Cabinet has approved the development of a Business Continuity Package to help support the economy through the disruption caused by COVID-19.

The package includes:

• a targeted wage subsidy scheme for workers in the most adversely affected sectors;
• training and re-deployment options for affected employees; and
• working with banks on the potential for future working capital support for companies that face temporary credit constraints.

As part of the package Treasury and IRD have been directed to develop tax policy options in line with the goal of reducing the impact for affected businesses, to support businesses to maintain operational continuity.

Treasury and the Ministry of Social Development have been directed to develop policy options to support households to maintain incomes and labour market attachment.

The Government says the detail of the package is being worked through and will be discussed again at the Cabinet COVID-19 committee next week.

“New Zealand is well-placed to respond to COVID-19. We have been running surpluses and our net debt position at 19.5% of GDP is well below what we inherited, and well below other countries,” says Finance Minister Grant Robertson.

“Ministers have been in regular contact with businesses and industry groups as we work together to respond to the impacts of COVID-19. We have already taken action to support businesses and workers, and we are now in a position to announce the next steps in response to this rapidly changing situation.”