4 February 2022
Hon Grant Robertson
Minister of Finance
Kei te rangatira, tēnā koe
Targeted financial support for businesses impacted by the traffic light system
After almost two years of operating under the 4-tiered COVID-19 Alert Level system, it is understandable that it would take the public some time to get used to the COVID-19 Protection Framework and what this means in practice for businesses and public safety.
We also appreciate the traffic light system was established to ensure sectors such as ours do not continue to be disproportionately impacted as we were in the previous Alert Level system. However, we are beginning to see a marked increase in patron hesitation, which can be directly linked to the presence of Omicron in the community and a resulting traffic light change to red.
I am getting feedback about patron hesitation from Auckland-based businesses the most, however it is a sentiment shared across the country. You may have experienced it yourself; friends or family who interpret the new red alert level as a new lockdown setting.
I have written to Hon Chris Hipkins offering our assistance to support the government in realigning its communications strategy in the wake of Omicron. It is our view that the current messaging appears to be perpetuating an undercurrent of fear and uncertainty, which in turn impacts public confidence in their safety and flows through to patronage.
My ask is for the reintroduction of the support provided to businesses under the Alert level system. Given the public confusion about the COVID-19 Protection Framework, I ask in particular that the following financial supports are once again made available following any move to the red setting:
- targeted wage subsidies for hospitality venues
- a one-off COVID-19 resurgence support payment with the same benchmark of a 30% drop in revenue, as this has occurred with many hospitality businesses following the move to the red setting.
Over the past two years we have learnt all too well that there is a long tail to all lockdowns for hospitality – diners taking time to rebuild their confidence in returning to our establishments, which then creates anxiety for business owners and a slower recovery than other sectors. However, we have not seen it as pronounced as it is with Omicron – despite the alert level change not being a lockdown. We have work underway with other business organisations to further assess the situation, and I will be able to provide a more fulsome briefing on the state of the hospitality sector in the coming weeks.
Meantime, we would value the government considering the introduction of targeted support for industries such as hospitality that are experiencing patron hesitation as a result of a change to the red light setting.
Ngā mihi nui,
Marisa Bidois
Tāhūhū Rangapū (Chief Executive)
Restaurant Association of New Zealand