Thursday, 14th May, 2020
Struggling small and medium sized businesses will be relieved that Government is extending the wage subsidy but the Budget has missed the target on delivering the stimulus needed to rescue and resuscitate critical economic sectors here and now and encourage investment.
It’s a very long bow to believe that locals, led by the private sector still figuring out the size and shape of their business as they shed staff, are going to respond and drive recovery with a mountain of new investment. No one knows the path of the virus here, let alone in other countries we trade with. We needed a package to encourage investment in identified and prioritised sectors in New Zealand.
The real test of the budget will be how the $50b fund will save up to 140,00 jobs and employment growth of 370,000 new jobs over 4 years.
Mr Barnett said. “We need to know the plan to get small and medium business through the next few months, beyond a dependence on a wage subsidy to keep people employed for a little longer, so that we build a future that gives New Zealand the best competitive edge.
For more information contact Michael Barnett, mobile: 0275 631 150.
Michael Barnett, Chief Executive, Auckland Business Chamber.