The wage subsidy scheme "doesn't cut it" in supporting struggling small businesses during the Covid-19 pandemic, National leader Simon Bridges says.
It comes after Small Business Minister Stuart Nash was unable to provide estimates around how many were likely to go out of business due to the Covid-19 lockdown during today's select committee meeting.
Prime Minister Jacinda Ardern announced yesterday a five-day extension of Alert Level 4, which will lift to Level 3 at 11.59pm April 27 for a minimum of two weeks.
Mr Bridges told media today small business owners who contacted him understood "the significance of beating Covid-19, but they also know and feel they are the sacrificial lamb in this".
"They’re simply not getting the support and the wage subsidy doesn’t cut it."
"It’s not just a month in lockdown, it’s another week, then it’s Level 3, it's the time, the uncertainty and the costs that they can't meet."
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.
"The Opposition is standing up for those small business who I think are disproportionately bearing the brunt of the Government’s Covid-19 response," Mr Bridges said.
"The Government hasn’t done that homework on what the effect is on small businesses, how many may go out of business."
During this morning's Covid-19 select committee, Mr Nash was asked if he knew how many small businesses would close due to the extension of Alert Level 4, and the two-week minimum that the country would stay at Alert Level 3.
"I believe and Cabinet believe an extra week in lock down will actually end up saving small businesses," Mr Nash said.
When pushed on the detail later during the committee, Mr Nash said it was "very difficult to come up with a definitive number".
He said it was thought between 400,000-500,000 employees would be able to return to work next week, but admitted that there was certain sectors of the economy that would not be able to come back at Level 3.
Mr Bridges called the rules around Alert Level 3 "incredibly restrictive, the economy is going to be far from free".
Finance Minister Grant Robertson was asked last night on TVNZ1's Q+A around the potential of subsidising commercial rent for businesses that were struggling.
Finance Minister Grant Robertson told Q+A he is looking at a range of options to help small businesses struggling to pay the rent while under lockdown. (Source: Other)
"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.
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".
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