Some firms may still lay off staff despite subsidy

12:02 pm on 5 October 2010

Some Canterbury business owners say they may still have to lay off staff despite the Government extending its wage subsidy by four weeks for small firms seriously disrupted by the Canterbury earthquake.

The $350 per-person-per-week subsidy available to firms with fewer than 20 employees was announced three days after last month's 7.1 earthquake.

Alice and Peter Foo have been receiving the subsidy for three staff since the quake forced the closure of their Malaysian Delights restaurant.

They say they've been using their own money, including savings, to pay the rest of the wages but can't afford to do that for long and are considering laying off a kitchen hand.

Marty Braithwaite of Council of Trade Unions says many business owners may have to make staff redundant after the next four weeks.