Finance

Auckland’s businesses are seeking more government funding due to the extended lockdown.

Auckland’s businesses are appealing to the government for more funding because they are facing a dilemma. Lockdown extension.

Central Auckland Wednesday, August 25, 2021. Today is the eighth day of Code 19 Lockdown.

“This is a really difficult time for business,” said the Auckland Chamber of Commerce.
Image: RNZ / John Adence.

The government has once again provided revival subsidies to help with fixed overheads such as rent.

But businesses tired of the big smoke lockdown, which faces at least two more weeks at warning level 4, say it wasn’t enough. While signing, he demanded from the government to extend the doomsday subsidy.

These business owners include Matthew Koshi, managing director of Meltrons. Its Auckland-based business has a team of five employees, selling industrial scales and other engineering equipment.

Alert Level 4 lockdown cools the boom from previous business restrictions. Koshi was not taking wages for himself and he was sinking into the reservoir to pay the bills.

“We have seen our revenue fall by about 80 per cent due to non-performance of essential services. A strong start in July and a strong start in August has been broken down into two weeks,” he said.

Koshi backed the government’s call for the country to be locked down, saying business could be affected for a week or two under warning level 4.

But he said businesses would need help through fiscal deficits that would continue for a long time under trade sanctions.

“From here, it’s going to hit us hard, now it’s been extended for two weeks,” he said.

“The problem for business owners is that the wage subsidy only covers the salaries of our staff, leave any wages for yourself. Then you will get all the expenses we are facing, including our rent, utilities. , Insurance payments and rent purchases, and plant and equipment costs. They keep going and we can’t eliminate those costs. “

Koshi wants to expand and eliminate recurring subsidies on a weekly basis, with money paid to businesses in terms of individual circumstances and income.

Michael Barnett, chief executive of the Auckland Chamber of Commerce, said Matthew Koshi’s company was not the only business struggling there.

“Many of them came out with the expired balance sheet of 2020. They were in recovery mode, just going back and now they are under pressure.

“It’s a really difficult time for business.”

He praised the wage subsidy as helping employees – but he thought employers also needed help.

“We are not asking the government to make all the payments. [business’s costs]We are asking him to complete one share.

“The government is asking businesses to close, but businesses are expected to operate there and be there to revive the economy in a few weeks.”

Christina Living, principal economist at the New Zealand Institute of Economic Research, said the lockdown had abruptly halted Auckland’s strong economic recovery from previous sanctions.

But he said that when fed with the help of the government, the economy has proven to bounce back.

“As long as these support measures are in place and the cash flow continues to flow in the economy, businesses can employ workers and with a strong labor market, we will be able to spend at home.”

“Faith is the best medicine for business ventures at such times,” Leung said.

In a statement, Finance Minister Grant Robertson said the government is continuing to look into whether additional assistance is needed through rehabilitation subsidies, especially since there is a high alert level.

Robertson said wage subsidies, leave support schemes and short-term absentee payments are reasonably available to businesses.

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