Day 23:

Are you ready to transition to Level 3?

We think it’s highly likely that we’ll move to Alert Level 3 next week.  For many of us, it won’t feel much different from Alert Level 4.  However, it will be 1 step closer to Alert Level 2, etc….  Are you ready? 

Business at Alert Level 3:

Extract from Morning Briefing TVNZ below:

Relief for some businesses
A large chunk of the workforce that’s been side-lined during lockdown will be back in business once the country does move to Level 3. People must still work from home if they can, but where that’s not possible, rules around physical distancing and contactless engagement apply. It means industries like building, construction and forestry can resume, which Stuff reports will allow tens of thousands of tradies to get back to work.

Retail businesses, hardware stores and restaurants can open, but only for online or phone purchases and contactless delivery or click and collect. The Restaurant Association says that’s a “lifeline” for their industry. They say while it’s not a full solution and won’t suit everyone, “it may help keep some businesses afloat where it is appropriate”.

Meanwhile, new data from Infometrics this morning shows
New Zealand’s economy could take up to two years to recover from the Covid-19 crisis. They predict the loss of international tourism alone will knock GDP by 5.2 percent, with unemployment averaging above 9 per cent next year and house prices falling 11 per cent.

What does this mean for you?  Have you prepared for life after Alert Level 4?

  • Can you work from home?  If yes, you must:
  • If not, can your workplace operate safely?  That is,
    • Can you keep 1 metre between workers?
    • You will need to record who is working together.  Do you have a system in place? 
    • Do you have a system to limit interaction between groups of workers?
    • Do you have a system for disinfecting surfaces, and maintaining high health standards?
  • Are you a retail or hospitality business? If yes;
    • Can you provide delivery and contactless pre-ordered pick up? (Remember, Customers can’t enter your premises);
    • Have you worked on your online presence? 
    • Are you geared up for online sales?
  • Are you a supermarket, dairy or a petrol station?  If so, you can continue as for Alert Level 4;
  • Do you provide services which offer face-to-face contact or sustained close contact?  Beauty therapist, hairdresser, massage therapist, house cleaner?  Unfortunately, you’re still unable to offer services at Alert Level 3.  But: are you staying in touch with your customers?  Do you have a plan for your business when you’re allowed to begin offering services again?
  • Are you a tradesperson?  You can begin trading again as long as you keep a 2 metre separation from your customers.  Are you ready?

Remember that hand washing, physical distancing, sneeze & cough etiquette, & wiping down surfaces is our best defence against the virus and keeping us all safe.

Tony Alexander, economist warned that the lockdown will be followed by a ‘weeding out’ period.  Businesses that haven’t planned to survive in changing times, probably won’t. 

We want you to survive.  Please, concentrate on your business & personal planning for life after Alert Level 4.  Remember, Cash is King.  (refer to our COVID19 Update 2 April 2020). You must be able to forecast more cash coming in to your business than going out over the next 12 months.  Are you prepared? 

Resources:

There are many resources available for businesses from a variety of sources:

Whanganui & Partners is providing valuable business support:

https://www.whanganuiandpartners.nz/covid-19

We also value the practical advice we’ve received from Bell Gully, & provide several links here:

https://www.bellgully.com/publications/covid19-preparing-for-a-change-in-alert-level-practical-tips-for-employers

https://www.bellgully.com/publications/covid19-tax-relief-measures-new-and-old

https://www.bellgully.com/publications/covid-19-government-announces-changes-to-lease-and-mortgage-laws

Take care and (hopefully) see you soon!

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