The hospitality business says it will not open under Quaid 19 Alert Level 2 and is threatening to stop paying GST unless it receives further support from the government.
A group of about 30 to 30 hospitality business owners held a video conference on Tuesday, mostly in Auckland, to discuss the implications of the new Alert Level 2 settings on the sector and when the city finally arrives. What steps are needed to ensure the survival of the business. Out of lockdown
Under Alert Level 2, which many call Level 2.5, the maximum number of people at an indoor hospital is 50 and the social distance requirements have been increased from 1 meter to 2 meters. The whole country, except Auckland, goes to Level 2 at midnight.
If Auckland falls to Alert Level 2, and no other part of the country is on High Alert Level, then wage subsidies will no longer be available to businesses.
* Some of Haspo’s businesses in Level 2 are ‘opening the door to losing money’.
* Most hospitality businesses in Auckland will no longer be financially viable after a week of lockdown.
* 19: What does the Level 4 alert mean for New Zealand?
In a video conference, many business owners said they would not open under Alert Level 2 without further support, such as continuing the salary subsidy.
Many businesses will not be able to escape the new Alert Level 2, said Affair Yudlevich, owner of Jefferson Bar.
“We need to tell them we can’t survive at 2.5.”
“It will become clear in the rest of the country in the next few weeks,” he said.
He said that government assistance which is offered at level 3 and 4, such as payment of wage subsidy and rehabilitation assistance, should be offered at level 2.
More mental health help is needed, he said.
Shake Isles Coffee owner Sam Ansley said being at Alert Level 2 was the worst level because businesses did not receive support from the government or relief from banks or landlords, and it was a difficult environment to do business.
He said he would not open his business under the current Level 2 settings.
Midnight Gardner, owner of a Ponceby RD restaurant and bar, Luke Dello, said they would also remain closed on Alert Level 2 under current settings.
He said he and other hospitality businesses would prefer to stay at level 3, and if they go to level 2.5, businesses will not pay GST.
We do not want to pay GST to the government as a protest.
He said that the hospitality industry associations were not lobbying the government on behalf of the industry and did not fully understand the challenges facing the hospitality business.
Headquarters owner Liu Molloy said wage subsidies should be given at level 2.
He suggested that the hospitality business should stop paying GST, which it did during the previous lockdown.
“Businesses should tell Inland Revenue that they will not resume GST payments until they return to Level 1,” he said.
Richard Bagnal, co-owner of Ponsenby Bar Longroom, said the hospitality business’s failure to open under Alert Level 2 would send a strong message to the public that the sector is working hard.
He thought that the people would follow the industry because they wanted more experience than just takeaway candies.
Hospitality New Zealand chief executive Julie White said the organization had held direct talks with the government last year when guidelines for working under Level 2 were set up, with some input from the health ministry.
“It simply came to our notice then. [Ministry of] Health is running a show. No one is advising them commercially.
He said that the association has already expressed to the ministers that it does not accept the Level 2 setting.
She said she was meeting with Finance Minister Grant Robertson and Small Business Minister Stuart Nash on Friday to outline the pressure on the hospitality sector.
He said the hospitality sector needs targeted support, and rehabilitation assistance needs rolling payments rather than one-time payments.