Canterbury still needs business recovery package
new-zealand-labour-party
Wed Apr 27 2011 12:00:00 GMT+1200 (New Zealand Standard Time)
Canterbury still needs business recovery package
Wednesday, 27 April 2011, 11:47 am
Press Release: New Zealand Labour Party
Clayton
COSGROVE
Canterbury Earthquake Recovery Spokesperson
MP for Waimakariri
27 April 2011 MEDIA STATEMENT
Canterbury still needs business recovery package
National must urgently reconsider its decision to can the Christchurch business recovery package in two weeks given Chamber of Commerce estimates that up to 10,000 businesses will need significant help in the future, says Labour’s Canterbury Earthquake Recovery spokesperson Clayton Cosgrove.
“That could mean 24,000 people --- using a conservative estimate --- are out of work when the package is phased out in a couple of weeks,” Clayton Cosgrove said. “Evidence from Massey University research suggests that up to 40 per cent of small to medium enterprises could eventually fold.
“As 59,000 people are currently on the Government’s employment support scheme that means that almost 24,000 will be left jobless as the Government cuts businesses adrift.
“The Government laughed at us when we raised the figure of 20,000 a couple of weeks ago. Well, it isn’t a laughing matter as far as Christchurch people are concerned, and now there is evidence to show the Government just how serious the problem will be.
“Our electorate offices report considerably higher levels of stress in constituents. These are people who have lost their homes, who are earthquake refugees, whose children have had to be transplanted from one school to another, and who have lost their jobs.
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“As more and more lose jobs, stress levels will continue rising. It will be reflected in increased domestic violence and abuse of alcohol and other social problems. Good people are getting so wound up that they are doing things that are out of character.
“Business New Zealand chief executive Phil O’Reilly also says some businesses will be unable to stand alone when the package ends, and wants business recovery coordinators to identify struggling businesses quickly so that on-going support can be provided,” Clayton Cosgrove said.
“The problem is made worse because many small businesses don’t belong to organisations like the Chamber of Commerce. They are one or two-person companies. They should have been identified as vulnerable months ago in many cases, but the Government hasn’t done its job.
“Small business is the lifeblood of the New Zealand economy, but that lifeblood is set to quickly drain away unless the Government urgently re-thinks its business recovery package,” Clayton Cosgrove said.
ENDS
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