NZ govt provides $25 million for business support following Gabrielle

While each local agency will have their own processes, Robertson said that the government has provided the funding to address the immediate cash flow needs of affected businesses. These include those that have been impacted due to barriers to customer access, ability to source stock, supply chain issues, inability to operate as usual due to physical damage to equipment or premises, or delays in insurance assessments and repairs.

“Only the first stage”

Robertson also said in the press release that the initial allocation from this fund will be capped at $40,000 per business while the government assesses the overall demand for the fund. That said, further allocations can be made to businesses even after they access this initial funding.

“It’s important to note that this is only the first stage of government support for affected businesses and communities. We are working closely with communities to assess needs and expect to make further announcements in the coming days and weeks,” Robertson said.

Agencies distributing the business support grants include:

NorthlandInc
Auckland Business Chamber
Toi Economic Development Agency
Thames Coromandel District Council
Trust Tairāwhiti
Hawkes Bay Chamber of Commerce
Tararua District Council

Larger businesses that are facing costs that go beyond what this initial emergency funding could support are also within the government’s radar, Robertson said. The government will continue to work one on one with these cases to understand their needs and how it can support them.

A sum of $250,000 will be provided for the Employers and Manufacturer’s Association alongside the grants scheme to extend the reach of its employer hotline. Regional Business Partners will also receive $600,000 to increase the amount of business advice that they can offer.

All businesses within affected regions can also avail the First Steps mental wellbeing initiative. The costs for this service are covered by the recent funding injection after the Auckland floods. The NZ government will keep a close eye on developments, and is ready to assist further if deemed necessary.

“As we work swiftly in this response not every community and business is going to have the same needs. It makes sense that those providing the support have their boots on the ground and are part of the communities they are serving,” Justice Minister Kiritapu Allan said. “Through this package our local delivery partners will be using their grassroots knowledge and robust networks to tell us what they need, to ensure the funding is being distributed in the best way possible to meet the needs of their communities.” Allan said.

The overall economic cost related to the Auckland floods and Gabrielle are expected to cut heavily into New Zealand insurers’ profits, as shown in a recent research by analytics company GlobalData.

What are your thoughts on this story? Please feel free to share your comments below.