Govt. needs to consider economic support for Bay of Plenty businesses

The Government needs to start putting together a financial support plan for businesses in the Bay of Plenty affected by the Rena oil disaster, the Green Party said today.

"It's now time for the Government to be considering financial support for those businesses directly affected by the oil spill," Green Party Co-leader Russel Norman said today.

"The rescue package can be similar to what happened in Christchurch where people lost their businesses and income due to a disaster outside of their control.

"The owners and insurers of the Rena need to ultimately pay for the costs of their gross negligence, but that process could take years to work through, so the Government needs to act and give people whose livelihoods are now on the line certainty about their futures."

The Bay of Plenty's fishing sector employed 303 people in 2006 and was worth $24 million in 2006. The Bay's tourism sector was worth considerably more at $435 million in 2009.

"Fortunately, the Bay of Plenty has a diverse regional economy, but the local fishing and tourism sectors will be hit hard by this disaster and compensation from the Government is entirely appropriate," said Dr Norman. -

Recap on the Canterbury Earthquake financial rescue provisions:

1. Earthquake Support Subsidy: A subsidy for employers who believe they are going to remain in business and want to keep their staff. $500 gross per week or $300 gross per week to cover part time staff for up to six weeks.

2. Earthquake Job Loss Cover: A $400 a week in the hand payment for a period of six weeks paid to fulltime employees, ($240 in the hand for part time employees). This applies to those who are unable to contact their employer or the business has closed permanently.