Ery Lyndon - The MSD is here for the long haul. Picture / File
More than 360 Te Hiku businesses are in the process of receiving their government wage and leave subsidies through the new care economy that has emerged since the Covid-19 Level 4 lockdown was announced.
The Te Hiku Iwi Development Trust Joint Work Programme, the Ministry of Social Development and Far North businesses have combined forces over the past three weeks to ensure that Te Hiku household incomes were boosted by $5.4 million in household income during the lockdown, their share of the estimated $12 billion set aside in the government's Covid-19 Economic Response Package for affected businesses to keep their staff employed.
The package has so far benefited 770 individuals and their families, each receiving the weekly wage subsidy of per week for up to 12 weeks, guaranteeing each recipient $7020.
Te Hiku Iwi Development Trust operations manager Maureen Te Paa said the trust, formed following the signing of the Te Hiku Iwi Social Accord in 2016, had been working hard to support affected employers, making contact with hundreds of them during the lockdown. They had found the swift transition from Levels 2 and 3 to Level 4 challenging. For many businesses it was a stressful and difficult time.
"We have had some awesome success stories," she said however.
"When these businesses have been paid out, they are phoning, so elated that someone cared enough to contact them and so grateful that we have been able to help get them over the line. The remaining businesses that are still waiting are also feeling relief that someone is on their side helping them out."
J&R Builders director Rachel Heemi said her company's six employees and five full-time contractors had felt the impact, as normal residential construction work had stopped completely.
Her employees had been able to access the wage subsidy, fast-tracked with the support of the trust, and the business has shifted its core operations to concentrate more on supporting the Ministry of Health and ACC with essential work.
"It's really awesome to see government and local iwi working together to support the Te Hiku community in this uncertain time," she said.
"Plus, our local suppliers have done an amazing job, quickly putting systems in place to ensure we can do this essential work safely and with zero contact. Obviously this has significantly impacted our turnover. However, we are dedicated to ensuring our employees' jobs are safe and maintaining a healthy pipeline of work for when restrictions cease."
Full advantage had also been taken of the lull in "normal" construction work to upskill staff through online training and support its four apprentices to work through the theory components of their apprenticeship programmes.
Work had also ceased for Ninety Mile Ice Ltd owner Pete Perene, who employs one full-time employee, with just one delivery being completed since the lockdown took effect.
"We're only supplying the gas stations that are open, and in March we worked half a day just delivering to them to top them up with ice," he said.
"Our business covers from Houhora to Hihi, but since the lockdown nobody's been going out. It's put a bit of a strain on us, but the subsidy from MSD has really helped keep us afloat for now."
The online application process had been seamless, and he had been able to access the payment in two days, he said, adding that winter was traditionally a quiet time for his business, picking up again over summer.
Eru Lyndon, Northland Regional Public Service Lead and Regional Commissioner for the Ministry of Social Development, said the ministry's ability to move quickly from serving the vulnerable to all New Zealanders had been important for the wellbeing of whānau. And the ministry was focused on assisting communities now and through to the recovery phase of Covid-19.
"We've successfully been on hand to help businesses across Northland, and together with iwi, other agencies and community groups, we're turning our attention to those affected to recover from this global event," he said.
The ministry was continuing to serve as an essential service, and encouraged those who needed assistance to visit the Work and Income website for information, apply for assistance via My MSD, or call 0800 559-009.
As at April 10, the ministry had received more than 400,000 applications for the wage subsidy, with $8.9 billion paid out to 1.4 million employees and self-employed.
Kaitaia Business Association chair Andrea Panther said online applications had presented their own set of issues for people with technological challenges in a digital environment. Overall, however, most business people had been impressed by the speed with which they were able to access their payments, while others were still getting the right support to navigate the system.
And isolated as they might be, the Te Hiku business community had developed a genuine camaraderie, employers are reaching out and getting each other through an uncertain time through information sharing and networking.
Mrs Panther added that the change to working from home had thrown up a range of diverse experiences for people as they adjusted to conducting business as usual in unusual circumstances.
"Some people are loving working from home, but others are really struggling," she said.
"I must say, working remotely for me means Zoom meeting after Zoom meeting, and this is actually rather tiring, working on your computer screen all day. And then the next minute you haven't moved off your seat for hours."
While there may be significant setbacks for people working from home, there were also many positives.
"There can be mental health concerns for those who can't cope with no social contact, but then we are hearing great stories about families spending time with each other. Particularly dads with their kids," she added.
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Businesses can apply for the wage and leave subsidy if their business has experienced a minimum 30 per cent decline in actual or predicted revenue over the past month compared to the same month last year, and that decline is related to Covid-19. For more information on how to apply, go to https://www.workandincome.govt.nz/products/a-z-benefits/covid-19-support.html#null