Last week’s adjustment to conditions on the financial package is a victory for hospitality, with over half now likely to be eligible for the small cash payments, says Hospitality NZ.
The Government has agreed to allow businesses to compare their revenue after 15 February with the six weeks from 4 January 2022 or 2021.
It had originally set a threshold of 40% reduction for 2022 only – when hospitality’s downturn had started back in November.
Hospitality NZ CEO Julie White says the change is a victory for common sense.
“Hospitality has been badly hit for months so the threshold was plain wrong.
“We’re pleased we got it changed in the same week of the announcement, and before the programme starts.”
She said a survey of the sector last week indicated that more than half hospitality businesses would now be eligible, but the value of the grants was small compared to the current and past losses.
“For most, the cash will be less than the cost of their rent for the period. It’s probable we will need another round of this package after six weeks.”
White added that the sector would now shift to focus on the inequities of the heath settings, including the now redundant isolation rules at the border, and a shift to the Orange setting.
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