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The Social Welfare Minister says the government is particularly concerned for small businesses in the Canterbury quake zone.
Paula Bennett visited welfare centres last night and said the government wants to make sure individuals have income at this time of uncertainty.
She told TVNZ's Breakfast this morning that small businesses are the most vulnerable and are "doing it pretty tough at this time of the year anyway", especially coming out of a recession.
Bennett said the emergency $350-a-week wage subsidy for workers who aren't being paid because of the quake is designed to help maintain the relationship between employees and employers. She said the government hopes employers will top that up to their normal pay.
Most want to do good by their employees, Bennett said, but some have been "doing it very, very hard" and in some cases it might be a case of meeting halfway.
The subsidy is for businesses with fewer than 20 employees but Bennett said the government intends to be flexible and doesn't want bureaucracy to get in the way of the need that's there at the time. She said the package includes a pro rata payment for part time workers and they will pay a lump sum up front.
Bennett said there is a civil defence payment as well that goes to individuals particularly for this sort of event, but they can't receive both.
If businesses have got insurance they are expected to use that first.
The scheme will initially last four weeks and businesses can reapply after that.
The first point of contact is through Work and Income which in turn is working closely with the Chamber of Commerce. And Bennett encouraged people to use the 0800 779997 help line.
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.
Inland Revenue has also pledged to assist Canterbury customers concerned they might have tax or payment issues they need help with.
The IRD says it will take a sympathetic and realistic approach with businesses trying to get back on their feet and reopen their doors. There are also moves to give tax credits to individuals and tax deductibility to companies that donate cash to earthquake relief.
The IRD Disaster Response line is 0800 473 566.