The decision to extend Covid-19 Alert Level 4 was based on a "mix" of issues that included economic matters, Finance Minister Grant Robertson said today.
Earlier today, Prime Minister Jacinda Ardern announced New Zealand’s Covid-19 Alert Level 4 lockdown will extend to 11.59pm Monday April 27, with the country to then stay at Alert Level 3 for two weeks before a review.
Mr Robertson told TVNZ1's Q+A the decision was based on whether there was confidence they were breaking the chain of transmission and confidence around testing, contact tracing and the health systems.
"We also considered economic matters as well. The best thing for the New Zealand economy is to get on top of the public health side of this crisis," he said.
"We put all of those things into the mix together, and you're right, we had people telling us we should be extending Level 4 by many weeks, we had people telling us we should be lifting it straight away on Wednesday.
When asked what it would take to move to Level 2, Mr Robertson said "a continuation of the fantastic work that New Zealanders have been doing in Alert Level 4 continuing on to Alert Level 3".
"We stick to the rules, we continue to break the chain of transmission, we see those case numbers come down even further.
Australia's response
National Party leader Simon Bridges said today that New Zealand should be looking to Australia in its approach to eliminating Covid-19, saying it had similar outcomes health-wise but with "much better" economic outcomes.
In response to Australia's approach, Mr Robertson said, "from our perspective it’s about doing it once and doing it right".
"What we don’t want is the yo-yo effect, when we go down levels and have to bounce back up again and restrictions come in, it just adds to uncertainty."
"From next Tuesday, those construction activities, manufacturing, forestry, a big part of our productive economy can come back.
"This week those businesses can get themselves prepared and ready so that they can go gangbusters from Tuesday next week."
Commerical rent issues
After wages, rent and utility costs were the next biggest issue many employers were grappling with after the pandemic sent shockwaves through New Zealand's economy.
Mr Robertson said the Government made moves to ensure businesses could not be evicted for 30 days, so that commercial landlords and tenants would come to "constructive arrangements".
"We’re continuing to work on what we can do for businesses to help them through this period of time and will continue to look at all the options available."
He said the Government was putting billions of dollars into keeping businesses going, "but that hasn’t stopped us from looking at what more might be possible".
Local Government rate rises
Mr Robertson said central Government would not step in to stop any council rate rises.
"Many of them have got services that they want to keep providing and that that budgeted for these rate increases."
He said many local government leaders would be weighing up the issue of many of their ratepayers being unable to afford rises.
"But this is not going to be a situation where central Government rides across the top of those democratically-elected local governments, we’re doing what we can and I’m sure those local government politicians will be thinking just the same way about how they can help."
Tax
Mr Robertson was asked if the high amount of borrowing to pay for the Covid-19 response would see a broadening of New Zealand's tax base.
"Undoubtedly one of the things will consider in the future as to how we deal with this," Mr Robertson said.
"I think you’ll understand that those decisions are a little way down the track, we’ve got about three waves of work under way at the moment... to position ourselves for recovery and then making sure we look at the overall settings of the New Zealand economy.
"That third wave of work will be talking more than about where we end up... but for now I believe we’re doing the right thing by making sure we’ve got the money available to support New Zealanders."
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