Financial boost for COVID-hit hospo
Hospitality New Zealand is welcoming the Government announcement that the Resurgence Payment will double for those businesses hit hard by COVID-19 restrictions.
“The doubling of the Resurgence Payment is desperately needed, so will be a relief for many in hospitality,” said Hospitality NZ Chief Executive, Julie White.
“It’s great to see the combined efforts of our sector over the past few weeks have finally convinced the Government we need and deserve financial support, and certainty about when and how our businesses can start operating profitably.”
Prime Minister Jacinda Ardern on Friday outlined a new COVID-19 Protection Framework to provide a pathway out of lockdown. Her announcement included a national target of 90% vaccination in order to move to the new framework.
Finance Minister Grant Robertson says the Government is boosting payments to businesses affected by higher alert levels as the country transitions to the new COVID-19 Protection Framework.
“While the ongoing restrictions in Auckland are keeping people safe, we also know they have made life very tough for businesses in the region. In recognition of that Ministers have agreed to significantly boost the Resurgence Support Payment,” said Robertson.
“After the next scheduled payment on 29 October we will move to fortnightly payments at double the current rate. The enhanced support will first be paid on 12 November and fortnightly thereafter until Auckland is able to move into the new framework.”
Currently the RSP is paid at a base rate of $1500 per eligible business and $400 for each full-time employee up to a total of $21,500.
For the payments starting on 12 November this will be $3000 per business and $800 per FTE, up to 50 FTEs. This will make the maximum fortnightly payment $43,000.
Julie White said while the payment boost is much needed, it will be too late for some businesses already facing closure. “Many, many hospitality and accommodation businesses, most of them family-owned, have failed or been severely damaged over the past 18 months.”
White says the key now is getting to a 90% vaccination rate, which is when all businesses using the vaccine certificate scheme will be able to open under any part of the new traffic light framework.
“We’re happy that the Government has heard our demand that it will only happen once legal protections are in place for those who refuse entry to non-vaccinated people and introduce staff mandates,” she said.
“We await further detail on support for businesses when Auckland moves into the new framework and help that will target most affected businesses.”
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