We’re out of lockdown, and the 2020 budget was released
1. COVID-19 Alert Level 2
The lockdown has ended! No more isolation bubbles!
Most businesses are now open, although not necessarily back to “normal”. All businesses must operate under strict health and safety measures such as social distancing. One of the minor inconveniences is the necessity of businesses to keep some form of register (typically a record of name and contact phone number) to make tracing of possible infectious contacts easier if required.
Unlike in Australia, the government has not made any decision on employing an automated means of tracking movements and contacts. The issues of (a) privacy and (b) compliance have yet to be resolved to a satisfactory level. If community transmission remains extremely low or non-existent, then really there’ll be no need for any type of electronic tracking. There’s been no new cases for three consecutive days.
The hospitality sector has probably been faced with some of the most challenging requirements due to the requirements that patron must be seated, no buffet service, and only one waiter per table.
Bars can not open for another week, as there’s a concern that the lowering of inhibitions that often accompany alcohol consumption may lead to a spike in transmission of the disease. Some bars will no doubt make changes to what they offer so that food and not alcohol as the “principal purpose” of their business, thereby allowing them to open earlier.
Of course there are some aspects of the remaining restrictions that are perceived by a minority as being unnecessary and in some cases part of a long-planned scheme to create a “new world order”. One restriction in particular has bee singled out by the Christian fringe as being a plot by the government to destroy religion in general and Christianity in particular.
One of the restrictions is that no event can have more than 100 participants. However some events are more restricted. For example, weddings and funerals were to be restricted to 10 persons, but the funeral directors association provided evidence to the authorities that they could manage saftey requirements for larger groups. Consequently, funerals can now de up to 50 people, while weddings are still limited to 10.
Religious services are also limited to a maximum of ten people, and extreme Christians claim that as sports events and other venues can accomodate 100 people, the limit of 10 for religious services is a deliberate and targetted attack on religious freedom.
More reasonable religious leaders acknowledge that in many ways, religious events more closely resemble social gatherings where social distancing will be difficult to manage. Social gatherings are limited to a maximum of ten people due to the increased chance of community transmission at such events.
2. The Budget
The other significant event was the release of the government’s budget for the 2020/2021 financial year. It’s involves spending at an unprecedented level, Whereas the Labour government typically runs with a surplus (7 billion last year) it will occur a 20 billion dollar deficit over the next year. The government has allocted 50 billion dollars specifically for pandemic recovery – 30 billion has been allocated and a further 20 billion for future demands due to
While 50 billion dollars may not seem much compared to the recent 2 trillion package in the US, it can be put into better perspective by measuring the deficit against our GDP. The deficit will average 9.3% of the GDP over the next two years. It’s not expected that debt will return to pre-covid levels until 2028.
A significant outcome of the current pandemic is that it will necessitate a major restructure of our economy, not because of the shutdown but because of the changes occurring in world economy. I don’t think anyone has a crystal ball that can predict when or even if tourism will return to pre-pandemic levels. It’s an industry that employs one in eight Kiwis, and in the short term, it’s going to need intensive care if it is going to survive at all, and if it does survive, it’s only going to be a shadow of its former self catering for the domestic market for years to come.
The government predicts unemployment to reach 10% by the end of June and not return to pre-COVID-19 days until 2022.
Some perspectives of the NZ budget:
Newshub: Budget 2020: Where the Government is spending big to rebuild New Zealand after coronavirus
New Zealand Herald: Budget 2020: Government’s Covid 19 wage subsidy scheme extended by 8 weeks, now up to $14b
Scoop: Welfare Or Warfare? Military Spending In Budget 2020
The Guardian on MSN: New Zealand budget: Robertson lays out $50bn plan to return jobs to pre-Covid-19 levels
The New Your Times: New Zealand Unveils Record Spending to Stop Massive Job Losses