Editorial: Widen help's scope

OPINION: For the first few days after Saturday's earthquake, most people concentrated on their personal circumstance – counting their blessings that there were only two injuries attributable to the tremor, comforting one another, assessing the damage to their homes.

Now, as people begin to gather their wits and regain some composure, attention can be paid to the longer-term impact of the disaster. Houses will have to be rebuilt, of course, and people accommodated in the meantime. But as well as that, and of vital importance to the future of the city and the region, business will have to resume and it will have to do so quickly. This will take a major effort and will require assistance and forbearance from other businesses around the country and from the Government. This will have to come swiftly.

Already, after five days in which they have been able to engage in little or no trade, many businesses, particularly smaller ones, will be feeling the financial pinch. The day of the quake itself, trade in the region plummeted by more than 30 per cent compared to a normal Saturday. Those figures cover the whole province and clearly understate matters for the quake-affected area and particularly for those in hard-hit places. The central business district, to take just one area, was for the first three days after the quake, closed by the authorities so no trade at all was done and even after people were allowed back in, many shops and offices remained closed and the area has been moribund.

For smaller businesses, typically operating on their weekly cashflow, such a blow to trade could be fatal. The Government has already moved commendably promptly to try to alleviate the situation, with $15 million being made available to business employing 20 or fewer people to tide them over a part of their wage bill. The quick establishment of the scheme this week, along with the required information and application forms on the Work and Income website, can only be praised. But this must be just the beginning of the kind of help that will be needed. For one thing, although those employing 20 or fewer make up the bulk of business, bigger concerns are a sizeable segment of the city's economy and if they are uninsured for loss of business they are likely to need it too.

It is heartening that major banks have indicated they will be understanding towards quake-affected businesses. ANZ New Zealand has already provided emergency loans to cover wages and replace perishable stock, and Westpac has spoken of making as much as $1 billion available for rebuilding for which it would waive loan-establishment fees. Other such help, by utility companies, for instance, allowing a month's moratorium on payments without costs or penalties, would bring some respite for many people.

Quite apart from the damage that has been caused, the quake and the continuing alarming aftershocks have dented many people's general confidence. Fatigue and stress are taking their toll on people and it is to be expected many are going to be more cautious about spending. For businesses, as for individuals, a return to normality is clearly going to take a while. In the meantime, businesses, like individuals, will need all the help they can get.

- © Fairfax NZ News