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Home / New Zealand

Covid 19 coronavirus: Government modifies wage subsidy scheme, has message for rule rorters

Jason Walls
By Jason Walls
Political Editor – Newstalk ZB·NZ Herald·
27 Mar, 2020 04:09 AM3 mins to read

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Focus Live: Coronavirus - wage subsidy scheme up to $12b
The wage subsidy scheme the Government launched to help coronavirus-hit workers could cost as much as $12 billion. ...
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      The wage subsidy scheme the Government launched to help coronavirus-hit workers could cost as much as $12 billion.
      NOW PLAYING • Focus Live: Coronavirus - wage subsidy scheme up to $12b
      The wage subsidy scheme the Government launched to help coronavirus-hit workers could cost as much as $12 billion. ...

      Finance Minister Grant Robertson has modified the Government's multibillion-dollar wage subsidy scheme and issued a warning to any employers who are rorting the system.

      "I want to hear from anyone who believes an employer is taking the wage subsidy but not passing it on to their staff," he said.

      And Prime Minister Jacinda Ardern has a similar message to non-essential businesses remaining open during the lockdown.

      READ MORE:
      • Covid 19 coronavirus: 85 new cases in NZ, rules for leaving the house clarified
      • Covid 19 coronavirus: 'Patient zero' at Wuhan seafood market identified
      • Covid 19 coronavirus: Jacinda Ardern's lockdown message - don't head to the beach (like the Aussies)
      • Covid 19 coronavirus: 13 Marist students, teachers positive - pupils from other schools warned

      For the third time, she has requested the names of rule-breaking businesses be provided to her office when asked about them at press time.

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      "I'm asking them to do right by their community and to close."

      So far, $2.7 billion has been paid out to almost 430,000 workers under the wage subsidy scheme.

      Robertson pointed out a number of times while talking to media the scheme was one based on trust.

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      And any employer who was breaking that trust, and pocketing money that is meant for employees, could soon face consequences.

      COVID-19 UPDATE
      22 Jan Click on a bar to show the map for that day 74,855,994 confirmed cases globally30,918,684 active cases42,277,369 recovered1,659,941 deathsHover over a circleto see more detail
      74,855,994
      cases
      42,277,369
      recovered
      1,659,941
      deaths

      What will happen in New Zealand?

      New Zealand's cases are primarily due to overseas travel, meaning the increase in cases seen here is still due to how many people are arriving with Covid-19, not how it is spreading in New Zealand.
      010203040506070Days since fifty confirmed cases501002505001000250050001000025000500001000002500005000001000000Confirmed cases
      Click on the labels on the chart above to compare and you will see more locations.
      Last updated: Fri 18th December at 12:17 am
      Go here to see all our Covid-19 data

      The Government will soon begin publishing the names of firms which have received the subsidy, Robertson confirmed today.

      He also unveiled a number of changes to the wage subsidy scheme.

      These changes, he said, would help further soften the impact of Covid-19 on workers, families and businesses, and put them in a better position come New Zealand's economic recovery.

      Discover more

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      Business accessing the scheme must still undertake "best endeavours" to pay their employees 80 per cent of their pre-Covid-19 income.

      Where that is not possible – for example for a firm that has had no activity whatsoever due to the lockdown – the whole value of the subsidy scheme must be passed on to each affected worker.

      Businesses claiming the subsidy must undertake to keep employees in employment for the period of the subsidy, Robertson said.

      NeedToKnow3
      NeedToKnow3

      "This applies to all workers – all workers must receive at least the full value of the subsidy," Robertson said.

      "Employees should not be compelled to take their leave to receive the subsidy."

      The final change is around the Government's sick leave scheme.

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      When it was first announced, it was separate to the wage subsidy programme but it will now be folded that the same scheme to prevent "double-dipping".

      The cost of the total wage subsidy scheme now stands at $8-12 billion – taking to total spending package to as high as $26.6b.

      Local Focus: 'Tonight I will have a cry and that's it' - local business owners need kindness too
      Local businesses are vulnerable during the Covid-19 outbreak. Made with funding by NZ On Air. ...
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          NOW PLAYING • Local Focus: 'Tonight I will have a cry and that's it' - local business owners need kindness too
          Local businesses are vulnerable during the Covid-19 outbreak. Made with funding by NZ On Air. ...

          The amount paid out to workers has not changed, and remains $585.80 a week for full-time workers (who worked 20 or more hours per week before Covid-19).

          That figure is $350 a week for part-time workers (fewer than 20 hours).

          It will continue to be paid out in a lump sum covering the 12 weeks.

          Ardern had a final message to employers: "Look after your workforce.

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          "The wage subsidy scheme is there so that those who are at the greatest risk do not have to be at work."

          • Covid19.govt.nz: The Government's official Covid-19 advisory website

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