Saturday, 20 August 2022
Meet the JournalistsPremiumAucklandWellingtonCanterbury/South Island
CrimePoliticsHealthEducationEnvironment and ClimateNZ Herald FocusData journalismKāhu, Māori ContentPropertyWeather
Small BusinessOpinionPersonal FinanceEconomyBusiness TravelCapital Markets
Politics
Premium SportRugbyCricketRacingNetballBoxingLeagueFootballSuper RugbyAthleticsBasketballMotorsportTennisCyclingGolfAmerican SportsHockeyUFC
NZH Local FocusThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay of Plenty TimesHawke's Bay TodayRotorua Daily PostWhanganui ChronicleStratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu Courier
Covid-19
Te Rito
Te Rito
OneRoof PropertyCommercial Property
Open JusticeVideoPodcastsTechnologyWorldOpinion
SpyTVMoviesBooksMusicCultureSideswipeCompetitions
Fashion & BeautyFood & DrinkRoyalsRelationshipsWellbeingPets & AnimalsVivaCanvasEat WellCompetitionsRestaurants & Menus
New Zealand TravelAustralia TravelInternational Travel
Our Green FutureRuralOneRoof Property
Career AdviceCorporate News
Driven MotoringPhotos
SudokuCodecrackerCrosswordsWordsearchDaily quizzes
Classifieds
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDriven MotoringThe CountryPhoto SalesNZ Herald InsightsWatchMeGrabOneiHeart RadioRestaurant Hub

Advertisement

Advertise with NZME.
New Zealand|Politics

Government officials turned their noses up at a potential policy to subsidise Kiwis' dinners out

21 Feb, 2021 11:00 PM4 minutes to read
Treasury officials considered, but rejected a plan to subsidise Kiwis' meals out in a bid to stimulate the economy.

Treasury officials considered, but rejected a plan to subsidise Kiwis' meals out in a bid to stimulate the economy.

Jason Walls
By
Jason Walls

Newstalk ZB Chief Political Reporter

VIEW PROFILE

Top financial officials explored a scheme which would have seen the Government paying for part of people's meals if they went out to eat.

But the Treasury ultimately decided against the idea as incentivising people to go out to eat would "run counter to the public health goals" at higher alert levels.

Instead, the Government decided on the resurgence support payment scheme, which grants eligible Covid-hit businesses access to a $1500 lump sum, plus $400 per full-time employee.

Read More

  • Covid 19 coronavirus: Auckland's move to level 1 - epidemiologist confident region is ready - N...
  • Covid 19 coronavirus: No new cases in the community, one in MIQ - NZ Herald
  • Covid 19 coronavirus: How will we know we've reached herd immunity? - NZ Herald
  • Covid 19 coronavirus: Shocking New York Times front page shows America's crisis - NZ Herald
  • Covid 19 coronavirus: Kiwis back tough measures - but complacency a risk - NZ Herald
  • Covid 19 coronavirus: US expert predicts coronavirus will be 'mostly gone' in US by April - NZ ...

That scheme is likely to cost the Government an estimated $320 million.

Advertisement

Advertise with NZME.

But the Restaurant Association is calling for the Government to adopt the scheme to help embattled businesses.

A just-released Regulatory Impact Statement (RIS) reveals officials explored implementing an "Eat Out to Help Out" scheme, similar to the one in the UK.

That policy saw the UK Government subsidise up to 50 per cent of someone's meal bill; it was implemented as a way to incentivise people going out to eat and helping struggling restaurants and cafes.

According to the Guardian, more than 49,000 businesses claimed for the scheme which cost £849m (roughly $1.6 billion) over the month it was in place.

But a research paper, written by University of Warwick economist Thiemo Fetzer, said the scheme could have caused six Covid-19 clusters. The UK Treasury rejected this finding.

New Zealand Treasury officials, however, clearly took the research into consideration when rejecting the policy back home.

Related articles

World

Shocking NYT front page shows US pandemic crisis

21 Feb 08:58 PM
New Zealand

Phil Goff: Council budget will play a vital role in Covid recovery

22 Feb 04:00 PM
Business

Air New Zealand trials vaccine passport

21 Feb 08:46 PM
New Zealand

Woman refusing Covid swab in MIQ had already protested against lockdowns

22 Feb 04:48 PM

"It was concluded that the scheme would run counter to the public health goals at higher alert levels to subsidise and therefore incentivise eating out."

But Restaurant Association chief executive Marisa Bidois said that a similar scheme was needed in New Zealand.

Advertisement

Advertise with NZME.

"Our proposal was for the scheme to be launched at alert level 1 and also during traditionally quieter periods for our sector, with these months even more challenging due to the effects of the pandemic It was to sit alongside a number of other initiatives proposed by the Association designed to support the sector."

Hospitality NZ chief executive Julie White said although this scheme would have helped some struggling restaurants in New Zealand, it would not have been a "silver bullet".

Rather, she called on the Government to provide more targeted support to hard-hit hospitality businesses.

The resurgence support payment was very helpful, she said, but many hospitality businesses are still reeling.

For example, the lockdown over Chinese New Year would have set some restaurants back many thousands of dollars and the support payment would not cover those costs.

"I don't think it should be a blanket approach … We definitely think there should be a hospitality support package."

Advertisement

Advertise with NZME.

The RIS also revealed that Treasury officials had a number of concerns about the resurgence support payment scheme.

Subscribe to Premium

These include the fact that it could "incentivise them [businesses] to get rid of staff in order to become eligible" for the scheme.

The RIS said: "This could make it harder for these firms to survive and may incentivise them to get rid of staff in order to become eligible, which we do not want to encourage".

Despite this, officials agreed that on the whole, the policy was worthwhile as it would prevent many smaller firms from going under.

Finance Minister Grant Robertson said last week that the scheme "shares the burden with businesses when alert levels rise or in the event of a resurgence of Covid-19".

Advertisement

Advertise with NZME.

Latest from New Zealand

Premium
New Zealand

'A perfect storm': Kiwifruit review underway as huge number of fruit rejected

19 Aug 07:00 PM
New Zealand

Live: 'Unbelievable' wild weather - further flooding as heavy rain hits again overnight

19 Aug 06:55 PM
Premium
New Zealand

Afraid of the power bill: Why some over 50s are struggling to make ends meet

19 Aug 06:45 PM
Premium
New Zealand|Politics

Steve Braunias: The secret diary of Gaurav Sharma

19 Aug 06:02 PM
New Zealand

Firefighters save man trapped on car roof in raging torrent

19 Aug 06:01 PM

Most Popular

Live: 'Unbelievable' wild weather - further flooding as heavy rain hits again overnight
New Zealand

Live: 'Unbelievable' wild weather - further flooding as heavy rain hits again overnight

19 Aug 06:55 PM
Wiggles in NZ: Wiggles star reveals life changing hospital encounter
Entertainment

Wiggles in NZ: Wiggles star reveals life changing hospital encounter

19 Aug 06:03 PM
Shamubeel Eaqub on 'stupid' inflation debate and how he'd fix poverty
Business

Shamubeel Eaqub on 'stupid' inflation debate and how he'd fix poverty

19 Aug 06:03 PM

Advertisement

Advertise with NZME.
About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2022 NZME Publishing Limited
TOP