The Tauranga City Council administration building on Willow St. Photo / File
The Tauranga City Council administration building on Willow St. Photo / File
Tauranga City Council has claimed a $3.7 million Government's wage subsidy for 576 staff.
It is one of only four councils in New Zealand so far to claim the subsidy, alongside Waikato District, Westland District and Northland Regional councils, according to a search of employers that received the subsidy.
Councilcorporate services general manager Paul Davidson told the council's Finance, Audit and Risk Committee on Tuesdaythe council had received payment but its application still had to go through an audit.
The money would reduce the council's $5m operating deficit for the current financial year.
Council-controlled organisation Bay Venues also applied, Davidson said.
Committee chairman Bruce Robertson said many councils had not applied for the Government subsidy, but their subsidiaries, such as transport and works companies, had.
Davidson said the council initially was not planning to apply but had decided to go ahead after conversations between staff and the Ministry of Social Development.
Businesses had to show a 30 per cent loss of revenue over a month to qualify for the subsidy.
According to a staff report prepared for the meeting, the council believed it could meet the threshold on a "cashflow basis".
The council lost revenue during April because of closures during the lockdown and affects on air travel and recession.
"It has a straightforward bottom-line impact for our residents and ratepayers, it's good news."
Council general manager of people and engagement, Susan Jamieson, told the Bay of Plenty Times no council staff had been made redundant as a result of Covid-19.
In a council meeting tomorrow, the council's executive will put forward its plan to reduce staffing related costs, along with other recommended spending cuts.
She said redundancies had not been ruled out, but would largely depend on Thursday's decisions.
Representatives of Bay Venues, the gallery and Tourism Bay of Plenty also confirmed they had been able to retain their staff thanks to the wage subsidy.
Bay Venues acting chief executive Justine Brennan said the organisation was working through strategies for the next financial year, including not replacing vacant roles and asking staff to use annual leave during times of reduced operating capacity.
Head of destination marketing at Tourism Bay of Plenty, Kath Low, said the visitor information centre was closed under level 3 and 4, and the cancellation of cruise ships also contributed to a drop in income.
The subsidy enabled the organisation, which is co-funded by the Tauranga City and Western Bay of Plenty District councils, to meet its budget for this financial year. It was talking to funders and working out its budget for 2020/21.
Gallery director Alice Hutchinson said the gallery was grateful for the subsidy, which saved staff jobs including casual workers.
"Having made significant savings over the past 12 months, the gallery is in a positive position as we continue to create new platforms for outreach and engagement."
