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Home / Rotorua Daily Post

Budget 2020 wishlist: Help those, like tourism, who need it most, businesses say

Stephanie Arthur-Worsop
By Stephanie Arthur-Worsop
News Director, Rotorua Daily Post·Rotorua Daily Post·
10 May, 2020 06:00 PM4 mins to read

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Finance Minister Grant Robertson has revealed the Government will be running deficits for an "extended period" of time and its debt levels will reach an all-time high.

A targeted approach to supporting businesses through Covid-19, an extension of the wage subsidy scheme and GST relief top the Budget wishlist for local business owners.

Budget 2020 will be delivered on Thursdayand is being called a "recovery budget" by Finance Minister Grant Robertson.

While it is yet to be revealed what that looks like for local businesses, the Government has already announced a suite of measures to provide relief for small to medium businesses affected by Covid-19.

READ MORE:
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• Covid 19 coronavirus: MPs unanimously pass biggest tax support package in NZ's history

Pig & Whistle and Capers owner Gregg Brown. Photo / File
Pig & Whistle and Capers owner Gregg Brown. Photo / File
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Pig & Whistle and Capers Epicurean owner Gregg Brown said, in his opinion, there needed to be targeted support for businesses, rather than a blanket approach.

"The businesses that are heavily reliant on international tourism will be feeling incredible strain for a long time whereas industries such as forestry are now up and running again and going full steam.

"Te Puia, for example, will be under long-term pressure and as a New Zealand jewel, we cannot let it fail."

Brown said, rather than continuing with financial support, the Government should, when appropriate and safe, "release the handbrake on the economy" and see where it lands.

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"Now is the time to take a more measured approach and see what happens when businesses are able to get back up and running. Then, say three months down the track, it can be assessed as to what fiscal stimulus is needed."
• Covid19.govt.nz: The Government's official Covid-19 advisory website

Brown said he would not support a helicopter fund, saying he would be surprised if the Government went down that route as, in his opinion, it was "borderline irresponsible".

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Local designer and Ahu Boutique owner Adrienne Whitewood. Photo / File
Local designer and Ahu Boutique owner Adrienne Whitewood. Photo / File

Local designer and Ahu Boutique owner Adrienne Whitewood said businesses had already received significant help and she hoped any further help was more targeted.

"I believe retail will bounce back, it's important help goes towards those businesses that really need it, such as those in tourism. Some of those businesses are not making any money at all right now and my heart really goes out to them."

The Appearance Clinic owner Michelle Washington (right). Photo / File
The Appearance Clinic owner Michelle Washington (right). Photo / File

The Appearance Clinic owner Michelle Washington said many of her clients were business owners themselves so if they were experiencing reduced revenue, so would she.

"It is going to be really tough, especially for small businesses in a tourist town like Rotorua. What the Government does for businesses in Rotorua needs to be different from what they would do in Auckland because the situations are different; we don't have the same volume of people or wealth to keep us going."

Washington said GST relief and a continuance of the wage subsidy scheme would help take the pressure off.

"I still have all my business costs. Things like repayments on my machines and rent don't stop just because the shop is closed.

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"We are always hearing that small businesses are the backbone of the economy so now is the time for the Government to put its money where its mouth is and support us through this time."

Destination Rotorua chief executive Michelle Templer. Photo / File
Destination Rotorua chief executive Michelle Templer. Photo / File

Destination Rotorua chief executive Michelle Templer said she hoped to see more clarity around the availability of long-term targeted support for those most affected by Covid-19.

"Further economic stimulus would come from the Government's funding approval of Rotorua's proposed shovel-ready projects to create more local jobs.

"It's also important the Budget acknowledges the support that will be needed for the regions to rebuild and thrive in a post-Covid environment.

"We've recently stood up the Rotorua Inc Whakahouhia te Whare Ohanga (Build Back Better) Steering Group as part of our role to bring together key representatives who can curate Rotorua's Covid-19 response, recovery and reinvigoration strategy.

"They are designing a plan to encourage innovative and sustainable business and key sector development that aligns with Rotorua's unique strengths. We will need central Government support to fund some of these initiatives."

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