Relief for quake-hit businesses extended

The subsidy will continue for another eight weeks and extends to businesses in Hanmer Springs and wider Hurunui District. Photo / Mark Mitchell

The Government's relief package for quake-affected businesses has been extended for another eight weeks, it was announced today.

The subsidy, which pays $500 per week for full time employees and $300 for part time staff, was initially implemented for eight weeks after the November 14 earthquake struck near Kaikoura.

Minister of Economic Development Steven Joyce and Minister for Social Development Anne Tolley announced the extension package in a joint statement today.

"It's important to provide certainty for the affected businesses during what would normally be their busy summer period," Joyce said.

"While good progress is being made restoring the southern access to Kaikoura, it will still be some weeks before both roads south are open and operational for visitors. The road north will take a long time to be restored."

The package was designed to assist companies who had experienced a "sudden, large and sustained" drop in revenue to retain their staff while the district recovered.

"The further eight week extension is available for businesses in the Kaikoura district who face a dramatic drop in their turnover as a direct result of the earthquakes and the closure of State Highway One."

The Ministers also announced today that the support package would now be available to businesses in Hanmer Springs and the wider Hurunui District which could show a sudden, large and sustained drop in revenue.

For businesses in Hanmer Springs, the package would be limited to eight weeks and be backdated to the date of the earthquake.

"Cabinet has set aside $5 million more for the package overall in addition to the $7.5 million originally allocated," Tolley said.

So far there had been 639 applications from businesses for the support, with $4.877 million paid out.Anyone requiring information and support can call the Government helpline on 0800 779 997.

The extended support package will:

• Provide $500 gross per week for a full time employee ($4,000 per person);
• $300 gross per week for a part time employee ($2,400 per person);
• Not be subject to GST (i.e. so employees get a higher net subsidy);
• Be backdated to the date of the earthquake.