Tuesday, 8th September, 2020
Businesses confident that their restructured enterprises will recover and revive beyond a short term bounce as we move down alert levels can take some comfort from the Government’s intention to extend the cashflow support, advice and tax package for another three years to “keep the engine room of the economy humming”, says Auckland Business Chamber CEO Michael Barnett.
“The second lockdown really hurt businesses, draining cashflows, reserves and confidence. Around 55 per cent of Auckland small and medium enterprises are in the throes of climbing back up to speed, currently operating at 75-100 per cent of capacity. If these enterprises are sure of their long-term viability, access to the no and low interest funding lifeline will help the rebuild and keep people in jobs.”
“But, there are small and medium businesses running on empty. Job losses are inevitable, restructuring will continue at pace and businesses will fail,” Mr Barnett said. “Those businesses teetering on the verge of make or break will have to make the hard call whether they want to cling to the hope of outliving the uncertainty of Covid shutdowns by borrowing or call it quits and limit their liabilities.”
For more information contact Michael Barnett, mobile: 0275 631 150.
Michael Barnett, Chief Executive, Auckland Business Chamber.