New Zealand Finance Minister, Grant Robertson, is positive that the New Zealand economy will “balance out” in recovery after the impacts of Covid-19.
“The government’s wage subsidy hasn’t been taken up to the extent that we thought it may have been,” Robertson told TVNZ1’s Q+A today.
The wage subsidy supported 1.7 million New Zealanders as businesses struggled to stay afloat amid the Covid-19 pandemic. A further 437,000 New Zealander’s were on the extended wage subsidy as of July.
While some industries, especially tourism and international education, may have to cut further jobs, many of the impacted companies have been able to keep trading and do “relatively well” during June and July.
This improved business environment has allowed businesses and companies to rehire staff.
“We have seen trading [far] ahead of where people thought,” Robertson said.
“There will, however, be some businesses where they won’t be able to keep all of their staff on. We’ve recognised that, and that’s why we’ve put in place the Covid Income Relief Payment.”
That 12-week relief payment is the equivalent of the Wage Subsidy Scheme, before the Government moves towards “more targeted support for particular sectors”, including tourism.
