Finance Minister Grant Robertson releasing details of Government's recovery package. Photo / Mark Mitchell
Finance Minister Grant Robertson releasing details of Government's recovery package. Photo / Mark Mitchell
Finance Minister Grant Robertson says the Government may bring May's Budget forward to help with the fallout of the coronavirus pandemic.
Robertson spoke to Newstalk ZB's Mike Hosking a day after announcing the Government's unprecedented $12.1 billion coronavirus spending package.
The plan – "the most significant peace-time economic plan inmodern New Zealand history" – has been almost universally welcomed.
It came on the same day as New Zealand reported the most number of new cases of the virus - up four to a total of 12, including a Dunedin school student.
Robertson told Newstalk ZB this morning that an extra winter payment was to ensure that older New Zealanders due to be affected - having to stay indoors more and longer - would be supported.
Robertson said the Government's move was about supporting workers and the country's most vulnerable people - beneficiaries and the elderly - at this time. "This is a balanced package. It is about both boosting demand and also supporting our most vulnerable."
The scale of the spending has been described as bold, strong and "suitably aggressive" and comes as Robertson admitted yesterday that a recession in New Zealand "is almost certain".
Robertson would not be swayed around questions as to why those on welfare were seemingly getting a huge boost of support over workers who would be largely affected if jobs went.
He said it was important that all New Zealanders were supported.
The Finance Minister also acknowledged that the District Health Boards around the country would be supported by the Government as the outbreak continued.
"There will inevitably be more cases," he said.
He also touched on the idea that the Budget may be announced earlier than initially planned, saying that that was the next "big" financial task to be addressed.
On export, he said there was no doubt the industry would be affected particularly when remembering that airlines are also being heavily affected in the coronavirus saga.
Although he was keeping optimistic, he said: "The reality is that this a global disruption."
The package
• $5.1 billion in wage subsidies for Covid-19 affected businesses
• $2.8 billion income support package increased benefits and the doubling of the Winter Energy Payment
• $2.8 billion in business tax changes to free up cashflow
• An initial $600 million aviation support package
• $126 million in Covid-19 leave and self-isolation support
• A $100 million redeployment package
Almost half of the cash will be spent on a wage subsidy package for all Covid-19-impacted businesses.
Fulltime workers eligible for the package will receive $585 per week from the Government, paid in a lump sum package of just over $7000 covering a 12-week period.
Part-time workers, people working fewer than 20 hours a week, would receive $350 a week.
Businesses which have suffered, or are projected to suffer, a 30 per cent decline in revenue compared to any months between January and June the year prior will be eligible for the subsidy.
That is as long as they have taken steps to mitigate Covid-19's impact and promise to pay affected employees at a minimum of 80 per cent of their income over the 12 months period.
