Plight of small businesses big worry

Small business owners in the central business district have been flooding the Canterbury Employers Chamber of Commerce with inquires for help and advice.

The chamber's chief executive, Peter Townsend, said their immediate worries were how they would pay staff when they had no access to their businesses in the central city which was in lockdown. Most affected were retail and hospitality businesses.

The future of the central city retailing area was of deep concern.

"To have them just die would be a travesty," Townsend said. "The whole future of the city depends on these guys."

The three issues occupying small employers were access to their businesses, cashflow and employer obligations.

Chamber phones had been running hot all day. He had decided to evacuate the chamber's office late yesterday afternoon after several after-shocks.

Townsend said owners could access their buildings in the CBD if they got a pass from the Civil Defence authorities. But owners should not enter a building if it had not been cleared for entry by authorities.

Owners, whether they were in the CBD or not, had to ensure their buildings were safe before they and their employees entered. Townsend said this was the responsibility of the owner and employer. He urged businesses to look at the chamber's website which would set out their responsibilities. The site is cecc.org.nz and the tag moving across the screen is "Earthquake.The next 48 hours".

Townsend said big businesses in Canterbury would have the resources, information and grunt to weather the crisis. "These small guys are really struggling. Part of it is they are not getting into their buildings. This will be the straw that breaks the camel's back."

Townsend will be involved in local recovery plans which would look at all the options to try to ensure sustainable business activities in Christchurch and Canterbury.

He hoped to discuss options such as a type of subsidy or "dole", or some sort of help to keep small businesses going so they could get back on their feet. Business representatives would be working with local government and government on those matters, he said.

Meanwhile the large trading banks have announced packages for small business. They have similar offerings.

BNZ is offering to business, agriculture, property and private clients up to $500,000 temporay overdraft for 90 days subject to insurance.

The interest rates would be the wholesale rate rather than the higher retail rate, BNZ managing director Andrew Thorburn said.

It was also setting up a new facility for 90 days offering $100,000 for short-term needs, such as paying suppliers and employees. It was allowing housing customers temporary 90-day suspension of payments and allowing depositors to break term loans without penalties to get to cash they needed.

Kiwibank said customers who lived in the Canterbury area and had been affected by the earthquake would be offered a Canterbury quake care package which included three months' repayment holiday on loans and a $1000 overdraft or increase of $1000 to existing personal overdraft or revolving credit facility.

Westpac Bank said it was setting up a pool of $1 billion for rebuilding of the city and the local economy.

Chief executive George Frazis said it was available to all Christchurch businesses, not just Westpac customers, with establishment fees waived. Borrowers would have to meet Westpac's normal lending criteria.

ANZ and National Banks will also offer a special package of assistance for personal and business customers impacted by the earthquake. Similarly, they will suspend repayments on all loans for three months, waive fees associated with restructuring business loans considered necessary due to earthquake impacts, waive early withdrawal costs for term deposits, consider temporary adjustments to customer lending limits.

- © Fairfax NZ News