreciated and obviously gives employees certainty, we would like to see more support for business owners by way of targeted fiscal assistance to help them cover their fixed costs."
Despite the disruption caused by the global pandemic, economics consultancy Infometrics said New Zealand's economy has continued to strengthen and grow, with regional economies driving activity.
The June 2021 quarter Infometrics Quarterly Economic Monitor showed a further improvement in economic conditions, driven by rising employment, upbeat households and a boom in building activity.
The economy grew at the rate of 17 per cent per annum in the June 2021 quarter, taking year-end growth to 4.2 per cent.
Infometrics principal economist and director Brad Olsen said the results position the economy well to cope with the latest level 4 setback.
Infometrics principal economist and director Brad Olsen said New Zealand's strong economic results position the economy well to cope with the latest level 4 setback. Photo / Tania Whyte
"The economy will suffer a short-term knock from alert level 4, which is tough on a number of sectors.
"But as our economic performance to date has shown, New Zealand is expected to recover swiftly.
"Strong primary sector and domestic tourism results have bolstered activity, with regions such as Taranaki, Hawke's Bay, Bay of Plenty and Northland leading present growth."
Meanwhile, Northland's main supermarket chains are urging residents not to stockpile food to ensure everyone has a fair shot at buying their grocery essentials.
New World and Countdown supermarkets remind shoppers to wear a mask, scan the Covid Tracer app, maintain physical distancing and nominate one person in the household to shop.
Countdown spokeswoman Kiri Hannifin said there is plenty of food and groceries to go around.
However, while there are limits on some products in Auckland including toilet paper, flour, rice, dry pasta, UHT milk, frozen vegetables, baby formula and pet food, there are no limits in place in Northland.
"For our online shoppers, demand is heavy but our priority assistance service is back up and running for vulnerable New Zealanders and all deliveries nationwide will be contactless," Hannifin said.
In a statement Foodstuffs, which owns New World, Four Square and Pak'nSave, asked customers to respect staff and each other.
"Please only buy what you need and be fair to others.
"We have plenty of stock, and to ensure there is plenty of product to go around, limitations will be put in place on a store or product basis if the individual store determines there is a need."
Foodstuffs encouraged customers to use contactless payments such as payWave to reduce contact between customers and staff.
Wage subsidy: What you need to know
Northland businesses forced to close due to the sudden move to alert level 4 can access the Government's wage subsidy scheme.
Grant Robertson said the wage subsidy would be available for businesses across New Zealand impacted by the lockdown.
Employers can apply for support if they expect a loss of 40 per cent of revenue as a result of the alert level increase.
The rates have been increased to reflect the increase in wage costs since the scheme was first used in March 2020.
Businesses will be eligible for $600 per week per full-time equivalent employee, and $359 per week per part-time employee.
Applications open on Friday, with the first payments usually available after three days.
Other support is available, including a resurgence support payment if firms incur a loss of 30 per cent of revenue.
This is worth up to $1500 plus $400 per full-time equivalent employee, up to a maximum of 50 full-time employees (up to a total of $21,500).
The leave support scheme provides a two-week lump sum payment of either $585.80 per week for full-time workers or $350 per week for part-time workers who must self-isolate and cannot work from home.
Robertson said the Government is well-placed to respond to Covid-19.
