$50m fund for cyclone-hit businesses
The government has announced a $50 million support package to help cyclone-hit businesses, with companies set to start receiving payments within a week, but notes “this is only the beginning”.
Grant Robertson, Minister of Finance, revealed the fund targeting businesses and the primary sector on February 20 and says tax relief will also be extended for those struggling after the recent extreme weather events.
“It’s the very practical support that’s needed right now,” he adds. “Ministers will finalise the distribution of this funding in the coming week, but this will include support to businesses to meet immediate costs and further assist with clean-up.
“Within a week, some of those businesses will be receiving what they need to tide them over.”
The package is expected to include discretionary funding for flood recovery, business continuity, and support for resiliency and mental wellbeing.
Robertson, who has also taken on the new role of Minister of Cyclone Recovery, says businesses will have different needs and the initial funding is aimed at providing cashflow they could access quickly.
He explains the money is not intended to subsidise wages but a formal wage subsidy scheme may be considered after this initial response.
The government has pledged another $250m is available to help Waka Kotahi NZ Transport Agency and local councils to assess and fix roads, with a focus on opening lifeline roads and reconnecting isolated communities.
Michael Wood, Minister of Transport, notes: “We have a large job ahead to determine the extent of which state and local roads can be rebuilt and which cannot or should not be replaced.
“This medium and long-term work will take time and require additional funding over and above that announced.”
The latest support following the impact of Cyclone Gabrielle comes as Robertson warns the total cost to the government may be similar to the $13 billion it spent rebuilding Christchurch after the 2011 earthquake.
He explains there will be a “rolling maul” of announcements related to the cyclone and investment into the recovery and rebuild will be “significant”.
