Sandra Johnson of Dry Dock Cafe says another week in lockdown won't be too much of a financial hit for her business but long-term, is worried that people will continue to work from home, affecting business. Photo / George Novak
Sandra Johnson of Dry Dock Cafe says another week in lockdown won't be too much of a financial hit for her business but long-term, is worried that people will continue to work from home, affecting business. Photo / George Novak
Some Bay business owners have backed a decision to extend the alert level 4 lockdown until next week, but others say moves down the levels need to happen faster.
Yesterday Prime Minister Jacinda Ardern said New Zealand would move to alert level 3 at 11.59pm on Monday - a publicholiday because of Anzac Day - rather than tomorrow night as originally scheduled.
The country will hold at level 3 for two weeks and then Cabinet will assess whether to move down another level.
Cabinet wanted to "lock in some gains" and give more certainty, Ardern said.
The lockdown has been an anxious time for Sandra Johnson, owner of Tauranga's Dry Dock Cafe, which will turn 10 on May 10.
The business had only survived and kept its staff because of the Government's wage subsidy, she said.
Sandra Johnson of Dry Dock Cafe says another week in lockdown won't be too much of a financial hit for her business but long-term, is worried that people will continue to work from home, affecting business. Photo / George Novak
A lack of clarity around when the country would move down the alert levels had made it hard to make a recovery plan.
Johnson said Monday's announcement provided enough certainty to move forward.
"A week isn't going to really make a lot of difference financially."
While contactless food deliveries were allowed at level 3, she said the cafe was not set up for that and it was not an option she was considering for potentially only a few weeks.
She was looking forward to being able to reopen the business under level 2, but expected a big drop in clientele as many of her CBD customers were with corporate businesses.
"A lot could be working from home indefinitely. That is scary to think about."
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A swift move to level 2 was the hope for many others in the business sector, especially those in retail, hospitality, accommodation and public-facing service industries.
Downtown Tauranga chairman Brian Berry. Photo / File
Brian Berry, chairman of mainstreet organisation Downtown Tauranga, said the extended lockdown left public-facing businesses "basically hung out to dry".
He believed there was a valid case for moving to level 2 now, given the lack of community spread of the virus.
Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / File
Tauranga Chamber of Commerce chief executive Matt Cowley said business issues compounded with each week the country stayed in lockdown.
"A number of businesses have taken on short-term financing to cover their fixed costs, including staff, rent and vehicles."
Industries that could prove they could operate safely should be able to open as soon as possible, supported by increased random testing to detect community spread.
Hospitality Association regional manager Alan Sciascia said some semblance of normality would not return until level 2.
"The nation does need businesses to be able to produce, to trade and to employ so as hopefully recover some of the huge costs incurred during lockdown."
The association's Bay of Plenty branch president Reg Hennessy said "the whole situation is dire" and questioned whether the hospitality industry would survive.
"Of course it will help fast food joints and the odd hospitality business who make the decision to do home deliveries, but for the majority of us the reality of firing our businesses up for home deliveries is impractical."
He said the only way for the industry to get through this was for urgent "real and meaningful support" from the Government, particularly with rents.
The association's Bay of Plenty accommodation sector chairman and 850 Cameron Motel owner Tony Bullot said many businesses would be talking to their landlords and he was grateful for a good relationship with his.
Tourism Bay of Plenty's chief executive Kristin Dunne. Photo / Andrew Warner
Tourism Bay of Plenty chief executive Kristin Dunne said from a tourism perspective there was no change between levels 4 and 3.
"Most retail, hospitality, venues and attractions remain closed, with continued travel restrictions.
"We cannot consider a 'restart' until alert level 2."
The organisation was planning for a number of potential futures and remained confident in its regeneration strategy.
Priority One chief executive Nigel Tutt. Photo / File
Priority One chief executive Nigel Tutt said moving to level 3 would get some sectors that were big employers under way, including construction, transport and warehouses.
"We should be clear that this is no return to normal. Operating with social distancing is hard; businesses will need to deal with lower productivity, supply chains will be disrupted, and many will come back to a smaller market.
"We need to get to level 2 as quickly as possible, that opens up retail and hospitality in a meaningful way and takes away most of the restrictions."
Tauranga builder Todd Grey said he expected the extra week would not make much difference as most construction businesses would be ready to hit the ground running when the lockdown restrictions were loosened.
Tauranga mayor Tenby Powell said the move to level 3 would come as a "huge relief" to many.
Tauranga Mayor Tenby Powell. Photo / File
He backed the Government's approach but said the data indicated the pandemic had been brought under control so a move down the alert levels should follow.
"While we manage the health of the country under lockdown, we must now turn our attention to managing the health of the economy.
"We must now plan to reopen New Zealand even if only domestically at this next stage.
The council would continue managing most services remotely, but would resume building and compliance inspections.
Bay of Plenty Regional Council chairman Doug Leeder said the Government's decision was pragmatic and reasonable, and he could understand the conservative approach.
"I agree with the Government that we need to do this once and do it right," he said.
He was pleased forestry, construction, manufacturing and some other export sectors were among the "first off the block" to be allowed to return to work under certain protocols.
"We all need to recognise that with the amount of interventions and borrowings done by the Government, the only way we are going to be able to maintain our standard of living, is effectively to trade our way out it," Leeder said.
Schools will be able to open from Wednesday, April 29 for year 10 and younger students.
Pillans Point School principal Matt Simeon said the move would put teachers on the front line of the fight against Covid-19, but in his view it was time for them to step up and play their part.
