Wage subsidies keep a business flying - Annual Report 2019/20
The Government introduced wage subsidies to provide financial assistance to employers and the self-employed as a result of COVID-19.
Employers and sole traders qualifi ed if their business took a downturn of at least 30 percent and they were faced with laying off employees, reduced hours or business closures. MSD administered this support.
Air Chathams was one of the many businesses grateful for this lifeline. As an airline, it was one of the fi rst businesses to be hit hard by COVID-19, even before lockdown was implemented. Its business model quickly became untenable.
They accessed the Wage Subsidy scheme quickly, helping them to retain employees.
"I want to take this opportunity to thank you and your colleagues for your swift and effi cient handling of our Wage Subsidy application," said Mark Roberts, Financial and Operational Support, Air Chathams Ltd.
The wage subsidies enabled Air Chathams to hold together a valued workforce and gave them breathing space to reassess business options, so once lockdown fi nished, they were ready to start operations again in a sustainable manner.
Wage Subsidy and Leave Payment
Up to 26 June 2020 1,705,436 jobs were associated with a paid wage subsidy or leave payment application.
"In our case, it (the Wage Subsidy) did what it was intended to do. We kept on people we would otherwise have had to let go," Mark Roberts said.
