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Damage to buildings in central Christchurch - Source: ONE News -
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The government has stepped in with an emergency $350-a-week wage subsidy for workers who aren't being paid because of the Canterbury earthquake, a move Prime Minister John Key says could cost up to $100 million.
As buildings were being demolished and others condemned in Christchurch today, Key said it was vital to try to ensure employees stayed with their companies during the crisis.
The wage subsidy is for businesses with fewer than 20 employees which can't trade or pay their workers because of earthquake damage.
It will initially last for four weeks and businesses can re-apply after that.
Key said up to 5000 businesses could fit into the category and up to 77,000 employees could be eligible for the subsidy.
It could end up costing the government "anything from $15 million to $100m", he said.
Businesses with more than 20 employees haven't been entirely ruled out and Key told ONE News that the scheme was flexible.
"If they can't make payments (to their staff) they can come in and see us," he said.
"The most important thing is we're trying to make sure that employees stay with their companies, they won't have to register with Work and Income, and the relationship will be maintained."
Social Development Minister Paula Bennett was with Key in Christchurch to announce the wage subsidy.
"This is a deliberately fast response because small businesses are particularly vulnerable at this time," she said.
"We are determined to help them get through the worst of it."
The government is hoping employers will top up the subsidy to help their workers get through.
Earlier today Key updated Parliament on the Christchurch situation before flying to the stricken city with senior ministers and Labour leader Phil Goff.
MPs from all parties were united as they pledged support for the people of Canterbury after Key had told them words were "hopelessly inadequate" to reflect the pain, stress and suffering that had been caused by Saturday's quake.
"We are focused on solving their problems and putting party
politics to one side," he said.
"In the end...what will be left are a lot of people who live in
Canterbury who genuinely are fearful of the experience they've gone
through.
"We must encourage all of them to recognise the trauma they are suffering and not be afraid to reach out and to seek support."
Goff also said it was not a time for party politics.
"I think it's time for the whole country to pull together," he said.
"I think the authorities on the ground and the government are taking the situation really seriously...what I have seen on the ground has been really good."
Earthquake Support Subsidy facts:
- $350 per week gross wage subsidy
- Advance lump sum paid to employer
- Employer can 'top up' subsidy
- Backdated to date of earthquake
- Firms holding insurance cover for loss of earnings will be
expected to use this before accessing the wage subsidy.
Businesses can apply from this Thursday and will be paid within 24 hours.
Employers should call the government earthquake helpline 0800 779997
How do you rate the authorities response to the earthquake? Share your thoughts on the message board below:
Add a Comment:
Post new commentmusopete said on 2010-09-10 @ 12:47 NZDT: Report abusive post
Go the Kiwi battler! Hold ya heads high.
Australianne said on 2010-09-10 @ 11:40 NZDT: Report abusive post
2nd that about the light font...it is difficult to read. Just wanted to say I'm so proud of NZers for the way in which they've pulled together in such a uniquely Kiwi way. No other country (even Australia) comes close to that! Well, maybe Australia comes close, but still, Kiwis lead the world in their kind-hearted attitude in the face of disaster.
H said on 2010-09-10 @ 10:24 NZDT: Report abusive post
Would love to comment but the comments are displayed on this website in such a tiny, light coloured font that they're virtually unreadable.
SSAMA said on 2010-09-10 @ 07:38 NZDT: Report abusive post
CD has done a great job in difficult circumstances - difficult to get up to date info to people without power. Website I have found most useful for info is the TVNZ live updates - great that it is updated regularly and the info is generally accurate. Well done TVNZ
Australianne said on 2010-09-09 @ 20:31 NZDT: Report abusive post
Given that TVNZ is probably a world leader in their ability to keep us all informed after the earthquake, CD has done an ok job. But note, that is 'ok', not 'wonderful'. CD should link up with TVNZ and learn how to get that info out in a timely manner! This is more a pat on the back to TVNZ than having a go at CD. I'm sure they have lots of other duties keeping them busy. Keep it up guys. Well done.