A supermarket vegetable supplier says it is among companies fearing the Omicron outbreak could wreak havoc on its output now it can't get access to rapid antigen tests (RATs).
Morgan Laurenson supplies potatoes, onions and carrots to supermarkets and says it was yesterday advised by its supplier that its order for 5000 RATs had been seized by the Government.
The Government has millions of tests on order and said it is consolidating supplies of the tests, not commandeering them from private businesses.
However, the National Party has accused the Government of "nicking" tests from private companies because it has been so slow in ordering its own.
Morgan Laurenson managing director Bill Foster said it is crucial to his company's Omicron plan to have staff use RATs before coming onsite so it can continue its essential work supplying food to Kiwis.
Even with stringent bubbles and plans in place, just one person coming to work while infected with Covid could potentially force a whole shift of workers into days of isolation, he said.
"For a business to do everything it can to keep operating and have that interfered with is unfair," Foster said.
"The fact we are a step ahead of the Government in securing (RATs) should not be detrimental to us."
Foster's concerns the Government is seizing private supplies of RATs is being echoed across the business community.
Katherine Rich, chief executive of the Food and Grocery Council, which represents businesses that supply shops with food and drink, earlier said multiple members of her organisation had been told by suppliers their test orders had been cancelled.
"They have been told that all available stock has gone to the Ministry of Health," she said.
Some companies are warning this will lead to supply chaos and empty shelves, as businesses will no longer be able to offer tests to staff.
Others are complaining they're having to explain to staff worried about their health why promised tests might not arrive.
RATs provide much faster results than traditional polymerase chain reaction (PCR) tests but are typically less accurate.
Foster said the ability for staff to "surveillance test" themselves at home with a RAT would allow them to have an idea whether they have Omicron before going to work.
Staff that test positive could then stay home and go for a traditional PCR test.
Knowing a colleague has tested positive, other workers would also be able to take RAT tests and continue going to work so long as they don't also test positive.
Foster said this would be critical to keeping his company - which washes, dries, packs and distributes vegetables from its base in Palmerston North - running with its relatively small onsite staff of 65.
He said the company had run effectively during level 4 lockdowns using separate bubbles of workers, but that the sheer number of expected Omicron infections meant much greater disruption was likely during this outbreak.
His company consequently ordered about 5000 RATs through a supplier called Health Works Group on January 19.
However, he was told yesterday the delivery couldn't be made because they were instead going to the Government.
Health Works Group buys RATs from multinational pharmaceutical company Roche.
Director Clair Connor this week said her company earlier had $100,000 of RATs paid for and confirmed for delivery from Roche until she was suddenly told the tests would instead be sent to the Government.
"They're seizing the tests direct from the supply companies," she said.
"All that's happened this morning is we got a call from our big supply company Roche saying 'sorry, we know we said your order was going to come yesterday, but sadly there is no stock today'," she said.
Prime Minister Jacinda Ardern said more than 40 million RATs kits had been ordered by the Government.
The Government planned to use PCR tests in the first wave of the Omicron outbreak - with capacity for up to 60,000 tests a day - before incorporating RATs into the system to cope with rising case numbers.
Director general of health Dr Ashley Bloomfield earlier said during a 1pm press conference his team had talked with its three main suppliers - Abbott, Roche and Siemens - for all forward test orders not yet in the country to "be consolidated into the Government's stock".
That is to ensure there is RATs available for the "whole country including private businesses", he said.
The Government could then ensure it redistributed these to essential businesses in need, he said.
"As you know there is extremely high demand on rapid antigen tests globally."
Associate Health Minister Ayesha Verrall also said businesses placing small orders of 5000 to 10,000 tests may have trouble securing their orders anyway due to the high demand across the world.
But National Party Covid Response spokesman Chris Bishop said the Government's failure to put in its own early order for RATs was now going to cost private business.
"Businesses who have had rapid tests seized by the Government have been told that they will not be able to get access to their orders and no compensation will be paid for the seizure of their property," he said.
"The Government will decide who gets the tests, and how many they will get."
The Government instead needed to allow anyone who wants to import the tests into the country to do so immediately so they can be put on sale at pharmacies and supermarkets for anyone to buy, Bishop said.