Finance minister Grant Robertson is urging Kiwis to be prepared for supply chain disruption as measures are put in place to control the spread of Omicron in the community.
Speaking at the Government’s red traffic light setting announcement on Sunday, Robertson says evidence from overseas shows the new COVID variant has had an impact on the supply chain as thousands of workers isolate.
“A critical difference with Omicron from previous outbakes is that the experience from overseas tells us that economic disruption will be experienced more on the supply-side of the economy,” he says.
Robertson says the Government is “working to avoid that disruption” through its contact tracing and isolation strategy and business support measures will be in place.
Asked if he expects to see empty supermarket shelves, Robertson says the Government has “been working closely with the supermarket sector and with the supply chain and logistics sector to make sure we don’t end up in that position”.
“I also know that there’s business continuity planning from those businesses to make sure that they have their teams organised to maximise the number of people who can be available.
“One thing I would reiterate is there is absolutely no need to be out there panic buying, supermarkets stay open right throughout the red level … obviously we’re asking people to think about what stocks you might need if you are sick but there’s plenty of time for everybody to get what they need,” he says.
In terms of of economic support, the initial focus will be on supporting those who are not able to be at work because they have COVID or have to isolate as a contact while they wait for a test, he says.
Robertson says the traffic light system, officially called the COVID Protection Framework, is designed to allow business to operate at the red level including having customers to visit.
“It is different how we have operated under the alert level system where at the higher alert level businesses could not open at all.
“We can do this because our vaccination rates are high and we have a strong contact tracing and testing system and public health measures that are in place.
“It is important to reiterate, at the red level this is not a lockdown … it is not what we did under the higher alert levels and if we all follow the rules and the health guidance the economy will be able to continue to operate strongly and business will be able to open,” Robertson says.
Financial support available
The Leave Support Scheme is among measures introduced.
“This is available to employers, and also includes self-employed people, to help pay their employees who’ve been advised to self-isolate because of COVID and can’t work at home during that period. It’s paid at the same rates as the wage subsidy was previous, that being $600 per week per full-time worker and $359 per week per part-time worker,” Robertson says.
“We also have the short-term absence payment. This is a payment available for businesses, again including self-employed people, to help pay their employees who cannot work from home while they wait for the result of a COVID-19 test. That is paid at $359 per eligible worker.”
Red setting
At the red traffic light setting businesses and workplaces remain open but with more mask wearing and distancing precautions and reduced gathering limits.
At red you can continue to visit family and friends and travel around the country.
Hospitality businesses can open, but are capped at 100 people indoors and customers must be seated and separated.
Events and gatherings for vaccinated people are reduced to 100. If people at an event are not vaccinated, that reduces further to 25.
In retail and public places there will be limits on those in a space based on the ability to maintain physical distancing.
Where a workplace deems it appropriate, they may choose to have employees work from home.
