South’s firms drew $208m from latest wage subsidy

Dunedin’s main shopping street, George St, quiet during the Level 4 lockdown in August last year....
Dunedin’s main shopping street, George St, quiet during the Level 4 lockdown in August last year. PHOTO: GREGOR RICHARDSON
Otago and Southland businesses claimed more than $200 million from the Covid-19 Wage Subsidy August 2021, Ministry of Social Development figures reveal.

The scheme, which the Government started nearly two years ago to support businesses during lockdowns, was put in place following the start of August’s outbreak and continued while Auckland remained behind its tight border measures.

In total, the two regions took $208 million, of which Otago claimed $167 million and Southland claimed $41 million.

The subsidy was paid out in two-week blocks, with eight payments in total covering from August 20 to December 9.

Payment one, and part of payment two, covered the South Island’s Alert Level 4 lockdown and Alert Level 3 restrictions.

In total, those saw $127million claimed — $96million in Otago, supporting 55,000 jobs, and $31million in Southland, supporting 19,000 jobs.

Finance Minister Grant Robertson speaks to businesses about the Government’s support packages via...
Finance Minister Grant Robertson speaks to businesses about the Government’s support packages via Zoom in August. PHOTO: COURTESY OF CANTERBURY CHAMBER OF COMMERCE
The remaining $81million was claimed in the last six payments while Auckland remained in Alert Level 3.

Initially, for the first two rounds, to be eligible for the subsidy businesses had to have a 40% drop in revenue because of the lockdown and its restrictions.

From the third payment onwards, businesses had to justify how Auckland remaining in Alert Level 3 or 4 directly affected them and have a 40% decline in revenue.

Southland only claimed $1million in each of the final three payments, for 1000 jobs.

Meanwhile, in payment six and seven, Otago took $10million each round and in the final payment it claimed $9million for 8000 jobs.

Nationally, the region to claim the most was Auckland, taking $2.7 billion, followed by Waikato and Northland.

Otago

August 2021 wage subsidy payments
No 1:  $61 million    55,000 jobs
No 2: $35 million    32,000 jobs
No 3: $17 million    15,000 jobs
No 4: $13 million    12,000 jobs
No 5: $12 million    11,000 jobs
No 6: $10 million    10,000 jobs
No 7: $10 million    9000 jobs
No 8: $9 million    8000 jobs

Total: $167 million

Southland

August 2021 wage subsidy payments
No 1: $21 million    19,000 jobs
No 2: $10 million    9000 jobs
No 3: $3 million    2000 jobs
No 4: $2 million    2000 jobs
No 5: $2 million    2000 jobs
No 6: $1 million     1000 jobs
No 7: $1 million    1000 jobs
No 8: $1 million    1000 jobs

Total: $41 million

riley.kennedy@odt.co.nz