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Home / Rotorua Daily Post

'Plea from a sector on its knees': Call for country to adopt UK initiative asking Govt to subsidise restaurant meals

Zoe Hunter
By Zoe Hunter
Rotorua Daily Post·
26 Aug, 2020 07:00 PM5 mins to read

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Pig & Whistle historic pub and Capers Epicurean cafe owner Gregg Brown. Photo / Andrew Warner

Pig & Whistle historic pub and Capers Epicurean cafe owner Gregg Brown. Photo / Andrew Warner

A petition calling for New Zealand to adopt an overseas initiative that would see the government pay for half of someone's restaurant, cafe or pub meal is a "plea from a sector on its knees", an MP says.

A Rotorua business leader says the initiative was "too good to miss" and local hospitality owners say it could help those who have lost their jobs afford a restaurant meal.

But other hospitality owners say the government has helped enough through wage subsidies and were unsure how a system that worked overseas could be implemented in New Zealand.

The Restaurant Association presented its 3483 signature petition to Parliament on Tuesday asking the Government to adopt a scheme similar to the United Kingdom's Eat Out to Help Out initiative to help the battling hospitality industry.

Under the UK scheme, the government foots 50 per cent of the bill of a meal eaten at a cafe, restaurant or pub from Monday to Wednesday with a limit of £10 or NZ$20.

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Restaurant Association chief executive Marisa Bidois. Photo / File
Restaurant Association chief executive Marisa Bidois. Photo / File

If adopted, the Kiwi version dubbed Dine Out to Help Out would follow the same idea and apply only to food, not alcohol.

Restaurant Association chief executive Marisa Bidois said a New Zealand initiative would put much-needed cash back into the pockets of struggling hospitality businesses while helping Kiwis get a freshly prepared meal at a discounted price.

"Hospitality operators continue to be impacted by alert level changes, border closures and
consumer uncertainty.

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"Without focused, targeted assistance many hospitality businesses will not survive.

"Our industry has been battling for months now, with thousands of jobs lost and businesses looking to close their doors for good."

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Rotorua MP Todd McClay. Photo / Andrew Warner
Rotorua MP Todd McClay. Photo / Andrew Warner

Rotorua MP Todd McClay said hospitality was one of the hardest-hit sectors and the petition was a "plea for help from a sector on its knees".

McClay said more targeted assistance from the Government was needed to save businesses, jobs and livelihoods.

Rotorua Chamber of Commerce chief executive Bryce Heard. Photo / Andrew Warner
Rotorua Chamber of Commerce chief executive Bryce Heard. Photo / Andrew Warner

Rotorua Chamber of Commerce chief executive Bryce Heard said now that the petition had closed "all we can do now is rattle the cages and draw everyone's attention to it".

"It seems like such a good idea. It is too good to miss," he said.

"If we can help support the hospitality industry through this they have got a much better chance. It deserves the support of pretty much everyone."

Sharon Wallace, Rotorua branch president of the Restaurant Association. Photo / Supplied
Sharon Wallace, Rotorua branch president of the Restaurant Association. Photo / Supplied

Sharon Wallace, Rotorua branch president of the Restaurant Association, said Rotorua was in the heart of the "tourist diamond" where manaakitanga was vital.

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"The people of the hospitality industry are what keep this city alive and I salute the
employers and employees who have thought outside the box to keep things moving."

Giovanni's Italian Restaurant & Pizzeria and Mamma Rosa Pizzeria & Restaurant owner Deep Kumar said he signed the petition as it was "a great initiative".

"Many people have lost their jobs and may not be able to afford to dine out. It will give them an opportunity to go out and take their family of four or six out if the Government is paying 50 per cent."

Pig & Whistle historic pub and Capers Epicurean cafe owner Gregg Brown. Photo / Andrew Warner
Pig & Whistle historic pub and Capers Epicurean cafe owner Gregg Brown. Photo / Andrew Warner

Pig & Whistle historic pub and Capers Epicurean cafe owner Gregg Brown said he was unsure if he would have signed the petition.

"The Government has been pretty generous with the wage subsidies," he said.

"I think while they might do it in the UK, has the UK done everything New Zealand has done and have they spent as much money?"

"It is not as simple as it seems on the surface."

Brown said the last two weeks had been "tough" since Auckland went into level 3 and the rest of the country in level 2 but he was confident there would be "a resurgence in demand" once the restrictions were lifted.

Abracadabra Cafe and Bar owner Justin Genest said the business was closed on Monday and Tuesday and Wednesday were naturally quieter days.

"It would encourage customers or New Zealanders to go out and eat on those days. It would be amazing but I don't know how they would implement that kind of system."

Waiariki Labour MP Tamati Coffey. Photo / Andrew Warner
Waiariki Labour MP Tamati Coffey. Photo / Andrew Warner

Waiariki Labour MP Tamati Coffey said the petition was a good idea but he was more focused on returning to alert level 1.

"That's what every bar and restaurant owner and the whole country is focused on."

Coffey, who co-owns Ponsonby Rd bar and Our House restaurant on Eat Streat in Rotorua with his partner Tim Smith, said he wondered if adopting the initiative would increase patronage or see people dining earlier in the week to take advantage of the discount.

The petition was delivered to Minister of Commerce and Consumer Affairs Kris Faafoi and has since been referred to the Economic Development, Science and Innovation Select Committee.

A statement from Faafoi's office said the minister recognised the important role the hospitality sector played in New Zealand.

The minister said the government needed to balance a strong public health response to Covid-19 with providing wide support to businesses, including hospitality, through programmes such as the wage subsidies, which had already paid out $13.4 billion.

Minister of Finance Grant Robertson said the Government recognised the impact Covid-19 was having on businesses in all industries and moved quickly to introduce the wage subsidy and extend it.

"The best economic response remains a public health response. We will keep working with all sectors to provide support as we deal with this global pandemic."

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