Call to reconsider winding down quake subsidy

10:11 pm on 18 April 2011

Earthquake-affected businesses in Canterbury want the Government to reconsider plans to wind down a subsidy that is helping them to keep paying staff wages.

Under the Earthquake Support Subsidy, $190 million has so far been distributed to almost 70,000 people.

A second round of the subsidy is available from Tuesday, but under stricter criteria and only for six weeks. Qualifying businesses will receive gradually reducing fortnightly payments over the period.

The Business Recovery Network, which advocates for small to medium businesses, wants the Government to reconsider its decision to wind down the scheme.

Network chairman Matthew Carpenter also owns Cares Appliances, which is trading without its flagship store while it waits for building repairs.

Mr Carpenter says the first round of the subsidy helped him pay 14 staff, but he does not know if he will still be able to employ them once the second round ends.

Some businesses are going through huge upheavals, such as changing their core specialities which could take months or years, he says.

Earthquake Recovery Minister Gerry Brownlee says he is not ruling out further subsidies.

Mr Brownlee says the Government is watching how businesses are doing on a daily basis and it is aware how important it is to keep people employed.

Subsidy details

The second round of the subsidy will reduce from $500 to $250 over the six weeks, before ending altogether.

For the first two weeks, the subsidy will stand at the current rate of $500 gross per week for full-time employees and $300 for part-time employees.

This will reduce to $375 and $225, respectively, for the second fortnight, and $250 and $150 for final two weeks.