Friday, March 29, 2024

Help too late for forest gangs

Neal Wallace
The Government’s $12.1 billion support package to help businesses deal with fallout from the covid-19 virus has come too late for an estimated 1000 laid-off forestry workers. Contractors warned weeks ago of the threat to jobs and businesses when the virus hit China but those who have already been laid off or forced out of business miss out on Tuesday’s package, Forest Industry Contractors Association chief executive Prue Younger said.
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“It is a shame it has been dragged out. 

“We were the ones to initiate the risk with contractors out of work five weeks ago.”

The Government’s package includes a $5.1b wage subsidy, equivalent to $585 a worker a week to a maximum of $150,000.

It also provides $100 million to redeploy workers who lose their jobs to move to areas where there is work, such as picking kiwifruit and apples.

Other measures include $126m to support those who are ill or have dependents who are ill and $2.8b in business tax changes to free up cashflow.

They include a provisional tax threshold lift, the reinstatement of building depreciation and writing off interest on the late payment of tax.

The leave and self-isolation package supports people unable to work because they are in self-isolation, are sick or are caring for dependents.

In the time it took the Government to respond to the risk to the forestry sector about 1000 jobs had been lost and an unknown number of contractors were forced out of business, Younger said.

It has virtually ground to a halt because of its reliance on the Chinese log market, which has been largely inactive for the last two months because of covid-19 and European competition.

The sector is trying to get other contractors to employ those who have lost their jobs to ensure the skill base is retained so Younger doubts many will seek redeployment.

Another anomaly is in the formula to determine the wage subsidy.

It is based on last year’s revenue but for Nelson forestry contractors that includes time spent fighting a major forest fire that affected their earnings.

Wage subsidy examples accompanying the Government’s package show an employer of a six-person logging crew could receive $42,117 as a lump sum, giving pay of just over $7000 before tax to each employee over 12 weeks.

The subsidy is available only to employers who have suffered or are projecting a 30% decline in revenue in any month between January and the end of June.

The kiwifruit industry is offering work to those in the tourism, hospitality and forestry sectors who have lost their jobs.

Horticulture NZ chief executive Mike Chapman said the redeployment aid could help his industry, which is facing a shortage of more than 1000 workers and with fewer than usual backpackers in the country to fill the void.

Federated Farmers president Katie Milne welcomed Tuesday’s package, saying it recognises the importance of small rural family businesses that rely on passing tourists.

The tax changes will be useful to small businesses but a commitment to prolong the visas of migrant workers would have helped farmers struggling to find workers.

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