The so-called targeted support payments to businesses struggling in the COVID-19 Red Traffic Light has been described as a con by hospitality members of the Dairy and Business Owners Group.
“After reading the fineprint, does the government take us for fools?” asked Sunny Kaushal, Chair of the Dairy and Business Group who also has interests in hospitality.
“With Small Business Cashflow Loans coming due for many in the industry, what Labour cynically lent us with one hand, they’ll take right back with the other in loan repayments. It’s blood from a stone as few will qualify for targeted support payments.
“After all, it’s their policies that have kneecapped us. This new scheme is truly cynical because they chose our slowest trading period being the six-weeks before February 15. It should have been last August before we went to Covid hell in a handbasket.
“On top of choosing what turned out to be the worst six weeks hospitality has seen, after a lockdown that lasted in Auckland far too long, they’ve set a 40% revenue drop on top. That’s the business equivalent of an ankle-tap when we are already on our knees.
“So how many businesses will qualify? Sweet Fanny Adams that’s how many. Auckland was a ghost town prior to Waitangi weekend and it still is, unless you count crime. That’s about the only thing booming right now.
“It’s like Labour’s minimum wage hike, that’s really a business tax increase in sheep’s clothing. Not only does business get walloped but those on the minimum wage go into a higher tax bracket and pay more in ACC let alone Kiwisaver. The House wins, again.
“If the government really wants to help us, they need to drop their echo chamber, get out of the Beehive and start listening to us at the coal face as all we want is the ability to trade reliably, something we haven’t done for years. Here are some ideas:
- Cashflow Relief: Convert Small Business Cashflow Loans issued prior to 31 December 2021 into grants, so long as the recipient is still in business. If the loan was repaid, allow that business to draw it down again but for up to five years interest free.
- End “scanning in:” With thousands of cases in the community each day there’s no way contact tracing can keep up. As part of learning to live with Covid, we must now consign Scanning-in to history as an Alpha and Delta hangover.
- Reward the Team of 5-Million with a National Dine Out : Reward the team of 5-million over March and April and help hospitality to boost retail. We propose a $40 “Dine Out” voucher be attached to every myVaccine Pass (excluding delivery services, takeaways, fast food restaurants and alcohol). While this would cost around $164 million, at least $21 million of that comes right back to the government in GST, let alone taxes and economic activity. We need to break the Covid fear factor and this is one way.
- Set an end date for all vaccine passports and mandates: As Omicron has changed everything and with one of the highest full vaccinated/boosted rates on earth, the government must trust the science and set an end date for vaccine passports and mandates. We suggest after the National Dine Out ends but no later than 1159pm on Sunday, 17 April.”
