The Motor Trade Association says it supports the ambition for New Zealand to eliminate COVID-19, but says the cost to business is raising mental and financial health concerns.
It wants Auckland to move safely to alert level three as soon as possible.
A survey of MTA’s Auckland 800 members last week found they are extremely stressed and close to one third (28%) are not sure they will still be in business at the end of 2021.
“Our members have drained their reserves – financial and mental – and need more help from government,” MTA chief executive Craig Pomare says.
“Along with an immediate move to level three, and a prompt move to level two, we need legal mechanisms to negotiate reductions to rent and other fixed costs, and to find new ways for businesses to operate at level four.
“It is becoming increasingly important to balance the public health outcomes alongside the economic and mental health impact these lockdowns are having on business owners.
“Our survey found that even though most members have accessed the Wage Subsidy and the Covid Resurgence Payment, to keep their businesses afloat 66% have reduced staff wages. A third of members have asked staff to take annual leave.”
“MTA Auckland members tell us that the government support payments cover, on average, less than half of total operating costs.
“So while businesses are expected to use government support to maintain 80% of staff wages, the businesses themselves are emptying the tank with expenses,” Pomare says.
The survey found that of those respondents surveyed:
· 66% reduced wages for their staff, mostly by 20%.
· Nearly 30% asked some or all their staff to use annual leave.
· 96% accessed the Wage Subsidy (August 2021); around 5% found the process complex, and one member did not apply for the subsidy because of the complexity.
· 98% accessed the Covid Resurgence Payment; about 10% found the process complex, and one member did not apply for the payment because of the complexity.
· 63.5% have not negotiated payment deferral or relief with suppliers.
· 42% have not negotiated rent deferral or relief with their landlord.
· 28% are not sure they will still be in business at the end of 2021
The MTA is the largest professional automotive body in New Zealand. Founded in Feilding in 1917, it now represents more than 3800 automotive businesses across the country.
