Leaders wary about Level 3 conditions

As New Zealand continues on its course of staying home and staying safe, some businesses see a clear way ahead while others worry about the shadow the Covid-19 virus has already cast over the southern economy.

Prime Minister Jacinda Ardern yesterday announced at least three more weeks in which only essential and "safe operations" could function: one more week of Covid-19 Alert Level 4 and then at least two weeks of Level 3.

Level 3 would come into effect at 11.59pm next Monday.

Aaron Hawkins
Aaron Hawkins
Dunedin Mayor Aaron Hawkins was among those who heralded a "sensible approach" that could avoid "yo-yo-ing" between alert levels and gave councils — and local businesses — another week before entering the uncharted territory of Level 3.

"It’s hard going for a lot of people and we’re aware of that and that’s why it’s really important over the next week, when a number of businesses have the opportunity ... to pivot to models that allow them to trade in some form under Level 3, that we do as much as we can to support as many of them as possible to be able to do that."

He encouraged people to support local businesses "because that is more important now than it has been in a long time".

"If people continue to take this as seriously over the next three weeks as we have for the last four, then we can conceivably see ourselves in a Level 2 scenario within the next month."

That would be "a huge relief — not just in terms of our economic wellbeing, but also people’s social wellbeing".

Tim Shadbolt
Tim Shadbolt
Invercargill Mayor Sir Tim Shadbolt called the decision to go to Level 3 next week a balanced "move in the right direction", but there was more urgency for Queenstown Lakes Mayor Jim Boult.

He said despite being encouraged by the prospect of some economic regeneration, including domestic tourism, after a future move to Level 2, Level 3 conditions would not fix mass unemployment or more business failures in his district.

The announcement had to be seen in the context of thousands of redundancies in the district so far, and many more to follow.

Some business leaders in the South called the extension of the lockdown another blow for businesses still waiting for Level 2 to be able to open again.

There was concern that retailers, bars and restaurants unable to open at Level 3 would be significantly financially affected, Otago Southland Employers Association chief executive Virginia Nicholls said.

'We believe that if these services are able to successfully put appropriate protocols in place to meet the business safe services plan, then they should be given the opportunity and responsibility to open," Mrs Nicholls said.

Those businesses needed more cashflow and commercial rent support from the Government, she said.

Clarity was needed in the next few days for businesses to know how to interact with customers, especially what the directive for "contactless" business transactions meant for certain sectors, Otago Chamber of Commerce chief executive Dougal McGowan said.

The construction industry would be happy to return to work, Queenstown Chamber of Commerce chief executive Anna Mickell said, as would some takeaway and food delivery businesses which would take the opportunity presented by Level 3, but the announcement offered little relief for the vast majority of businesses in the tourism-reliant town.

Tourism operators and other sectors such as accommodation, event management and film production remained in trouble.

Mr Hawkins said the Dunedin City Council would review updated financial forecasts at the end of May as the impact on the council’s budgets became clearer, and over the next few days it would become more clear whether council services such as kerbside recycling could return.

Invercargill City Council chief executive Clare Hadley said Level 3 "does mean that we'll be able to get parks staff out in the gardens and we will be responding to some building inspections as required".

 

Add a Comment

 

Advertisement