Rena package aims at front end only

A government subsidy for businesses affected by the Rena oil spill is aimed at the ‘front end' of the tourism industry in the Bay, says Chamber of Commerce CEO Max Mason.

The government subsidy capped at $360,000 is intended to keep about 120 people in employment.


'If you look at the criteria there's not that many affected, about 120 employees and the Work and Income investigations think it's about the same,” says Max.

'So that's the figure that's been put on it, but if things change the Ministry of Social Development says it can be looked at again.

'In many cases it's the smaller operators who will benefit more.

'The subsidy is about keeping staff, to retain them. The last thing we want is for companies to go under and then we lose that presence in the bay, and each one of them is an important business in its own right, not only commercial fishing but also for the tourism industry and supporting all those other industries.

'It's really important all those businesses keep going and that's the point of the government subsidy.”

While motels, retailers, and restaurants are all part of the mix, Max says people come to the Bay of Plenty either for the environment, the attractions or the activities.

'That's what they are going to do with most of their day, and that is the most important part of the tourism industry – those activities, what people come to do here in the first place,” says Max. 'And the beach of course is an important part of that.

'All parts of the tourism industry are part of the mosaic, and they support each other there's no question about that. But you do have to say that without the marine environment and how people interact with and engage with the environment, and the businesses that support them like the charter boats and the surf schools, there wouldn't be in industry and there wouldn't be all the down stream businesses.”

The loss of business caused by the Rena oil spill and exclusion zone has seen several Tauranga marine operators move or announce an intention to move operations to Whangamata.

Cancellations are coming through, says Max, and he's urging operators to try and retain contact with their customers, and ask them to wait a couple of weeks before making a decision final.

'There are unfortunately a fair number of businesses that are receiving cancellations for the summer. That's why we need to very quickly turn this thing around and get that oil off the ship and then really engage in a very strong ‘Our Beaches Are Clean' media campaign throughout the country and hopefully Australia as well.”
To be eligible for the subsidy announced by Social Development Minister Paula Bennett on Wednesday, the business must operate within or near the maritime exclusion zone. They will also need to be able to show they have already used any insurance cover and are unable to relocate their operation.

'From Monday, businesses that meet these criteria and have no other way to pay their staff can apply for the six week support package,” says Paula.

A $500 subsidy for full-time staff and $300 subsidy for part-time staff will be available for sole traders and businesses with less than 20 employees.

Economic Development Minister David Carter is encouraging businesses affected by the Rena grounding to connect with a range of services offered through the Chamber of Commerce, including business advice, mentoring and training options.

To apply for the Rena support package, businesses should call the employer helpline on 0800 778 008.

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1 comment

where do you draw the line

Posted on 04-11-2011 07:34 | By charob

with this package who decides who gets the subsidy and who dosent.if its good enuff for one its good enuff for everyone affected....... there ae lots of disasters in NZ and businesses that have been affected by these disasters, caused by humans or mother nature....... Do they get subsides. Its called life,thats what insurance is for, and if your business has been affected by the Rena grounding your insurance should cover it........... if the government is going to fork out every time then why bother paying our insurance premiums..............


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