Report highlights many doing it tough in Waikato District post-Covid-19

Waikato District Mayor Allan Sanson. Photo / Waikato District Council

A report received by Waikato District Council's Strategy and Finance Committee on Wednesday clearly highlights the impacts of the Covid-19 lockdown on Waikato District businesses and the community.

Waikato District Mayor Allan Sanson said: "We know that the effects of Covid-19 and the resulting lockdown, has touched all parts of the district and economy.

"This is why it was important for council to not only provide a vital Civil Defence and essential service role during the pandemic but to get out there and speak with our communities about how they're doing.

"With this important knowledge, we will be in a better position to support and help the district through the recovery phase of Covid-19."

Throughout April and May, the council completed more than 800 household and business surveys, and together with sources from the Ministry of Social Development, NZ Police, Infometrics and its own data.

Council knows that

• 83 per cent of businesses have accessed the wage subsidy;

• 90 per cent of businesses reported that they were in 'okay' or better health pre-lockdown;

• Effects of the drought, commodity prices, and export hurdles have negatively impacted the agriculture, forestry and fisheries sectors;

• 63 per cent of households have reported a drop in income, some as much as a total loss;

• Job Seeker benefit numbers have grown by 25 per cent . Compared to other local authorities in New Zealand, the Waikato District is in the middle of the pack;

• 47 per cent of new 'job-seekers' are first time beneficiaries, showing that many different types of workers have been affected;

• Crime rates are increasing.

Building consent numbers (construction activity) for the first quarter of 2020 remain strong relative to previous periods; however, resource consents in the district have been gradually falling since a peak in mid-2018.

Strategy and Finance Committee chairwoman Janet Gibb that although the report highlighted there were large numbers of people in the community doing it tough, it was pleasing to see that a large portion of households and businesses were positive about the future.

"From the survey, 71 per cent of households told us they weren't concerned about their job security and 43 per cent of businesses expected business to return to pre-lockdown levels.

"This shows the spirit of the Waikato District. We're a tough bunch and I know that together, we will get through this," she says.

Gibb was also happy to see that most businesses and residents contacted as part of the survey were pleased to hear from the council during this time.

"Being able to be there for our communities during this time and helping them through these next stages will be vitally important. We will do what we can to be there for you," she says.

Council's analytics manager Dr Mark Davey notes that while the wage subsidy scheme will be providing a 'false economy' for some time, the data already shows that even with the subsidy, the effects on businesses and households are widespread and this shouldn't be forgotten by the council.

"The effects are likely to come in waves over the next 12 to 24 months as the various sectors of the economy are impacted differently from things such as a reduction in customers, reduction in global demand and commodity prices, supply chain issues, on-going effects from the droughts and liquidity.

"Consumer, household and business confidence remains key to enable a speedy recovery," he says.

The council intends to do this household and business survey again soon.

The full report can be found on council's website as part of the Strategy and Finance Committee agenda here.