NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Premium
Home / Business / Economy

Coronavirus: What we know about Government's response to outbreak

Hamish Rutherford
By Hamish Rutherford
Wellington Business Editor·NZ Herald·
10 Mar, 2020 04:42 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Finance Minister Grant Robertson and Prime Minister Jacinda Ardern speak to reporters about the response to Covid-19 in Parliament on Tuesday morning. Photo / Mark Mitchell.

Finance Minister Grant Robertson and Prime Minister Jacinda Ardern speak to reporters about the response to Covid-19 in Parliament on Tuesday morning. Photo / Mark Mitchell.

ANALYSIS:

Prime Minister Jacinda Ardern and Finance Minister Grant Robertson have given slightly more detail about their thinking following news the Government may provide working capital to businesses facing a shortage of credit.

If that sounds innocuous, it may not be; this could represent the Government effectively underwriting loans to businesses. This could go further, in some respects, than the Global Financial Crisis, where the Government guaranteed banks.

At least in that case, Treasury and the Reserve Bank knew a lot about New Zealand's lenders. Here the Government could end up extending credit to companies that Treasury officials have never heard of.

On their way into Labour's weekly caucus meeting, Ardern and Robertson appeared to play down the idea, comparing what was being looked at to a facility provided by the Export Credit Office (NZECO), a unit of Treasury.

Advertisement
Advertise with NZME.

"There's already a system that works through the export credit office," Ardern said, before adding: "we're working through the detail of whether that should be more broadly applied".

Robertson conceded the assistance offered was "pretty limited" at the moment.

According to a report from 2018, the NZECO effectively insured around $150 million in trade in 2016/17, a tiny fraction of overall exports. According to its website, the NZECO's role is to "support New Zealand exports and the internationalisation of its exporters through the provision of trade credit insurance and financial guarantees".

Advertisement
Advertise with NZME.

Neither Robertson nor Ardern would say what might be eligible or what the limit would be, although Robertson conceded that it was a "reasonable point" that the working capital needs of companies could be massive, and this would be considered.

"It does get us into a whole other level."

Discover more

Lifestyle

Coronavirus: Panicking over virus isn't what kids need

09 Mar 11:00 PM

Elsewhere there was precious little detail of what will be in the Government's "Business Continuity Package", beyond that more details will be announced after on Monday, March 16.

Robertson is also giving a speech to the Wellington Chamber of Commerce on Thursday.

Millions or billions?

Across the Tasman, the Australian Government has said its stimulus package would be worth billions. Asked about this by Mike Hosking on Newstalk ZB, Robertson would not give details other than: "this package will be significant".

Ardern said it could not say how much the package could cost until it was designed. "What we will not do is simply choose a figure and then design something to fit within it."

On Monday the Government said it would offer some sort of wage subsidies to affected business, following calls from the businesses community which the Herald reported on early last week.

This could be similar to what happened in the wake of the Canterbury and Kaikoura earthquakes, where affected businesses had wages subsidised directly by the Government, in a bid to keep the businesses alive on the expectation that they could continue when conditions returned to normal.

Advertisement
Advertise with NZME.

But officials have been warning for days that while it was relatively easy to decide who might be eligible in the wake of an earthquake, where the damage happens in particular areas, in the case of Covid-19, it is more difficult, with different sectors and regions affected much more significantly than others.

Ardern said repeatedly that the current situation was different to SARs or the Canterbury or Kaikoura earthquakes and so the response had to be different.

"We have to have a package that is responsive enough over the period of time that will be required," Ardern said.

"We need to plan a package which will be responsive over the next few months, not weeks or days. That we get that design work right is critical so we don't leave businesses out who are genuinely affected by Covid-19." She earlier said, however, that whatever is announced next week, it will "evolve over time".

Asked how she would establish whether businesses were affected by Covid-19, Ardern appeared to simply restate the question, saying it was important the Government "make sure that it is targeted at those who are genuinely affected".

"We don't want to see a situation where wage subsidies are used to subsidise businesses who would otherwise be failing."

She would not say whether businesses would be limited by their size, refusing to limit it to small or medium businesses.

Separately, NZ First MP Shane Jones said that he hoped that some Provincial Growth Fund projects in regions affected by Covid-19 could be expedited, but had no details or particular projects in mind.

The Government has repeatedly said that it will not delay the April 1 increase in the minimum wage to $18.90. This morning National joined the chorus calling for the increase to be delayed. Early in February, Hospitality New Zealand made the same call.

Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from Economy

Premium
Retail

Winter chill boosts spending as Kiwis go clothes shopping

Premium
Business

Emails reveal Willis wanted Budget lock-up to be more restricted

Premium
OpinionSasha Borissenko

Sasha Borissenko: Is gig work freedom or friction?


Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

Advertisement
Advertise with NZME.

Latest from Economy

Premium
Premium
Winter chill boosts spending as Kiwis go clothes shopping
Retail

Winter chill boosts spending as Kiwis go clothes shopping

Consumers splashed out on winter apparel in June, but hospitality spending fell.

14 Jul 12:32 AM
Premium
Premium
Emails reveal Willis wanted Budget lock-up to be more restricted
Business

Emails reveal Willis wanted Budget lock-up to be more restricted

13 Jul 05:00 PM
Premium
Premium
Sasha Borissenko: Is gig work freedom or friction?
Sasha Borissenko
OpinionSasha Borissenko

Sasha Borissenko: Is gig work freedom or friction?

13 Jul 12:01 AM


Solar bat monitors uncover secrets of Auckland’s night sky
Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

06 Jul 09:47 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP