Business

Wage subsidy payments tourism heavy, with fewer large companies

16:33 pm on 8 October 2021

Far fewer of New Zealand's largest companies have been receiving government wage subsidies since the August Covid-19 alert level lockdowns began.

Photo: 123RF

Some large companies which applied for and received the subsidy last year, including retailers Briscoe Group, The Warehouse, and Fletcher Building, are absent from the latest payouts, which are dominated by travel and tourism companies.

Air New Zealand was leading the way with $26.1 million for about 7400 at the airline and its regional maintenance business.

Australian-owned rival Jetstar had received a more modest payout of $817,908 on behalf of 232 employees.

Auckland International Airport had so far been paid $1.1m and campervan operator Tourism Holdings received $843,314.

Other travel and tourism companies receiving support are casino company Sky City with $2.6m, and Wellington's James Cook Hotel at $860,263.

Business travel software business Serko had received support payments of $664,800.

Big hospitality and retail businesses have also reached out for support, including a payout of $7.2m to Restaurant Brands, which has the KFC, Carl's Jr, Pizza Hut and Taco Bell fast food outlets.

Also affected have been public hospitality companies Savor Group ($711,672) and Good Spirits Hospitality ($591,892).

The largest retailers are absent from the list, but some well known names have received large scale support.

Kathmandu received $1.2m, while Hallenstein Glasson received a total of $1.9m for its men's and women's clothing stores, $738,648 for Michael Hill Jeweller, with $945,224 for Turners car auction business.

Large privately owned retailers James Pascoe Group had receive a payment of $1.2m and another $1.2m for its Whitcoulls business.

Other companies to receive large payouts include publicly listed building products company Steel & Tube, carpet manufacturer Bremworth, and automation company Scott Technology.

Overall, the government has spent close to $4b in wage subsidies and other business support measures.