Thursday 24 February – News Round-Up

The latest support payment extension information, slow January growth but quarterly increases form the latest news round-up from The Icehouse.

Unite against Covid website outlines a new targeted COVID Support Payment will be made available for businesses struggling with revenue during the Omicron outbreak.

‘Each COVID Support Payment will be $4000 per business plus $400 per full-time employee, capped at 50 FTEs or $24,000. This is the same rate as the most recent Transition Payment. Applications for the first payment open on February 28, with payments starting from March 1.

‘It will be available on a fortnightly basis for 6 weeks, with 3 payments in total. This reflects the international experience that the peak of the Omicron outbreak should pass after about 6 weeks. We will continue to closely monitor the situation and have the option to extend the payment if this if necessary.’

RNZ reports on the Small Business Cashflow Loans Scheme extension, allowing firms that had already accessed it an extra $10,000.

‘It would have a new repayment period of five years, with the first two years being interest free. He [Revenue Minister David Parker] said the interest already accrued from borrowers accessing the scheme would also be cancelled for the first two years of the loan.

“This change will mean interest will only start accruing at the beginning of year three,” he said.

New Zealand's small businesses saw sales growth slow in January, yet employers are looking to pay more as they struggle to find staff, according to a new report from Xero, reports the NZ Herald.

Xero's latest report on the small business index fell to 97 points (slightly below average) across the last two months, ending a run of three consecutive months with above average scores in the 100s.

Xero's New Zealand and Pacific Islands managing director Craig Hudson said the index downturn is largely due to small business sales, which slowed to 4.6 per cent year-on-year in January after several strong months as lockdown restrictions ended.

RNZ also reports, ‘Infometrics' December 2021 Quarterly Economic Monitor [which] indicates economic activity rose an annual 2.8 percent in the quarter, as an easing of Delta restrictions unleashed demand in many local economies.

‘Economic activity has been strongest in the central North Island, with Hawke's Bay, Taranaki, and Manawatū all recording strong gains.

‘However, the spread of Omicron is expected to disrupt economic activity by restricting workforces, increasing absenteeism, and further stretching supply chains.’

Newshub reports on New Zealand sharing the title as the least corrupt country to do business by Transparency International's annual Corruption Perceptions Index.

New Zealand claimed the title - for the third year running – alongside Denmark and Finland, with a score of 88 out of 100.

The 2021 index scored 180 countries and territories based on expert perceptions of public sector and judicial corruption. 

However, despite the achievement, the organization warned that New Zealand can't afford to be complacent.

"We need to make sure that we restrict the flow of non-transparent money in and out of New Zealand," said Julie Haggie, chief executive of Transparency International New Zealand.

"We need more transparent public procurement, more protection for whistleblowers and more transparency of political party funding."

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