The economic response and impacts on businesses Te urupare ohanga me ngā pānga ki ngā pakihi

“And not only lives were saved. The Government did everything they could to help people survive financially. All those folk (including opposition MPs) who wanted to open back up for business seemed to forget that dead people can’t participate in the economy.”

55–64-year-old female, Auckland

“Billions of dollars in debt and a cost-of-living crisis the country is still struggling with.”

35–44-year-old male, Auckland

Many submitters praised the Government’s response for balancing economic and health factors well. People considered that the financial supports provided by the Government to keep businesses afloat and provide workers with financial security during the pandemic were appropriate and necessary.

On the other hand, many people were also critical of the Government’s economic response and considered that the economy is now suffering as a result, with high levels of debt, a higher cost of living and inflation. People often told us that they thought taxpayer money was wasted, that the process of applying for financial support was too trusting or lenient, or that the amount of money spent will lead to long-term economic consequences.

“The money spent on the COVID-19 campaign will cripple New Zealand for generations.”

45–54-year-old female, Northland

People thought there could have been a better balance between emergency spending and long-term strategies, and that the Government could have been more transparent about its spending.

Some people suggested that those in low socio-economic positions should be given support ahead of those who are in better financial positions. They also considered that inequities need to be addressed.

People were also critical of large businesses taking advantage of this financial support by asking for money that they didn’t need, or not paying money back.

While people acknowledged that the Government support for businesses was needed and appreciated, some told us they wished the government had communicated earlier that this would be happening. Business owners stated that they faced difficulties but were still grateful for the support they were given.

“Our economy was destroyed – business forced to shut, irresponsible COVID-19 support spending spree ramped up inflation.”

25–34-year-old female, Southland

“I would have liked more things in place to stop those businesses and people getting subsidies who could have continued without them. There were lots of people who seemed to benefit who shouldn’t have.”

75–84-year-old female, living in Auckland during the pandemic

Submitters praised the Small Business Cashflow Loans scheme for financially supporting small business owners during the pandemic. This scheme meant small businesses didn’t have to close because of financial difficulties, could continue to pay employee wages, and were able to keep on top of other financial commitments.

However, others were critical of this scheme. They told us they took out a government loan but faced financial difficulty and pressure when trying to pay it back, especially when the interest-free period of the loan ended.

Submitters, often self-employed people themselves, praised the Government for supporting self-employed people, with some stating that they appreciated how quickly they received support payments.

On the other hand, more self-employed people told us that they faced financial hardship and stress because they struggled to generate enough income. Some added that the financial support from the Government wasn’t sufficient, which caused financial stress and led to them closing or selling their businesses.

“Our workplace had a fundamental shift from reluctantly accepting working from home to completely endorsing it. This has made a monumental change to my lifestyle, as I don’t need to be on the road nearly as much, and I have much more time in a shared space with my wife and children.”

45–54-year-old Māori/Pākehā male, Auckland

People shared that being able to work from home meant they were more productive and had a better work-life balance. They told us that they appreciated being able to continue to work from home after the pandemic.

Others described the challenges they faced while working from home during the pandemic, including balancing work expectations with childcare.

Some suggested that working from home rules need to be clear so that there is understanding of the expectations. Others felt that working from home was necessary, but difficult.

“Working from home was hard as it felt like I was working all the time – there wasn’t the work/home split. People thought it was okay to communicate at any time with expectations that you would deal with their issues/queries straight away.”

45–54-year-old Pākehā female, Tairāwhiti

“I lost my job in retail three months into the first lockdown. I was luckily able to get the government wage subsidy money and was extremely grateful for this.”

25–34-year-old Māori/Pākehā female, Southland

People shared their experiences of job loss during the pandemic (unrelated to vaccine mandates). They told us that they, or someone they know, lost their job and sometimes described how they faced financial hardship because of this.

Supportive work environments were praised by employees who noted that this helped their experiences of the pandemic.

People also told us that having additional sick leave for COVID-19 meant they could stay home and recover, which stopped the virus from spreading further.

“Lost my job through the pandemic and I haven’t worked since. I think it pushed depression forward and I found it very hard to cope.”

55–64-year-old female, Manawatū-Whanganui

“I lost my job as the company I was working for dropped down to skeletal staff. Financially things were very tight and still are as we try to catch up.”

45–54-year-old Pākehā female, Waikato

Essential workers told us that being able to continue work meant they had greater day-to-day structure, as well as financial and job security. They also stated that they supported COVID-19 public health measures because they helped keep workers safe.

People said they would have supported allowing small food retailers to remain open during lockdowns, to help increase competition and reduce overcrowding at supermarkets. They noted that not allowing small businesses to stay open was unfair, as many of these businesses struggled, while larger businesses with similar products made large profits. It also meant that some people had to go to overcrowded supermarkets or travel further than they usually would to get food.

People suggested that businesses that promoted health should have been allowed to stay open, instead of liquor and fast-food stores.

People also commented that there should be consistent rules for businesses to operate safely, or thought that businesses should be able to create their own strategies to operate safely during a pandemic.

Others suggested that the term ‘essential service’ needed to be more clearly defined and communicated.

Essential workers, often supermarket staff, shared how they experienced poor behaviour and even abuse from the public while at work.

People told us that essential workers should be supported in any future health emergency with childcare, vaccine priority and good access to personal protective equipment (PPE).

“It was scary and weird, I was working in the supermarket as a checkout worker. I was hissed at, spat at, sworn at and completely abused by people who refused to do something as simple as mask up or physical distance. I was a 17-year-old girl being abused every shift by middle aged privileged people who refused to look at the bigger picture and keeping the community safe.”

18–24-year-old female, living in Hawke’s Bay during the pandemic

People praised supermarkets and access to food during the pandemic, often stating that contactless shopping and deliveries made grocery shopping easier. They also told us that they valued vulnerable people being able to access supermarket services before others or told us of their appreciation for the steps taken to limit the spread of COVID-19 in supermarkets.

However, more people were critical about supermarkets and access to food. They shared experiences of how they faced difficulties when trying to access groceries.

It was suggested that there should be rationing of goods and clear communication about how much stock is left in supermarkets, as this could reduce panic-buying and stock shortages.

Others suggested that some vulnerable people had difficulty ordering or receiving online grocery orders, and should have been better supported to do so.

“Living semi-rurally (over 10kms from the nearest supermarket – that does not offer delivery service) with a full-time electric wheelchair user, we found it extremely difficult to source groceries and household staples. We felt totally isolated, as there was no support service available within our small community. We relied on having to order food and goods online (at extra cost) so that I did not unknowingly bring the virus into the house by driving into town and shopping at the one and only supermarket. Milk was the hardest item to source along with bread.”

55–64-year-old Pākehā female

People, including business owners and those who benefited from this scheme, told us that the COVID-19 Wage Subsidy Scheme reduced financial stress and protected job stability.

It was noted that wage subsidies encouraged people to stay home from work, which helped reduce the spread of COVID-19.

People stated that wage subsidy schemes should be used during future pandemics, as long as they are set up fairly and in a way that people cannot easily take advantage of.

Others were critical of the wage subsidy scheme for creating too much public debt.

“I own a small business. […] The response from the government and the reassurance that they were doing the best for all of us helped. Once I understood what help the government were providing for people like myself, I felt that there were at least some options. Because the wage subsidy was so easy to apply for and came through so quickly, I was able to make sure that my family and employees would be okay. Many of my employees have young families to provide for. This enabled me to be able to cope with what was happening because none of us really knew where we were headed. It was uncharted territory.”

55–64-year-old male, Auckland

“We are a family of three. During the lockdown period we lost income significantly as my partner was earning base plus commission. As he was only earning the base, we had to claim financial hardship on our mortgage.”

45–54-year-old female, Wellington

People told us about how the COVID-19 pandemic put extra financial pressure on them and their households, or on New Zealanders in general, despite the Government supports available. Financial hardship due to the pandemic was difficult and stressful for people, some of whom sold assets or spent their savings in order to cope, setting them back financially.

People were grateful for the financial support they did receive from the Government, which they said helped with job security and helped avoid a personal financial crisis.

Some felt though, that trying to access financial support was stressful and involved too much paperwork. People also told us that eligibility criteria were too strict, stopping some people who needed help from getting it.

“My family was lucky to be able to work and study from home without hardship, especially when our broadband provider increased their upload speed.”

45–54-year-old male, Auckland

People told us how online tools allowed them to take part in important activities during the pandemic and remain useful now.

It was also noted that being able to shop online made the pandemic experience easier.

People told us they appreciated it was a privilege to have access to online tools during the pandemic.

Some people felt that more should be done to reduce the digital divide in Aotearoa New Zealand and ensure people aren’t left without access to the Internet during lockdowns.

People also noted that there should be plans for better use of technology in the delivery of public services during a pandemic.

“We do need to try to ensure supply lines are open, or learn as a country to be more self-sufficient.”

45–54-year-old Māori/Pākehā, Auckland

Some people stated that the country’s supply chains were harmed by the pandemic response. They also considered that supply chains remain insecure and need strengthening.

People told us that financial support for the tourism industry during the pandemic was important.

Others mentioned how they appreciated being able to travel within the country with fewer tourists, due to the border restrictions.

Many people pointed out that the tourism industry was seriously (and immediately) impacted by the pandemic, and that many tourism businesses did not survive the pandemic.