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Alert-level split puts strain on market

Industry organisation warns challenges will remain for companies outside of Auckland despite the impending easing of Covid-19 restrictions.
Posted on 07 September, 2021
Alert-level split puts strain on market

The Motor Trade Association (MTA) is welcoming the return to alert level two for most of the country but warns Auckland staying in Covid-19 lockdown will have a significant impact on automotive businesses nationwide.

It is also reminding companies of the need to be vigilant around the scanning and recording of people visiting premises after the government has tightened the rules around alert levels.

Prime Minister Jacinda Ardern announced on September 6 that everywhere outside of Auckland will shift to a strengthened level two from 11.59pm on September 7

Auckland remains at level four, with that situation set to be reviewed by cabinet on September 13. The whole of the country first went into lockdown on August 17 following a community outbreak of the Delta variant of the coronavirus.

Tony Everett, MTA’s dealer sector manager, says the change in levels is a signal of things slowly moving back to “normal”.

“That said, New Zealand is one complete marketplace and Auckland is our biggest segment of that market,” he adds. 

“As the dominant port of entry and also the head office base for many organisations, a ‘hobbled’ Auckland places a strain on market operations in other parts of the country. 

“Most vehicles – new or used – arrive in Auckland to be certified and transported to other centres. So, Auckland being still ‘locked down’ will have a significant impact on all other regions.”

Everett, pictured, notes the new rules mean it will be mandatory for people to scan or record visits to a business, so companies are in a stronger position to require this before a customer enters.

“Masks will be required when interacting with customers, but we understand that workers in non-public parts of the business should be able to work without masks as long as physical distancing can be maintained. 

“Staff who interact with the public should consider staying masked when talking to colleagues who do not.”

The MTA says sourcing automotive parts may pose a challenge for the industry but are vital in the maintenance and repair of the national fleet. 

It has been advised by the Ministry of Transport that Auckland-based suppliers cannot provide goods for services that are not regarded as essential at alert level four if it involves them manufacturing or packing the goods. 

“However, if the goods are already packed and ready for dispatch they will be regarded as freight and can be sent to an alert level three or two area,” adds Everett. 

“As we have found, a lot depends on your definition of ‘essential’. Brakes and other operational items would clearly be essential, floor mats probably not.”

He says businesses need to respond quickly to Covid-19 changes but admits the rules are in flux at the moment as “the government grapples with how best to allow people to return to work while staying safe”. 

The rules have changed for masks, numbers at events, and scanning. Workers that cross the alert level borders will also need to have a weekly coronavirus test, which could impact supply lines and delivery times.

Everett says: “MTA has called on the government to engage more actively with industry to learn lessons from each of these lockdown experiences so that we can develop clear, agreed protocols and practices ahead of the next lockdown, if that comes.”